Budget flyer easyJet(LSE: EZJ) is a share I have liked for a very long time now.
Things haven't exactly been rosy over at the Luton business in recent times, having said that, a situation that has led to two heavy profits falls in the past couple of years. Not only has easyJet been smacked by the impact of recent terror attacks across Europe on traveller appetite, but the effect of sterling's steady slide, allied with intense competitive pressures, have also served to smack the bottom line.
But things are finally looking up for the FTSE 100's orange-liveried lovely. EasyJet's leading position in the low-cost segment, a market that continues to grow at a terrific rate, has been helped by a slew of rivals going to the wall in the past several months. This should help ease the need for the industry's major players to continue slashing the cost of their tickets.
Meanwhile, easyJet's desire to keep boosting capacity as well as the number of routes it operates also promises to deliver perky profits growth. The business shifted a record 80.2m passengers in the 12 months to September 2017, up 9.7% year on year, and the rapidly-improving economic backdrop across the continent promises to keep demand from holidaymakers as well as from travellers smoking nicely.
So City analysts are expecting easyJet to bounce back into profits growth with a 16% rise in fiscal 2018. And this creates a forward P/E ratio of just 15.2 times, a brilliant level upon which to latch onto the flyer's exceptional long-term growth outlook, in my opinion.
Build a fortune
I would like to look at another share that, like easyJet, could make you a fortune in the years ahead: John Laing Group (LSE: JLG).
In a bright end-of-year update the infrastructure giant advised that total investment commitments have clocked in at £340m in the year to date, smashing its original goal for 2017 of £200m. The FTSE 250 firm advised that the result underlines the strength of its pipeline of investment opportunities across its three key regions of Asia Pacific, Europe and North America.
The company estimated that total realisations should be around £256m for this year, also smashing to smithereens its prior target of £200m.
And John Laing has struck an upbeat tone looking ahead, advising: "The pipeline of new investment opportunities remains strong in both PPP and renewable energy, especially in Australia, the US and Canada." The company added that it is part of nine shortlisted PPP bids due to reach financial close either next year or in 2019, five of which are in North America and four are in Europe.
Now while the business is expected to endure a 34% earnings fall in 2017, it is expected to get the bottom line moving higher again from next year (a 12% advance is currently anticipated). And I am confident that John Laing's broad geographic and sector footprint should lay the foundation for sustained profits growth as global infrastructure spending grows.
In my opinion a forward P/E ratio of 7.9 times makes it a steal right now.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.