2 rock-solid FTSE 100 growth stocks I'd buy today


Today I am scanning the FTSE 100 for brilliant growth shares I'd seize today.

Flying high

While TUI Travel(LSE: TUI), like the rest of the Footsie, has been smacked by waves of selling in recent sessions its decline has been much less severe.

Indeed, January's record peaks around £16.40 per share are still just a whisker away, meaning that TUI's market value remains around a third heavier than levels seen just 12 months ago. And it is not difficult to see why the business has avoided the worst of the recent washout.

The news flow from the leisure giant continues to impress, and in December it extended its long-term earnings estimates. It now forecasts underlying earnings growth "of at least 10%" through the next three years at least. These targets don't look like a stretch either given the robust economic backcloth in its key regions that should keep propelling traveller numbers higher.

Bright forecasts

City analysts certainly believe in TUI Travel's perky profits outlook and expect the business to indeed keep delivering strong double-digit earnings growth now and in the future. During the 12 months ending September 2018, a 10% bottom-line improvement is predicted. And things are expected to get better in fiscal 2019, a 13% profits advance currently being predicted.

Despite its perky earnings prospects TUI changes hands on a cheap forward P/E ratio of 14.1 times. This makes the travel titan too good to pass on, in my opinion, as does its vast dividend yield.

A payout of 71 euro cents per share is anticipated for this year, up from 65 cents in the prior period and yielding an impressive 4.1%. The dial leaps to 4.5% for next year too, thanks to an anticipated 79 cent reward.

Stateside star

Those seeking bubbly earnings and dividend growth also need to give Ferguson (LSE: FERG) a close look today.

The plumbing colossus has long been a great share for those seeking reliable profits expansion year after year. And expected rises of 6% and 13% for the years ending July 2018 and 2019 respectively indicate that this run likely has plenty more life left, as does Ferguson's progressive dividend policy.

Fiscal 2017's 110p per share payment is, according to City brokers, anticipated to leap to 114.6p in the current period, and again to 128.1p next year.

Dividends may not be spectacular but they certainly are handy, rocking in at 2.2% and 2.5% for this year and next. And they are also pretty well protected, with dividend coverage standing at 2.7 times through to the close of next year.

Ferguson has been a sharp faller in recent days but this represents a great opportunity for long-term investors to buy-in. A prospective P/E ratio of 16.8 times is too good to resist and may peek above the accepted value benchmark of 15 times, but the ample earnings opportunities created by its sturdy presence in North America make it worthy of such a premium.

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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.