These top growth shares could help you retire earlier
Finding shares with high growth potential may not be all that difficult at the present time. After all, the prospects for the world economy remain generally upbeat, and this means that trading conditions in a number of different sectors may prove to be positive.
However, finding shares with strong growth outlooks at the right price could be more difficult. With that in mind, here are two shares which seem to offer strong growth potential that could help to bring your retirement date a step closer.
Impressive outlook
Reporting on Friday was UK manufacturer, recycler and distributor of innovative window, door and roofline PVC products, Eurocell(LSE: ECEL). The company's performance in 2018 has been in line with expectations, and it remains on track to deliver on its forecasts for the full year.
In its Profiles division, new account wins in 2017 and a strong performance in new-build have had a positive impact on sales growth. In Building Plastics, the company's growth has been driven by the branches that were opened last year.
Eurocell has continued to make progress on its strategy. It is seeking to implement initiatives to shorten time to break-even in its branch network. It will open up to 15 new branches this year, while also aiming to build market share. Additionally, it continues to explore acquisitions, as well as the potential to expand its recycling capability.
Looking ahead, the company is forecast to post a rise in its bottom line of 7% in the current year, followed by further growth of 8% next year. It trades on a price-to-earnings growth (PEG) ratio of 1.3, which suggests that it could offer upside potential. And with a dividend yield of 4.1% from a payout that is covered 2.2 times by profit, its income return could be relatively impressive in the long run.
Consistent growth
Also offering a bright total return outlook is distribution and outsourcing specialist Bunzl(LSE: BNZL). The company has a solid track record of growth, with its bottom line having increased in each of the last five years. During that time, its net profit has risen at an annualised rate of over 10%, which suggests that it has a sound business model.
Acquisitions remain a central part of its growth strategy and with what seems to be a solid balance sheet, further progress in this area could be ahead.
With Bunzl expected to continue to generate positive earnings growth over the medium term, it appears to offer an attractive outlook. While the FTSE 100 has gained over 6% in the last month, the reality is that volatility could return over the coming months. Brexit talks are set to ramp-up, and this could affect investor confidence in the near term.
As such, with the company having what seems to be a stable business model that offers dependable growth, it could be a popular choice for long-term investors.
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Peter Stephens 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.
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