While the FTSE 100 may have enjoyed a long period of growth, there are still a number of stocks that appear to offer growth at a reasonable price. With the world economy continuing to grow at a relatively fast pace, the prospects for a number of shares seem to be positive, in spite of rising valuations.
Since the age at which the State Pension is paid is set to rise, and it amounts to little over £8,500 per year, FTSE 100 shares could be a sound means of boosting an individual’s retirement savings. With that in mind, this large-cap share could be worth buying for the long run.
The stock in question is online takeaway ordering service Just Eat(LSE: JE). The company’s popularity has continued to grow as the market for the online ordering of restaurant deliveries has increased. Improved technology is one reason for this, with mobile ordering becoming simpler. And with the company investing heavily in its technology, further improvements in this area could be ahead.
While the prospects for consumers in the UK may be slightly uncertain, Just Eat’s international focus means that its business model is diverse. This could help it to overcome a period of weak consumer confidence, which is currently present in the UK.
Of course, takeaway ordering services may be more resilient than many investors realise. Consumers looking to save money on discretionary expenses may trade down from visiting a restaurant to a takeaway, and this could further boost the company’s performance during an economic downturn.
With Just Eat’s shares trading on a price-to-earnings growth (PEG) ratio of 1.3, they seem to offer a wide margin of safety. As such, now could be the right time to buy them for the long term.
Also offering capital growth potential over the coming years is premium remote meetings company LoopUp(LSE: LOOP). The business released interim results on Wednesday which showed that revenue increased by 39% to £12m during the first six months of its financial year. Adjusted operating profit was up 79% to £0.9m, with the financial performance benefitting from the acquisition of MeetingZone for £61.4m in June.
The outlook for the business remains upbeat. It’s seeing strong demand for its product from a target market that is largely made up of mid-to-large enterprises and professional services firms. The group’s entry into the Australian market has so far been successful, while overall net growth in the company’s long-term, established customer base suggests that its future prospects are bright.
With LoopUp forecast to record a rise in earnings of 114% in the current year, and the stock trading on a PEG ratio of just 0.3, the company appears to offer growth at a reasonable price. Therefore, while it has the potential to be relatively volatile, its share price could deliver high returns in the long run.
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Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has recommended Just Eat. 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.