Want to see share price growth? I think these companies have the right ingredients to fly

first_img See all posts by Andy Ross Want to see share price growth? I think these companies have the right ingredients to fly If you want to see share price growth then often it’s better to go looking for that among smaller companies. For the largest companies, growth is possible, but it’ll often be slower.That’s why I’ll look at two shares from outside the FTSE 100 in this article. Mpac (LSE: MPAC) is a packaging company, and Computacenter (LSE: CCC) is an IT reseller.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Improving companyTurning our attention firstly to Mpac, this is a company that has been held back mainly by two factors. One is beyond its control — that’s investor perceptions of packaging and plastics. This shift has held back many packaging companies’ share prices. The second issue is a pension liability that has scared investors. It will likely be gone within the next couple of years, however.  There’s a lot of potential for the shares to move higher. They are only on a P/E of around eight. One catalyst could be its US acquisition. Mpac is paying $13m in cash for Switchback, a supplier of packaging machinery and automation solutions to the food, beverage and healthcare markets. The deal comes with a further earn-out consideration of $2m to be paid, depending on performance.Another boost for Mpac could be technology. In 2019 the group acquired Lambert Automation, an established automation solutions provider to the medical and consumer healthcare markets. The value of this technology doesn’t seem to be reflected in the share price, given how automation will be transformative to the industry in the coming years. The company’s share price hasn’t reacted strongly to positive updates from management. That indicates to me it could be a bit of a hidden gem that could see rapid share price growth in the next few years.Computacenter: strong share price growthWhen it comes to Computacenter, 2020 to date has been a very positive year. The share price has been buoyed by investor appetite for technology-related shares. Operating in the IT industry and benefiting from the rise in working from home, Computacenter has found itself in the right place at the right time.That makes the shares risky in some ways as they’re now on a P/E of nearly 26. However, I do believe the shares could rise further. Business is booming. In its half-year results last month, Computacenter revealed a 39.4% increase in first-half profit. Its interim dividend was lifted by 21.8% to 12.3p a share.The company has acquired Canada’s Pivot Technology for C$105.8m (£62m) to expand in the US and Canada. This could be a source of growth as the group has traditionally had the UK and Germany as its largest markets.The trends underpinning Computacenter’s growth aren’t going away. Companies are increasingly competing using technology and require the expertise of resellers to provide the best devices, software and other equipment. I think Computacenter has the right ingredients to fly and that’s why I think there will be significant share price growth in the coming years. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images. center_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Andy Ross owns no share 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. Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Andy Ross | Tuesday, 6th October, 2020 | More on: CCC MPAC last_img

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