Compass Group plc (CPG), ARM Holdings plc (ADR) (ARMH), GlaxoSmithKline plc (ADR) (GSK): 3 Shares to Gain From Powerful Global Trends

LONDON — The economic crisis has forced governments worldwide to consider how they can deliver services more efficiently. Frequently, they are turning to the private sector. Compass Group plc (LON:CPG) has been a major beneficiary of this trend.

Compass Group plc (LON:CPG)Compass Group plc (LON:CPG) first made its name as a large-scale caterer in food halls, schools, and company buildings. Compass Group plc (LON:CPG) now offers a considerable range of other services such as security, cleaning, and maintenance.

In the past five years, sales at Compass Group plc (LON:CPG) have increased at an average rate of 10.5% per annum. In that time, earnings per share have increased at an average rate of 22.1% a year.

Compass Group plc (LON:CPG) is forecast to deliver EPS and dividend growth of around 9% a year, this year and next.

Mobile computing boom
Mobile computing on smartphones and tablets is fueling major cultural change. It is going global and revolutionizing both industry and consumer behavior.

ARM Holdings plc (ADR) (NASDAQ:ARMH) is the world leader in the design of small, low-power computer processors. As more is expected from smaller devices, ARM Holdings plc (ADR) (NASDAQ:ARMH) has cleaned up.

In 2007, the year Apple Inc. (NASDAQ:AAPL) launched the iPhone, ARM Holdings plc (ADR) (NASDAQ:ARMH) made sales of 260 million pounds. Five years later, that figure had doubled. This growth saw the company increase EPS fourfold. BI Intelligence expects smartphone sales to increase 50% in the next two years. Mobile tablet sales growth is expected to be even higher.

ARM Holdings plc (ADR) (NASDAQ:ARMH) is forecast to grow earnings 70% this year and 30% in 2014. The shares today trade on a 2014 price-to-earnings ratio of 38.2 times forecast earnings.

Aging population
According to the U.S. Census Bureau, over-90s in America are 4.7% of all over-65s. In 1980, these ton-pushers were just 2.8% of the older population. In the U.K., a 45-year-old woman today can expect to live to 83 years of age.

As the world ages, its citizens’ health-care demands will grow. Pharmaceutical firms such as GlaxoSmithKline plc (ADR) (NYSE:GSK) are perfectly positioned to profit.

GlaxoSmithKline plc (ADR) (NYSE:GSK) is forecast to grow EPS 17.1% in 2013 and 10.1% next year. That puts the shares on a 2014 P/E of 13.7. The dividend is expected to rise 5.3% this year and 5.2% the next, equating to a 2014 yield of 4.7%.

The article 3 Shares to Gain From Powerful Global Trends originally appeared on

David O’Hara does not own shares in any of the above companies. The Motley Fool recommends Apple and GlaxoSmithKline and owns shares of Apple.

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