With a warm summer on the approach, many of us will be jetting off to the beach and in the process benefitting low-cost airlines such as EasyJet. In May the group reported its first ever pre-tax profit at the interim stage. Investors should also note that EasyJet is now trading on a 2016 PE ratio of 12, which is slightly better than average for its sector. Investors should note that the company’s operating profit margin and return on capital employed have both doubled over the past four years and its prospective dividend yield has risen to 3.4% – one of the best in its sector. Some analysts also believe the company will pay further special dividends in the near future. With favourable prospects on the horizon, we think that EasyJet is a hot pick for the summer.

Marston’s

Investors in this leading brewing and pub retail company will be reassured that Marston’s have had a good year so far, with a 2% rise in underlying interim pre-tax profits. Investors should also note that the interim dividend was lifted by 4%. The company currently plans to open a further 25 sites this year, whilst significantly reducing its pension deficit. In the summer months the group is likely to benefit from the improving UK economy with rising wages and higher disposable incomes. The company operates 1630 pubs in the UK and aims to increase sales by enticing visits to its outdoor/garden establishments over the summer months, weather permitting. Investors will hope to see signs of consumer spending alongside the longer, warmer days of summer, as this will to have an impact on the group’s overall revenue.

Sports Direct

As a key retailer for the British summer, Sports Direct is a nationwide provider of swimwear and outdoor exercise clothing. With around 432 stores under the Sports Direct brand, the group also operates 27 gyms. Investors should note that the group has a current target of 10-15% earnings growth per annum by expanding overseas into higher margin premium segments, which looks achievable. Growing international sales, lack of competition in the area and a new strategy to be in all key European markets by 2018 makes Sports Direct one for investors to watch this summer.

Photo-Me International

A leading provider of automatic photo booths, and thus passport photos, Photo-Me should certainly be feeling the heat this summer. The company is confident that a significant proportion of future revenue will come from its futuristic photo booths and in-store systems. The group is also expanding its laundry machines outside supermarkets after trials in France and Belgium. A trading update in February reported a 12% rise in third quarter profit and with the net cash position continuing to improve, the group has stated its intention to increase the dividend by 30% in the current financial year, which should please investors. Current successes include a move into carwashes and geographical expansion. This summer higher risk investors should benefit from exposure to Photo-Me.

Unilever

As the parent company of a wide range of consumer products, including Ben and Jerry’s ice cream, Unilever has ownership of over 400 brands. Although the group has experienced a recent slowdown in the growth in many emerging markets, a prolonged period of summer sunshine might give its sales a welcome boost. Investors will appreciate that the shares have outperformed the market over the past year, and the 2016 price/earnings ratio of 20.4 is slightly above the market average. The prospective dividend yield of 3.3% is reasonable and expected to rise well ahead of inflation over the next couple of years. With a diverse range of seasonal brands, and plans to expand, the Unilever group is a top pick for the summer.