3 FTSE Shares For The Week Ahead: Hargreaves Lansdown PLC, easyJet plc And Ashtead Group plc

We’ll have updates from Hargreaves Lansdowne PLC (LON: HL), easyJet plc (LON: EZJ) and Ashtead Group plc (LON: AHT).

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The season for FTSE 100 companies reporting first-half results to the end of June is pretty much over, and we have a fairly quiet week for FTSE 100 news ahead of us. But we do have a couple of important updates coming, which you might want to keep an eye open for.

Here are two from the top tier and one large FTSE 250 company set to bring us tidings:

Hargreaves Lansdown, Wednesday 4 September

Wednesday is the day for final results from investment services firm Hargreaves Lansdown (LSE: HL), and we should be in for a pretty successful year. Back in February we heard of a 24% rise in first-half revenue to £140.3m and a 30% rise in pre-tax profit to £93.7m, both setting new records for the company. Assets under management were up 30% to £30.4bn, and the interim dividend was lifted 24% to 6.3p per share.

And if that wasn’t impressive enough, by the nine-month stage reported in April, assets under management had reached a record £35.1bn, up another £4.7bn in the third quarter. And year-to-date revenue was maintaining the earlier 24% gain. For the full year, City analysts are expecting a rise in earnings per share of around 30% and a hefty 66% boost to dividends — though that would only yield 2.6%.

The low dividend yield is a result of the share price soaring. Over the past 12 months it’s up around 60% to today’s 997p, and it has seven-bagged since late 2008.

Ashtead Group, Wednesday 4 September

Our FTSE 250 representative, Ashtead (LSE: AHT), is scheduled to release a first-quarter update on Wednesday. The equipment rental firm put in a pretty powerful set of results for the year ending 20 April, with revenue up 19% to £1.36bn and underlying pre-tax profit up a remarkable 87% to £247m. Underlying EPS gained 80% to 31.6p, and the firm declared a total dividend of 7.5p per share — that was more than twice the previous year’s 3.5p, but represented a yield of only 1.3%.

Can Ashtead improve on that? Well, the current consensus seems to suggest it can, with a 26% rise in EPS and an 8% dividend boost currently forecast, though a strong share price should drop the yield slightly.

At 642p the share price is around 130% up over the past 12 months, though it was a little higher in July before the FTSE started falling back.

easyJet, Thursday 5 September

It’s time for August traffic statistics from easyJet (LSE: EZJ) on Thursday, and what usually happens is that the budget airline announces better-than-expected figures and the share price surges further. But things were different with the release of July statistics last month — though the actual number of passengers rose 2%, the load factor dropped from 92.5% to 91.6%.

And the wheels have come off the share price growth a little since then. After peaking at 1,465p on 5 August, the price has since lost 16% to today’s 1,235p. It is still up 130% over the past 12 months, but it does show what can happen when a popular growth company comes in a shade behind optimistic expectations.

On a P/E basis the shares aren’t looking obviously too expensive, with a forward multiple of under 14 based on a full-year forecast for an EPS rise of 48%. That’s a little behind the FTSE’s long-term average of about 14, but some will see it as too high for a high-risk business like an airline, especially when it’s only paying a 2.4% dividend.

Finally, do you like having your investment returns boosted by dividends such as these? Dividends can be spent or reinvested according to your needs — whether you’re investing for income or growth, good old cash is always welcome.

And that’s why I recommend the BRAND-NEW Fool report, “The Motley Fool’s Top Income Share For 2013“, in which our top analysts identify a share that they believe will provide handsome dividend income for years to come.

But it will only be available for a limited period, so click here to get your copy today.

> Alan does not own any shares mentioned in this article.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »