3 Smart-Money Growth Stocks: Unilever plc, Standard Chartered PLC & BT Group plc

Unilever plc (LON: ULVR), Standard Chartered PLC (LON: STAN) and BT Group plc (LON: BT.A) offer a potent mix of growth and value

| 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.

Cash

With the FTSE 100 close to its all-time high, you may be struggling to find stocks that offer strong growth prospects at a reasonable price. With that in mind, here are three well-known FTSE 100 companies that appear to tick those boxes and could, as a result, make a positive contribution to your portfolio return.

Unilever

It’s been a positive year for investors in Unilever (LSE: ULVR), with the consumer goods company seeing its share price rise by 6% since the turn of the year. Partly as a result of this, its price to earnings (P/E) ratio has expanded somewhat so that it now sits at 20.4, which could lead many investors to deem that its shares are overpriced. However, Unilever has traded at much higher ratings in the past and, after a ‘wobble’ earlier in the year when the sustainability of the emerging market growth story caused sentiment to weaken, it could be in the midst of a more upbeat period.

Certainly, its long term future looks highly appealing and, as soon as next year, Unilever looks set to deliver earnings growth of 9%. This, as well as the potential for an even higher P/E, could mean that the stock continues its upward trajectory for a good while longer.

Standard Chartered

Unlike Unilever, Standard Chartered (LSE: STAN) has endured a challenging 2014. Shares in the Asia-focused bank have fallen by 10% since the turn of the year, with a fall in profit of 20% for the first half of the year being a key reason for this. In addition, until recently the possibility of a fine was dampening sentiment somewhat, which has at least partly contributed to 2014’s disappointing share price performance. However, shares in the bank continue to offer a potent mix of growth and value. They trade on a P/E of just 11.2 and the bank is forecast to increase its bottom line by as much as 10% next year. As a result, Standard Chartered could prove to be a smart buy.

BT

BT’s (LSE: BT-A) fight with Sky for the rights to screen UK sports appears to be in its infancy. Indeed, Sky is taking the threat seriously, as shown with its potential acquisition of Sky Italia and Sky Deutschland. However, BT seems to be making headway in the battle, with its earnings all set to increase by 7% next year despite the initial investment that is required to gain access to the highly lucrative sports TV market. In addition, shares in BT trade on a P/E of just 13.2, which is below the FTSE 100’s P/E of 13.8 and this shows that they could be subject to an upward rating adjustment moving forward.

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.

Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended shares in Sky, and owns shares of Standard Chartered and Unilever. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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 »