These FTSE plays are making headlines today! Should you buy?

Royston Wild looks at the investment case of three Monday newsmakers.

| 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.

Storage giant Lok’NStore Group (LSE: LOK) touched fresh two-month highs in start-of-week business after releasing solid financials.

The company announced that revenues at its core self-storage business rose 5.2% during the 12 months to July, with self-store unit occupancy advancing 2% in the period.

The space provider’s document storage unit also enjoyed a massive bump in fiscal 2016. Revenues galloped 11.1% higher from the prior year, with the number of stored boxes and tapes rising 8.7% and 14.2% respectively.

And Lok’NStore is confident that its busy acquisition programme should keep revenues rolling. The company described trading at its new outlets like Maidenhead, Reading, Aldershot and Chichester as “excellent,” and the firm is due to open owned stores in Wellingborough and Gillingham, as well as managed stores in Hemel Hempstead and Broadstairs by the end of 2017.

A predicted 34% earnings rise leaves Lok’NStore on an elevated forward P/E rating of 23.3 times. But I believe the company’s brilliant bottom-line momentum merits such a premium.

Pollster set to surge

Research specialist YouGov (LSE: YOU) also bounced higher following decent financials of its own on Momday. Indeed, the stock was last changing hands at record peaks above 190p.

YouGov advised that trading for the 12 months to July 2016 is expected to top previous expectations, the firm enjoying “another year of double-digit revenue growth well ahead of the global market research sector with the proportion of revenue derived from data products and data services continuing.”

The business added that sales in the US and the Middle East had expanded strongly, while it had also benefitted from sterling weakness during the past year.

I believe YouGov’s rising success in international markets should keep its terrific growth story rolling, and I also believe a forward P/E rating of 23.8 times — created by a predicted 14% earnings rise — is fair value.

Secure a fortune

Support services group Interserve (LSE: IRV) completed the set on Monday, the shares recently 3% higher on the day and dealing at levels not seen since early June.

Interserve announced it had secured an extension to its existing two-year contract with the BBC for the provision of security services. The company’s First Security division has provided the Beeb’s muscle across the country since April 2014, and the extension will come into play from 2017.

Naturally, as with many other firms, Britain’s decision to exit the EU in June has cast something of a pall over Interserve’s long-term outlook.

Still, I believe the stock’s diversification across a wide range of industries, allied with its ability to keep grinding out high-level contracts, makes it an attractive investment destination. And it’s particularly so at current share prices — at the moment Interserve deals on a meagre forward P/E rating of 4.8 times, and carries a market-beating 8.1% dividend yield.

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.

Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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 »