Why Royal Dutch Shell Plc, Domino’s Pizza Group PLC And Spirent Communications Plc Should Lag The FTSE 100 Today

Royal Dutch Shell Plc (LON: RDSB), Domino’s Pizza Group PLC (LON: DOM), and Spirent Communications Plc (LON: SPT) are all hit.

| 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.

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.

After a few days of dithering, the FTSE 100 (FTSEINDICES: ^FTSE) has hit full-on panic mode today, dropping 99 points (1.6%) to 6,205 by mid-morning. The ongoing political crisis in Portugal, after two key ministers have resigned in the wake of public opposition to austerity measures, has spread fresh euro-fears, and the latest data from the Chinese economy is not encouraging.

Which shares are being hit the hardest? Here are three from the various FTSE indices that are feeling the pinch:


It’s actually a bit early to tell if Royal Dutch Shell (LSE: RDSB) shares will beat the FTSE down today, but at the time of writing they’re running neck-and-neck with a loss of 33p (1.5%) to 2,151p. The only news actually looks good, with the oil giant has announcing the success of an exploratory well at Vicksburg in the Gulf of Mexico — maybe that part of the world just spreads fear amongst oil investors, or more likely the drop is just part of today’s general panic.

Shell shares are down around 5% so far over the past 12 months, but they’re on a forward P/E of only 8 with a 5.3% dividend yield forecast.

Domino’s Pizza

A second-quarter pre-close update sent shares in Domino’s Pizza Group (LSE: DOM) down 44.5p (6.7%) to 624p, despite total UK sales rising by 11.7% to £147.6m and like-for-like sales gaining 6.1%. Online sales are up too, and now account for 63% of the firm’s total UK deliveries. In other countries things also seem to be going well, with like-for-like sales in Ireland up 4.9% in the quarter, and in Switzerland up 6.2% — and the firm’s recent entry into the German market looks to be going well.

Forecasts for the full year suggest a 12% rise in earnings per share, but that does put the shares on a P/E of 28 — and even if that’s perhaps justified by future prospects, growth shares often do lead the sell-off when macroeconomic or political panic hits. Second-quarter and first-half results should be with us on 30 July.


Spirent Communications (LSE: SPT), the provider of communications analysis technology, told us today that trading in its second quarter was “mixed” — orders were up by 10% in the quarter, but revenue is expected to be down around $26m to $92.7m. And that comes after a fall in revenues in Q1 too.

All in all, it was enough to send the share price down 5.5p (4.2%) to 129p. The shares are now down more than 20% over the past 12 months, though current forecasts still put them on a forward P/E of nearly 19. Spirent’s interim figures are due on 1 August.

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that’s offering a 5% yield and which could be set for some nice share price appreciation too?

It’s the subject of our BRAND-NEW report, “The Motley Fool’s Top Income Share For 2013“, which you can get completely free of charge — 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

Young woman holding up three fingers
Investing Articles

7%+ yields! 3 FTSE 100 and FTSE 250 dividend stocks I’d buy to target HUGE passive income in 2024

Good news! These UK blue-chip shares (including one from the FTSE) offer some of the biggest dividend yields on the…

Read more »

Young black colleagues high-fiving each other at work
Investing Articles

Here’s one 7.5% yielding income stock I’d snap up in a heartbeat!

Sumayya Mansoor explains why this income stock looks too good to miss out on, and why she’d buy the shares…

Read more »

2024 year number handwritten on a sandy beach at sunrise
Investing Articles

Should investors look to buy REITs for passive income in 2024?

Shares in real estate investment trusts have rallied as consumer defensives have started to fade. Where should passive income investors…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

This impressive growth stock has slumped 16% in days! Time to buy the dip?

It’s always interesting when a growth stock drops. This Fool takes a closer look at this high flyer to find…

Read more »

An airplane on a runway
Investing Articles

I missed the Rolls-Royce share price at 40p. Should I buy now at 300p?

The Rolls-Royce share price is up 220% in the last 12 months. So is the FTSE 100 turnaround stock now…

Read more »

Man smiling and working on laptop
Investing Articles

3 high-dividend UK shares I think are too cheap to miss!

These FTSE 100 and UK small-cap shares offer excellent all-round value. Here's why I'm looking to buy them for my…

Read more »

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

Could this cheap 7% yielding FTSE 250 stock soar in 2024?

This FTSE 250 stock has experienced mixed fortunes this year, but could the New Year bring better tidings? Our writer…

Read more »

Black woman using loudspeaker to be heard
Investing Articles

Why these 5 FTSE 100 stocks have my attention!

Dr James Fox details the five FTSE 100 stocks that meet his value criteria. But what are they and what…

Read more »