3 FTSE Shares Hitting New Highs: Dunelm Group plc, ICAP plc and Persimmon plc

Dunelm Group plc (LON: DNLM), ICAP plc (LON: IAP) and Persimmon plc (LON: PSN) climb on up.

| 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 FTSE 100 (FTSEINDICES: ^FTSE) is creeping back up today, gaining 33 points to 6,455 by mid-afternoon on the back of last-minute US rises on Friday, with banks and other financials leading the way as the City awaits the conclusion of the Lloyds Banking Group story. And while we’re still some way from a new record, the FTSE is slowly heading back in the direction of its 13-year high of 6,876 set in May.

Which individual companies are reaching new 52-week highs. Here are three from the various indices doing it today:


Dunelm Group (LSE: DNLM) closed Friday on a 52-week high of 1,108p, and is down just a smidgen from that at 1,012p this afternoon. And it’s easy to see why, as the soft-furnishings retailer last week told us it expects full-year pre-tax profit in the order of £108m, after sales rise by 12% to £677m and margins strengthened.

So, we should be seeing earnings per share growth of significantly better than the 13% being forecast by the pundits before the announcement. After accounting for the upgrade, the shares are still likely to be on a P/E of 20 or more — but double-digit earnings growth for six years in a row has to be worth more than the FTSE average, right?


Shares in ICAP (LSE: IAP) also hit a new high on Friday, of 407.4p, taking them up nearly 30% on the year. The wholesale broker saw adjusted earnings per share fall 18% for the year to March 2013, after pre-tax profit slumped 20%. But it’s a volatile business, and there’s a small earnings rise forecast for the current year, putting the shares on a pretty undemanding P/E of about 11.

But what really makes ICAP worth a further look for me is its dividend. It was help at 22p per share for 2013, and it’s currently forecast to come in about the same level again for March 2014 — and that would represent a 5.6% yield on the current share price.


Housebuilder Persimmon (LSE: PSN), a constituent of the Fool’s Beginners’ Portfolio, is our third for today, with its shares more than doubling to a 52-week record of 1,289p. With the availability of mortgages slowly improving, helped by the Government’s Help To Buy scheme, the whole sector has been going through something of a resurgence.

What does the future hold? Well, forecasts of a rise in earnings of close to 25% put Persimmon shares on a P/E of nearly 18. But the housing recovery is barely underway, and 2014 expectations drop that to a market average of 14. More to come? I think so.

Finally, if you’re looking for high-performing top-drawer shares that should take you all the way to a comfortable retirement, I recommend the Fool’s special new report detailing five blue-chip shares. They’ll be familiar names to many, and they’ve already provided investors with decades of profits.

But the report will only be available for a limited period, so click here to get your hands on these great ideas — they could set you on the road to long-term riches.

> 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

Midnight is celebrated along the River Thames in London with a spectacular and colourful firework display.
Investing Articles

Nvidia shares hit a new high after record earnings. Is there a lot more to come?

Nvidia stock smashes expectations, as quarterly profit soars 600%. It's time for a 10-for-one stock split too, as it reaches…

Read more »

Abstract 3d arrows with rocket
Investing Articles

Scottish Mortgage shares rise following FY update! Time to buy?

Scottish Mortgage (LON:SMT) shares were closing in on 900p today after a positive full-year report from the giant FTSE 100…

Read more »

British Isles on nautical map
Investing For Beginners

It’s time! Here’s my FTSE 100 hit list for the general election

Jon Smith outlines the potential reaction for the FTSE 100 from the upcoming general election and the main stocks he's…

Read more »

Investing Articles

National Grid reveals £7bn rights issue and the share price plunges – should I invest now?

The National Grid share price has dropped almost 10% and a dividend cut is looming, but it may be a…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

Nvidia stock is becoming more affordable!

Nvidia stock is up 2,500% over five years, but the chip giant’s share split -- announced during its earnings report…

Read more »

Investing Articles

Are Rolls-Royce shares good for passive income?

Our writer is getting mixed messages about the Rolls-Royce dividend. But whatever happens, he thinks passive income hunters will be…

Read more »

Investing Articles

Could the Rolls-Royce share price end 2024 above £5?

As the Rolls-Royce share price continues its remarkable run, our writer considers where it might be at the end of…

Read more »

Investing Articles

UK stocks are hitting all-time highs! Yet these 2 still look cheap to me

The FTSE 100's on a roll. But it's still possible to pick bargain UK stocks, provided we know where to…

Read more »