The Motley Fool

3 More FTSE 100 Shares That The Market Hates: Royal Bank of Scotland Group plc, Antofagasta plc And Pearson plc

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.

Royal Bank of Scotland

Royal Bank of Scotland (LSE: RBS) (NYSE: RBS.US) shares have rallied recently as fears that the bank will be broken up have receded. In the last five trading sessions, shares in RBS are up 11%.

When the mood changes and bears become bulls, demand for stock lifts. The resulting buying pressure can push a company’s share price sharply higher.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

There is some evidence that this change is taking place. Forecasts for profits at RBS in 2013 and 2014 have increased in the last month. The shares trade on a 2014 P/E of just 8.9 times earnings.

I don’t care who hates the stock or how much they hate it. I expect to see more big gains from RBS shares before 2013 is done.


In the last year, analysts’ 2013 EPS (earnings per share) forecasts for Antofagasta (LSE: ANTO) have come down from $1.67 per share to $1.03. In that time, the shares have lost 26% of their value. It is no surprise, therefore, to learn that of all of the companies in the FTSE 100, Antofagasta is one of the least popular with City analysts.

Like all such companies, Antofagasta is a geared play on the market price of the minerals that it extracts. Antofagasta is overwhelmingly about copper. As expectations of economic growth in China have reduced, the price of copper has fallen hard.

Antofagasta shares today trade at 11.6 times consensus forecasts for 2013, with an expected dividend yield of 3.1%.


Solid EPS and dividend growth is expected at Pearson (LSE: PSON) (NYSE: PSO.US), this year and next. It is a surprise, therefore, to learn that analysts are reluctant to recommend that the shares be bought.

Anyone looking at Pearson shares needs to remember that only one quarter of Pearson’s revenues come from the Penguin and FT operations. The rest is educational services. Here, Pearson is plugged into a global trend for paid education services. This mix has protected shareholders from the worst of the recent downturn. For example, the group managed to grow net profits in 2008 and 2009.

Pearson share today trade at 15.5 times EPS forecasts for 2013, with a forecast yield of 3.9%.

Picking up shares ahead of a turn in sentiment can lead to big investment returns. For more ways that you can use the stock market to accelerate your wealth-building, check out the latest Motley Fool report “10 Steps To Making A Million In The Market”. This analysis is entirely free and will be delivered to your inbox immediately. Just click here to get your copy today.

> David owns shares in Royal Bank of Scotland but none of the other companies mentioned.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.