3 FTSE Shares Hitting New Highs: Lloyds Banking Group PLC, Kingfisher plc And ASOS plc

Lloyds Banking Group PLC (LON: LLOY), Kingfisher plc (LON: KGF) and ASOS plc (LON: ASC) climb high.

| 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.

Despite a hesitant start today, the FTSE 100 (FTSEINDICES: ^FTSE) is up 55 points to 6,627 by mid-afternoon, and looks like it’s heading for a fourth week-on-week rise in a row. It’ll take a bit more of that for the UK’s top-drawer index to regain the 13-year high of 6,876 it set on 22 May, but a few points a week will get it there in next to no time.

There are plenty of companies that don’t have to wait that long, of course. Here are three from the various indices rising to new highs:


How can a company get its shares to soar 130% to a new 52-week high? Well, one way is to first slump miserably, receive a bailout from taxpayers, and then painfully turn yourself round and back into profit. That’s the way Lloyds Banking Group (LSE: LLOY) did it, of course, with its share price hitting a new high today of 70.5p. In fact, it has trebled in the last year and a half, so you’d have done well to get in at the end of 2011.

Looking forward, there’s a return to a profit of about £3.2bn forecast for the year to December 2013, and the shares are now on a respectable P/E of 16. But what investors are clearly watching carefully is the government’s plans for returning the bank to private ownership.


Kingfisher (LSE: KGF) has had a fine year, with its shares up more than 40% to a 12-month high of 391p, with all of that gain coming since the start of 2013. The firm, which owns the UK’s B&Q and Screwfix brands together with a number of European outlets, recorded a fall in earnings per share (EPS) of 11% for the year to February 2013. And a Q1 update in May told us of falls in sales and profits, largely blamed on unusually cold weather.

But Kingfisher’s year is very much biased towards the summer season, and forecasts suggest a 6% earnings rise this year with a dividend yield of around 2.5%. That may be a fair valuation, but to me it doesn’t look like a screaming bargain.


Online fashionista ASOS (LSE: ASC), it seems, can do no wrong as far as shareholders are concerned, and the price has been pushed up around 130% over the past 12 months to a record 4,516p this week. That makes the “crash” back from a peak of nearly £25 per share in 2011 look like just a blip on the share price chart now.

But high-growth companies like this are always hard to value, and though there’s a rise in EPS of more than 60% forecast for the year to August 2013, that does put the shares on a massive P/E of more than 90! To put that into perspective, earnings would have to increase more than six-fold to get the P/E down near the FTSE average of 14.

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

Investing Articles

If I put £20k into a FTSE 100 tracker fund, I’d get this as a second income

A lot of UK investors have money in Footsie trackers. Here, Ben McPoland explores how big a second income he…

Read more »

Investing Articles

2 FTSE 250 stocks I reckon could be savvy buys ahead of the next bull market

Our writer explains why these FTSE 250 picks could be shrewd buys now, as economic sentiment at present could mean…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

Will the Reckitt share price finally recover after announcing a major shakeup?

The Reckitt share price has climbed slightly higher today after somewhat positive news. But I wonder if it's enough to…

Read more »

Investing Articles

I could turn £20K into a monthly passive income stream worth £1,685!

This Fool isn't interested in leaving cash in the bank. She wants to invest to build a passive income stream…

Read more »

Investing Articles

After rising 43% in a month, is Oxford Nanopore now a top UK stock to buy?

Shares of Oxford Nanopore (LSE:ONT) have been surging recently. Is this a growth stock to buy for my portfolio after…

Read more »

Investing Articles

Is this a great opportunity for UK investors to buy Tesla stock?

Tesla stock slumped 7.3% in post-market trading. With the pound looking strong, our writer explores whether UK investors should think…

Read more »

Investing Articles

These boring but beautiful picks will always have a place in my Stocks and Shares ISA

Harvey Jones is building his Stocks and Shares ISA around seven FTSE 100 dividend stocks that should slowly reveal their…

Read more »

Investing Articles

This FTSE 100 stock has crashed nearly 70%! Would I be silly not to buy?

The share price of FTSE 100 icon Burberry is on the floor. But is now the time for this Fool…

Read more »