Why Vodafone Group plc, SSE PLC And Lamprell Plc Should Beat The FTSE 100 Today

Vodafone Group plc (LON: VOD), SSE PLC (LON: SSE) and Lamprell Plc (LON: LAM) are picking 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.

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 turning negative towards the end of the week, dropping 23 points to 6,612 approaching midday, after earnings from some tech stocks in the US disappointed the markets and with Southern European economies still looking shaky. But if the index of top UK shares can maintain its current level, it should finish on an up for the fourth week in a row.

With the FTSE falling, it doesn’t take much in the way of a rise to beat it. Here are three shares achieving that so far today:

Vodafone

Vodafone Group (LSE: VOD) shares picked up a little this morning, gaining just 1.7p (1%) to 193p, after continuing tough conditions in Europe took the shine of its first-quarter update.  Revenues from Northern and Central Europe dropped 3% on an organic basis, with Southern Europe seeing a fall of 14.4%. On the other hand, service revenues from emerging markets are continuing to grow strongly, with Turkey up 15.5% and India up 13.8%.

Chief executive Vittorio Colao told us that “Although regulation, competitive pressures and weak economies, particularly in Southern Europe, continue to restrict revenue growth, we continue to lay strong foundations for the longer term“.

SSE

We had a modest gain from SSE (LSE: SSE) this morning, with its share price up 7p (0.4%) to 1,628p approaching midday. The news today was of a new revolving credit facility for the company, of £1.3bn, provided by a group of 10 banks. The new deal replaces a current arrangement for £900m which was due to expire in August 2015, and will run until July 2018.

Overall, SSE shares have gained 15% over the past 12 months, and are on a forward P/E of under 14 with a 5.5% dividend forecast, and that seems like a pretty modest valuation for a company paying such a reliable dividend.

Lamprell

Another company responding well to refinancing news this morning was Lamprell (LSE: LAM), whose shares picked up 6.25p (4.3%) to 151.5p. The firm, which provides engineering services to the oil & gas industry, confirmed that it has signed an agreement to finalise a new secured banking facility — there are a few conditions, but those should be settled in the next few weeks.

Lamprell shares have recovered well since a slump late last year, and are currently around 20% up over 12 months. After a pre-tax loss last year, the firm is expected to return to a very small profit in 2013, with further forecast growth for 2014 putting the shares on a P/E of 11.

Finally, if you’re looking for investments 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. The Motley Fool has recommended shares in Vodafone.

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

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

4 penny stocks I’d love to buy for my Xmas stocking!

I'm hoping to buy these top penny stocks when I next have the opportunity. I think they could be some…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Why I believe the lagging FTSE 250 is a rare opportunity to buy cheap shares now

The FTSE 250 is showing some attractive numbers and they suggest some cracking value among businesses listed in the index.

Read more »

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

Is this FTSE 250 TV giant one of the best opportunities on the market right now?

A staple name among UK television lovers, this FTSE 250 stock has fallen substantially. Is it time to buy the…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Could this 2.5% yielding penny stock soar in 2024 and beyond?

This penny stock has struggled throughout 2023 but could the new year provide it with a much needed positive momentum…

Read more »

Number three written on white chat bubble on blue background
Investing Articles

Just released: the 3 best growth-focused stocks to buy in December [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Close-up of British bank notes
Investing Articles

With £500 I’d start a passive income portfolio with these UK shares

Owning shares in an established business can be a great source of passive income. And Stephen Wright thinks now is…

Read more »

Smiling white woman holding iPhone with Airpods in ear
Investing Articles

I’d buy these FTSE 100 and small cap stocks in 2024 to target a second income!

This FTSE share offers a 6% dividend yield and trades on a rock-bottom P/E ratio. Here's why I'll buy it,…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

Here’s one excellent FTSE 100 value stock investors should consider buying

Sumayya Mansoor explains why this packaging giant is currently in value stock territory and should be on investors radars.

Read more »