Why Rolls-Royce Holdings PLC, Reed Elsevier plc And Halma Should Beat The FTSE 100 Today

Rolls-Royce Holdings PLC (LON: RR), Reed Elsevier plc (LON: REL) and Halma (LON: HLMA) climb on good news.

| 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 so far reversing the gains it has been making this week, and stands 44 points down on the day at 6,576 at the time of writing. But it has been lower today, dropping as far as 6,540 points just before midday, after a reversal of recent positive mining sentiment sent the sector down.

On a down day, what’s beating the FTSE? Here are three shares responding well to upbeat news:

Rolls-Royce

Rolls-Royce Holdings shares perked up 45p (3.8%) to 1,225p after the aero engine maker released good-looking first-half results. Underlying revenue soared by 27% to £7.32bn, with pre-tax profit up 34% to £840m. Underlying earnings per share rose 27% to 33.33p, and the firm upped its interim dividend by 13% to 8.6p per share.

The company told us that it needs to make more changes relating to costs and cash (though there was net cash on the books of £355m at the half-year stage), but chief executive John Rishton did say “Fortunately we have significant opportunities to improve both, but this will take time and firm resolve to deliver“.

Reed Elsevier

Information services firm Reed Elsevier (LSE: REL) was boosted by half-year results, with its share price gaining 25p (3.1%) to 826p — the firm told us that everything is on track. With underlying revenue up 2% to £3bn, adjusted operating profit came in 6% ahead at £870m, with adjusted EPS up 9% to 26.5p. The board has proposed an interim dividend of 6.65p per share, up 11%.

The return of cash to shareholders continues too, with chief executive Erik Engstrom telling us that “we intend to increase the scale of this year’s share buybacks to a total of £600m, approximately £200m beyond our expected full year gross disposal proceeds“.

Halma

Safety technologist Halma (LSE: HLMA) is our third riser, with a 12p (2.3%) share price gain to 535p by early afternoon. This time the driver was an AGM-day management statement, which told us that trading since the start of the financial year has been in line with expectations, after revenue grew by 13% on the same period last year. The firm also said that it will “continue to identify potential acquisition opportunities which meet our strategic and financial criteria“.

Halma share price is up 35% over the past 12 months, though after steady year-on-year earnings growth and two more rises in EPS forecast for this year and next, the shares are on a forward P/E of over 18. The dividend yield should be a little over 2%.

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.

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

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

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

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »

Investing Articles

Are HSBC shares a FTSE bargain? Here’s what the charts say!

There are plenty of dirt-cheap FTSE 100 banking stocks for investors to choose from today. Our writer Royston Wild believes…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Just released: Share Advisor’s latest ‘Hold’ recommendation [PREMIUM PICKS]

In our Share Advisor newsletter service, we provide buy, sell, and hold guidance for our universe of recommendations.

Read more »