Why ITV plc, BHP Billiton plc And RPS Group Should Beat The FTSE 100 Today

ITV plc (LON: ITV), BHP Billiton plc (LON: BLT) and RPS Group plc (LON: RPS) are all on the rise.

| 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 going nowhere this morning, just a point up on 6,484 by mid-morning. That comes after a hefty fall of 104 points yesterday, the index’s biggest single-day fall for two months. Perhaps ironically, the current bearish mood is largely due to good news, as strengthening UK and US economic indicators bring fears of an earlier-than-expected rise in interest rates.

In such skittish times, there’s not a lot of movement anywhere. But here are three shares from the various indices that stand a chance of beating the FTSE today:


ITV (LSE: ITV) has pleased shareholders with a rise of more than 80% over the past year, and today we saw a 1.4p (1%) gain to 158p as the TV producer and broadcaster is continuing with its debt repayments. After telling us it had repurchased £8.6m in convertible bonds on Wednesday, ITV today announced a further repurchase of £7.9m. To date, the firm has repurchased 37% of the initial bond amount, with a value of £84.7m outstanding.

ITV has actually had a great few years and has been lifting its earnings steadily, and it resumed dividend payments in 2011. For this year we have a 13% rise in earnings per share forecast, and the dividend yield is back up to 2%.

BHP Billiton

BHP Billiton (LSE: BLT) (NYSE: BBL.US) is currently subject to regulatory investigations concerning possible violations of applicable anti-corruption laws. And today, the miner updated us on the steps it is taking regarding the investigations, which appear to involve interactions with foreign government officials. The firm has handed what evidence it has discovered over to the U.S. Department of Justice, and we now hear that the Australian Federal Police have also started an investigation. We don’t know the details yet, but it has apparently got something to do with China.

Investors seem unfazed, however, and the shares rose 10.5p to 1,986p in morning trading, taking the price up nearly 20% since early July.

RPS Group

Shares in development consultancy RPS Group (LSE: RPS) picked up 2.7p (1.1%) to 256p this morning, after the company announced the acquisition of Canadian firm HMA Land Services. HMA is a consultancy “specialising in providing services for linear infrastructure projects“, apparently. Depending on certain operational conditions, the deal will cost up to £11.8m in cash, of which £4m is earmarked for repayment of debt.

RPS shares have had an erratic year and had been on a slide until late June, but the price has recovered since then and is close to 10% up over the past 12 months. We’re looking at a forward P/E of under 13, falling to 11.5 for 2014 forecasts, with dividends yielding around 3%.

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

7%+ dividend yields! Here are 2 of the best UK shares to consider buying in June

This Fool has been searching for UK shares with the best dividend yields. Here are two he thinks investors should…

Read more »

Investing Articles

5 FTSE 100 shares to consider buying for passive income right now

The FTSE 100 is having its best start to the year for ages, and that's pushing the top dividend yields…

Read more »

Investing Articles

One overlooked cheap share to tap into the year’s hottest theme?

This Fool describes the key things to think about when investing in copper stocks and analyses one cheap share to…

Read more »

Investing Articles

A cheap FTSE 100 stock that’s ready for a dividend hike in 2024

This banking giant is one of the FTSE 100's greatest dividend stocks. And at current prices, our writer Royston Wild…

Read more »

Growth Shares

Is the BP share price set to soar after Michael Burry invests in the firm?

Jon Smith takes note of a recent purchase from the famous investor behind The Big Short and explains his view…

Read more »

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

I’d focus on Kingfisher now after the Q1 report leaves the share price unmoved

With the share price near 262p, is the FTSE 100’s Kingfisher a decent investment now for dividends and business recovery?

Read more »

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

£500 buys me 493 shares in this 7.4% yielding dividend stock!

The renewable energy sector remains out of favour. As a result, there are some high-yielders around, including this dividend stock.

Read more »

Road trip. Father and son travelling together by car
Investing Articles

If I’d put £10k into Tesla stock 2 years ago, here’s what I’d have now

Tesla stock has fallen in the past few years. But the valuation looks temptingly low now, as we approach a…

Read more »