Why Lloyds Banking Group PLC, Hikma Pharmaceuticals Plc and AGA Rangemaster Group Plc Should Beat The FTSE 100 Today

Lloyds Banking Group PLC (LON: LLOY), Hikma Pharmaceuticals Plc (LON: HIK) and AGA Rangemaster Group Plc (LON: AGA) start the week well.

| 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 continuing its downward slide today as panic spreads that the world’s economies might just have to start standing on their own feet before too long — we await words later from the US Federal Reserve, with tapering of stimulus measures expected to be on the agenda. By early afternoon the index of top UK shares was down 31 points on the day at 6,423, and down 77 points on the week so far and looking like putting in its third losing week in a row.

It doesn’t take much to beat the FTSE on a day like today, and here are three from the various indices that are managing it:

Lloyds Banking Group

Lloyds Banking Group shares gained a modest 0.4p (0.6%) to reach 74p after the firm announced the sale of assets worth £504m. What’s being offloaded is German life insurance business Heidelberger Lebensversicherung for approximately £250m, and a portfolio of leveraged loans for £254m — though there could be a further £2m from the loan portfolio in six months if certain conditions are met.

The disposals come as part of Lloyds’ non-core asset reduction, and the cash raised will help boost the bank’s core tier 1 capital ratio.

Hikma Pharmaceuticals

Hikma Pharmaceuticals (LSE: HIK) shares climbed 15p (1.4%) to 1,105p to set a new 52-week record, after the company announced “exceptionally strong first half results“. With revenue up 19.9%, profit attributable to shareholders soared by 82.1% to $73.6m, and adjusted earnings per share gained 156% to 61.6 cents.

The Hikma board responded by boosting the interim dividend from 6 cents to 7 cents per share, and announced the payment of a one-off special dividend of 3 cents per share.

AGA Rangemaster

AGA Rangemaster Group (LSE: AGA) shares also reached a new record today, after interim results sent them up 5.5p (5.3%) to 109p. With chief executive William McGrath telling us that “The tide is turning, the mood amongst our customers is better and there is a buzz about our new products“, the firm reported revenue slightly up at £119.5m with operating profit flat at £1.5m. There’s a pre-tax profit after pension charges expected for the full year, and the firm currently carries net debt of only £6m.

Even with the shares up 50% over the past 12 months, they’re still trading on a forward P/E of a relatively modest 13, falling to under 11 based on 2014 forecasts.

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

I reckon these 2 penny shares are hidden gems worth a closer look!

Some penny shares are well-known, whereas many others go under the radar, but that doesn’t necessarily mean they aren’t potentially…

Read more »

Investing Articles

Just released: our 3 best dividend-focused stocks to buy before August [PREMIUM PICKS]

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

Read more »

Investing Articles

2 FTSE 100 shares with blockbuster yields investors should consider buying

Our writer has noticed that these FTSE 100 shares offer mammoth dividend yields, and reckons investors should take a closer…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Down 36% and yielding 7.8%, is this FTSE 250 share a bargain?

Christopher Ruane looks at a FTSE 250 share with a sizeable dividend yield and a recent record of dividend growth.…

Read more »

Investing Articles

Is Barclays one of the FTSE 100’s best bargain stocks?

Right now, Barclays' shares are cheaper than those of FTSE 100 rival stocks Lloyds and NatWest. So should I buy…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

Is a takeover offer about to boost the Rentokil stock price, and should I buy?

The Rentokil share price is up 10% on takeover rumours. Is it a stock to buy or one to be…

Read more »

Investing Articles

Here’s my Rolls-Royce dividend forecast for 2024-27!

Our writer considers whether the Rolls-Royce dividend might be reinstated in coming years, based on financial performance and stated payout…

Read more »

Investing Articles

What would I do if Rolls-Royce shares plunged 50%? History suggests a big decline is coming

While Rolls-Royce shares have delivered massive outperformance in recent years, they also have a history of significant declines.

Read more »