Why Punch Taverns plc (LON: PUB), Greene King plc (LON: GNK) and Dechra Pharmaceuticals plc Should Beat The FTSE 100 Today

Punch Taverns plc (LON: PUB), Greene King plc (LON: GNK) and Dechra Pharmaceuticals plc (LON: DPH) are on the 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.

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.

sdf

The FTSE 100 (FTSEINDICES: ^FTSE) was briefly in positive territory this morning, before turning tail and shedding 23 points to 6,484 by mid-morning.

The big news from Vodafone didn’t provide the boost some might have expected, as shares in the telecom giant fell back a little this morning. And there was very little action elsewhere in the top London index — even the miners are showing a muted reaction to reports of rising Chinese demand.

But which shares are doing well today? Here are three names that are responding to good news and look set to beat the market today:

Punch Taverns

A full-year trading update gave Punch Taverns (LSE: PUB) shares a boost this morning, taking them up 6% to 13p.

The pub operator told us that average net income per pub was up 1.5% over the year, and though like-for-like net income was down over the year, it had pushed upwards in the final quarter. The firm had let 96% of its core pubs by the end of the year, slightly up on 94% a year previously, and has disposed of 433 pubs over the year for a total of £149m which was better than book value.

Executive chairman Stephen Billingham said: “We reiterate our previous expectations of net income growth in the core estate for the years ahead”, though analysts are still forecasting a further fall in annual profits next year.

Greene King

Boozers are in the news today, as shares in Greene King (LSE: GNK) gained 12.5p (1.5%) in early trading to 860p, and though the gain had dropped to just 1p by the time of writing, it’s still in with a shout of beating the FTSE today.

This time the driver was an interim update, telling us of a 4.6% like-for-like sales gain in the firm’s Retail division, with like-for-like Food sales up 5.7% and Accommodation up 6%.

The company told us: “There appear to be cautious signs of optimism in terms of recent UK macro-economic improvements. In turn, we are seeing indications of growing consumer confidence, which is reflected in our strong start to the financial year“, and said it expects to deliver “sustained earnings growth and attractive dividends“.

Dechra Pharmaceuticals

Full-year results gave Dechra Pharmaceuticals (LSE: DPH) a modest boost, taking the shares up 6p (1%) to 696p by mid-morning — they’re now up 40% over the past 12 months, though they were higher earlier in the year.

Following a year of restructuring, chief executive Ian Page said: “Dechra is now entirely focused on developing, manufacturing and marketing high margin, cash generative specialist veterinary pharmaceuticals and related products for global markets“.

So how did the numbers come out?

After a number of disposals, revenue from continuing operations rose by 52% to £189m, though revenue from discontinued operations amounted to £332m — total revenue rose by 19%. Underlying pre-tax profit from continuing operations gained 54% to £33.5m, with overall profit up 15%. Underlying earnings per share rose by 20% to 38.7p, and the dividend was lifted 14% to 14p per share.

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

UK financial background: share prices and stock graph overlaid on an image of the Union Jack
Value Shares

The BP share price is climbing – see how much £10k invested 1 month ago is worth now

It's been a tough few years for the BP share price. Harvey Jones examines whether the FTSE 100 oil giant…

Read more »

Santa Clara offices of NVIDIA
Investing Articles

Nvidia stock has soared 1,471% in 5 years. Here’s how I’m hunting for the next Nvidia!

Nvidia stock has put in a stunning performance over the past five years. This writer tries to apply some lessons…

Read more »

A young woman sitting on a couch looking at a book in a quiet library space.
Investing Articles

If someone decided to start buying shares with £10k a year ago, here’s what they could be sitting on now!

If someone had started buying shares a year ago with £10k, what might have happened? Our writer outlines some factors…

Read more »

Rolls-Royce's Pearl 10X engine series
Investing Articles

The Rolls-Royce share price is close to an all-time record. Could it still be a bargain?

The Rolls-Royce share price has been punching out the lights of late. Our writer thinks things could get even better…

Read more »

4 Teslas in a parking lot at a charger station
Investing Articles

The Tesla share price slips further — how much would £10k invested at the start of the year be worth now?

The Tesla share price remains under pressure, with risks mounting from multiple directions. Here’s what a £10,000 investment would be…

Read more »

British pound data
Investing Articles

The Ocado share price is a sea of red! Time to cut my losses?

Every time Harvey Jones checks out the Ocado share price, he sees red. Will it ever stop falling and leaving…

Read more »

Road 2025 to 2032 new year direction concept
Investing Articles

Over the next 5 years, I think these S&P 500 stocks will make me more money than a global index fund can

Edward Sheldon believes that these two high-quality S&P 500 growth stocks have the potential to beat the market over the…

Read more »

British union jack flag and Parliament house at city of Westminster in the background
Investing Articles

Over the last 2 years, this investment trust has doubled the FTSE 100 index’s return

Here are three key reasons why our writer reckons this high-quality investment trust from the FTSE 100 index is worth…

Read more »