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.

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) 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

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 »

Close-up of British bank notes
Investing Articles

Here’s how much I’d need to invest in dividend shares for £500 a month in passive income

Our writer explores how much he’d need to invest in FTSE 100 dividend shares to generate an attractive second income…

Read more »

Investing Articles

The Rolls-Royce share price won’t stop rising. Am I missing out by not buying?

It's been an exceptional year for the Rolls-Royce share price and this Fool fears he's been missing out. But is…

Read more »

Chalkboard representation of risk versus reward on a pair of scales
Dividend Shares

An 8%+ yield? I need to be careful with this dividend forecast

Jon Smith explains why the dividend forecast for a stock is appealing, but it doesn’t necessarily tell the full story…

Read more »

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

2 UK gold stocks I’d buy as bullion prices hit new record highs!

These gold stocks are soaring as prices of the precious metal take off again. Here's why I'd add them to…

Read more »

Investing Articles

These two FTSE 100 stocks are on the rise – is now the time to buy?

As the mining sector enjoys a boost from China, this Fool UK contributor has his eye on two promising FTSE…

Read more »