3 More FTSE 100 Shares Trading Near 52-Week Highs: J Sainsbury plc, Wm. Morrison Supermarkets plc And Centrica PLC

J Sainsbury plc (LON:SBRY) and Wm. Morrison Supermarkets plc (LON:MRW) and Centrica PLC (LON:CNA) are all trading within 4% of a high for the last year.

| 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.

J Sainsbury

J Sainsbury (LSE: SBRY)(NASDAQOTH: JSAIY.US) continues to grow, capturing market share from its rivals, particularly Tesco.

The shares are up 14% so far in 2013 and are 20% ahead of where they were 12 months ago.

The most recent trading statement from the company revealed a 34th quarter of successive growth. Market share was reported as 16.8% higher.

Earnings per share (EPS) is expected to increase 5.4% this year. The dividend is expected to rise 3.6%. If Sainsbury’s can meet these forecasts, then the shares are priced at 12.4 times profits and come with an expected yield of 4.4%.

More growth is expected next year, pushing the P/E to 11.6 and a forecast dividend yield of 4.6%. That leaves the shares looking fairly priced to me.

Wm. Morrison Supermarkets

While Sainsbury has been increasing market share recently, Wm. Morrison Supermarkets (LSE: MRW) has been losing out. The company has taken steps to address this, launching an online venture with Ocado and purchasing sites for a convenience offering. The share price rises suggests that they are gaining investors’ confidence.

Morrison shares are up 11% so far in 2013. Most of that rise has been delivered in the last three months.

The shares today remain at a discount to the rest of the market. Morrison’s trades at 11.1 times last year’s profit. A small decline in earnings is expected this year. The dividend is forecast to increase to give a 4.3% yield. If the new initiatives can turnaround the company’s trading then I would expect the shares to continue heading higher.


Shares in utility giant Centrica (LSE: CNA)(NASDAQOTH: CPYYY.US) are 19% ahead in 2013 and today stand at an all-time high.

Analyst profit exepectations have been steadily rising since June. The improved sentiment has produced a double-digit share price rise inside three months.

Analysts are today expecting an 8.2% earnings increase this year, accompanied by a 5.7% dividend increase. The shares are today trading at 14.1 times this profit forecast and come with the prospect of a 4.4% yield. Further growth is expected next year, pushing the P/E to 13.3 and the yield to 4.6%.

Our team of analysts believe that they have identified an even better income share available today. They have prepared an in-depth report, outlining what makes the company “The Motley Fool’s Top Income Share Today”. Their report is totally free and you can start reading today by clicking here.

> David does not own shares in any of the above companies. The Motley Fool has recommended shares in Morrisons.

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

Young Caucasian woman at the street withdrawing money at the ATM
Investing Articles

If I’d put £5,000 into Santander shares 1 year ago, here’s how much I’d have now

Santander shares have outperformed over the past 12 months, leaving this Fool wondering if he should add the bank stock…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

55% below its all-time high, this growth stock doubles up as a value investment

Oliver says Kainos Group is one of the best technology growth stocks on the British market. He says the growth…

Read more »

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

Is the Lloyds share price high enough now?

Fundamental measures suggest the Lloyds Banking Group share price is too low. Here are some reasons why it might stay…

Read more »

Hand is turning a dice and changes the direction of an arrow symbolizing that the value of an ETF (Exchange Traded Fund) is going up (or vice versa)
Investing Articles

1 simple Vanguard ETF could turn £500 per month into £54,159 in annual passive income

Ben McPoland explores how investing just a few hundred quid in an ETF can lead to a substantial passive income…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

As the Rolls-Royce share price falls, has a big correction just started?

Is the Rolls-Royce share price heading for a 20% fall? Or is there a new 20% rise on the cards?…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

£20,000 in a new ISA? Here’s how I’d target a lifelong second income

We'd all love a second income. Just something to make life that bit easier, or to help us navigate challenging…

Read more »

Investing Articles

Billionaire Bill Ackman has more than 10% of his FTSE 100-listed fund in this top growth stock

Bill Ackman’s FTSE 100-listed investment fund Pershing Square Holdings has delivered big returns recently. Here’s a look at one of…

Read more »

UK money in a Jar on a background
Investing Articles

Here’s how I’d invest £10 a week to aim for £191 a month in passive income

Stephen Wright outlines how he’d invest in dividend growth stocks over a long time to aim for significant passive income…

Read more »