Why ARM Holdings plc, Inmarsat Plc, Reckitt Benckiser Group Plc, Shire PLC And Moneysupermarket.Com Group PLC Are Soaring

ARM Holdings plc (LON:ARM), Inmarsat Plc (LON:ISAT), Reckitt Benckiser Group Plc (LON:RB), Shire PLC (LON:SHP) and Moneysupermarket.Com Group PLC (LON:MONY) are all heading skywards.

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Despite a fall at the start of the month, the FTSE 100 has been picking up again over the past week, driven further towards that elusive 7,000 level by its high flyers. Here are five shares that are pushing the various indices up:

ARM

Back in October 2014 ARM Holdings (LSE: ARM) was looking significantly undervalued, at least relative to its own usually-high P/E ratings. Since then we’ve seen yet another impressive set of full-year results, with the number of ARM-designed chips shipped in 2014 up to 21.1 billion.

That helped trigger a rerating of the stock, and it’s since gained 49% to today’s 1,191p, bringing home a five-bagger for those who invested five years ago. More to come? I reckon so.

Inmarsat

Inmarsat (LSE: ISAT) shares had a year of going nowhere after analysts predicted falls in earnings for 2014 and 2015. The 2014 dip duly came to pass, but investors were buoyed by the longer-term outlook for the satellite communications firm, and the price has surged 39% since the end of October, to 936p.

The successful launch of the latest satellite in February has helped, and forecasts for this year and next have been beefed up, with a return to EPS growth penciled in for 2016.

Reckitt Benckiser

Reckitt Benckiser (LSE: RB) has been on a climb since mid-December, putting on 21% to 5,850p, largely due to a rerating of “safe” consumer stocks — Unilever has seen a similar rise.

The year to December was another good one, with a 4% rise in revenue producing a 4% rise in adjusted EPS for ongoing businesses, and the dividend was lifted a modest 2p to 139p per share. With forecast dividend yields at only 2.2% and the shares on a P/E of over 24, I think any undervaluation is now out.

Shire

Shares in pharmaceuticals and biotechnology firm Shire (LSE: SHP) took a big dip back in October when a takeover bid from America’s AbbVie was abandoned, and that produced a nice buying opportunity with the shares going on to pick up 49% to today’s 5,465p.

Full-year results supported the rise, with a doubling of reported EPS after total sales climbed 22%, and with the City’s analysts very bullish in their recommendations and Shire on a modest P/E for a growth share of 22, dropping to 19, this looks like a Buy candidate.

Moneysupermarket.Com

Moneysupermarket.Com (LSE: MONY) shares are up 53% since mid-October to 274p, boosted by a 14% rise in adjusted EPS for 2014 accompanied by a 10% rise in the dividend to 8p — that’s a pretty average 3.2% yield, but it’s climbing way faster than inflation.

CEO Peter Plumb told us the firm had more than 40 million customers in 2014, and with the ongoing pensions revolution in the offing I can only see that figure rising further this year.

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.

Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has recommended ARM Holdings and Moneysupermarket.com. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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