The Motley Fool

Why Capita PLC, CRH PLC And MITIE Group PLC Should Lag The FTSE 100 Today

The FTSE 100 (FTSEINDICES: ^FTSE) has started weakly today, dropping 16 points to 6,568 after weaker-than-expected GDP figures from Japan knocked some of the shine off last week’s news of rising factory output from China. European markets opened lower too, as we await the latest figures from the eurozone economies.

A number of FTSE companies have seen their prices fall today. Here are three that are failing to keep up.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Capita

Shares in outsourcing and recruitment firm Capita Group (LSE: CPI) dropped 9p (1%) to 1,008p this morning, despite the news that it has been appointed as a servicer to Ireland’s National Asset Management Agency. The contract will commence this month, and should be worth around €80m (£69m) over the next four years.

Though down a little today, Capita shares are up 40% over the past 12 months. But that has driven the forward P/E, based on forecasts for the year to December 2013, up to 18, and there’s only a modest dividend yield of 2.5% expected. Still, Capita has shown healthy earnings growth over the past five years, and more of the same could justify a high rating today.

CRH

Buildings materials group CRH (LSE: CRH) announced an acquisition in India this morning, but that led to a 23p (1.6%) share price fall to 1,448p. My Home Industries, a joint venture owned 50% by CRH, will acquire Sree Jayajothi Cements for an enterprise value of 14 billion rupees (€175m), with the deal being financed through a combination of debt and equity.

CRH shares are up almost 20% over a year, but we have seen very erratic earnings in recent years, and forecasts put the shares on a forward P/E of 21 with a dividend yield of 3.7%.

MITIE

It’s a poor day for outsourcing companies today, with MITIE Group shares losing 6.7p (2.4%) to 269p, even though a trading update this morning told us the firm “has made a positive start to the year” and that it “continues to see good opportunities across its markets“. In fact, of the revenues budgeted for the current financial year, 89% had already been secured by 30 June.

With the shares flat over the past year, forecasts put the shares on a P/E of 11. But the key attraction of MITIE is its dividend — it’s been steadily rising for years, and is predicted to be up again this year for a yield of 4% — and it should be more than twice covered.

Finally, you can compensate for the day-to-day ups and downs of share prices by looking for reliable dividends. So how would you like a company that’s offering a 5% yield and which could be set for some nice share price appreciation too?

All you need to do is get a copy of our BRAND-NEW report, “The Motley Fool’s Top Income Share For 2013” — it’s completely free of charge, but it will only be available for a limited period. Click here to get your copy today.

> Alan does not own any shares mentioned in this article.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Where to invest £1,000 right now

Renowned stock-picker Mark Rogers and his select team of expert analysts at The Motley Fool UK have just revealed 6 "Best Buy" shares that they believe UK investors should consider buying NOW.

So if you’re looking for more top stock ideas to try and best position your portfolio in this market, then I have some good news for your today -- because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.