3 FTSE 100 Shares To Avoid Market Madness: AstraZeneca Plc, Wm. Morrison Supermarkets Plc And G4S Plc

Historic market statistics show that shares in AstraZeneca plc (LON:AZN), Wm. Morrison Supermarkets plc (LON:MRW) and G4S plc (LON:GFS) have been among those least affected by general market moves.

| 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.

AstraZeneca

Many of the products sold by pharma giant AstraZeneca (LSE: AZN)(NYSE: AZN.US) are non-discretionary — its consumers have no real choice over whether to purchase or not. This brings a high degree of visibility and certainty to sales and profits.

Those sales typically rise/fall independent of the wider economy.

These factors exert a double-whammy on steadying the company’s share price. The high dividend yield also provides an incentive to hold, rather than trade the shares.

However, there are some fears over AstraZeneca’s ability to develop new drugs.

AstraZeneca is forecast to pay $2.80 in dividends for 2013, out of $5.24 of earnings per share (EPS). That’s a 2013 P/E of 9.4, and a forecast yield of 5.7%.

Wm. Morrison Supermarkets

Whatever happens to the UK economy, food consumption rarely declines. In recent decades, this has made supermarket retailers a very solid investment. Their track record has inspired investor confidence in their shares. The result is that means they are less volatile than the average FTSE 100 company.

Shares in Wm. Morrison Supermarkets (LSE: MRW)(NASDAQOTH: MRWSY) have suffered in recent years as the company has lost ground to its rivals. However, the company now has an established unique fresh food offering and is finally moving into online and smaller store sales. The next two years’ results will have a huge effect on Morrisons’ stock market rating.

EPS is expected to dip slightly this year, putting the shares on a P/E today of 11.2. A healthy dividend increase is forecast, pushing the expected yield to 4.4%.

G4S

With over 620,000 staff, outsourcing specialist G4S (LSE: GFS) is one of the world’s biggest employers. The company provides a range of crucial services to governments and the private sector. Many of its customers are reliable payers and its contracts are frequently long term.

Despite these strengths, G4S has disappointed recently. The Olympic staffing ‘omnishambles’ damaged the G4S brand. This was followed by the company referring itself to the Serious Fraud Office amid accusations that it had been overcharging.

The shares trade today on a 2013 P/E of 13.5 and come with the prospect of a 3.5% dividend yield.

If you believe in G4S’ long-term prospects then you are in good company. The UK’s best fund manager, Neil Woodford is also a fan. If you would like to see what else Mr Woodford has been buying, the get the Motley Fool research report “8 Shares Held By Britain’s Super Investor” . This report is entirely free and will be delivered to your inbox immediately. Just click here to start reading today.

> 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

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

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

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »

Investing Articles

Are HSBC shares a FTSE bargain? Here’s what the charts say!

There are plenty of dirt-cheap FTSE 100 banking stocks for investors to choose from today. Our writer Royston Wild believes…

Read more »