Why easyJet plc, Dixons Retail PLC And Go-Ahead Group plc Should Beat The FTSE 100 Today

The FTSE 100 (FTSEINDICES: ^FTSE) opened in an uncharacteristically upbeat fashion today, but by mid-morning it has settled back to just 17 points up on the day at 6,492. The banks are up a bit, ahead of a Bank of England meeting that is not expected to make any changes, and indications of economic recovery are strengthening.

A number of shares are responding positively to news this morning. Here are three from the FTSE indices having a good day:


When easyJet (LSE: EZJ) released July passenger statistics, investors appeared less than impressed by a slightly falling load factor, and the shares dipped — but that often happens to high-flying growth shares when a bit of news comes in slightly less than glowingly optimistic.

But things are back on track with August statistics released today, which show a 3.9% rise in total passengers for the month to 6.1 million and a load factor improvement from 91.7% to 92.8%. Over a rolling 12-month period, passenger numbers are up 4.1% to 60.5 million.

The share price responded with a 30p (2.5%) rise to 1,245p.

Dixons Retail

Dixons Retail (LSE: DXNS) has pulled off a pretty impressive recovery since the depths of the retail crisis, with its share price up around 130% over the past 12 months to 48p and forecasts of good earnings growth ahead of it.

That rise includes a 3.8p (8.5%) gain today, after Dixons announced a couple of disposals. The electronics retail chain has agreed to sell its ElectroWorld business in Turkey to Bimeks, and has an irrevocable offer from Germany’s Mutares A.G to acquire PIXmania S.A.S. in France.

Go-Ahead Group

Full-year results from Go-Ahead Group (LSE: GOG) pleased the market this morning, as shares in the rail and bus operator gained 55p (3.7%) to 1,530p — over the past 12 months, the price is up around 20% and slightly ahead of the FTSE.

The results, which were “slightly ahead of management expectations”, showed record passenger levels bringing in a 6% rise in revenue to £2.57bn. Pre-tax profit did fall, by 8% to £86.2m, and adjusted earnings per share (EPS) fell 2.3% to 139.6p, but the dividend was maintained at 81p per share.

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