The Motley Fool

Why Severn Trent Plc, Debenhams Plc and IG Group Holdings plc Should Beat The FTSE 100 Today

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.

Yesterday’s cheeriness appears to have worn off, and the FTSE 100 (FTSEINDICES: ^FTSE) is down 27 points to 6,596 approaching midday. The mining sector has not had a great time this morning, and the banks are also slipping on the day the government sold off a chunk of Lloyds Banking Group.

But some shares are on the up. Here are three from the various indices that look like beating the FTSE today:

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...

Severn Trent

Severn Trent (LSE: SVT) shares have been in the doldrums for a while, with fears that the regulator could end up cutting into the water company’s profits and dividends. But sentiment seems to have returned recently, after the latest round of price-setting has been accepted reasonably happily by both parties, and the price has been recovering.

Up 60p (3.4%) today to 1,818p, the shares have now put on 129p (7.6%) in just over a week. Although there is a forecast drop in earnings this year, analysts are still confident enough to predict a 4.6% dividend yield this year and 4.9% next. But is a forward P/E of nearly 20 a bit too high? It could be.

Debenhams

Shares in Debenhams (LSE: DEB) picked up 1.2p (1.2%) to 104p this morning, after a trading statement ahead of full-year results told us of a 2% rise in like-for-like sales over the year with a 1.9% gain in the last 10 weeks. Total sales are up 2.5% over the year and 2.1% in the final period.

Modernised stores apparently performed well, and online sales are up by a very nice 46.2%. There was, however, a note of caution from chief executive Michael Sharp, who said “Looking forward, we are confident in our strategy but are not expecting any rapid recovery in consumer sentiment and the marketplace remains highly competitive“.

Results are due on 24 October.

IG Group

Spread-betting specialist IG Group Holdings (LSE: IGG) saw its shares gain a modest 5.5p (0.9%) to 600p, on the release of a first-update for the quarter to 31 August. Overall revenue for the quarter is up 15% from the same period a year ago, to £93.6m. And although the firm’s number of active clients fell 5%, it enjoyed a 21% rise in revenue per client from the remaining 95%.

But we were reminded that last year saw a weak Q1 and a strong second half, so we should not assume too much about full-year expectations from today’s figures.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

> Alan does not own any shares mentioned in this article. The Motley Fool has recommended shares in Debenhams.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. 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 click below to discover how you can take advantage of this.