3 Smart-Money Growth Stocks: Unilever plc, Standard Chartered PLC & BT Group plc

Unilever plc (LON: ULVR), Standard Chartered PLC (LON: STAN) and BT Group plc (LON: BT.A) offer a potent mix of growth and value

| 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.

Cash

With the FTSE 100 close to its all-time high, you may be struggling to find stocks that offer strong growth prospects at a reasonable price. With that in mind, here are three well-known FTSE 100 companies that appear to tick those boxes and could, as a result, make a positive contribution to your portfolio return.

Unilever

It’s been a positive year for investors in Unilever (LSE: ULVR), with the consumer goods company seeing its share price rise by 6% since the turn of the year. Partly as a result of this, its price to earnings (P/E) ratio has expanded somewhat so that it now sits at 20.4, which could lead many investors to deem that its shares are overpriced. However, Unilever has traded at much higher ratings in the past and, after a ‘wobble’ earlier in the year when the sustainability of the emerging market growth story caused sentiment to weaken, it could be in the midst of a more upbeat period.

Certainly, its long term future looks highly appealing and, as soon as next year, Unilever looks set to deliver earnings growth of 9%. This, as well as the potential for an even higher P/E, could mean that the stock continues its upward trajectory for a good while longer.

Standard Chartered

Unlike Unilever, Standard Chartered (LSE: STAN) has endured a challenging 2014. Shares in the Asia-focused bank have fallen by 10% since the turn of the year, with a fall in profit of 20% for the first half of the year being a key reason for this. In addition, until recently the possibility of a fine was dampening sentiment somewhat, which has at least partly contributed to 2014’s disappointing share price performance. However, shares in the bank continue to offer a potent mix of growth and value. They trade on a P/E of just 11.2 and the bank is forecast to increase its bottom line by as much as 10% next year. As a result, Standard Chartered could prove to be a smart buy.

BT

BT’s (LSE: BT-A) fight with Sky for the rights to screen UK sports appears to be in its infancy. Indeed, Sky is taking the threat seriously, as shown with its potential acquisition of Sky Italia and Sky Deutschland. However, BT seems to be making headway in the battle, with its earnings all set to increase by 7% next year despite the initial investment that is required to gain access to the highly lucrative sports TV market. In addition, shares in BT trade on a P/E of just 13.2, which is below the FTSE 100’s P/E of 13.8 and this shows that they could be subject to an upward rating adjustment moving forward.

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.

Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended shares in Sky, and owns shares of Standard Chartered and Unilever. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

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

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »

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

The market is wrong about this FTSE 250 stock. I’m buying it in April

Stephen Wright thinks investors should look past a 49% decline in earnings per share and consider investing in a FTSE…

Read more »

Black father and two young daughters dancing at home
Investing Articles

1 FTSE 250 stock I own, and 1 I’d love to buy

Our writer explains why she’s eyeing up this FTSE 250 growth phenomenon, and may buy more shares in this property…

Read more »

View of Tower Bridge in Autumn
Investing Articles

The FTSE 100 is closing in on 8,000 points! Here’s what I’m buying before it’s too late!

As the FTSE 100 keeps gaining momentum, this Fool is on the lookout for bargains. Here's one stock he'd willingly…

Read more »

Investing Articles

3 ideas to help investors aim for a million-pound Stocks & Shares ISA

The UK has a growing number of Stocks and Shares ISA millionaires, and this plan may be one of the…

Read more »

Illustration of flames over a black background
Investing Articles

2 red-hot UK growth stocks to consider buying in April

These two growth stocks are performing well, but can they continue to deliver for investors through 2024 and beyond?

Read more »

Charticle

Is JD Sports Fashion one of the FTSE 100’s best value stocks? Here’s what the charts say!

The JD Sports Fashion share price remains a wild ride during the first quarter. Could it be one of the…

Read more »