The Motley Fool

3 Stocks Set To Deliver 20%+ Gains: Prudential plc, Standard Chartered PLC & Direct Line Insurance Group PLC


Shares in Prudential (LSE: PRU) (NYSE: PUK.US) have made a strong start to 2015 and are up 11% since the turn of the year. However, further gains could lie ahead for the diversified financial company, with it having a potent mix of value and growth appeal.

For example, Prudential is forecast to increase its bottom line by 14% in the current year, and by a further 12% next year. This means that its earnings could be around 28% higher in two years’ time, which is clearly a very fast pace of growth.

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...

And, with Prudential trading at a discount to the FTSE 100 (it has a price to earnings (P/E) ratio of 15.2, versus 16 for the wider index) an upward rerating could mean that the company’s shares rise by an even greater amount. As such, they appear to be worth buying right now.

Standard Chartered

Clearly, Standard Chartered (LSE: STAN) (NASDAQOTH: SCBFF.US) is going through a challenging period at the present time. However, its shares appear to be exceptionally cheap – even when the uncertainty regarding its future strategy and the potential for more negative news flow is taken into account.

For example, Standard Chartered has a price to book (P/B) ratio of just 0.8 and this means that even if its share price were to rise by 25%, it would still only be trading at net asset value.

As such, it appears to offer an exceptionally wide margin of safety, which indicates that even if there is a significant volume of bad news to come, Standard Chartered could still prove to be an excellent buy at the present time.

Direct Line

While there are a number of appealing income stocks in the FTSE 100, Direct Line (LSE: DLG) is continually one of the highest yielding stocks in the index. For example, it presently yields a whopping 5.5%, with dividends being well covered by profit (and, therefore, sustainable) at 1.4 times. As such, Direct Line could make a major impact on your income over the medium to long term.

However, where it could also add value is with regard to capital gains. That’s because appealing income stocks, such as Direct Line, could become more in-demand moving forward, with UK interest rates set to remain low for much of the next Parliament. As such, even a gain of 20% in its share price would still leave Direct Line yielding a FTSE 100-beating 4.6%. Therefore, it could offer a top notch total return in 2015 and beyond.

“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!

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

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.