Why SKY PLC, G4S plc, Rightmove Plc, Carnival plc And Domino’s Pizza Group PLC Are Soaring

The FTSE 100 is continuing its teasing dalliance with the 7,000-point level. As I write it’s six points short, but was a fraction above earlier in the day. What’s driving the UK’s indices? Improving sentiment towards some sectors and individual companies is playing its part, as these high-flyers show:


Telecoms and telly firms have been doing well in general, and that’s given SKY (LSE: SKY) a boost. It’s shares were pretty flat in 2014, but since the start of this year we’ve seen a 16% rise to 1,039p. Interim results showed a 3% rise in adjusted EPS, though the City is expecting a full-year dip of 10% which would put the shares on a P/E of 19. Still, dividends are set to yield 3.3% this year and 3.5% next, when a forecast 19% rebound in EPS could take the P/E down to 16.


The travails at G4S (LSE: GFS) look to be well past, with the security firm’s shares up 21% over the past 12 months to 306p. The decline in EPS that has dogged the company for the past four years is predicted to turn around strongly, with rises of 21% and 14% on the cards for this year and next and with dividends reaching 3.5% in 2016. The shares might still look a bit pricey on a P/E for this year of 19, but a sustained recovery could see that dropping quickly.


Increasing buoyancy in the housing market is not only helping the housebuilders themselves, it’s also giving a leg-up to Rightmove (LSE: RMV), the online estate agent portal. After an 18% fall in 2014, the shares have now managed a 36% rise since the beginning of 2015 to 3,138p. And since flotation in 2006, investors have enjoyed an impressive eight-fold rise, despite starting off into the teeth of a recession! Today the shares are on a growth pricing, with a 2015 P/E of 28 and dividend yields still at a lowly 1.3%. Will that growth come? I’m not betting against it.


Another company fighting back is cruise operator Carnival (LSE: CCL), whose shares have provided a very nice gain of 44% over the past year to 3,351p, though over ten years they’ve been flat overall. The year to November brought a return to revenue and profit growth as passenger numbers turned upwards again, although the first quarter this year was slightly down on a year ago. With a long-term view, Carnival is worth a closer look.


Good old pizza. Desire for the cheesy stuff has lifted Domino’s Pizza (LSE: DOM) shares by 47% over 12 months to 815p, and up 133% over five years. Results for 2014 showed a 15% rise in sales accompanied by an 11% rise in earnings per share, and allowed the company to lift its total dividend by 10% to 17.5p per share. There’s further earnings growth of 15% forecast for this year, and that’s reflected in a P/E of 26 — but I don’t see that growth stopping any time soon.

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Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has recommended Domino's Pizza, Rightmove and Sky. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.