The Motley Fool

4 Stocks Set To Beat The FTSE 100: Standard Chartered PLC, Genel Energy PLC, Next plc And Compass Group plc

Standard Chartered

Despite rising by 13% in the last three months, shares in Standard Chartered (LSE: STAN) continue to offer excellent value for money relative to the FTSE 100. For example, they trade on a price to earnings (P/E) ratio of just 11.1, which is considerably less than the FTSE 100’s P/E ratio of around 16.

Certainly, the future of Standard Chartered is set to be one of change, with a new management team likely to make efficiencies and rationalise the business. They may also, however, increase dividends per share at a rapid rate. That’s because Standard Chartered currently pays out just 53% of profit as a dividend which, for a bank that has remained highly profitable throughout the credit crunch, seems to be rather modest.

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...

As such, a combination of a rapidly growing dividend, very attractively priced shares and the potential for Chinese stimulus to boost the Asian economy mean that Standard Chartered should beat the FTSE 100 over the medium term.

Genel

Shares in Genel (LSE: GENL) continue to disappoint and are now down by 16% since the turn of the year. That’s at least partly because of uncertainty surrounding the company’s operations in Kurdistan, with the political climate continuing to be relatively challenging.

As such, Genel’s share price currently offers a very wide margin of safety and this reduces the risk to the company’s investors, while at the same time also increasing the potential reward. For example, Genel has a price to earnings growth (PEG) ratio of just 0.2 and this means that even if the company’s upbeat earnings forecasts are missed, its shares may not react so unfavourably moving forward. And, if Genel does perform as expected, then a share price rise could be on the cards.

Next

With the UK economy moving from strength to strength, UK-focused consumer stocks such as Next (LSE: NXT) could be a great place to invest. Certainly, Next’s shares lack value at the present time, with the company being expected to grow its bottom line in the mid-single digits over the next two years and its shares having a P/E ratio that is broadly similar to that of the wider index.

However, where Next could beat the FTSE 100 is with regard to its defensive merits. For example, it has a beta of just 0.7 and, with considerable turbulence expected during the rest of the year, Next’s shares could outperform a falling FTSE 100. Furthermore, its sales and profitability should remain robust even if the UK economy experiences a challenging period – as was seen with Next’s great run of profitability during the credit crunch.

Compass

Over the last five years, shares in Compass (LSE CPG) have risen by a whopping 11%, which is a far superior performance to the FTSE 100. And, looking ahead, there could be more to come, since Compass offers its investors a hugely consistent and robust earnings profile.

Of course, that’s to be expected, since the provision of catering and other support services is generally one which offers great earnings visibility. And, looking ahead, investors may be willing to pay a significant premium for this relative certainty, with Compass’ P/E ratio of 21.5 having the potential to move higher due to a bottom line that is expected to rise by a hugely impressive 13% in the current year.

“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. 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

The renowned 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 enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.