The Motley Fool

These FTSE 100 stocks have outperformed since March 23’s lows. Can they keep rising?

Image source: Getty Images.

Fears over the social, economic and political consequences of Covid-19 remain at fever pitch. But the FTSE 100 has remained largely robust in recent weeks. Trading above 5,700 points, the UK’s premier stock index has risen by a mid-teens percentage from the multi-year troughs punched in late March.

There are many blue-chip beauties that have performed even better than the broader index, however. Rentokil Initial (LSE: RTO) is one such rocket, a Footsie stock that has ballooned 27% in value during the past month.

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...

Reaching for the sky

The defensive nature of Rentokil’s operations has helped it to soar in value in that time. As it said in recent first-quarter financials: “Pest control has been designated an essential service in the majority of our markets.”

The Footsie firm may not be totally immune to the pandemic-related lockdown across the globe, of course. Mass closures of hotels, restaurants and catering companies has affected trade at both its Pest Control and Hygiene arms. Still, the essential nature of its operations and the contractual nature of most of its business means that sales have remained strong. Ongoing revenues (at constant currencies) at Rentokil were up 7.2% in the first three months of 2020.

This particular large cap doesn’t come cheap. At current prices it carries a forward price-to-earnings (P/E) ratio of 36.8 times. This is some distance above the historical FTSE 100 average of 14.5 times. Still, with concerns over an extended downturn in the global economy rising, such a meaty premium might not restrict more share price gains for Rentokil. Investor demand for providers of indispensable services like this should continue to rise in the weeks and months ahead.

Screen of price moves in the FTSE 100

A tasty treat from the FTSE 100

Just Eat Takeaway (LSE: JET) is another FTSE 100 share whose share price has gone gangbusters in recent weeks. It’s up 35% since the troughs of March 23. And with lockdown measures in its major markets set to persist in some form through the next month at least, it looks like trade at the takeaway titan should keep on impressing.

The company’s Takeaway.com unit reported ripping order growth in the first quarter, reflecting booming demand from quarantined Europeans.

Just Eat might not be having everything its own way as mass restaurant closures hamper its ability to take orders. But recent data from the Footsie firm showed that 3,000 new eateries have signed up to its platform since the coronavirus crisis forced Britons inside. Moreover, the business is witnessing more orders earlier in the week than usual and before usual peak times during the day as well.

Just Eat Takeaway’s shares also don’t come cheap. At current prices the FTSE 100 company carries a whopping P/E ratio of 177 times. Still, like Rentokil, I think this stock could keep on surging in value as we move into the summer.

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...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Just Eat Takeaway.com N.V. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we 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.