Why Vodafone Group plc, WPP PLC And Melrose Industries PLC Should Beat The FTSE 100 Today

Vodafone Group plc (LON: VOD), WPP PLC (LON: WPP) and Melrose Industries PLC (LON: MRO) are climbing.

| 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.

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.

RISK WARNING: 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. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

The FTSE 100 (FTSEINDICES: ^FTSE) is finally picking up a bit, putting on 45 points to reach 6,475 by mid-morning as a few big company results are giving it a boost. The gain today reverses two days of losses for the UK’s top index, but it is still 17 points down on the week — and if it doesn’t recover some more before the end of Friday, we’ll be in losing territory for the fourth week in a row:

But which companies are elevating the FTSE today? Here are three:

Vodafone

In a long-awaited surprise announcement this morning, Vodafone Group revealed that it is in talks with Verizon Communications with a view to the possible disposal of Vodafone’s 45% stake in Verizon Wireless. The announcement, which came as a response to recent press speculation, confirms what many observers have long thought inevitable.

Vodafone is unlikely to let go of Verizon Wireless cheaply, and any deal should provide a handsome sum for Vodafone to either hand back to shareholders or, probably more likely, reinvest in its business. Either way, the markets were pleased, and the shares spiked up 17.65p (9.3%) to 207p, taking them to a 12-year high.

WPP

Advertising and media firm WPP (LSE: WPP) (NASDAQ: WPPGY.US) has rewarded shareholders well over the past 12 months, with its share price gaining around 45% — and that includes a 38p (3.2%) boost today as a result of impressive first-half results.

Revenue is up 7.1% to £5.3bn, with a like-for-like gain of 2.4%. From that, WPP made a headline pre-tax profit of £524m, which is up 12% and broke the first-half half-billion-pound mark for the very first time. Headline diluted earnings per share (EPS) gained 10% to 28.4p and the firm has upped its interim dividend by 20% to 10.56p per share.

Melrose Industries

Melrose Industries (LSE: MRO) also had a nice start to the day, up 10.8p (3.8%) to 295p, and again it was due to first-half results. Performance at Melrose, which buys up and turns around troubled engineering companies, is naturally erratic over the short term, but a more than doubling of revenue to £1.02bn did please the markets.

Pre-tax profit, before exceptionals, did the same, climbing from £65.9m a year ago to £139.4m, though diluted EPS only gained 5% to 8.6p. The interim dividend has been raised 6% to 2.75p per share.

Finally, if you’re looking for investments that should take you all the way to a comfortable retirement, I recommend the Fool’s special new report detailing five blue-chip shares. They’ll be familiar names to many, and they’ve already provided investors with decades of profits.

But the report will only be available for a limited period, so click here to get your hands on these great ideas — they could set you on the road to long-term riches.

> Alan does not own any shares mentioned in this article.

RISK WARNING: 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. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

More on Investing Articles

Investing Articles

Publish Test

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut…

Read more »

Investing Articles

JP P-Press Update Test

Read more »

Investing Articles

JP Test as Author

Test content.

Read more »

Investing Articles

KM Test Post 2

Read more »

Investing Articles

JP Test PP Status

Test content. Test headline

Read more »

Investing Articles

KM Test Post

This is my content.

Read more »

Investing Articles

JP Tag Test

Read more »

Investing Articles

Testing testing one two three

Sample paragraph here, testing, test duplicate

Read more »