J Sainsbury
J Sainsbury (LSE: SBRY)(NASDAQOTH: JSAIY.US) continues to grow, capturing market share from its rivals, particularly Tesco.
The shares are up 14% so far in 2013 and are 20% ahead of where they were 12 months ago.
The most recent trading statement from the company revealed a 34th quarter of successive growth. Market share was reported as 16.8% higher.
Earnings per share (EPS) is expected to increase 5.4% this year. The dividend is expected to rise 3.6%. If Sainsbury’s can meet these forecasts, then the shares are priced at 12.4 times profits and come with an expected yield of 4.4%.
More growth is expected next year, pushing the P/E to 11.6 and a forecast dividend yield of 4.6%. That leaves the shares looking fairly priced to me.
Wm. Morrison Supermarkets
While Sainsbury has been increasing market share recently, Wm. Morrison Supermarkets (LSE: MRW) has been losing out. The company has taken steps to address this, launching an online venture with Ocado and purchasing sites for a convenience offering. The share price rises suggests that they are gaining investors’ confidence.
Morrison shares are up 11% so far in 2013. Most of that rise has been delivered in the last three months.
The shares today remain at a discount to the rest of the market. Morrison’s trades at 11.1 times last year’s profit. A small decline in earnings is expected this year. The dividend is forecast to increase to give a 4.3% yield. If the new initiatives can turnaround the company’s trading then I would expect the shares to continue heading higher.
Centrica
Shares in utility giant Centrica (LSE: CNA)(NASDAQOTH: CPYYY.US) are 19% ahead in 2013 and today stand at an all-time high.
Analyst profit exepectations have been steadily rising since June. The improved sentiment has produced a double-digit share price rise inside three months.
Analysts are today expecting an 8.2% earnings increase this year, accompanied by a 5.7% dividend increase. The shares are today trading at 14.1 times this profit forecast and come with the prospect of a 4.4% yield. Further growth is expected next year, pushing the P/E to 13.3 and the yield to 4.6%.
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> David does not own shares in any of the above companies. The Motley Fool has recommended shares in Morrisons.