Another day, and another record for the FTSE 100 yesterday, of 7,065 points. And as Spring is firmly arriving, a number of FTSE stocks are heading upwards along with the daffodils. Here are three making gains:
Aviva
The resurgence at Aviva (LSE: AV) continues strongly, with the insurer’s shares having more than doubled to 568p since their low point in May 2012. Results for 2014 released earlier this month revealed a powerful recovery in earnings per share, and the dividend is rising nicely again after it was rebased, providing a 3.7% yield.
After the recovery, Aviva shares still look cheap to me on a forward P/E of under 12, especially after chief executive Mark Wilson spoke of “tangible progress, with all key metrics moving in the right direction“.
BT
Shares in BT Group (LSE: BT-A) have put on a massive 274% in five years, getting a big boost from the firm’s move back into mobile telecoms with its acquisition of EE. On top of Q3 results that showed an 11% rise in adjusted nine-month pre-tax profit, it’s all helped to boost sentiment — no doubt buoyed by boss Gavin Patterson‘s talk of “good growth in profit before tax and strong free cash flow“.
With more steady growth expected and the shares on average-looking P/E values, BT is still looking good for the long term.
G4S
Security firm G4S (LSE: GFS) has come back from its problems of a few years ago, with a 27% rise over 12 months to 299p. We still saw a further earnings fall in 2014, but the dividend yield was maintained at 3.3% and looks set to rise further this year and next — and we have two years of double-digit EPS rises forecast too. G4S could be out of the woods.
easyJet
Budget airline easyJet (LSE: EZJ) has been a byword for stock market success in recent years, with its shares more than five-bagging to 1,868p since September 2011. With modest P/E valuations and dividend yields around 3%, easyJet still looks good value on the face of it. But we’re in cheap-oil times now, and airlines have very little defence against rising fuel prices — and I wouldn’t be surprised to see the price falter when crude prices start to climb again.
Homeserve
Emergency home insurance provider Homeserve (LSE: HSV) shares were having a flat year until recently, but since 3 March we’ve seen a 15% spike to 372p. We had an update in February that told us the UK business “continues to make progress with solid marketing and retention performance in the period“, and that growth is going well in international business.
There’s still no EPS recovery expected before 2016, mind, and I really don’t see Homeserve as a bargain just yet.