3 FTSE Shares Hitting New Highs
Mar 6th 2013 8:22AM
Updated Mar 6th 2013 8:26AM
LONDON -- The FTSE 100 is extending this week's gains, hitting a new 52-week record of 6,458 points this morning before falling back to 6,450 for a 0.28% gain. Generally positive economic sentiment, coupled with a week of strong company results, appears to be behind the current optimism.
But which individual companies are setting records? Here are three doing it today.
Tesco shares shot up 2.7% to reach a new 52-week high of 382 pence this morning before dropping back a couple of pennies to 380 pence. Tesco shares famously slumped early last year following weak Christmas trading, but since October, the firm's revamp policy has been convincing investors, and the price has been recovering well.
Although the year to February 2013 is expected to show a 16% decline in earnings, that still puts the shares on a modest price-to-earnings ratio of 12, and there's a 4% dividend expected. And the City is expecting a return to growth over the following two years.
Shares in Barratt Developments have soared more than 80% over the past 12 months, and today they regained their 52-week high of 244.6 pence. All of the FTSE's big homebuilders have been recovering well, and Barratt reported a doubling of pre-tax profit to 46 million pounds for the six months ending December 2012.
If full-year expectations come good, we should see a 70% rise in earnings, putting the shares on a P/E of about 17 -- but that should fall to 12 based on 2014 forecasts. And June 2013 should bring us a return to dividends, albeit a small one of about 1% this time -- but it'll be nice to see it back.
From basket case to recovery star, that's been the Dixons Retail story. The shares have more than tripled since their low point at the end of 2011 to reach a 52-week high of 31.6 pence today. The company's turnaround strategy has met with impressive success, leading to a bumper 2012 Christmas. And last year's pre-tax loss is expected to turn into a modest profit this year, with a further earnings rise of about 80% penciled in for 2014. P/E ratios don't make much sense in the year a company returns to profit, but 2014 forecasts suggest a figure of 14, falling to 10 for 2015.
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The article 3 FTSE Shares Hitting New Highs originally appeared on Fool.com.Alan does not own any shares mentioned in this article. The Motley Fool owns shares in Tesco. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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