3 FTSE Shares For The Week Ahead: Barratt Developments Plc, Associated British Foods plc And Experian plc

Barratt Developments Plc (LON: BDEV), Associated British Foods plc (LON: ABF) and Experian plc (LON: EXPN) all have results due.

| 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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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.

Company news is starting to flow again after the summer dry spell, with a lot of results from our biggest companies expected nearer the end of the month. For next week, we don’t have any actual results, but we should be getting updates from a few important firms. We take a look at what’s in store from two FTSE 100 firms, and from one that’s just outside the top flight:

Barratt, Wednesday

Housebuilder Barratt Developments (LSE: BDEV) is due to bring us a trading update on Wednesday, at a time when the UK’s housebuilders are doing well — Barratt itself has seen its shares more than double over the past 12 months to 335p.

So, what should we be expecting? Well, in May the firm told us that year-to-date private reservations were up 9.7% on a year ago, and that had been boosted to an 18% rise since the Government’s Help to Buy scheme was announced. Barratt told us it expects to approve the purchase of 17,000 plots over the full year, up 40%, and that net debt at year-end should be down from £168m to £100m.

Forecasts suggest a rise in earnings per share of about 75%, giving us a P/E multiple of 24, but if expectations for 2014 turn out to be accurate, that should drop to about 15. Full-year results are expected on 11 September.

Associated British Foods, Thursday

We’re due a third-quarter interim statement from Associated British Foods (LSE: ABF) on Thursday. After years of earnings and dividend rises, we have another double-digit rise in earnings per share (EPS) forecast for the year to September.

And if first-half results, released in April, are anything to go by, that could be in the bag. With revenue up 10%, adjusted pre-tax profit rose by 25% to £452m and adjusted EPS was up 22% to 41.9p — and the dividend was lifted by 10% to 9.35p per share.

Despite a fall from a May high of 2,044p, a recent rebound has left the firm’s shares up around 45% over the past 12 months, to 1,850p, putting them on a forward P/E of about 19.

Experian, Friday

On Friday, it will be time for a first-quarter interim statement from credit-rating and business-information agency Experian (LSE: EXPN). The year ended 31 March was pretty good, with underlying pre-tax profit up 6% to $1.2bn after revenue grew 10% to $4.7bn at constant exchange rates. That led to the firm adding a 24 cents dividend to make a total for the year of 34.76 cents, which is 9% more than the previous year.

The City is forecasting a further rise in EPS for March 2014, of around 9%, which would put the shares on a P/E of 19. That might look a bit high, but Experian is something of a “picks and shovels” company that should do well from a longer-term economic recovery.

Finally, dividends can add nicely to your investment returns — they can be spent or reinvested according to your needs. Whether investing for income or growth, good old cash is always welcome.

And that’s why I recommend the BRAND-NEW Fool report, “The Motley Fool’s Top Income Share For 2013“, in which our top analysts identify a share that they believe will provide handsome dividend income for years to come.

But it will only be available for a limited period, so click here to get your copy today.

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

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.

More on Investing Articles

Investing Articles

This FTSE sell-off gives me an unmissable chance to buy cut-price UK stocks!

The last few months have been tough for UK stocks and their troubles aren't over yet, but Harvey Jones isn't…

Read more »

Investing Articles

Here’s the forecast for the Tesla share price as Trump’s policies take focus

The Tesla share price surged following Donald Trump’s election victory, but the stock is trading far above analysts’ targets. Dr…

Read more »

Investing Articles

£15,000 in cash? I’d pick growth stocks like these for life-changing passive income

Millions of us invest for passive income. Here, Dr James Fox explains his recipe for success by focusing on high-potential…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

Here’s my plan for long-term passive income

On the lookout for passive income stocks to buy, Stephen Wright is turning to one of Warren Buffett’s most famous…

Read more »

artificial intelligence investing algorithms
Growth Shares

Are British stock market investors missing out on the tech revolution?

British stock market investors continue to pile into ‘old-economy’ stocks. Is this a mistake in today’s increasingly digital world?

Read more »

Fireworks display in the shape of willow at Newcastle, Co. Down , Northern Ireland at Halloween.
Investing Articles

My 2 best US growth stocks to buy in November

I’ve just bought two US growth companies on my best stocks to buy now list, and I think they’re still…

Read more »

Investing Articles

£2k in savings? Here’s how I’d invest that to target a passive income of £4,629 a year

Harvey Jones examines how investing a modest sum like £2,000 and leaving it to grow for years can generate an…

Read more »

Renewable energies concept collage
Investing Articles

Down 20%! A sinking dividend stock to buy for passive income?

This dividend stock is spending £50m buying back its own shares while they trade at a discount and also planning…

Read more »