- Summary:
- The FTSE All-share index has risen by more than 6 percent YTD. However, some of the best FTSE stocks have more than doubled that return.
The FTSE All-share index (INDEXFTSE: ASX) has had a relatively good run in 2024 with YTD gains of 6.7 percent. However, some stocks have not only performed better than that, but also have a better outlook. Below, we look at three of the best FTSE stocks.
Rolls Royce
This is a no-brainer, really. Up by 75.3 percent year over year and with gains of 5.8 percent in the last month, the Rolls Royce share price has had a scintillating run at the London Stock Exchange. The company has won several contracts ranging from airline engine orders, battery energy storage systems to new-age nuclear power generation facilities.
Rolls Royce Holdings (LSE: RR.) currently has ongoing multi-billion defence contracts with US and UK governments, with some running for up to 5 years. Furthermore, it has beaten earnings forecasts in each of the two quarters reported in 2024, strengthening its cash position.
Looking ahead, most airlines are upgrading their fleets, and global military spending is unlikely to decline as geopolitical tensions continue to rise. The company embarked on a cost-cutting measure in late 2023 that saw 2,500 people lose their jobs, but that strategy seemed to have paid off. Therefore, Rolls Royce’s share price will likely stay in a strong position in the foreseeable future.
Hargreaves Lansdown
Hargreaves Lansdown (LSE: HL)announced this week that it would be giving £150 to customers who open active savings accounts with £75,000 or more. Such is the company’s adaptive business structure that has seen it grow its revenues significantly this year.
The company has a Forward P/E ratio of 15.4 for the next 12 months, and a prospective dividend yield of 2.4% over the same period. Hargreaves Lansdown share price is up by 50.4 percent YTD, but has mostly traded sideways since early August.
RCF lenders, which is a group including HSBC, Barclays Bank, Lloyds Bank Corporate Markets, Mizuho Bank, and MUFG Bank on Monday entered a commitment letter to facilitate the takeover bid by a consortium known as Harp Bidco Limited. The consortium, which comprises of CVC Advisors, Nordic Capital and Platinum Ivy (A subsidiary of Abu Dhabi Investment Authority) valued Hargreaves Lansdown at £5.4 billion ($6.9 billion) at £11.10 per share.
Hargreaves Lansdown share price has been trading sideways since the company’s board agreed to the terms of the acquisition deal on August 9. The conclusion of the takeover deal will also see the financial services company exit the LSE as it stops being a listed company. The company revised upwards its pre-tax guidance from £960 million-£980 million for the full year 2024. That could help drive up marginal gains in the intervening period to the conclusion of the acquisition .
Anglo American
Anglo American share price has been the subject of speculation this year, following a failed £39 billion acquisition bid by rival mining giant, BHP. Anglo American’s shares have declined by about 14 percent since the bid fell through, but the stock is still up by 14 percent year-to-date. Furthermore, it continues to be the subject of speculation, with many analysts believing that other acquisition bids could be on the way.
The company’s baseline is stable, and the outlook for its platinum and copper businesses is promising. Precious metals have been hitting multiple record highs this year, and the trend could continue as geopolitical temperatures continue to rise. Also, there’s an element of uncertainty regarding the trajectory of the global economy, and that, too could drive up demand for platinum.
Meanwhile, demand for copper and platinum is expected to rise as the world speeds up the transition to clean energy. Anglo American (LSE: AAL) holds licenses to some of the world’s largest known deposits of platinum and copper, and this outlook presents a bright future for its share price.
As per the Takeover Panel Rules, BHP cannot make another bid until after at least six months. That opens the lid to a possibility of another share Anglo American price rally in November when the embargo lifts.