Best FTSE 100 Stocks: Solid Bottomline, More Headroom

Summary:
• The best FTSE 100 Stocks are the ones that have not only performed well, but also exceeded expectations, and have a strong growth outlook.

The London Stock Exchange has faced strong headwinds in 2024, with a wobbly UK economy and acquisition raids by US corporations particularly posing a challenge. However, the FTSE 100 Index has absorbed the shocks and realised decent growth. Furthermore, many analysts believe that a significant number of blue chip stocks at the LSE are undervalued.

A couple of FTSE 100 stocks have registered double-figure growth year-to-date, and I previously covered them here. Two of the best performers, Hargreaves Lansdown and Darktrace are on their way out of the LSE after acquisitions and its only fair that I also add stocks that will still be around to the list of the best performers. We look at Natwest and Beazley share price performances below:

Natwest

Natwest share price has risen by 51 percent year-to-date, although it has recently declined, with its monthly returns at -3.1 percent. The impressive run in 2024 is attributable to a strong bottomline, as it beat earnings forecasts in the last three successive quarters. The retail banking giant is the fourth-largest bank in the United Kingdom, with £476 billion in customer deposit.

Institutional interest in Natwest Group PLC (LSE: NWG) has also risen, with American Financial Services company buying £110 million worth of its shares in mid-May. The bank revised upwards its guidance for Full Year Return On Tangible Equity (ROTE) from 12 percent to 14 percent. This signals more room for gains by Natwest share price in the third and fourth quarters of the year.

Natwest Share price forecast

Natwest Share price has been on a downward momentum, and the decline will likely prevail if resistance persists at GBX 335.1. With the bears in charge, look for the first support at GBX 325.1. However, extended bearishness could breach that level to take the price to GBX 316.1.

On the other hand, a move above GBX 335.1 will signal bullish control, with the first resistance likely to be at GBX 344.3. A stronger bullish push will break above that barrier and invalidate the downside narrative. Also, it could extend gains to test GBX 353.9.

Beazley

The insurer has had a good year as it more than doubled its first half profits to £728.9 million to beat forecast estimates by about 70 percent, with a 28 percent return on equity. Also, the company announced a £325 million share buyback program, which helped boost its stock market performance.

These factors set the stage for a strong rally that saw Beazley (LSE: BEZ) rise to an all-time-high price of GBX 790 on September 26. Meanwhile, Beazley share price has risen by 44 percent year-to-date. Some analysts have opined that Beazley is among the most undervalued stocks at the LSE, which augurs well for its share price headroom.

Beazley share price forecast

Beazley share price pivots at GBX 756, and the momentum indicator signals that the sellers are currently in control. That will likely see the stock find the first support at GBX 752.5 However, extended bearishness could break below that level to knock at GBX 750.

Alternatively, moving above GBX 756 will favour the bulls to take control. If that happens, the first resistance could be encountered at GBX 760. If the bulls manage to turn that level into a support, it will invalidate the downside narrative and potentially lead to more gains to test GBX 766.