Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 FTSE 100 Shares That the Market Loves

LONDON -- I used a market statistics package to find the FTSE 100 companies that were most recommended as "buys" among professional market analysts. Here are three shares that they are in love with.

Melrose  (LSE: MRO  ) is a conglomerate that has grown through the acquisition and sale of industrial and manufacturing companies. It first came to the market in 2003. Since then, it has grown from a company with a 13 million pound market capitalization to being a member of the FTSE 100 index today.

The confidence that the analyst community has in Melrose's management has inspired a swathe of buy recommendations on the stock.

Earnings per share (EPS) is forecast to grow 8.5% during 2013, meaning that the shares trade on a forward price-to-earnings (P/E) ratio of 13.7 times expectations. The dividend is also expected to rise by just over 6%. That equates to a value that is in line with the average for a FTSE 100 company.

Rio Tinto
Diversified mining company Rio Tinto  (LSE: RIO  ) (NYSE: RIO  ) is forecast to increase EPS by 13% for 2013, followed by an 11.9% rise in 2014. Despite this optimism, the shares today trade on just 9.4 times the 2013 forecast, falling to 8.4 times for 2014.

The market's enthusiasm for the shares seems to have inspired a more than 20% rally since the beginning of December. The dividend yield on the shares is expected to reach 2.9% for 2013, rising to 3.3% for 2014.

The shares look like an excellent way to gain exposure to the mining sector while still receiving income.

Shire  (LSE: SHP  ) is a pharmaceutical company with a strong presence in the ADD (Attention Deficit Disorder) market.

Shire has delivered the kind of growth that its larger peers GlaxoSmithKline andAstraZeneca can only dream of. Between 2006 and 2011, EPS increased more than threefold. In the last five years, dividends at the company have increased by an average of 13.2% per year.

Shire is expected to report a 27.5% increase in EPS for 2012, followed by another 9.3% rise for 2013. The shares trade on a 2013 P/E of 14.2 times earnings.

Although Shire is a great example of a growth company on the market today, our analysts here at The Motley Fool think that they have found an even better opportunity. Although the company in question is long established, it is quickly moving to take a leading role in new markets. 

To find out more about this company and why we think its shares could outperform in 2013, get the free Motley Fool report "The Motley Fool's Top Growth Share For 2013." This report is totally free and will be delivered to your inbox immediately. Just click here to get the report today.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2260053, ~/Articles/ArticleHandler.aspx, 10/1/2016 3:09:15 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 12:09 PM
MRO $173.26 Down -0.99 -0.57%
Melrose CAPS Rating: No stars
RIO $2570.84 Down -63.16 -2.40%
Rio Tinto CAPS Rating: No stars
RIO $33.40 Down -0.30 -0.89%
Rio Tinto CAPS Rating: ***
SHP $4997.60 Down -63.40 -1.25%
Shire CAPS Rating: No stars