3 Shares the FTSE Should Beat Today

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

LONDON -- The FTSE 100 (INDEX: ^FTSE  ) is continuing its strong run this week and was up 27 points to 5,896 by early afternoon -- and it did break the psychologically significant but otherwise unimportant 5,900 level a little earlier. With U.K. economic news looking fairly positive, how long will it be before we reach that other arbitrary barrier of 6,000?

But not everything is up today, and despite the overall optimism, some individual companies in the FTSE indexes are sliding a little. Here are three names trailing the wider market:

Pearson (LSE: PSON.L  )
, the owner of the Financial Times, fell 1.4% to 1,225 pence as analysts claimed the firm may have overpaid for EmbanetCompass, an online learning business. Announced earlier in the week, the deal carries a $650 million price-tag -- that's five times sales.

Pearson shares have had an erratic year. They're up around 5% overall over the last 12 months, but the ride has been rocky. Forecasts suggest a full-year dividend of about 3.5% and a price-to-earnings ratio of about 14, which suggests neither over- nor undervaluation.

Lloyds Banking (LSE: LLOY.L  )
Lloyds Banking Group fell 2% to 42 pence after opening up on the day when Royal Bank of Scotland gained on news that it is to exit the government's asset protection scheme.

Like RBS, Lloyds is forecast to return to profit this year, but its shares are on a higher forward P/E for December 2012 of 26. That falls to 12 based on 2013 forecasts, but it's probably high enough to leave a number of investors feeling a bit twitchy.

Financials and other sectors do look to be recovering as we head out of recession, however, and a few pounds invested in good recovery situations could help you to your first million. This Motley Fool report tells you how to achieve that feat, so click here to get your copy while it's still free and available.

Shanta Gold (LSE: SHG.L  )
Looking to much smaller companies, Shanta Gold slumped by 17% to 17.3 pence today after announcing plans to raise at least $30 million from institutional and ordinary investors. The cash is needed to fund increased production at the firm's New Luika Gold Mine in Tanzania.

Shanta is not expected to turn its first profit until 2013, but with gold price forecasts firming, is the share a good bet for speculators? Well, that's up to you to decide.

If you want riches from under the ground that have a more rational long-term value, you could do worse than read a copy of the latest Motley Fool report, "How To Unearth Great Oil & Gas Shares" for you. It's free for a limited time only, so click here to get your personal copy.

Further Motley Fool investment opportunities:

Alan Oscroft does not own any shares mentioned in this article. he 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.

Read/Post Comments (0) | Recommend This Article (2)

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: 2061200, ~/Articles/ArticleHandler.aspx, 10/27/2016 10:37:37 PM

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 1 hour ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

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

10/27/2016 11:35 AM
^FTSE $6986.57 Down +0.00 +0.00%
FTSE 100 CAPS Rating: No stars