3 Shares With Fast-Improving Prospects: BP plc (BP), Vodafone Group Plc (VOD), Unilever plc (UL)

LONDON — I’ve been searching the FTSE 100 to find companies where profit estimates have been increasing. If sentiment on a company is turning for the better, these shares could deliver big returns as the stock is rerated.

Using data from Stockopedia, I have found the FTSE 100 companies whose earnings forecasts have been increased the most often in the last month. Here are three of them.

BP plc (ADR) (NYSE:BP)BP plc (ADR) (NYSE:BP) (LSE:BP)
BP plc (ADR) (NYSE:BP) is striving to put the Gulf of Mexico disaster behind it. Over two years since the accident, BP’s final liability is still unclear.

In the last month, five analysts have moved to increase their earnings-per-share forecast for BP in 2014. Now, the consensus is that BP will make $1.01 per share in 2014 and pay $0.40 in dividends. That’s a 2014 P/E of 7.3 and an expected yield of 5.4%.

BP may still have more to pay out to settle disaster claims, but 2013 looks like the year that BP shareholders can get financial closure on the Gulf disaster.

Unilever plc (ADR) (NYSE:UL)
Progress in the eurozone has inspired confidence in the profits of companies making sales there. One such organization is Anglo-Dutch giant Unilever. Sentiment toward the stock has been boosted in the last month by seven upgrades to 2014 forecasts.

Expectations are that the company will earn 1.75 euros per share in 2014, paying a 1.07 euro dividend.

Unilever is a top company. As is usually the case, this has given its shares a top price. The shares trade on a 2014 P/E of 17.1 times earnings. Although the dividend looks safe, with EPS growth of just 9% being forecast, the valuation looks pretty full to me.

Vodafone Group Plc (ADR) (NASDAQ:VOD) (LSE:VOD)
In 2012, Vodafone Group Plc (ADR) (NASDAQ:VOD) paid out more cash in dividends than any other FTSE 100 company. This was thanks in part to a 4 pence special dividend that Vodafone paid. This payment came from Verizon Wireless, the U.S. mobile operator of which Vodafone owns 45%.

In the last month, Vodafone’s 2014 earnings have been upgraded six times. Expectations now are for the company to deliver EPS of 16.2 pence for 2014, paying a 10.5 pence dividend.

I expect the current share buyback program to support the Vodafone share price and future dividend payments. I am happy to hold shares in the company.

The article 3 Shares With Fast-Improving Prospects originally appeared on Fool.com and is written by David O’Hara.

David O’Hara owns shares in Vodafone but none of the other companies mentioned. The Motley Fool has recommended shares in Unilever and Vodafone.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!