Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Aggreko plc (AGK), Royal Bank of Scotland Group plc (RBS), Anglo American plc (AAL): 3 FTSE 100 Shares the Bull Market Forgot

LONDON — Even though the market has risen 8.7% so far this year, not every share has climbed with it. Let’s take a look at three whose performance has disappointed.

Aggreko plc (LON:AGK)
Worldwide demand for Aggreko plc (LON:AGK)‘s generators saw the company’s shares rise from just under 500 pence at the beginning of 2009 to a peak of 2,400 pence by last September. Enthusiasm for the stock pushed the P/E up past 20. The price then crashed at the end of 2012 as the company warned that 2013 would be tougher than expected.

The shares still trade at a slight premium to the rest of the FTSE 100. According to broker forecasts for 2013, the shares are available today at 17.7 times expected earnings. Respectable earnings growth of 7.4% is then expected the year after.

As Aggreko plc (LON:AGK) has apparently lost its growth record, the shares are adjusting to a more reasonable valuation. The price is down 5% in 2013.

Royal Bank of Scotland Group plc (LON:RBS)
The recent stock market setback has sent shares of Royal Bank of Scotland Group plc (LON:RBS) back to where they were at the beginning of the year. After hitting 365 pence in January, the stock fell as low as 315 pence last week. If it had not been for a late rally last week, the shares would be down on the year to date.

Royal Bank of Scotland Group plc (ADR) (NYSE:RBS)

It seems that at times of market doubt, investors still rush to sell Royal Bank of Scotland Group plc (LON:RBS). But that seems wrong, for three reasons.

First, Royal Bank of Scotland Group plc (LON:RBS) is a stronger bank now than it has been in years. Second, the market cap is still at a significant discount to the company’s net asset value. And third, recent statements from Royal Bank of Scotland Group plc (LON:RBS) have demonstrated just how quickly the bank is recovering.

Anglo American plc (LON:AAL)
Metals prices have been falling in 2013. Copper is down 9%, platinum is down 2% and nickel is off 14%. These falls have hurt shares in Anglo American plc (LON:AAL) — anyone buying at the start of the year has seen almost one quarter of their investment wiped out.

Anyone analyzing shares in a mining firm such as Anglo American plc (LON:AAL) must be cautioned against relying on earnings forecasts. When metal prices fall slightly, the outlook for miners’ profits can decline significantly. Forecasts for Anglo American plc (LON:AAL)’s 2013 earnings have fallen from $8.39 a share one year ago to $5.55 today.

That puts the shares on a 2013 P/E of 11.0, with an expected dividend yield of 4.1%.

Although these companies have disappointed recently, I still expect them to be around in the long term.

The article 3 FTSE 100 Shares the Bull Market Forgot originally appeared on

David O’Hara owns shares in Royal Bank of Scotland but none of the other companies mentioned. The Motley Fool recommends Aggreko.

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

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!