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.

ARM Holdings plc (ADR) (ARMH), Aberdeen Asset Management plc (ADN): 3 FTSE 100 Shares With High Forecast Growth

Today let’s have a look at three shares within the U.K.’s premier stock index that are forecast to boost their earnings over the next couple of years.

ARM Holdings plc (ADR) (NASDAQ:ARMH)
ARM Holdings plc (ADR) (NASDAQ:ARMH) designs the microprocessors that have become first choice among mobile-phone and tablet manufacturers. The mobile-device boom has produced a share price boom at the company. City analysts expect high earnings growth to continue. A 73% rise in earnings per share is forecast for 2013, to be followed by another 26% rise in 2014. Dividends are also expected to continue their sharp increases, rising by nearly 25% this year and next.

ARM Holdings plc (LON:ARM)

At 834 pence today, ARM Holdings plc (ADR) (NASDAQ:ARMH) is trading at 42 times forecast earnings for the year, falling to 33 times the 2014 estimate. If the forecast growth does not come through then ARM Holdings plc (ADR) (NASDAQ:ARMH)’s shares will fall hard. However, if ARM Holdings plc (ADR) (NASDAQ:ARMH) can maintain its position in the mobile-computing sector then further share-price rises may await.

Aberdeen Asset Management plc (LON:ADN)
Strong market rises can produce long-lasting positive sentiment toward shares. In such circumstances, a fund management group like Aberdeen Asset Management plc (LON:ADN) is perfectly positioned to profit.

After the company earned 6.8 pence per share in the depths of the bear market in 2009, earnings had recovered to 16.3 pence per share by 2012. Analysts are forecasting 30.5 pence of EPS for 2013, rising to 35.9 pence next year. That puts the shares on a 2013 price-to-earnings ratio of 13, falling to 11.1 times the forecast for next year. However, I wouldn’t count on Aberdeen Asset Management plc (LON:ADN) meeting those forecasts if the market declines significantly.

There is a well-covered dividend that is expected to hit a yield of 4.6% next year.

Rexam PLC (LON:REX) is a packaging company specializing in soft-drink cans. The company is one of the elite FTSE 100 shares that managed to report profits and pay dividends throughout the economic malaise of the last five years. I am surprised, therefore, to see that the shares are not trading on a higher valuation.

If the forecast earnings growth is delivered (49% this year and 8% next year), then the shares are today trading on a 2014 P/E of just 11 times forecasts. The dividend is expected to increase this year and next, hitting a 4% yield for 2014.

On both P/E and yield measures, Rexam PLC (LON:REX) looks better value than the average FTSE 100 share. That doesn’t seem quite fair, given how successful the company has been.

The article 3 FTSE 100 Shares With High Forecast Growth originally appeared on

David O’Hara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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!