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.

3 More Shares With Great Recovery Potential: Lloyds Banking Group PLC (ADR) (LYG) and More

LONDON — When sentiment turns, a previously unpopular share can rise sharply. Here I have found three FTSE 100 shares that, with a fair wind, could do just that in 2013.

Tullow Oil plc

Shares of oil explorer Tullow Oil have fallen almost 20% in the last year. That’s a big fall for a FTSE 100 company, especially when you consider that we are in a bull market.

On Wednesday, the company reported its 2012 results. Sales rose just 2%, while earnings per share (EPS) fell 5%. Its dividend held at $0.69 per share.

Lloyds Banking Group PLC (ADR) (NYSE:LYG)Tullow has long been one of the most successful oil exploration companies on the market. 2013 will see the company drill key wells onshore in Kenya and Ethiopia. If Tullow can continue its recent drill success rate in this acreage, these prospects could prove to be transformational for the company in 2013.

Lloyds Banking Group PLC (ADR) (NYSE:LYG)

I believe that Lloyds Banking Group will provide further evidence of its recovery with its 2012 results on 1 March.

Lloyds’ profits have been hit hard by Payment Protection Insurance compensation claims. However, little further provision for these costs is likely. 2013 could be the year that banking analysts put more emphasis on Lloyds’ profit potential.

The bank is forecast to report 3.9 pence of EPS for 2013. Further good news on asset impairments could see this estimate revised sharply upwards. Investors need a share price of 63 pence to break even. At the very least, I expect the shares to trade higher than that by the time Lloyds announces 2013 interims. Today, the shares can be bought for 55 pence.

Aggreko plc

Glasgow-headquartered Aggreko is a supplier of temporary power equipment worldwide. The company’s generators are used in football stadiums, hospitals, and industry. It has enjoyed tremendous growth in recent years. Between 2007 and 2011, revenues increased nearly threefold. EPS rose from 20 pence to 96.1 pence.

However, a recent trading statement from the company has damaged its market rating. Aggreko is now expected to report EPS growth of just 5.3% for 2012, to be followed by a small decline in 2013. If its markets can pick up, the shares could win back the premium rating that they enjoyed in 2012. That would equate to a rise of nearly 40% from today’s price.

The article 3 More Shares With Great Recovery Potential originally appeared on and is written by David O’Hara.

David O’Hara owns shares in Lloyds Banking Group but none of the other shares 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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.