Shareholders will be hoping that the conduct of the board and government does not prevent Royal Bank of Scotland Group plc (LSE:RBS) finding a capable banker that is willing to take the job.
Royal Bank of Scotland Group plc (LSE:RBS) is forecast to make 31.4 pence of EPS in 2014. That equates to a 2014 P/E of just 10.1.
Lloyds Banking Group PLC (LON:LLOY) shares have remained at around their peak despite recent market falls. On Friday, the shares closed at 61.3 pence, hardly moved from their recent two year high of 63 pence.
Lloyds Banking Group PLC (LON:LLOY) is much closer to privatization than RBS. Its business is also considered less dependent on investment banking revenues than Barclays. Perhaps as a result, its shares trade at a higher rating.
Lloyds Banking Group PLC (LON:LLOY) shares are today available at 13.5 times forecasts for 2013, falling to 10.4 times the expected number for 2014. As its balance sheet improves, Lloyds Banking Group PLC (LON:LLOY) also looks increasingly likely to begin paying shareholder dividends.
Unlike RBS and Barclays, Lloyds Banking Group PLC (LON:LLOY) shares are trading at a premium to the company’s net tangible asset value.
The Weir Group PLC (LON:WEIR)
Glasgow-based Weir Group provides engineering services to the mining, oil and gas, and power industries. Customers in these sectors have little control of the price that they receive for their product. As a result, The Weir Group PLC (LON:WEIR) is supplying to a customer base that must trade its way through market boom and bust. This impacts market perceptions of The Weir Group PLC (LON:WEIR)‘s own prospects. The result is a high-beta share price.
A quick look at The Weir Group PLC (LON:WEIR)’s five-year record suggests that the market may not be giving the company due credit. The Weir Group PLC (LON:WEIR) is one of those exceptional companies that has managed to grow sales, profits, and dividends year on year for the last five years.
More growth is expected in the next two years, leaving the shares on a 2014 P/E of 12.9.
Shares in Legal & General Group Plc (LON:LGEN) have lost 10% since the recent market peak. The company owns a substantial investment management business. As such, the market often bids up the Legal & General Group Plc (LON:LGEN) share price during market rises and rushes to sell when the FTSE steps back.
That seems unfair, given the company’s robust track record. Even in the depth of the financial crisis, Legal & General Group Plc (LON:LGEN) continued to pay a dividend. Only in 2008 did the company record a material decline in earnings.
At 171 pence, Legal & General Group Plc (LON:LGEN) is selling at 11.1 times broker forecasts for 2013. Further growth is expected the next year, pushing that P/E down to 10.4. A dividend of 8.5 pence per share is forecast this year, meaning a prospective yield of 5%.
The article 10 FTSE 100 Shares to Soar in a Market Revival originally appeared on Fool.com is written by David O’Hara.
David O’Hara owns shares in Lloyds Banking Group, Barclays, and Royal Bank of Scotland but none of the other companies mentioned. The Motley Fool recommends Weir Group.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
