Why Carpetright, Dixons Retail, and Advanced Medical Solutions Should Beat the FTSE 100 Today


LONDON -- The FTSE 100 barely clung on to the 6,000 level yesterday, closing 87 points down to 6,029 as world markets reacted badly to fears of a Chinese liquidity crunch. But today the index of top shares is rebounding a little, up 57 points, or 0.94%, to 6,086 by 7:40 a.m. EDT. After a strong few months before the recent slump, the FTSE 100 is now back to levels not seen since the beginning of 2013.

But which shares are ahead of the FTSE today? Here are three from the various indexes in that position so far.

Full-year results have sent Carpetright shares up 2.2% to 619 pence. Although exceptional items, in part due to losses from property sales, resulted in a pre-tax loss of £5.1 million, underlying pre-tax profit was up 143% to £9.7 million. The floor-coverings retailer also recorded underlying earnings of 9.6 pence per share, up 113%.

There is further earnings growth forecast for the next two years, but those underlying earnings per share of 9.6 pence put the shares on a trailing price-to-earnings ratio of 64, with forecasts for 2014 bringing that down to 37.

Although Dixons Retail posted a 15% rise in full-year pre-tax profit last week, the shares fell back yesterday amid the panic-led FTSE sell-off. But Dixons shares are bouncing back today, up 4.3% to 40 pence by the time of writing.

With forecasts suggesting a 33% rise in earnings for the year to April 2014, the current price puts the shares on a forward P/E of 19, which might seem a bit rich for a high-street retailer. But 2015 predictions drop that to a more reasonable 14, so there might well be some value still left in Dixons' recovery.

Advanced Medical Solutions
High-performance polymer developer Advanced Medical Solutions Group released a pre-close update this morning ahead of first-half results, and its share price has picked up 3.6% to 75 pence.

At the time of its 2012 full-year results, the company told us that the new year had begun well, and it has now confirmed that the good start has continued. Telling us that profit for this year should be in line with market expectations, the update said, "The board believes that the prospects of the group remain excellent."

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The article Why Carpetright, Dixons Retail, and Advanced Medical Solutions Should Beat the FTSE 100 Today originally appeared on Fool.com.

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