The top 5 FTSE 100 stocks since the Covid crash!
It’s been five years since the FTSE 100 crashed near the start of the pandemic. While some strugglers have been relegated to the FTSE 250 since March 2020, many Footsie stocks have rebounded strongly.
Indeed, according to data from Hargreaves Lansdown, 37 of the current members have since doubled their share prices. And that’s not even including dividends!
Here are the five top-performing blue-chip shares in ascending order (excluding dividends).
Promotion
In fifth spot is Games Workshop (LSE: GAW), which was promoted to the FTSE 100 at the end of last year. Shares of the tabletop wargame maker are up by a mouth-watering 263% in five years.
With everyone stuck at home, the pandemic proved to be a boon for the firm. Many people discovered or re-engaged with the fictional universe of Warhammer, boosting sales and profits.
The company has kept many of those customers and added new ones too. Revenue has climbed from £270m in its 2019/2020 financial year to an expected £586m for this one (ending May).
Net profit has surged by around 150% over this time, supporting a big rise in the dividend. Quite simply, the company has performed wonderfully and shareholders (myself included) have been handsomely rewarded.
Nowadays, over 75% of its revenue comes from abroad. While that’s a positive thing, it does present currency risk due to the expanding international footprint. That is, fluctuations in exchange rates can reduce as well as boost reported profits.
Looking ahead though, I expect the business to keep growing as it exploits its rich repository of intellectual property, including turning Warhammer into films and TV shows in partnership with Amazon. Growth in Asia is also very strong.
Games Workshop shares aren’t cheap at 27 times earnings. But I expect to still be holding mine in five years’ time.
More top stocks
In fourth place is NatWest Group, whose shares are up 273%. Like other lenders, NatWest has benefitted from higher interest rates and improved net interest margins (the difference between what the bank earns on loans and pays on deposits).
Additionally, the British Government has been gradually selling down its stake, while rising dividends and share buybacks have boosted investor sentiment. But even after the stock’s surge, NatWest’s forward dividend yield is close to 6%.
Third is Airtel Africa. This isn’t one I follow closely, but it should have been. Shares of the telecoms firm are up by a very impressive 311%.
Taking second spot is private equity firm 3i Group, which is up by a stonking 456%. This has been driven by its largest holding Action, the discount retailer that has spread like wildfire across Europe.
And the crown goes to…
Since the Covid crash five years ago, the standout winner has been…drum roll, please…Rolls-Royce.
Shares of the engine maker are up by a surreal 549%.
Rolls’ successful turnaround has been driven by cost-cutting measures and renegotiated contracts, as well as the post-Covid recovery in air travel and rising defence spending. Profits margins are up and debt is down significantly.
The shares trade at a premium 27 times earnings, which doesn’t leave much room for error (slowing growth, for example, or an earnings hiccup). But as a shareholder since mid-2023, I’m more than happy with the returns so far.
The post The top 5 FTSE 100 stocks since the Covid crash! appeared first on The Motley Fool UK.
5 Shares for the Future of Energy
Investors who don’t own energy shares need to see this now.
Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.
While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions,
he says. Mark believes 5 companies in particular are poised for spectacular profits.
Open this new report — 5 Shares for the Future of Energy
— and discover:
- Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
- How to potentially get paid by the weather
- Electric Vehicles’ secret
backdoor
opportunity - One dead simple stock for the new nuclear boom
Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!
More reading
- 12 months from now, £5,000 invested in a Stocks and Shares ISA could be worth…
- Here’s the growth forecast for Games Workshop shares through to 2027!
- Here’s how a stock market crash could help investors retire 10 years earlier
- 5 UK stocks Fools have been buying!
- Up 55% in a year, this FTSE 100 stock is on fire!
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Ben McPoland has positions in Games Workshop Group Plc and Rolls-Royce Plc. The Motley Fool UK has recommended Airtel Africa Plc, Amazon, Games Workshop Group Plc, and Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
