This brokerage looks set for the FTSE 100
The FTSE 100 is made up of the largest companies listed on the London Stock Exchange by market capitalisation, including big names such as Shell, HSBC, AstraZeneca, BP, and Unilever.
However, not every giant qualifies â some, such as Carnival, remain excluded despite size due to other requirements like primary London listing, liquidity, or nationality status. As of September, recent additions include Burberry and Metlen Energy & Metals while Taylor Wimpey and Unite Group have exited.
So whoâs next to join the blue-chip grouping? Well, one company thatâs knocking on the door in terms of market-cap is IG Group (LSE:IGG) â the UK brokerage and trading platform. At the moment it has a market-cap of exactly £4bn. That makes it the 97th largest listed company in the UK.
Companies in the FTSE 250 are automatically promoted to the FTSE 100 if, at the reshuffleâs close, they rank among the 90 largest London-listed firms by market value. So itâs close to automatic promotion, but not quite there yet.
Could IG Group push higher?
The big question is whether IG Group could push higher and gain automatic promotion. The consensus of analysts covering the stock believe IG Group shares are undervalued and suggest the fair value is 10% higher. This would actually make it the 90th largest company on the exchange.
I quite like IG shares, primarily due to their attractive valuation relative to expected growth. The price-to-earnings ratio remains low over the forecast period â 11.1 times in 2026, 10.5 times in 2027, and 9.3 times in 2028.
A key strength is the companyâs exceptionally strong net cash position. As of 2025, IG Group holds £556.7m in net cash, with forecasts showing a continued surplus of £674m in 2026, £759.9m in 2027, and £828.4m in 2028.
This balance sheet strength reduces financial risk, supports dividend sustainability, and provides flexibility for strategic opportunities. Whatâs more, the stock offers a 4.2% dividend yield.
The problem is, the next quarterly promotion opportunity is Friday (19 September). Thereâs unlikely to be enough catalysts to push the stock into promotion territory by then.
The bottom line
IG Group posted strong full-year results, with adjusted pre-tax profit up 17% to £535.8m and revenue rising 9% to £1.08bn. This is underpinned by supportive market conditions and higher revenue per customer.
Meanwhile, active customer numbers surged 137% to 820,000 following the acquisition of Freetrade, with organic growth of 5% to 362,800. Freetrade contributed £4.8m to group revenue in the two months since completion.
However, like any investment there are risks. Results remain sensitive to market conditions and trading activity. This can prove an issue in the UK where investing appetite isnât as strong as it could be. Whatâs more, this is a competitive space and must innovate to maintain momentum.
Nonetheless, itâs a stock on my watchlist and I definitely believe itâs worth considering. Noting the above, I think itâs fair to say that IG Group offers a compelling blend of value, growth and income.
It could also push higher if it does gain promotion to the FTSE 100, as index-tracking funds would need to buy the stock, potentially increasing demand and supporting the share price.
The post This brokerage looks set for the FTSE 100 appeared first on The Motley Fool UK.
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HSBC Holdings is an advertising partner of Motley Fool Money. James Fox has positions in Carnival plc. The Motley Fool UK has recommended Burberry Group Plc, HSBC Holdings, and Unilever. 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.
