Here’s why these 3 FTSE 100 shares have soared in 2020

first_img Alan Oscroft | Friday, 27th November, 2020 | More on: FLTR KGF OCDO Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. 2020 has been a devastating year for many FTSE 100 shares. But when I look round the list of winners, I see a surprising number doing well. Here I examine three to see why they’re climbing, and probe whether they’re still good buys.Winning FTSE 100 sharesAs a customer of Screwfix and B&Q, I’ve always liked Kingfisher (LSE: KGF). As an investment, I think of it as reasonable but nothing special. In recent years, earnings have been declining. And the company pared the dividend right back after Covid-19 arrived.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…But so far in 2020, the Kingfisher share price is up 24%, while FTSE 100 shares overall are still sitting on a 16% loss. That’s a cracking outperformance (though it is the least impressive of the three I’m looking at today). It’s all down to a surge in DIY activity during our various lockdowns. I can hear the voices of spouses across the country: “No, you’re not allowed to go to the pub, so you can finally put those shelves up.”Forecasts suggest a 40% rise in earnings this year. There’s a fall-back expected next year, of 15%, which is the opposite direction to most FTSE 100 shares. But that would still leave the shares on an undemanding P/E of 12. So is this a one-off, or is Kingfisher back to long-term earnings growth? I need more time to tell.A lockdown blues winnerFlutter Entertainment (LSE: FLTR) shares have more that doubled the gains made by Kingfisher. It’s no real surprise that the gambling company, formed from the merger of Paddy Power and Betfair, has done well this year. (“The shelves? Yes, as soon as we’ve had the Kempton 2:15 results.“)In this case, we’re looking at a year-to-date gain of 51%. That’s more than three times the average of FTSE 100 shares this year. The Flutter share price actually crashed harder than the FTSE 100 in March. So anyone who managed to buy around the bottom is sitting on a 150% gain.Again we’re seeing a forecast EPS rise, of 45%, followed by a smaller decline (6%) next year. The 2021 forward P/E stands at 30. Is that still attractive for a FTSE 100 company that I feel has significant growth potential? I think it might be.Top FTSE 100 share priceThe biggest rise among these FTSE 100 shares comes from Ocado (LSE: OCDO). Is it an online groceries retailer, or is it a jam-tomorrow high-growth technology firm? At the moment, with a year-to-date gain of 70%, Ocado is valued as the latter. Oh, and the company is performing like the latter too, making no profits.With no profits, it’s hard to put any objective valuation on Ocado. And while that’s the case, I think a classic growth share boom-and-bust cycle could be emerging. It’s usually more prevalent with smaller companies, but it does happen among FTSE 100 shares too.The Ocado share price might have rocketed in 2020. But it has already retreated 25% from its peak price in September. And the vaccine boost enjoyed by many FTSE 100 shares is having the opposite effect on Ocado. I think Ocado is overpriced, and I wouldn’t buy. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK owns shares of Flutter Entertainment. 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. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Here’s why these 3 FTSE 100 shares have soared in 2020 “This Stock Could Be Like Buying Amazon in 1997”center_img Image source: Getty Images. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Alan Oscroft Enter Your Email Addresslast_img

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