ICAP’s sales growth of 11% was certainly impressive, but it was also exclusively due to currency fluctuations. When sterling’s weakness is removed, its top line growth was zero versus the same period of last year. And worse still, its trading profit before tax from continuing operations declined by 7% to £51m. Now this figure is relevant because it represents the part of ICAP that will become NEX Group following the sale of ICAP’s global hybrid voice broking business to Tullett Prebon.

So is ICAP/NEX left with a turkey? Although its continuing operations recorded disappointing profitability, they have considerable long-term growth potential. Fundamentally, ICAP remains sound and over time it’s likely that more normal market conditions will return. And with it forecast to record a rise in earnings of 11% in the next financial year, investor sentiment could improve following the deal with Tullett Prebon. That’s especially the case since ICAP trades on a price-to-earnings growth (PEG) ratio of only 1.6.

Good news for Tullet Prebon

Of course, its global hybrid voice broking business continues to perform well. It recorded a rise in trading profit before tax of 28% to £59m in the first half of the year. Its trading profit margin rose by two percentage points and this indicates that Tullett Prebon’s future performance is likely to be enhanced by the acquisition. With Tullett Prebon trading on a PEG ratio of 1.7, it has a wide margin of safety. Assuming the successful completion and integration of the broking business, Tullett Prebon’s share price could increase following its 14% rise in the last three months.

The appeal of ICAP and Tullett Prebon becomes increasingly apparent when other financial services sector stocks are considered. For example, wealth manager Hargreaves Lansdown (LSE: HL) has a PEG ratio of 3.5, which indicates that it lacks appeal from a valuation perspective. Furthermore, ICAP and Tullett Prebon are undergoing significant changes that could lead to improved financial performance. While Hargreaves Lansdown has a successful track record of consistent growth, it lacks a clear catalyst for growth compared to either of the other two.

While the current operating environment for ICAP and Tullett Prebon is highly uncertain, a more stable outlook may lie ahead. With both stocks having low valuations and sound growth strategies, now could prove to be an excellent time for long-term investors to buy a slice of them.

The post ICAP plc’s sales surge by 11% ahead of Tullett Prebon plc deal appeared first on The Twelfth Magpie.

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And the firm — which is due to rebrand itself as NEX Group in the near future — expects further Brexit benefits to emerge, ICAP advising that “the subsequent decline in sterling in the FX markets does provide us with a significant windfall benefit.”

Still, the operating environment remains extremely difficult for the broker, with revenues slipping 7% during April-June. And ICAP warned that “overall market conditions have been mixed as the malaise in global financial markets, low interest rates and bank deleveraging persists.”

Against this backcloth, I reckon a forward P/E rating of 16.3 times fails to fairly reflect the hurdles ICAP faces to transform its worrying revenues outlook.

Not out of the woods

Industrial belt manufacturer Fenner (LSE: FENR) continued its stunning ascent in mid-week trade, the stock hitting levels not seen since last October. Investor appetite was boosted by a trading update in which Fenner confirmed that trading remains in line with expectations.

Indeed, the company — which provides hardware to the mining and energy industries — advised that it had achieved “further benefits from operational efficiencies and market share gains” during the period from 1 March to 12 July.

But the weak conditions of its end markets still leaves a cloud hanging over the firm. Fenner commented that “our principal markets [have] shown no recovery and, in some cases… deteriorated further.”

Fenner has seen its share price shoot 70% higher from February’s troughs, leaving the company dealing on a P/E rating of 20.8 times. This is far too heady given the fragile state of commodity markets, I reckon, and leaves the stock in danger of a severe correction should industry news flow deteriorate.

Toast tasty returns

Pub chain Wetherspoons (LSE: JDW) also bounced in Wednesday business, the share hitting levels not seen since last summer following a positive update on its own.

In a bid to banish the gloom surrounding Britain’s exit from the EU, Wetherspoons chairman Tim Martin commented that “I believe the UK’s economic prospects will improve.” Martin did caution that “the unprecedented and irresponsible doom-mongering” from politicians, companies and economists alike “may lead to some kind of slowdown,” however.

Regardless, investors were cheered by Wetherspoons’ latest set of numbers, which showed like-for-like sales up 4% during the 11 weeks to 10 July. This indicates a recent rush to the bar as sales for the 50 weeks to 10 July grew by 3.4%.

Wetherspoons’ restructuring plan is clearly paying off handsomely and I expect demand for the firm’s cut-price ale and grub to keep rising. And I reckon the chain is great value at present, the firm’s P/E rating of 16.4 times for the year to July 2016 slipping to 14.8 times for the following period.

The post Should you buy J D Wetherspoon plc, ICAP plc and Fenner plc following today’s news? appeared first on The Twelfth Magpie.

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Investors often start from modest beginnings. But through hard work, persistence, canny decision making and patience, they can become rich.

That’s what dividend investing is all about: carefully choosing companies that are stable and consistently producing earnings year-on-year, and then holding on to these firms, come crises and panics, and slowly collecting and reinvesting those dividend cheques. Then, through the miracle of compounding, the value of your investments increases. You thus get rich, but slowly.

And here I will examine 3 businesses to see if they are the ideal additions to your high-yield portfolio.

Aviva

I’m a big fan of Aviva (LSE: AV) as an investment. In recent years this company has been turned around, having cut costs and renewed its focus on providing high quality financial products that are popular with consumers.

My car is insured through Aviva, and innovations such as the Aviva Drive app, that monitors your driving performance and can give you a discount on your insurance, show the fresh thinking that this firm is bringing to insurance.

It is an international company with operations in the fast growing markets of Asia, and profits are on the up. Eps is predicted to go from 22.30p to 53.81p in 2017. And with the share price off recent highs, the company is very reasonably priced, with a 2016 P/E ratio of 9.48 and a dividend yield of 5.45%.

Amec Foster Wheeler

Amec Foster Wheeler (LSE: AMFW) is an international engineering, project management and consultancy firm that employs more than 40,000 people in 55 countries.

Last year the share price crashed, and now stands at one third of its all time high, because the firm turned to a loss in 2015. Much of Amec’s business is in the oil, gas and mining industries that have been hit hard by falling commodity prices.

But this company also has a substantial clean energy business, particularly solar, that is set to grow further.

That’s why this is an unusual firm, in that it is partly old economy, and part new economy. To succeed in the commodity bear market to come, it will need to move rapidly towards the new economy model.

Yet a forecast 2016 P/E ratio of 8.02, with a dividend yield of 4.88% looks tempting, and this might just be worth a punt.

ICAP

ICAP (LSE: IAP) is a broking company. It is actually a business that is in transition. It is in the process of selling its global hybrid voice broking and information business to Tullett Prebon, subject to regulatory approval. After this transaction has taken place, the remaining firm will trade as NEX Group plc, a focused electronic and post trade group.

So investors will receive shares in rival broker Tullett Prebon as well as NEX Group. With both ICAP and Tullett cheaply priced, I think this will be a good deal for shareholders.

ICAP is certainly at a reasonable 2017 P/E ratio of 17.09, and offers a dividend yield of 5.07%, and I think is worth adding to your income portfolio.

The post Are Aviva plc, Amec Foster Wheeler plc & ICAP plc 3 dividend stars? appeared first on The Twelfth Magpie.

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RBS is gradually getting closer to restarting shareholder payouts. The firm’s shares slumped in February when chief executive Ross McEwan said that dividend payouts were likely to restart later than his original target of Q1 2017.

I believe this could be an opportunity for investors with a longer-term view. Analysts still expect RBS to make a dividend payment of 7p per share in 2017. That represents a 2.9% yield and would be covered three times by forecast earnings.

This suggests that dividend growth from 2018 onwards could be substantial. As we’ve seen with Lloyds Banking Group, investors who bought early — before dividends were restarted — are now enjoying very high dividend yields on their original purchase price.

In my view, now could be a smart time for income investors to start building a long-term holding in RBS.

A profitable new direction?

Financial trading and services firm ICAP (LSE: IAP) is facing an uncertain future. At least, that’s the bearish argument. Having decided to sell its voice broking unit to rival Tullett Prebon, ICAP has a hole to fill.

The group has decided to embrace the opportunity to modernise and will be renaming itself NEX Group. NEX will focus solely on electronic markets and post-trade services. This is a growing area, not only in London but in less developed overseas markets.

This morning, ICAP announced the first stage of its planned expansion into China — a potentially huge market. In a deal valued at $65m over three years, ICAP will use its systems to provide a variety of electronic trading facilities for the China Foreign Exchange Trade System, a key platform.

ICAP shares aren’t especially cheap. The firm’s shares currently trade on a 2016 forecast P/E of 16, with a forecast yield of 5.3%. This stock isn’t without risk, but I suspect ICAP’s move to focus solely on electronic markets could be profitable. I reckon the shares could be a good medium-term buy.

How risky is this 7% yield?

Low margin construction and outsourcing firms are often rightly seen as risky. They can be vulnerable to client spending cuts or costly project-specific problems.

However, I rate Carillion (LSE: CLLN) as one of the bigger and better players in this market. The group has generated fairly consistent profits since 2010 and has an operating margin of about 5% — notably higher than some competitors.

Despite this, Carillion is one of the most-shorted stocks in the FTSE 350. Investors are concerned that while year-end net debt was quite low, the average level of net debt last year was a worrying £538.9m. This looks risky to me, relative to last year’s post-tax profit of £139.4m.

A sustained sell off has left Carillion trading on just 8 times forecast 2016 earnings, with a prospective dividend yield of 6.9%. If the company can deliver on forecasts for earnings growth of about 5% this year and in 2017, then the shares could be a profitable buy.

The post 3 overlooked income buys? Royal Bank of Scotland Group plc, ICAP plc & Carillion plc appeared first on The Twelfth Magpie.

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For example, Barclays trades on a price-to-earnings (P/E) ratio of just 10 at the present time and this indicates that there’s tremendous potential for an upward rerating. The chances of that happening are increased significantly by Barclays’ upbeat earnings growth prospects, with the bank expected to increase its bottom line by 40% in the next financial year. This puts it on a price-to-earnings-growth (PEG) ratio of just 0.2, which shows that it offers stunning growth at a very reasonable price.

Furthermore, with Barclays implementing a new strategy that will see it dispose of non-core assets and focus on improving its capital position, investor sentiment could gradually increase as Barclays becomes a more financially sound and profitable bank.

Swimming with (Brewin) Dolphin

Also offering upside potential is investment management company Brewin Dolphin (LSE: BRW). Certainly, 2016 has been a tough year thus far for the business, with increased market volatility causing a degree of uncertainty regarding its financial future. As such, investors are pencilling in a fall in the company’s bottom line of 5% in the current year.

While this result would be disappointing, Brewin Dolphin is expected to bounce back next year with growth in earnings of 15%. This could cause investor sentiment to pick up strongly and with its shares having a PEG ratio of 0.9, they seem to be very attractively priced. Clearly, further market volatility or a fall in the price level of the FTSE 100 could cause Brewin Dolphin’s forecasts to be downgraded. However, with such an appealing valuation it seems to offer a wide margin of safety for long-term investors.

One to watch

Meanwhile, interdealer broker ICAP (LSE: IAP) doesn’t appear to be as enticing for investors as Barclays or Brewin Dolphin. Much of that comes down to its valuation, with it currently trading on a P/E ratio of 16.4, which indicates that its shares may be fully valued. And while ICAP is expected to increase its earnings by 12% this year and by a further 6% next year, there are better value and faster growing options elsewhere.

Certainly, ICAP has the potential to grow its bottom line at a rapid rate in future years, with its planned deal to merge with Tullett Prebon offering synergies and increased financial strength. However, with any merger there are always risks that integration won’t be smooth and with ICAP having such a narrow margin of safety, it appears to be a stock to watch rather than buy at the present time.

The post Are Barclays plc, ICAP plc and Brewin Dolphin Holdings plc the best stock tips of all-time? appeared first on The Twelfth Magpie.

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In the case of Barclays (LSE: BARC), it has the potential to more than double within five years. A key reason for this is its ultra-low valuation. For example, it trades on a price to earnings (P/E) ratio of just 10, which indicates that there is significant upward rerating potential. In fact, if Barclays were to trade on the same P/E ratio as the FTSE 100 of around 14, it would mean that its shares rise by 40% from their current level.

In addition, Barclays is also forecast to increase its bottom line by 19% next year. So, even if its earnings growth rate reverts to that of the wider index (i.e. mid to high single digit per annum)  in the following four years, it would still mean that the bank’s net profit would be around 56% higher by the end of 2020, assuming a 7% earnings growth rate. This, plus the aforementioned upward re-rating potential, would be sufficient for Barclays’ shares to more than double within five years, with dividends boosting its total return yet further.

Similarly, challenger bank Aldermore (LSE: ALD) could also post 100% total returns within the same timeframe. Like Barclays, it trades at a large discount to the FTSE 100, with its shares having a P/E ratio of just 12.3. As a result, there is scope for an upward re-rating and if they were to trade at the same valuation as the wider index, it would mean Aldermore’s shares being priced around 14% higher.

Furthermore, Aldermore is forecast to increase its bottom line by 18% next year and, since it is a challenger bank, it may be more likely to maintain a higher rate of growth in the following years than will Barclays. That’s especially relevant, since the loose monetary policy which has benefitted Aldermore and other challenger banks through increasing demand for new loans is set to remain in place over the medium term.

As a result, if Aldermore can maintain a double-digit earnings growth rate from 2017 through to 2020 then its earnings per share would reach 37.6p. When multiplied by a rating of 14, this would equate to a share price of 526p, which would represent a doubling from its present price level.

Meanwhile, interdealer broker ICAP (LSE: IAP) also has excellent long term growth potential. It trades on a price to earnings growth (PEG) ratio of just 1.3, which indicates that its shares offer strong growth prospects at a very reasonable price.

However, unlike Barclays and Aldermore, there is a lack of upward re-rating potential, since ICAP has a P/E ratio of 15.9. And, while its bottom line is set to rise by 10% next year, even if such a rate of growth is maintained in the next five years it would equate to a rise of only 61% in value, assuming ICAP maintains its present premium rating.

Looking at the company’s track record, though, profit has fallen in two of the last five years. This indicates that five years of double-digit growth may be unlikely and, while ICAP has a 4.7% yield which could contribute 26% in returns over five years, the prospect of a 100% total return by the end of 2020 appears to be rather slimmer than for Barclays or Aldermore.

The post Could Barclays PLC, Aldermore Group PLC And ICAP plc Double Within 5 Years? appeared first on The Twelfth Magpie.

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During both good and bad times, we investors can frequently find ourselves lamenting the markets for personal mistakes or misfortunes, while some often even resign themselves to the belief that it is only the brokers and bankers who ever really win.

This conjured more thoughts of not just an old adage about ‘the house’ and ‘winning’ but also an existing share position of mine, as well as the potential for today’s market environment to support the creation of a new adage… if the house always wins, then buy the house!

Buy the house with IG shares!

IG Group (LSE: IGG) shares offer investors a way to make both the bankers and the brokers work for them. The derivatives dealer benefits equally from market volatility as it does from clear and definable trends.

Whether equity markets rise or fall, so long as IG clients have a view on which direction financial asset prices are likely to move in, the group will be in with a good shot at making itself — and you — money.

With IG shares in the midst of a pullback from July’s highs, while both interest rates and economic catastrophe remain on the table as issues for investors, I am more than happy to consider IG for a place in my own portfolio.

Double down with Hargreaves Lansdown!

For those looking to double down on the idea of buying the house, Hargreaves Lansdown (LSE: HL) is another one to consider. Whether clients buy, sell or sit there and do nothing, Hargreaves Lansdown’s fee structure means that it will still earn itself (and you) money.

In addition to being the UK’s leading fund supermarket, HL also offers a top flight range of additional online services, while scope still exists for it to branch out into other areas during the years ahead.

However, before jumping into these shares head first, investors would do well to be mindful of the risks surrounding the group’s dividend. Its commitment to a ‘progressive dividend’ has seen HL paying out almost all of its earnings as cash returns to shareholders in recent periods.

This means that if the dividend is to avoid a period of stagnation — or even worse, a cut in the future — management will need to ensure that earnings continue to grow year after year. Even one failure in this regard could lead to damaging speculation about the future of the payout.

Clean up with ICAP!

For those investors who would like to clean up on the idea of buying the house, ICAP (LSE: IAP) shares would be the ones to really look at. The group is the broker’s broker, with a particular focus on fixed income and fx, which are both areas that could see considerable volatility if US and UK rates rise in the near future.

In addition to being highly geared toward any increase in trading activity or volatility, ICAP also has a healthy and growing business in what it calls ‘post-trade risk and information services’, which is an area that is likely to grow further still with the ever-advancing march of regulation when it comes to trading risk.

Furthermore, the shares have fallen by 25% since May following a weak start to the year in terms of trading volumes. If we assume that the Fed takes a chance by raising rates in December and that the BOE does the same shortly before or after, then ICAP shares may not be this cheap again for quite some time to come!

The post If The House Always Wins, Buy The House! (IG Group Holdings Plc, ICAP Plc & Hargreaves Lansdown Plc) appeared first on The Twelfth Magpie.

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It is with this in mind that I turn my own thoughts on one or two areas which are of particular interest to me.

Inter-dealer brokers are a fantastic play on the changing winds of monetary policy…

Inter-dealer brokers like ICAP (LSE: IAP) and Tullett Prebon (LSE: TLPR) have long lamented the pains of ultra low interest rates, low market volatility and reduced trading activity at the banks. However, ever more hawkish noises emerging from the Federal Reserve and the Bank of England are a sign that the outlook is beginning to brighten for these companies.

Given that their revenues and earnings (commissions) are largely dependent upon transaction volumes within financial markets, as opposed to the overall direction of the underlying asset prices, rising interest rates are great news for inter-dealer brokers.

Some shrewd investors saw this opportunity a long time ago and bought both companies heavily, prompting notable gains in the shares over the last 12-18 months. However, with transaction volumes still some 30% below their pre financial crisis peaks, the current recovery could still have legs to go further in the coming quarters.

In addition to their advantageous position when it comes to rates, both companies are much more attractive from a risk perspective, relative to the banks and asset managers. Most notably because they lack the heavy balance sheets, mortgage credit risks and the exposure to the overall direction of markets that many of these comparative companies have.

Furthermore, on a price-to-earnings basis, valuations are also reasonable — with Icap trading on 16.1x and Tullett at 15.5x 2014 earnings. This compares favourably with the riskier banks, insurance companies and asset managers, whose current multiples range from 15x to 19x 2014 EPS.

As a result, Tullett and ICAP are two companies that I will be keeping a very close eye on over the coming quarters.

Did I mention insurance companies already, non-life insurance companies?

I wrote at length about this recently; however, it is an idea that is well worth a quick recap as this industry is also one of the fortunate few that will benefit from higher rates over the medium term.

Given that Hiscox (LSE: HSX) and Beazley (LSE: BEZ) were among the non-life companies to derive a considerable portion of their earnings from their bond portfolios before the financial crisis, they should also be among those to benefit from a gradual push higher in rates.

Furthermore, on a price-to-earnings basis, both companies are also attractively valued with each trading at a discount to the wider non-life sector as well as the riskier banking sector.

Given that the non-life sector currently averages 17.8x and the banking sector 19.2x 2014 earnings, the 14.4x multiple at Hiscox and the 13.7x figure at Beazley are particularly attractive when considering the medium term outlook for earnings.

You can read more about my view on insurance here.

Barclays could also be worth a go, for those with the requisite stomach…

If, for whatever reason, the above industries are not of interest, then you might like to consider a company like Barclays (LSE: BARC), whose fixed income, currencies and commodities (FICC) business has been the bane of its existence of late.

With interest rate and FX volatility likely to return to markets over the coming quarters, the once-prized FICC business could soon begin to make a more meaningful contribution to earnings.

However, those that do venture here would do well to consider the potential for further skeletons to emerge from the closet, in addition to the group’s complex capital structure that sees most of its earnings eaten by bondholders.

The post 5 UK Stocks Set To Profit From The Fed Raising Rates: ICAP PLC, Tullet Prebon Plc, Barclays Plc, Hiscox Ltd & Beazley Plc appeared first on The Twelfth Magpie.

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James Skinner owns shares in ICAP & Beazley. The Motley Fool UK has recommended Barclays and Beazley. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

For example, OneSavings Bank (LSE: OSB), a FTSE-250 listed mortgage and loan provider, trades on a price to earnings (P/E) ratio of just 11.5. This indicates that its shares are very cheap on both an absolute and relative basis, but when the company’s future growth potential is taken into account, it has an even greater appeal.

For example, OneSavings Bank is expected to increase its earnings by 32% in the current year, followed by further growth of 12% next year. This means that it trades on a price to earnings growth (PEG) ratio of just 0.9, which indicates that its shares look set to continue the 72% rise that they have posted since the turn of the year.

Furthermore, OneSavings Bank currently yields 2.1% and, with such strong earnings growth (as well as a payout ratio of just 24%), shareholder payouts are likely to rise. Furthermore, with interest rate rises likely to be somewhat slow, demand for loans should remain buoyant over the medium to long term, thereby providing a stream of potential customers for the bank to profit from.

Of course, OneSavings Bank is not the only bank with huge potential. Sector peer, Barclays (LSE: BARC), is also very, very cheap at the present time. It trades on a PEG ratio of just 0.4 which, for a bank that has remained profitable throughout the credit crunch, is a diversified operator and trades across the globe, seems to be unbelievably cheap. Certainly, regulatory issues have hurt investor sentiment but, unless investors believe that fines will cripple the bank, its current valuation seems to be hard to justify.

In fact, Barclays has been somewhat under the radar until its CEO departed recently. Prior to that, much of the discussion within the banking sector was with regard to the part-nationalised banks, as well as China-focused ones, and the onset of challenger banks. Barclays, though, is still hugely profitable and, with dividends set to rise so that it yields 3.5% next year (from a payout ratio of just 29%), it appears to be hugely enticing at the present time.

Meanwhile, broking specialist, ICAP (LSE: IAP), also offers significant capital gain potential. Its growth numbers may be somewhat lower than those of Barclays and OneSavings Bank, with it due to post a rise in its bottom line of 5% this year and 10% next year. However, with a very fair P/E ratio of 15.4, ICAP’s PEG ratio of 1.4 indicates that its shares offer good value for money. And, with the stock currently yielding 4.7% from a dividend that is covered 1.4 times by profit, it offers the best income prospects over the short to medium term out of all three stocks discussed here.

However, with its valuation being considerably higher than those of Barclays and OneSavings Bank, ICAP seems to less appealing than them at the present time (although I think it’s still a worthwhile purchase). And, while the outlook for OneSavings Bank is very bright, the size, scale and sheer resilience of Barclays mark it out as a more dependable place to invest. Plus, it has a more appealing valuation and yield than OneSavings Bank and, therefore, seems to be the better choice.

The post Barclays PLC Vs ICAP plc Vs OneSavings Bank PLC: Which Is The Best Buy? appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of Barclays. The Motley Fool UK has recommended Barclays. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

As with many of its banking peers, Barclays (LSE: BARC) (NYSE: BCS.US) is aiming to significantly increase the proportion of profit that it pays out as a dividend. In fact, when it conducted a share placing in 2013 it stated that a payout ratio of 45% was within its sights and, in the current year, it is expected to pay out around 35% of profit as a dividend.

This leaves scope for further dividend growth moving forward and, when you consider that Barclays is expected to grow its bottom line by 19% next year, it means that the bank’s dividends could rise at a rapid rate due to the dual effect of an increasing payout ratio and excellent earnings growth. And, with interest rates set to stay low over the medium term, Barclays’ dividends could be the catalyst to push its share price northwards at a rapid rate.

ICAP

Shares in broking firm, ICAP (LSE IAP), have soared by 21% since the turn of the year, which is well ahead of the FTSE 100’s performance. Of course, it’s easy to see why, since ICAP is forecast to increase its bottom line by a hugely impressive 19% in the current year. This puts it on a price to earnings growth (PEG) ratio of just 1, which indicates that its growth prospects are on offer at a very reasonable price.

Of course, the last few years have been somewhat disappointing for ICAP, with its earnings expected to be around 25% lower in the last financial year than they were five years ago. Despite this, the company’s shares are up 40% in the same time period and, with growth set to return this year, investor sentiment could tick up and cause ICAP’s share price to keep moving upwards.

Schroders

Shares in fund manager, Schroders (LSE: SDR), have risen by an impressive 25% since the turn of the year, as a higher wider index level means more fees for the asset manager. And, with a beta of 1.4, any further gains in the FTSE 100 should send Schroders’ share price to even higher highs.

However, the General Election and the uncertainty surrounding it could cause weakness in Schroders’ share price in the short to medium term. That’s especially the case since it offers an earnings growth rate that is roughly in-line with that of the wider index (8% per annum during the next two years) and yet it trades at a premium to the FTSE 100, with Schroders having a price to earnings (P/E) ratio of 18.8 versus 16 for the wider index. As such, it may be worth waiting for a keener price before adding Schroders to your portfolio.

Hargreaves Lansdown

Shares in Hargreaves Lansdown (LSE: HL) were weaker this week as investors reacted to the news that co-founder, Peter Hargreaves, has stepped down from the board. And, while the reason for his departure is to spend more time pursuing outside interests, the performance of the company in the current year is rather disappointing, with Hargreaves Lansdown expected to grow its bottom line by just 1%.

Of course, this follows a number of years of excellent growth and, in addition, the company is forecast to return to double-digit growth next year with a rise of 15% in its bottom line. However, with such a major departure from its board and the fact that it trades on a PEG ratio of 2, there seem to be better opportunities to invest elsewhere.

The post Can These 4 Financial Stocks Boost Your Portfolio Returns? Barclays PLC, ICAP plc, Schroders plc And Hargreaves Lansdown PLC appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of Barclays. The Motley Fool UK has recommended Hargreaves Lansdown. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.