By - Kunal Sawhney
Summary
- A bunch of large-cap, as well as mid-cap stocks constituting the benchmark index FTSE 100 have vastly outperformed the key benchmark index in last five years
- Surprisingly, shares of the Cambridge-headquartered drugmaker have more than doubled in the past five-year term
- The stock price of the London-based UK’s largest minerals explorer has gained over 90 per cent in the meantime
UK stock markets have seen a muted and dull activity in the last five years, as far as the returns of several headline indices are concerned. Major concerns around the Brexit negotiations and the aftermath of Chinese meltdown in the second half of 2015 have retained a sluggish market mood. The presence of negative global cues from the onset of 2018 with the worldwide market crash and the beginning of retaliatory trade tariffs between the Trump administration and China have further added to jittery amid the market participants, as a result of which the benchmark FTSE 100 has displayed a negative return in the last five-year term.
The UK’s key equity index has registered a negative return with the FTSE 100 declining by more than 8 per cent to 5,919.58 from a level of 6,444.08 as achieved on 23 October 2015. Meanwhile, a bunch of large-cap and mid-cap stocks constituting the benchmark index FTSE 100 have logged positive returns with a few of them vastly outperforming the index in the corresponding time. We take a look at five blue-chip growth stocks, components of FTSE 100, that have returned up to 100 per cent in the last five years.
Shares of Astrazeneca, the Cambridge-headquartered drugmaker, have registered an exceptional growth amid the blue-chip constituents of FTSE 100 with the stock of the market capitalisation leader doubling in the last five years. Astrazeneca share price has rallied a little more than 100 per cent in the said duration, and surprisingly, the stock has also made a swift recovery from the bottom achieved in the present year due to the market-wide dip on the back of coronavirus pandemic-led worries.
Stock Performance: Astrazeneca Plc
Source: Thomson Reuters
In the past five years, Astrazeneca shares have jumped 104.17 per cent to £8,217 (16 October 2020) from a share price level of £4,024.50 as on 20 October 2015. In the present year itself, the stock of Astrazeneca made a closing low of £6,221 on 16 March after the coronavirus pandemic started revealing its lethal picture. Interestingly, Astrazeneca shares recovered quickly as compared to other heavyweight stocks comprising the FTSE 100 index with the Astrazeneca share price making a yearly closing high at £9,320 on 20 July.
With the market capitalisation of £107,831.39 million, a price-to-earnings (PE) ratio of more than 64 and a current share price of over £8,000, Astrazeneca shares remain in the high trading category translating into a massive daily turnover on the counters. On 19 October, nearly 324,771 shares of Astrazeneca had exchanged hands until 1:44 pm. Astrazeneca Plc is scheduled to release the financial results for the third quarter, as well as for the year-to-date period ended September 2020 on 5 November 2020.
Shares of Diageo, the London-headquartered alcoholic beverage maker, have also outperformed the benchmark equity index FTSE 100 in the last five years. The stock of the world’s largest spirit producer Diageo has grown relatively better as compared to other stocks of the same sector with the shares amassing a return of more than 40 per cent. Diageo share price has surged 43.41 per cent to £2,654.5 from a market price of £1,851 a piece as on 20 October 2015.
Stock Performance: Diageo Plc
Source: Thomson Reuters
Diageo commands a market capitalisation of nearly £62,080.60 million and a PE ratio of over 44. Diageo shares hit a yearly closing low of £2,200 on 18 March and a yearly closing high, after partially recovering from the Covid-19-laden distress, of £2,954 per share on 28 May 2020. However, the year-to-date and one-year returns of Diageo shares are still in the negative territory.
The stock price of Rio Tinto, the London-based minerals explorer, has also outperformed the FTSE 100 index in the last five years, as well as the present calendar year. Shares of Rio Tinto have logged a gain of more than 90 per cent in the last five years with the stock of the UK’s biggest iron ore organisation soaring 91.37 per cent to £4,646.5 from a share price level of £2,428 as on 20 October 2015.
Stock Performance: Rio Tinto Plc
Source: Thomson Reuters
The stock of Rio Tinto crashed 36.54 per cent to a yearly closing low of £2,968 on 12 March from a peak of £4,677 achieved on 20 January 2020. The fall in the stock price of Rio Tinto after March 2020 has been on the account of Covid-19-led panic among the businesses with regards to their operationality and profitability. Last month itself, Rio Tinto shares made a fresh 52-week closing high of £5,135 on 15 September 2020, registering a gain of 73 per cent from the yearly closing bottom. Rio Tinto controls a market capitalisation of £57,928 million and a PE ratio of more than 13.
Shares of Unilever, the London-based FMCG giant, have also witnessed a good spike in the last five years, as far as the returns of blue-chip companies of the related sector are concerned. The stock of the UK’s largest consumer products company by market capitalisation, as well as in terms of revenues have managed to maintain a positive return in the last five-year terms and the present calendar year too despite a bunch of corrections in the share price.
Stock Performance: Unilever Plc
Source: Thomson Reuters
Unilever shares have garnered a gain of nearly 65 per cent with the stock rising as much as 64.97 per cent to £4,817 from a share price level of £2,920 as on 20 October 2020. In the current year, Unilever shares have recovered in a staggered manner after achieving a yearly closing low of £3,726 16 March. Unilever share price soared a little over 30 per cent to mark a yearly closing high of £4,892 on 14 October from the yearly closing in a period of seven months. Unilever has a market capitalisation of £56,860.70 million and a PE ratio of more than 23.