Analysts often have a sound understanding of the sector they track with the backing of in-depth research and financial modeling. At times, it becomes difficult to cherry-pick stocks from the plethora of listed companies. To that end, we used the TipRanks Database to find two FTSE 100 listed companies –Prudential Plc (GB:PRU) and Shell (UK) (GB:SHEL) that have earned a “Strong Buy” consensus rating from analysts and offer an upside potential of more than 35% over the next twelve months.
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Prudential Plc (GB:PRU)
London-based Prudential is a multinational insurance company offering life and health insurance as well as asset management services. PRU has dual primary listings on the London Stock Exchange and Hong Kong Stock Exchange. Plus, it has secondary listings on the New York Stock Exchange and Singapore Exchange.
In its recent Q3FY23 business update, Prudential reported a 37% growth in new business profits and a 40% increase in APE (annual premium equivalent) sales for the first nine months of 2023. A pick-up in demand for insurance from domestic customers and Mainland Chinese customers this year, thanks to the lifting of COVID-19 restrictions, has boosted PRU’s performance.
Is Prudential a Buy or Sell?
On TipRanks, PRU stock has a Strong Buy consensus rating backed by ten Buys and one Hold rating. The Prudential share price forecast of 1,415.87p implies a nearly 60% upside potential from current levels. Year-to-date, PRU shares have lost 23.4%.
Shell (UK) (GB:SHEL)
Shell is a British multinational energy company and is one of the largest oil and gas producers in the world in terms of revenue. Shell has a primary listing on the London Stock Exchange and secondary listings on Euronext Amsterdam and the New York Stock Exchange. Notably, SHEL pays a healthy quarterly dividend of 26.75p per share, reflecting a dividend yield of 4.03%.
In its recent Q3FY23 results, Shell posted a healthy sequential jump in adjusted earnings and adjusted EBITDA (earnings before interest tax depreciation and amortization). Importantly, the energy major announced a new $3.5 billion share buyback plan targeted to be completed before the Q4FY23 results are announced on February 1, 2024.
Is Shell a Good Stock to Buy Now?
On December 8, J.P. Morgan analyst Christian Malek lifted the price target for SHEL stock to 3,350p (33.3% upside) from 3,250p while maintaining his Buy rating.
Overall, with 12 Buys versus two Hold ratings, SHEL stock has a Strong Buy consensus rating on TipRanks. The Shell (UK) share price target of 3,519.08p implies 40% upside potential from current levels. Year-to-date, SHEL shares have gained 10.5%.
Ending Thoughts
Investors looking to invest in compelling British stocks can consider Prudential and Shell shares. One is a financial services giant, while the other is an energy major, both of which are part of sectors that are considered to be important pillars of an economy.
