The FTSE 100 has had a reasonably good run to date this 12 months, rising by 7.3%. Nevertheless, I’ve seen three firms within the index that outpace this return. I’ll be looking at every of them and talk about which one I’d add to my portfolio if I had the spare money to take action.

Halma

Halma (LSE:HLMA) is a gaggle of world security tools firms, specialising in hazard detection and life safety.

Its shares have elevated by 14% this 12 months, offering a superb return to traders. It has additionally been a constant winner for some time, rising 1,066% over the past 15 years.

The corporate has primarily achieved its sturdy development by means of acquisitions. In FY24, income grew by 10% to £2bn and adjusted revenue earlier than tax (PBT) grew by the identical share to £396m. That’s fairly spectacular.

There’s an inherent danger with development by means of acquisitions. If returns from the acquired firm don’t materialise, a variety of debt related to the acquisition nonetheless must be paid off. Nevertheless, as of July 2024, the corporate has made 52 acquisitions. Any new one can be a small proportion of its total enterprise.

Aviva

Out of the three firms I’m writing about, Aviva (LSE:AV) has skilled probably the most tepid beat over the FTSE 100, returning 10%.

Nevertheless, its newest half-year outcomes have been fairly sturdy as working revenue elevated by 14% to £875m.

Due to the cyclical nature of the monetary providers trade, the corporate is susceptible to shifts in macroeconomic situations. Subsequently, the insurance coverage supplier might even see a fall in demand for its services and products when instances are robust. It’s doable individuals will minimize their insurance coverage to regulate their bills when the financial system isn’t doing properly.

However this doesn’t appear to be the case proper now. Aviva noticed its normal insurance coverage premiums rise by 15% to £6bn within the first half of 2024. Moreover, economies develop in the long run, so the agency’s shares ought to likewise accomplish that.

Rolls-Royce

Rolls-Royce (LSE:RR) shares have persistently confirmed me flawed. Simply once I suppose they’ve reached their peak, they as soon as once more march upward. They’ve already elevated 78% this 12 months after climbing 221% in 2023.

Because of this, the corporate has fairly an expensive price-to-earnings (P/E) ratio of 31.5. Thus, its shares might fall fairly dramatically on the again of unhealthy information. With fears of a possible US recession, its demand might fall, which can be a catalyst for this.

That stated, Rolls-Royce has seen a variety of development because the pandemic. For instance, its PBT nearly doubled from £524m to £1.04bn within the first half of 2024.

It additionally seems just like the agency has additional development alternatives forward. It was just lately chosen by the Czech Republic’s state utility firm for its small modular reactors (SMR). The SMR market is predicted to be price £295bn by 2043, so it may present additional gas for Rolls-Royce’s income.

Verdict?

I like all three firms, but when I had to decide on one it could be Rolls-Royce. Out of the three, I consider it has one of the best development prospects. Though its shares could be costly now, it might rapidly develop into this valuation by making the most of these alternatives. That’s why if I had the spare money, I’d purchase its shares in the present day.