The FTSE 100 index of main UK shares hit an all-time excessive earlier this 12 months.

It has fallen since then, however after a 14% achieve from final month, now appears tantalizingly near getting again to its former heights. Over time, I feel it might transfer even greater. Listed here are three shares within the index that may assist it get there.

Diploma

It’s uncommon to see a FTSE share soar 19% inside at some point. However that’s what occurred as we speak (20 Could) after Diploma (LSE: DPLM) served up a really robust set of interim outcomes.

The conglomerate reported first-half income development of 14% 12 months on 12 months and fundamental earnings per share soared 66%. Free money stream was 26% greater. The corporate grew its interim dividend per share by 5%, which means that it was coated near 4 instances over by fundamental earnings.

The enterprise has confirmed that its mannequin might be each worthwhile and drive development. And, regardless of its robust efficiency in recent times, I feel Diploma may solely be getting began. With first-half revenues properly under £1bn, I see substantial room for development.

However a price-to-earnings (P/E) ratio of fifty is manner too excessive for my consolation. The FTSE agency faces dangers from tariff disputes and fragile demand in some areas. That helps clarify why its seals division recorded no natural development within the first half, in contrast to the life sciences and controls divisions.

However whereas I will probably be ready for a decrease share price earlier than shopping for, if Diploma retains performing brilliantly, I feel it might assist gas FTSE 100 development.

Diageo  

A special sort of development might come from restoration in a struggling enterprise. If distiller and brewer Diageo (LSE: DGE) can merely get again to its share price of 1 12 months in the past, that might imply a 31% achieve from as we speak’s stage.

That share price fall didn’t occur for no purpose, in fact.

From weak Latin American demand to a difficult marketplace for pricy spirits amid financial uncertainty, Diageo has been coping with fires on a number of fronts – and appears set to maintain doing so, risking profitability.

However the firm’s portfolio of distinctive premium manufacturers, from Johnnie Walker to Guinness, give it robust pricing energy. It has a worldwide distribution system and there are at all times numerous thirsty clients searching for a beer or spirit.

WPP

One FTSE 100 share I purchased throughout a current inventory market downturn is promoting community group WPP (LSE: WPP).

With a 28% fall within the share price over the previous 12 months – even permitting for a 23% surge since final month – the corporate has clearly misplaced some followers within the Metropolis.

Is that shocking? In any case, a weak economic system threatens promoting budgets, whereas AI doubtlessly poses an existential disaster for giant components of the advert business that will now turn into redundant.

Nonetheless, in disaster there might be alternative. AI may permit WPP to chop prices, serving to revenue margins.

In the meantime, WPP has sizeable economies of scale, a big shopper roster, and artistic capabilities I feel for now at the least stay unthreatened by AI.

Its P/E ratio of 12 signifies that, on that valuation metric at the least, it sells for lower than 1 / 4 of the present Diploma valuation.