Don’t we love it when some of our FTSE 100 shares are selling near their 52-week lows? It might not look so good when one of them is a stock I bought some time ago for a fair bit more than the current price. But as a long-term investor, it gives me a chance to buy more now, cheaper, right?
Time to top up?
Aviva shares aren’t quite as low as they were in October 2022, but they’re down 40% in five years. The business was already in trouble before arrived and sent financial stocks into tailspin. But the firm slimmed down and I think it looks a much fitter beast today. It’s in an at-risk sector in 2023, with financial stocks having it tough. Anything that harms our free cash and keeps us away from saving and investing has to hurt the companies that offer saving and investing services.
But Aviva is on a price-to-earnings (P/E) ratio of 11, dropping to 8.5 on 2024 forecasts. And the forward dividend yield stands at 8.3%. I think that’s too cheap. But when demand next drops, dividends are cut and the share prices fall. And that, I’d say, is the time to buy.
The outlook for the Chinese economy might be a bit fragile, and demand there is usually the big driver behind metals and minerals prices. So that suggests Anglo American might be shaky for a while longer. But for long-term investors looking to get into the sector, I reckon it’s worth a closer look.
Comfort buy
Finally, drinks giant Diageo is the third of the FTSE 100 shares hitting lows that I want to look at .Celebrate in the good times, commiserate when times are bad. Isn’t it nice that alcohol fits in just as well with either? Well, it’s nice for Diageo shareholders’ pockets, if perhaps less so for their livers. Diageo has good defensive qualities, which is why it tends to command a higher valuation. And, right now, it’s on a P/E of 20. But I think that’s good value for a quality company like Diageo. For one thing, forecasts drop to 16 over the next couple of years, and it’s a fair bit below the P/E of 25-30 the stock often reaches.
There does seem to be a push against alcohol in developed countries and belt-tightening inflation could hit the share price. But there are big developing markets out there still largely untapped. This could be a good buy for the next bull run. Because Mark Rogers — The Motley Fool UK’s Director of Investing — has revealed 5 Shares for the Future of Energy.
And he believes they could bring spectacular returns over the next decade.
Since the war in Ukraine, nations everywhere are scrambling for energy independence, he says. Meanwhile, they’re hellbent on achieving net zero emissions. No guarantees, but history shows… When such enormous changes hit a big industry, informed investors can potentially get rich. So, with his new report, Mark’s aiming to put more investors in this enviable position. Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free! `` `
In the ever-evolving landscape of equity investing, timing and selection are key. As savvy investors know, buying stocks near their 52-week lows can be a strategic move to take advantage of potential rebounds. The FTSE 100, representing the best performing companies listed on the London Stock Exchange, offers a wealth of opportunities for value investors. In this article, we'll dive into three very cheap FTSE 100 stocks that are trading near their 52-week lows, presenting an opportunity for potential gains.
Amid the energy sector's tumultuous tide, BP PLC is a beacon of potential value for investors looking for an entry point. As one of the world's largest integrated oil and gas companies, BP boasts a diversified portfolio spanning exploration, production, refining and distribution. The recent global push for renewable energy has prompted BP to pivot and invest significantly in clean energy initiatives. This shift allows the company to tap into the growing market for sustainable solutions and potentially secure future revenue streams.
With shares trading near their 52-week lows, investors may consider BP a prudent addition to their portfolio. The company's commitment to innovation, along with its global presence, lends a long-term perspective to this investment opportunity.
Legal & General Group PLC
In the financial services space, Legal & General Group PLC is emerging as a persistent player poised for a potential recovery. The insurance and financial services giant has maintained a strong market position for decades, offering a diversified range of products including life insurance, pensions and wealth management solutions. Legal & General's strategic focus on leveraging the financial needs of an aging population is a prerequisite for continued growth.
Legal & General is trading near a 52-week low and presents an interesting prospect for value investors. As market dynamics develop, the company's stability and broad product offering could lead to a recovery in stock value.
GlaxoSmithKline PLC
Amidst the lbyrinthine paths of the healthcare sector, GlaxoSmithKline PLC is emerging as a beacon of value that offers an entry point for savvy investors. As a pharmaceutical and consumer company, GSK boasts a diverse portfolio that includes prescription drugs, vaccines and over-the-counter healthcare products. The company's extensive global reach and robust R&D efforts underline its potential to adapt to changes in the industry.
GSK shares trading near their 52-week lows present a compelling proposition. With a history of innovation and a number of potential blockbusters, GSK remains a contender for investors looking for undervalued opportunities in the healthcare sector.
Movement in the stock market with respect to value can lead to profitable results. The FTSE 100 index features companies with significant upside potential, even as they trade near their 52-week lows. BP PLC, Legal & General Group PLC and GlaxoSmithKline PLC are three prime examples of dirt cheap stocks that offer entry points for investors looking to cash in on potential rebounds. As always, thorough research and a long-term perspective are essential when making investment decisions. Remember that the path to substantial profits often begins with identifying opportunities that others might overlook.
Investing in the stock market offers a plethora of opportunities, and one strategy that often catches the eye of savvy investors is buying stocks near their 52-week lows. This approach, known as value investing, involves identifying stocks that are trading at a discount compared to their intrinsic value. In this article, we explore three dirt cheap FTSE 100 stocks that could be interesting prospects for investors looking for potential bargains. FTSE 100 , Value Investing , British Petroleum , 52 Week Lows , Very Cheap , Energy Sector , Dividend Yield , Global Operations
Amid the swings in the energy sector, British Petroleum (BP) stands out as the standout FTSE 100 stock, currently trading near its 52-week low. The energy giant boasts a well-established global presence, making it a major player in the oil and gas industry. As the world gradually transitions to cleaner energy sources, BP's commitment to investing in renewables could potentially set the company up for future growth.
Investors focused on dividend income may find BP particularly attractive, given its historically solid dividend yield. As the energy sector faces uncertainty, BP's dirt-cheap valuation given its long-term potential could make it an interesting choice for a value investor Keywords: FTSE 100, Legal & General Group, value investing, 52-week lows, insurance, financial services, stability dividends, long-term growth
Legal & General Group (LGEN) is a leading player in the insurance and financial services sector of the FTSE 100. The company's share price has fallen to close to a 52-week low, which could spark interest from value investors.
What sets LGEN apart is its commitment to stability, both in terms of financial products and dividends. For investors looking for a combination of potential long-term growth and reliable income, LGEN's very cheap valuation could make it an attractive prospect. As the world continues to prioritize financial security, Legal & General Group's services remain essential and potentially enable the company to grow steadily over time. FTSE 100 , BT Group , value investing , 52-week lows , telecoms , digital infrastructure , cost restructuring , dividend potential
BT Group (BT) is a leading player in the telecommunications sector, providing key digital infrastructure services. As the world becomes increasingly connected, BT's services remain vital and potentially offer the company a path to growth. The stock is currently trading near its 52-week low, representing a potential opportunity for value-minded investors.
BT is undergoing a significant cost restructuring effort to streamline operations and increase efficiency. If successful, these initiatives could positively impact the company's earnings and potentially increase its dividend potential, making it an interesting consideration for dividend-focused investors looking for dirt-cheap opportunities within the FTSE 100.
Investing in FTSE 100 shares near their 52-week lows can be a rewarding strategy for value investors. While market conditions are always subject to change, British Petroleum, Legal & General Group and BT Group are compelling options to consider. Each company operates in an important industry and offers products and services that remain relevant in today's dynamic world. Their dirt-cheap valuation relative to their potential could make them attractive opportunities for those looking for long-term growth and potential dividend income. As with any investment, thorough research and a clear understanding of each company's prospects is essential before making a decision.
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