Two of my favorite FTSE 100 stocks fell 5% and 7% on Friday – time to buy?

Friday was a bad day for them FTSE 100, which fell 1.31% as investors worried about a possible US recession. Some of the blue chips listed in London felt more immediate than that, including two that had been at the top of my 'buy' list for months.

I have resisted buying them until now because I decided I was late to the share price party. Have I been given a second chance?

Specialist in equipment rental The Ashtead Group (LSE: AHT) has had an amazing millennium. Over the 20 years to June 2023, it delivered a total return of 45,532%, with dividends repaid, according to AJ Bell. That would turn £10k into a staggering £4.5m.

The Ashtead Group

The main driver was its US subsidiary Sunbelt Rentals, which now provides 90% of the Ashtead group's total revenue.

Given today's market cap of £22.52bn, Ashtead is unlikely to repeat its glory days. But I would still like to own it as a long-term buy and hold.

Ashtead's share price fell 5.42% on Friday. In 12 months, we are down 9.52% as the US economy finally stutters.

Ashtead's sales benefited from Joe Biden's Inflation Reduction Act, which helped push its 2023 revenue to a record $10.86bn, up 12%. Growth is likely to slow this year as high interest rates finally weigh on the US economy.

Ashtead shares are now 'cheaper' than in 2021 and 2022, based on its price-to-earnings ratio. Let's see what the chart says.

Chart with TradingView

I think the recent stock market volatility is a great opportunity to get a stake in this great company at a reduced price, and I'll buy it if I have the cash to spare.

I have been looking for another astrologer, an independent equity expert Intermediate Capital Group (LSE: IG).

On June 13, I pointed out that it has delivered an astonishing 915.1% return over the past decade, the highest in the FTSE 100. Over the past year, its shares have risen 50.06%, but fell 7.13% on Friday. It was a big faller in the index.

Like Ashtead, I was wary of buying on the back of a strong share price. Today it offers a very attractive entrance.

An opportunity?

ICG is a global alternative asset manager that provides capital to growing businesses. It's a sector that tends to do well when confidence is high, but struggles when investors are nervous. The new Labor government is looking to tighten tax rules on private equity, which will not help sentiment.

In June, I concluded that it was a tough time to buy the stock, which had just posted a 132% jump in full-year profits to £258.1m. Some of that foam has come off now.

It's still growing well, with Q1 assets under management up 23.7% to $101bn, even if only $70bn of that amount is earnings.

Intermediate Capital Group still looks good trading at a healthy 13.05 times earnings while yielding 3.99%. I think it's even better than Ashtead. I'm crossing my fingers and hoping it falls through before I have the cash to buy it.