Value stocks are often characterized by their lower-than-average price-to-earnings (P/E) ratios, high dividend yields, and other indicators that suggest the stock is undervalued compared to its intrinsic value or historical performance. These stocks are often found in sectors such as financials, utilities, energy, and consumer goods, many of which are in the FTSE 100!
Barclays
What it does: Barclays is a global bank with presence in over 40 countries.
Written by Charlie Keough. A dirt-cheap FTSE 100 stock I own and plan to buy more shares in Barclays (LSE: BARC). Its share price has risen significantly over the past year, but I still see value.
It trades at just 8.6 times earnings, comfortably below the FTSE 100 average (11). Furthermore, I am excited about what the future holds for the business.
In its 2023 full-year results, CEO CS Venkatakrishnan announced the bank's plan to save billions over the next few years as it struggles to address weaknesses that have held it back in recent times.
Of course, that will come with challenges. If it fails to meet its goals, it could leave shareholders disappointed. I am also aware of the reduction in the interest rate which has an impact on the total interest income.
But I look irrelevant, I've been interested in Barclays for a long time. There is also a 3.6% dividend yield to provide healthy passive income.
Charlie Keough is a shareholder in Barclays.
Coca Cola HBC
What it does: Coca Cola HBC manufactures and distributes Coca-Cola products in 28 countries in Europe and parts of Africa.
Written by Ben McPoland. Shares of Coca-Cola HBC (LSE: CCH) is up 16.5% year to date (as I write), easily outpacing the return of the FTSE 100. They're also up more than 70% since exiting two years ago.
However, I think they can continue to climb. The company is an important bottler partner The Coca-Cola Company, giving it a strong competitive advantage. As well as Cokesells timeless products like He knows, Spriteagain Schweppesand energy drinks by Monster drink. Branded coffee drinks are a fast growing area (Coca-Cola owns Costa Coffee).
Worse, disposable incomes are rising in many of its Eastern European markets, where strong economic growth is forecast in the medium to long term. The City sees revenue grow from €10.2bn last year to around €11.7bn in 2026.
Meanwhile, the stock still looks well-valued at 14.6 times forward earnings. That's significantly cheaper than Coca-Cola (22.2).
A potential danger to keep in mind here is the rise of GLP–1 weight loss drugs, which can reduce cravings for sugary drinks. However, the firm's portfolio is increasingly diversified and includes bottled water and plant-based health drinks.
Ben McPoland has no shares in Coca-Cola HBC.
Coca-Cola Hellenic Bottling Company
What it does: Coca-Cola HBC bottles a variety of non-alcoholic beverages in 29 countries across Europe and Africa.
Coca-Cola HBC's (LSE:CCH) share price has risen strongly over the past year. It means a bottle of FTSE 100 drinks has nearly doubled in value since mid-2014.
There is good reason to expect it to continue to grow in the long term, too. On the other hand, the company can be considered a classic defensive stock.
The labels are the same Coke, Sprite again He knows remains in high demand in all areas of the economic cycle, providing business with high income stability over time.
But Coca-Cola HBC's growing market exposure also makes it an exciting growth stock, in my view. The company's push into fast-growing product categories such as coffee and energy drinks also gives it a good opportunity to charge higher profits.
Analysts of the city think that the income here will increase by 26% by 2024. This leaves the company trading at a very low price-growth ratio (PEG) of 0.6.
Although Coca-Cola HBC faces significant competition from other industry heavyweights PepsiCo again Keurig Dr Pepperon average I think it would be a very good stock to buy.
Royston Wild is a shareholder of the Coca-Cola Hellenic Bottling Company.
Marks and Spencer Group
What it does: Marks and Spencer is Britain's leading retailer of food, clothing and home goods.
Written by Paul Summers. The revival of Marks and Spencer (LSE: MKS) the past few years have been incredible. Go back to 2022 and I can get the stock for less than a pound. As I write, those shares are changing hands for less than £3.
There may be more benefits to come, especially since the company said in May that “confidence” will have progress in its new fiscal year. This was after announcing a 58% jump in annual profits in the twelve months to March 2024 – well above analysts' expectations.
Apart from this, inflation and further delay in interest rate cuts may succeed in deterring some buyers. This is also a low-income business in an incredibly competitive environment.
But at a price of 11 times earnings, I don't think Marks is overpriced yet.
Paul Summers has no position in Marks and Spencer
Rightmove
What it does: Rightmove is Britain's largest online property marketplace for agents, buyers, tenants and developers.
Written by Oliver Rodianko. Rightmove (LSE:RMV) is the UK's most prominent digital asset platform. Surprisingly, it is currently a value opportunity, in my opinion. The reason this is rare is that the company has consistently delivered high growth, including an annual earnings growth rate of 25% over the past three years.
Currently, the stock's price-to-earnings ratio is down about 24% from its 10-year high. This comes at a time when top analysts believe the company will continue to grow for the foreseeable future.
I think one of the things that business needs to be aware of right now is AI. Many new companies will start using advanced machine learning tools. Therefore, management must ensure that it remains competitive.
However, I don't see Rightmove competing anytime soon. Right now, I think the current valuation is a great opportunity and probably worth my cash.
Oliver Rodianko has no shares in Rightmove.
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