My top 3 FTSE stocks! But which is cheap, cheapest and cheapest?

I believe it FTSE 100You are full of bargains at the moment. I've chosen three that I think currently offer the best value.

It's out of fashion

You share JD Sports (LSE:JD.) is currently (16 August) changing hands 28% below the stock's 52-week high.

It has been in conflict following the downgrade NikeSales forecast. The American sportswear giant is believed to make up 50% of JD Sports' revenue so this is no surprise.

But the retailer sells many brands including some that work with Nike issues. And the company has a good track record of growing earnings.

With a price-to-earnings (P/E) ratio of about 10 – half its average over the past decade – I recently decided to buy the stock.

It cries out for change

After stagnant revenue and declining profits, Vodafone(LSE:VOD) shares appear to be stuck in the 65p-80p range. I suspect that is why the company is restructuring its operations and selling its underperforming divisions in Spain and Italy.

There is no guarantee that its replacement plan will work – others have failed. I also have concerns about the company's debt levels.

But I trust its CEO. And the company's latest trading update – for the first quarter of the financial year to March 2025 – indicated that there is a recovery in place. I believe now would be a good place to enter.

Considering the strength of the stock, I have been looking Deutsche Telekomthe largest telecommunications company in Europe. If the same ratio (13.7) was applied to Vodafone, its shares would be 46% higher.

Ready to go

International Consolidated Airlines Group (LSE:IAG) shares are currently trading 9% below their 52-week high. Analysts expect earnings per share of 40.97 euro cents (35.18p) in 2024. If correct, this implies a P/E ratio of 4.8.

This looks relatively cheap EasyJet – the only airline in the FTSE 100 – with a double profit margin of 6.9. If the same valuation were applied to IAG, its stock would be 43% higher (243p).

This pandemic reminds us of the risks associated with the airline industry. Also, IAG's profits are affected by inflation. Fuel costs are beyond their control. And a tight labor market is putting pressure on wages. In August last year, British Airways agreed a 13% pay rise (over 18 months) with its 24,000 staff.

By 2023, these two cost items accounted for 50% of its operating costs.

But I think now would be a good time to consider it. Passenger numbers are up again, debt is down, its dividends have been restored (albeit small) and many expect oil prices to drop over the next 12 months.

Buyers seem to agree with my assessment. Of the 16 analysts covering the stock, 11 give it a buy rating and five are neutral.

Bank of America again RBC Capital Markets both have a target price of 230p. Of course, there is no guarantee that the price will reach this level but it shows that some rate the stock high.

League table

I already have two shares of these. And if I had some spare cash, I would add IAG to my portfolio. However, ranking them in ascending order I would put Vodafone third (cheapest), followed by IAG (cheapest) and JD Sports (cheapest).