Searching for cheap FTSE 100 stocks to buy? Here are three I think investors should seriously consider.
WPP
A case can be made that WPP (LSE:WPP) is one of the Footsie’s best bargains based on predicted earnings.
At 738p per share, it trades on a forward price-to-earnings (P/E) ratio of 8.4 times. This is based on forecast earnings of 87.6p per share in 2025, representing a 1% increase on last year’s expected earnings.
This isn’t to say that profits are guaranteed to rise this year and beyond. As a provider of advertising and marketing services, its earnings are highly sensitive to broader economic conditions. Promotional spending is one of the first things companies slash when times get tough.
However, WPP also has significant growth potential over the long term as the global economy expands. This is thanks to its market-leading offerings across the communications and advertising spectrum.
A strong balance sheet gives it scope to grow profits through further acquisition activity too. Its net debt-to-EBITDA ratio was a reasonable 1.6 times as of the halfway point of 2024.
Vodafone
Share pickers seeking strong paper value might also want to research Vodafone (LSE:VOD) today. The telecoms giant looks cheap based on predicted earnings and dividends, but this is not all.
With a price-to-book (P/B) value of below 1, at 0.8, its shares trade at a discount to the value of the company’s assets.
For 2025, Vodafone’s P/E ratio is 9.9 times, based on its current share price of 68.3p. And its corresponding dividend yield is a bulky 6.9%.
I’m not surprised on one hand by Vodafone’s cheap valuation. It’s slashed the dividend in response to help mend its balance sheet. And net debt remains high, at €31.8bn, fuelling market fears of further dividend cuts down the line..
But I also think Vodafone has significant long-term investment potential. Broadband and mobile services providers could profit handsomely as the digital economy rapidly grows. And Vodafone’s huge investment in 5G and fibre rollout could see it thrive in this landscape.
I also think the company’s operations in fast-growing African nations could prove highly lucrative.
F&C Investment Trust
At £11.56 per share, the F&C Investment Trust (LSE:FCIT) has risen sharply at the start of 2025. Yet it still trades at a near-10% discount to its net asset value (NAV) per share of £12.85.
Like other funds and trusts, it gives investors a chance to spread risk across a raft of companies (more than 400) in all. However, with a large weighting of US tech stocks, it could be in for a bumpy ride in the near term.
Less than sparkling results from the likes of Apple, Meta and Microsoft later this week could see the trust fall in value. In addition, fears concerns over Chinese company DeepSeek’s chatbot and its impact on the AI market may also push its price down.
Yet I believe these threats are baked into the trust’s low valuation. On balance, the tech market still looks in good shape for long-term growth as our lives become increasingly digitalised. What’s more, F&C Investment Trust’s diversification across many sectors helps to mitigate any tech-related stress.
The post 3 of my favourite FTSE 100 bargain shares for February! appeared first on The Motley Fool UK.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Apple, Meta Platforms, Microsoft, and Vodafone Group Public. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
