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3 shares to buy as the FTSE 100 tanks

A stock price graph showing declines, possibly in FTSE 100
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The FTSE 100‘s having a bad day. As I write this, the index is down 1.8% and on track for its worst day since mid-July. It seems the spike in gas prices is spooking investors.

I love days like this. That’s because a large fall across the market tends to throw up great buying opportunities for long-term investors like myself. With that in mind, here’s a look at three FTSE 100 shares I’d buy for my portfolio today.

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This FTSE 100 stock is down 5% today

One stock that strikes me as a buy right now is JD Sports Fashion (LSE: JD). It’s a multichannel retailer that specialises in athletic footwear and sportswear/athleisure.

JD’s recent interim results for the 26 weeks to 1 August showed the company has momentum right now. For the period, revenue was up 53%, while pre-tax profit was up around 770%, a record for H1.

Looking ahead, the group was optimistic about its prospects. “We remain absolutely confident that our inherent strengths in retail dynamics and operations provide us with a robust platform to make further progress,” said chairman Peter Cowgill.

However, inflation’s certainly a risk to consider here. This could hit near-term profits. Supply chain challenges are another risk to consider.

Overall however, I see a lot of appeal in the stock at its current valuation (forward-looking P/E ratio of 20.7). The share price is down nearly 5% today and I think that’s a buying opportunity.

Huge long-term growth potential 

Another FTSE 100 stock I like the look of right now is Smith & Nephew (LSE: SN). It’s a leading medical technology company that specialises in orthopedic implants.

Smith & Nephew’s share price has been hit by a couple of broker price target cuts. On Monday, analysts at Citigroup cut their price target to 1,420p from 1,610p. Meanwhile, on 30 September, analysts at Barclays cut their price target from 1,800p to 1,775p.

But I’m still confident in relation to the medium-to-long-term growth story here. As Covid-19 subsides, elective medical procedures should pick up, increasing revenues. And looking further out, revenues should be boosted by the growing number of over-65s globally.

Of course, if we see further lockdowns, or higher Covid-19 hospitalisation rates, the company’s growth plans could be impacted in the near term.

I’m focusing on the long-term growth story here though and I think the overall risk/reward skew’s attractive.

A FTSE 100 tech company

Finally, I see appeal in Experian (LSE: EXPN) right now. It’s a top financial technology company that specialises in credit data and data analytics.

Experian’s latest trading update for the three months to 30 June, showed the company’s doing well. For the period, total revenue growth was 28% at constant exchange rates, while organic revenue growth was 22%.

Looking ahead, the company’s expected to keep growing at a healthy rate. Currently, City analysts expect revenue growth of 14% for the year ending 31 March, followed by revenue growth of 9% for the following financial year.

It’s worth noting that Experian does have a relatively high valuation. Currently, it sports a forward-looking P/E ratio of about 34. This adds risk to the investment case.

I think this data-focused FTSE 100 company is worth a premium valuation however. With the stock currently more than 10% off its recent highs, I see it as a ‘buy’.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Edward Sheldon owns shares of Experian, JD Sports Fashion, and Smith & Nephew. The Motley Fool UK has recommended Barclays, Experian, and Smith & Nephew. 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.

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