2 FTSE 100 shares to buy in the stock market meltdown

Over the last week, the UK’s FTSE 100 index has fallen significantly. Here, Edward Sheldon highlights two beaten-up Footsie stocks he’d buy now.

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The stock market is having a bit of a meltdown at the moment. Fears in relation to the next moves from the US Federal Reserve, the Russia-Ukraine crisis, and crashing US tech stocks, saw the FTSE 100 index fall a huge 2.6% yesterday.

However, for long-term investors like myself, this kind of market volatility can throw up some fantastic buying opportunities. With that in mind, here’s a look at two beaten-up FTSE 100 shares I’d buy for my portfolio today.

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A FTSE 100 stock for the technology revolution

The first Footsie stock I want to highlight is Experian (LSE: EXPN), the leading provider of credit data. Its data has a range of uses, from helping businesses make faster, smarter lending decisions, to helping consumers better manage their finances.

Since late December, Experian’s share price has fallen from around 3,700p to 2,949p – a decline of around 20%. This fall seems unjustified to me. The reason I say this is that earlier this month, Experian posted a strong set of results for the three-month period ended 31 December.

This trading update showed revenue growth of a very healthy 14%. Meanwhile, the company said it now expects total revenue growth for the full year to be in the range of 16-17% (versus previous guidance of 15-17%) and that it anticipates “strong EBIT margin accretion”. Overall, the Q3 results indicate the company has a lot of momentum right now.

As for the stock’s valuation, it seems very reasonable, in my view. After the recent pullback, EXPN trades at around 28 times next year’s forecast earnings. Given the company’s market position, growth rate, and level of profitability (three-year average return on capital of 18%), I see value here.

Of course, if tech stocks keep falling, Experian shares could get dragged lower. However, all things considered, I think the risk/reward skew is attractive right now.

One of the most profitable companies in the Footsie

Another FTSE 100 stock that looks attractive to me right now is Rightmove (LSE: RMV), which operates the largest property website in the UK.

Like Experian, RMV has experienced a significant share price fall. Only a few weeks ago, the stock was trading near 810p. Today however, it’s at 650p, a near-20% fall that seems unjustified. At the current price, the stock trades at 27.3 times this year’s expected earnings. I think that’s quite cheap for RMV.

I see Rightmove as a high-quality company. For starters, it has a very strong brand and a dominant market position. In the first half of 2021, its market share of time spent on UK property portals was 90%.

Secondly, it’s extremely profitable. This is illustrated by the fact that during 2020, when the UK property market was impacted by Covid lockdowns, it still managed to generate a return on capital of around 100%.

Third, the company continues to generate solid growth. This year, the group is expected to post top-line growth of 9%.

One risk to consider here is new entrants. There’s always the chance that they could capture market share. But I’m comfortable with this risk. I’d snap up this FTSE 100 stock while it’s trading on a P/E ratio under 30.

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Edward Sheldon owns shares in Experian and Rightmove. The Motley Fool UK has recommended Experian and Rightmove. 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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