3 cheap FTSE 100 shares I wish I’d bought in March

Don’t you hate it when you miss a FTSE 100 share price hike? Here are three I’m looking at that might have more to come.

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It’s easy thinking “Ah, I knew that was going to go up, why didn’t I buy?” We’d all be little Warren Buffetts if we had the benefit of hindsight, ahead of time. And we’d never miss a FTSE 100 bargain. But it’s still valuable to look back and learn. And some of the shares I overlooked may still have further to go. Here are three rises I missed over the past month, that I might still buy.

Shunned FTSE 100 sector

The BP (LSE: BP) share price is already up 8% so far in March. And it has gained 30% over 12 months. The price still remains below pre-pandemic levels, though.

For a company in the hydrocarbon business that’s supposedly in its last days, BP is doing remarkably well.

I have flipped on this FTSE 100 oil stock several times in recent years. I’ve previously seen it as a dependable long-term dividend payer. But then, when that Net Zero plan was announced in 2020, I shied away from oil and gas.

But in reality, the black stuff is going to be with us for some time to come, and I’m sure BP is too. Yes, it’s a risky sector to be in now that renewable energy is gaining pace.

But I think I was right in the first place, and BP remains a dependable long-term dividend payer. It’s on my list of possible income buys.

A miner up 12.5%

I’ve kept half an eye on mining stocks this year, but I’d overlooked the rise in Glencore (LSE: GLEN) shares. The FTSE 100 mining giant’s share price is up 12.5% so far in March. And I have missed a 12-month gain of nearly 90%.

But is it too late for me to get in? I don’t think so. With the global pandemic finally receding, I reckon we could be in for a few years of growing metals and minerals demand.

I always find it psychologically hard to buy a share that’s just climbed the way Glencore has. But even after 2022’s gains, we’re still looking at a trailing price-to-earnings multiple of 12.5. That’s possibly full valued for a stock in a cyclical sector like this. And the big risk for me is buying at the top of a cycle.

But I think further earnings growth this year and next could make Glencore look cheap.

25% aerospace gain

Since 22 February, the BAE Systems (LSE: BA) share price is up 25%. 

The FTSE 100 aerospace firm, with perhaps ironic timing, released full-year results on the day Russian tanks rolled into Ukraine. Both events will have contributed to the gains.

It pains me to think of profiting from the inevitable defence spending escalation stemming from the suffering of the Ukrainian people. But then again, beefing up Eastern European security will hopefully reduce future threats.

The results themselves looked good. Sales, profit, cash flow, are all up. Debt is down, and order intake up. And the dividend was lifted by 6%. The 3.4% yield is close to the FTSE 100 forecast average. But it’s more strongly covered than many. 

I am hesitant about today’s valuation, though. I can’t help seeing today’s trailing P/E of 15.5 as high enough. Yes, I missed this one, but I might buy on any future dips.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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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