3 cheap FTSE 100 stocks to buy during this bear market?

I’m hunting for the best-value FTSE 100 stocks following the recent market correction. Are these UK blue-chip shares now too cheap to ignore?

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These FTSE 100 stocks have fallen sharply in value during this bear market. Are they now too cheap for me to miss?

J Sainsbury

Supermarkets like J Sainsbury (LSE: SBRY) could theoretically stand to gain as living costs soar. In this environment, people can be expected to eat at home more to save cash.

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I won’t be buying Sainsbury’s shares during this bear market though. I’m worried about the business losing customers to the value chains in large numbers. In this scenario, profits could tank if revenues slump and it cuts prices to win back shoppers.

Latest Kantar Worldpanel data shows sales at Aldi and Lidl rose 7.9% and 9.5% respectively in the 12 weeks to 12 June. As a result, their market shares continued to rise while J Sainsbury’s slipped (down 0.3% year-on-year).

Therefore, I’m not tempted by its 6% forward dividend yield and price-to-earnings (P/E) ratio of around 10 times. The pressure of rising competition in the near-term and beyond make Sainsbury’s a risk too risky, I feel.

Coca-Cola HBC

On the other hand, I’d happily increase my holdings in Coca-Cola HBC (LSE: CCH). The soft drinks bottler has sunk in value in 2022, reflecting the impact the war is having in its Ukraine and Russia markets.

Yet I’m still considering upping my stake, despite the ongoing problem. This is because its current P/E ratio of around 16 times sits well below its historical average above 20-21 times. Recent price weakness now more than reflects the near-term trouble it faces.

I first bought Coca-Cola HBC shares because of the exceptional brand strength of the drinks it bottles. Labels such as Coke, Fanta and Sprite are staples of shopping baskets and this gives the company excellent long-term earnings visibility.

And I’m backing the business to get back delivering solid earnings growth once the current crisis subsides. It also has exceptional exposure to fast-growing emerging economies. Furthermore, it should also benefit from ongoing product development from The Coca-Cola Company in areas like low calorie beverages and fitness drinks.

Barclays

Barclays’ (LSE: BARC) North American operations helps take the sting out of the bleak UK economic outlook on the firm. It could also lead to robust long-term profits growth.

What’s more, Barclays offers excellent bang for my buck following recent share price falls. It trades on a forward P/E ratio of 5.5 times, while its dividend yield sits at 4.8%. The question is whether this sort of all-round value makes it worth taking a risk on.

It’s my opinion the dangers created by Britain’s flagging economy make Barclays an unattractive dip-buy today. Last week, the Financial Conduct Authority called on banks to provide better support for struggling customers and to “only charge them fees which are fair and that cover the firm’s costs”.

The pressure for banks to act in this way is likely to grow as the cost of living crisis worsens. It could persist for Barclays beyond 2022 too, resulting in a prolonged period of weak revenues and high loan impairments. So I’d rather spend my hard-earned cash on other stocks.

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