I’d invest my 2024 Stocks and Shares ISA in these overlooked FTSE 100 stocks

I’m searching for long-term ISA investments for 2024, and I’ve been digging through some unloved FTSE 100 shares.

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Is it possible for FTSE 100 shares to be overlooked? I mean, they’re the biggest on the whole UK stock market. And that means everyone will be watching them, doesn’t it?

Well, even within the FTSE 100, I do think attention can be quite tightly focused. And right now, it looks like the market has its eyes glued on Rolls-Royce Holdings, and on bank shares and other financials.

And I reckon that can throw up buying opportunities for stocks like WPP (LSE: WPP).

The WPP share price has made a few false starts. But it’s down so far in 2024, and over the past five years.

Recovery coming?

WPP has lagged behind the FTSE 100’s recovery this year, and that has to be down to the nature of its business.

While the interest rate squeeze is hurting, demand for its advertising, PR and other services will surely stay under pressure.

But forecasts suggest a big jump in earnings this year, to put the price-to-earnings (P/E) ratio around 10.5. And we could see a 5% dividend yield.

Slow interest rate cuts could see forecasts pared back a bit, and I think we could still see share price weakness for a while yet, though.

Sure of Shell?

Investors still seem to be wary of the big Footsie oil stocks. And we’ve even heard Shell talking about dropping its “undervalued” London listing.

Speaking to Bloomberg, CEO Wael Sawan said the board will “keep buying back those shares, and buying back those shares at a discount.” I might too.

The risk of oil disappearing as an energy source has, in my view, been greatly overstated. So, maybe BP too.

Cheap miners

I can’t help seeing the big FTSE 100 miners as undervalued now. They’re out of favour due to the world economy, fragile Chinese demand, and partly just sentiment.

But forecasts show Anglo American earnings rising, pushing the dividend up. We could see a P/E of 10 and a well-covered 3.8% dividend yield by 2026, if they’re right.

And at Rio Tinto, the forecast P/E is similar, but dividend yields are up above 6%.

The sector outlook is still very uncertain, which is a risk. But isn’t that a good time to buy?

Contrarian ISA

I still rate banks and other financial as the best FTSE 100 buys right now, for me personally as they really fit with my investing experience.

But I already have some of those, and I do need a bit of diversification.

I like the idea of buying stocks when they’re out of favour. And I reckon it can be even more worthwhile with a very long-term ISA horizon. I mean, we’re all in our ISAs for at least the next 10 to 20 years, right?

Diversify

These stocks, and more that seem to be unloved right now, are very much on my candidates list for the next few slots in my 2024 ISA. All I need now is the cash.

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 recommended Rolls-Royce Plc. 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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