2 dirt cheap FTSE 100 shares! Which should I buy in July?

These FTSE 100 shares trade on rock-bottom earnings multiples and offer high dividend yields. Are they top buys or potential traps?

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The FTSE 100’s risen by around 6% so far this year. This is thanks in large part to improving buying interest from value investors.

Even including those recent gains, the Footsie has lagged other major global share indices for several years now. It means that many top UK blue-chip shares can still be picked up at rock-bottom prices.

However, some large-cap companies are cheap for good reason. And investors need to be careful to avoid these like the plague.

Should you invest £1,000 in Barclays right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays made the list?

See the 6 stocks

Take the following FTSE 100 stocks, for instance. Are they brilliant bargains or could they turn out to be investor traps?

Barclays

Created with Highcharts 11.4.3Barclays Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Right now, Barclays (LSE:BARC) shares offer excellent all-round value, at least on paper. The high street bank trades on a forward price-to-earnings (P/E) ratio of 6.7 times. Meanwhile, its dividend yield for this year sits at an attractive 4.1%.

Barclays’ US operations could provide it with excellent opportunities to grow earnings. It also has a substantial investment bank.

However, the business is also dependent on a strong UK economy to drive the bottom line. In 2023, its domestic banking and credit card operations made up almost 40% of group profits. This is a concern to me given the huge structural problems that are strangling British GDP growth.

So I still have huge reservations about buying its shares. But this is not my only worry.

I’m also put off by the rising competitive pressures it’s facing across the world. Challenger bank Revolut announced on Tuesday (2 July) that the number of retail customers on its books soared 45% in 2023, to 38m.

Its capacity to steal customers from established banks like Barclays will grow too if — as expected — Revolut secures a UK banking licence in the near future. With a spate of IPOs being lined up by fintech businesses, the banking landscape could be about to change significantly.

WPP

Created with Highcharts 11.4.3WPP PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk


Of course, no share investment is completely without risk. But in the case of WPP (LSE:WPP), I believe the potential rewards on offer outweigh the dangers it poses to investors.

The advertising agency has had its fair share of troubles more recently. Weak spending from the US tech sector — combined with the impact of China’s slowdown — remains a threat.

So do fundamental changes in the way companies choose to advertise their goods and services. More and more firms are bringing their marketing activities in-house. Some public relations specialists are also pulling their tanks onto WPP’s lawn by offering advertising services.

Yet I still believe WPP has considerable investment potential. Operating in more than 100 countries, it has significant scope to harness rapid economic growth in emerging markets. Rising investment in digital advertising and e-commerce also sets it up nicely for the digital revolution.

Finally, WPP has expertise in multiple areas including advertising, public relations and brand consulting. This makes it a trusted and evergreen supplier for end-to-end services with some of the world’s biggest companies.

Like Barclays, WPP shares offer solid value, on paper. They trade on a forward P/E ratio of 8 times and carry a 5.3% dividend yield. It’s a share I’ll consider buying if I have spare cash to invest this July.

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

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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.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays 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.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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