After their recent dips, I’m watching these FTSE 100 stocks closer than ever before!

This Fool’s keeping a close eye on these two FTSE 100 stocks. If he had the cash, he’d be rushing to buy them today. Here’s why.

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It has been a shaky start to August for FTSE 100 stocks. Fears of a stock market correction or crash continue. And major bank JPMorgan‘s now predicting a 35% chance of a US recession, up from its previous prediction of 25%.

While I’m bullish on the UK stock market, I know any downturn in the US will likely spill over to the domestic market.

That’s what has happened in the last couple of days. And these stocks have taken a hit as a result. If I had the cash, I’d add both to my portfolio today.

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Retail titan

First on the list is Marks and Spencer (LSE: MKS). Its shares are down 3.4% over the last five days. That said, they’re still up a healthy 14.6% in 2024 and 54.9% over the last 12 months.

Created with Highcharts 11.4.3Marks And Spencer Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

I reckon its shares now look like pretty good value. They’re trading on a price-to-earnings (P/E) ratio of 15.2 and a forward P/E of 11.9.

I like the work M&S has taken to turn itself around. Just a few years back it seemed it had well and truly been left in the dust by its competition. But a fresh strategy has brought the high street staple back to life.

It has upgraded its stores and placed more emphasis on boosting its online presence. So far, it’s safe to say it’s working. Last year, profits soared 58%.

I’m still wary of a few issues. The main one is the current state of the economy. We’re not out of the woods with inflation and while we’ve seen the first interest rate cut, a delay in future cuts would impact consumer confidence.

But as a long-term buy, I think Marks and Spencer is a business on a strong trajectory. That’s why its recent share price dip has me eager to add it to my holdings.

Financial powerhouse

Now let’s turn the attention to Schroders (LSE: SDR). It hasn’t fared quite as badly as its FTSE 100 peer in the last five days, falling just 1.6%. But it’s down 20.9% year to date, which doesn’t make for great reading.

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

That said, its sliding share price does equal a bigger dividend yield. It now clocks in at 6.4%, considerably above the FTSE 100 average. Its recent half-year results disappointed, but its interim dividend remained flat at 6.5p per share.

I like Schroders for a few other reasons. I think rate cuts in the years to come will benefit the business massively. They’ll boost investor confidence and give markets some much-needed positive sentiment.

Of course, like Marks and Spencer, a delay in rate cuts would likely harm its share price. Its assets under management are also prone to taking a hit should we endure more uncertainty surrounding the economy.

But short-term volatility’s often part and parcel of the game. And trading on a P/E of 13.8 and a forward P/E of 11.5, I think now could be a savvy time for me to swoop in.

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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.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Schroders 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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