Looking for value stocks? These FTSE 100 bargains look like no-brainer buys to me!

These FTSE 100 heroes are on sale right now! Here’s why Royston Wild thinks they could be great long-term buys in his value portfolio.

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2024 has so far been a great year for the FTSE 100. Up 7.9% in the year to date, Britain’s blue-chip index is gaining popularity as investors search for beaten-down bargains.

This isn’t a surprise to me. Following years of underperformance, the UK stock market on the whole is packed with excellent stocks that are trading much too cheaply.

Below are two of my favourites. As you can see, both trade on a rock-bottom price-to-earnings (P/E) ratio. They also carry market-beating dividend yields.

Should you invest £1,000 in Rio Tinto 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 Rio Tinto made the list?

See the 6 stocks

CompanyForward P/E ratioForward dividend yield
WPP (LSE:WPP)8 times5.3%
Rio Tinto (LSE:RIO)8.3 times6.8%
FTSE 100 average10.7 times3.5%

Here’s why I’d love to buy some cheap shares when I next have spare cash to invest.

A top dip-buy?

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

Advertising’s a highly cyclical market, as latest financials from agency WPP showed. Revenue (less pass-through costs) here dropped 0.5% in the second quarter. This was due to weakness in the UK, Germany and China.

The near-term picture in its key markets remains uncertain. However, over a longer time horizon, I’m expecting the FTSE 100 company to rebound sharply.

Many companies are bringing their advertising and marketing operations in-house. But WPP’s fully integrated end-to-end product offer should mean its services remain in high demand with mammoth organisations across the world, spending from which should increase when economic conditions improve.

I also like the company’s expansion in lucrative emerging markets, from where it currently sources around 33% of revenues.

Finally, I think WPP’s rising investment in digital advertising and artificial intelligence (AI) will pay off handsomely in the coming years. Following its £611m sale of communications and advisory firm FGS Global last month, it has added scope to boost spending in these high-growth areas too.

Another bargain stock

Created with Highcharts 11.4.3Rio Tinto Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Super-miner Rio Tinto’s low valuation reflects ongoing stress in China’s economy and its impact on commodities demand. While this is a threat, I think increasing my existing stake in the business could be a good idea at today’s low prices.

A rising global population and soaring emerging market wealth has turbocharged metals demand over the past two decades. In that time, Rio Tinto’s share price has soared 223%, while rising profits have provided a stream of generous dividends.

This has made the business a lucrative stock to own since 2004. And with these themes still in play — as well as more modern ones like the green energy transition — the outlook for shareholders remains pretty exciting, in my opinion.

I like mega miners like this because they have considerable resources to maximise this opportunity. Rio Tinto specifically’s making moves to exploit the decarbonisation trend by accelerating investment in copper and aluminium.

Production is ramping up at the Footsie firm’s gigantic Oyu Tolgoi copper mine in Mongolia. It’s also committed $1.1bn to expand its aluminium smelter at Canada’s Jonquière project. These alone could provide exceptional earnings growth in the coming decades.

They’re not without risk. But I think both Rio and WPP could be too cheap for me to ignore at current prices.

Should you invest £1,000 in Rio Tinto 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 Rio Tinto made the list?

See the 6 stocks

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 positions in Rio Tinto Group. 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.

Pound coins for sale — 51 pence?

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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