2 FTSE 100 and FTSE 250 value stocks to consider in December!

Searching for the best FTSE 100 and FTSE 250 bargain shares? Here, Royston Wild picks out two of his favourites this festive season.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Smiling diverse couple holding Christmas presents while walking through a winter forest

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I do love a good bargain. Just like investing guru Warren Buffett, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down“. So today I’m looking for the greatest FTSE 100 and FTSE 250 value stocks that investors like me should consider.

Here are two of my favourites.

TBC Bank

Created with Highcharts 11.4.3TBC Bank PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

TBC Bank (LSE:TBCG) shares have been up and down like Tower Bridge in 2024. Trading remains strong, with latest financials showing loan growth up 17% in quarter three. But investors are wary of political upheaval in the bank’s core market.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

Shares jumped in November as tensions between Georgia’s pro-EU and pro-Russian politicians calmed. But on Friday (29 November) they slumped again as the government suspended talks to join the EU, sparking fresh civil unrest.

Meanwhile, claims of corruption in October’s general election continue to simmer. Investors need to be prepared for further turbulence in TBC Bank’s share price.

Yet, at the same time, I think this possibility is baked into the company’s low share price. At £30.17 per share, the FTSE 250 bank trades on a forward price-to-earnings (P/E) ratio of 4.9 times.

To put this in context, this makes it cheaper than other emerging market-focused banks like HSBC (7.1 times), Standard Chartered (7.8 times), and Santander (5.8 times).

With the bank also carrying a large 6.8% dividend yield, I think it’s worth serious attention from value investors today.

Taylor Wimpey

Created with Highcharts 11.4.3Taylor Wimpey Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Housebuilders such as Taylor Wimpey (LSE:TW.) also face substantial uncertainty heading into the New Year.

Just a few months ago, a slew of potential Bank of England rate cuts seemed imminent. But stickier inflation in recent months mean this isn’t as certain as first appeared, casting a cloud over new homes demand next year and Taylor Wimpey’s revenues.

At the same time, rising construction costs seems to pose a growing threat to the homebuilders. Both Persimmon and Vistry‘s share prices tanked last month as they warned of soaring build expenses.

Still, the cheapness of Taylor Wimpey’s shares is hugely appealing to me. At 129.8p, they trade on a price-to-earnings growth (PEG) ratio of 0.5.

A reminder that any sub-one reading suggests a share is undervalued relative to estimated profits.

On top of this, the builder’s dividend yield is a vast 7.2%. This is exactly double the FTSE 100 average of 3.6%.

While the housing market could experience fresh hiccups in 2025, for the moment things are looking good for Taylor Wimpey.

Property listings website Zoopla said on Friday that “[the] housing market has now largely adjusted to higher borrowing costs“. It consequently predicted home sales to rise 5% year on year in 2025, and for average property values to improve 2.5% year on year.

I already own shares in several housebuilders like Taylor Wimpey. If I didn’t, I’d add this Footsie value hero to my portfolio this December.

This AI stock is attracting investors like Michael Bloomberg and Peter Thiel…

Why are these legendary investors, already wealthy beyond imagination, drawn to this opportunity? The allure lies in more than just potential returns; it's a vote of confidence in a company poised for long-term success.

Imagine a revolutionary AI company that's not just participating in the digital media landscape but reshaping it entirely.

Trusted by giants like Amazon, Disney, and Netflix, the company reported nearly £637 million in revenue last year, marking a robust 7.8% growth over three years. Its impressive market reach and spirit of innovation are just the beginning of its story.

Best of all, we’re thrilled to offer you an exclusive glimpse into this game-changing AI investment, absolutely free.

Get your free AI stock pick

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 Persimmon Plc and Taylor Wimpey Plc. The Motley Fool UK has recommended HSBC Holdings, Standard Chartered Plc, and Vistry Group 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.

Our best passive income stock ideas

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

More on Investing Articles

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

Around a 1-year high, is there enough value left in Next’s share price to make it worth me buying?

Next’s share price has risen a lot in eight months, but there could still be a lot of value left…

Read more »

Group of young friends toasting each other with beers in a pub
Investing Articles

OMG DYOR but IMO this ‘cool’ FTSE 100 stock offers bangin’ VFM!

Despite being one of the least trendy 50-somethings around, our writer considers how Gen Z could help push this FTSE…

Read more »

Investing Articles

2 cheap FTSE 100 and FTSE 250 growth stocks to consider as stock markets sink

I think these Footsie and FTSE 250 growth shares could be very shrewd buys to consider in the current climate.…

Read more »

Investing Articles

3 shares I’ve bought in the 2025 stock market sell-off

The stock market has experienced a lot of turbulence in recent weeks. Edward Sheldon has been taking advantage and buying…

Read more »

Investing Articles

Investors considering HSBC shares could aim for £8,453 a year in passive income from just £5 a day!

A relatively small daily investment in HSBC shares over several years can produce an extraordinary level of annual passive income…

Read more »

Investing Articles

The Rolls-Royce share price has fallen! Is this the moment investors have been waiting for?

Even the Rolls-Royce share price can't escape current stock market volatility, falling slightly over the last week. Should investors consider…

Read more »

Modern suburban family houses with car on driveway
Investing Articles

Down 59% from its 12-month highs, is this FTSE 250 stock too cheap to ignore?

Shares in FTSE 250 housebuilder Vistry are almost certainly too cheap to ignore. But are they discounted enough to offset…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

As the S&P 500 struggles to recover, here’s what Warren Buffett’s doing

The S&P 500 is fighting to regain its February highs amid ongoing trade tariff uncertainty. Our writer looks to the…

Read more »