While the FTSE 100 has been making new all-time highs recently, there are still plenty of cheap UK shares around. Last week, I screened the UK market for stocks that are at least 15% off their 52-week highs and currently have price-to-earnings (P/E) ratios under 10. I got around 200 results!
Here, I’m going to highlight three shares that came up on my screen. I think these stocks could be worth considering as value plays in February.
A huge fall
Let’s start with JD Sports Fashion (LSE: JD.) because this stock has experienced a huge fall recently. Currently, it’s around 50% off its 52-week high.
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Now, the company is experiencing some consumer demand challenges at present and these could persist in the months ahead. However, for patient long-term investors, I reckon there could be an opportunity here.
In the coming years, JD Sports Fashion is planning to roll out lots of slick new stores across the world in an effort to be a leading global retailer of athletic footwear and apparel. So, there’s potential for revenue and profit growth in the long run.
This stock currently trades on a forward-looking P/E ratio of just 6.3, so it looks dirt cheap. However, I’m using the earnings per share forecast for FY2026 (the year ending 31 January 2026) here and this could come down.
One person who clearly sees value though is CEO Regis Schultz – earlier this month, he bought £99k worth of stock.
Down but not out
Another stock that has tanked and looks cheap right now is insurer Prudential (LSE: PRU). Currently, it’s about 25% off its 52-week highs and trading on a P/E ratio of about eight.
The main problem for this stock has been China and its weak economy. Today, Prudential is heavily focused on Asia, and China represents a key part of its long-term growth strategy.
I expect economic conditions in China to pick up at some stage in the future. And when they do, Prudential’s earnings and share price should get a lift.
Of course, US/China trade wars are a risk now that Donald Trump is US President. These could hurt the company’s prospects.
On the plus side, Prudential has been buying back a ton of shares recently (it announced a $2m buyback last year). This move – which indicates that management sees the stock as cheap – should help to boost earnings over time.
A Trump play?
Speaking of Donald Trump, one UK stock that could potentially do well while he’s in power is Keller Group (LSE: KLR). It specialises in building foundation technology.
Over the next four years, the US is likely to see a huge amount of construction activity (data centres, semiconductor plants, infrastructure, etc.) as Trump aims to ‘make America great again’. Given that Keller has significant exposure to the US, it’s well placed to capitalise.
Like the other two stocks I’ve highlighted, this one is well off its 52-week highs (about 19%) and looks cheap. Currently, it trades on a P/E ratio of about 7.3 so it appears to offer a lot of value.
I will point out that Keller is a global company. So, weakness in other geographic regions is a risk.
Given the low valuation, however, I like the risk/reward setup. I reckon this stock can do well in the years ahead.
