The FTSE 100 is currently 6% off February’s record highs, meaning now’s a great time to search for bargain shares. UK blue-chip stocks were already looking dirt cheap. March’s slump provides even more value for investors to sink their teeth into.
With the Middle East conflict continuing, there could well be more volatility in store. But buying quality stocks on the dip can give one’s investment returns a huge boost over time. I myself often use lower prices as an opportunity to buy discounted shares.
So which FTSE 100 fallers are on my shopping list today? There are several, but here are three of my favourites.
Out of fashion
JD Sports Fashion trades on a forward price-to-earnings (P/E) ratio of 8.2 times. That’s far below its 10-year average of 15-16, and reflects sustained sales pressure as consumers have trimmed spending.
Is the retailer out of the woods just yet? Absolutely not, even though trading in the key US market has been better more recently. Still, the long-term outlook here remains extremely bright, and at current prices I think JD Sports could be too cheap to ignore.
I’m expecting the share price to rebound as its global store expansion drive continues on. Once shoppers loosen the purse strings again, I think profits could take off.
Box clever
Fading hopes of interest rate cuts have hit property stocks in recent weeks. For Tritax Big Box, its borrowing costs are likely to be higher than expected at the start of 2026, weighing on earnings.
But largely speaking, the profits picture here is also pretty robust. I don’t think this is reflected in the FTSE 100 share’s low P/E — at 7.7, it’s well below the long-term average of 11-12.
Tritax’s exposure to blue-chip and non-cyclical companies means rent rolls should remain rock-solid whatever economic challenges emerge. Over the long term, I expect earnings to surge as demand for warehouses and data centre booms.
The best value share today?
Right now, ICG (LSE:ICG) is top of my shopping list. Whatever way you cut it, the alternative asset manager offers excellent value for money.
Its forward P/E ratio is just 9.7 times, while its price-to-earnings growth (PEG) ratio is 0.8. It also offers excellent value based on expected dividends as well as earnings — its dividend yield is a chunky 5.7% for 2027.
Finally, ICG’s price-to-book (P/B) ratio is 1.7. That’s above the benchmark of one, meaning the stock’s trading at a premium to its book value. However, this is the lowest level for three-and-a-half years.
ICG — previously known as Intermediate Capital Group — invests money for institutional clients, chiefly in private markets, and charges fees for the privilege. This leaves it vulnerable during tough periods when investment flows cool.
So what makes it an attractive FTSE 100 share to consider today? It’s not just that brilliant value for money we’ve discussed. ICG has proven its ability to successfully navigate challenging periods, as its 16 straight years of dividend increases illustrates.
