It’s hard to find cheap shares. For one thing, it’s often only in hindsight that a company can look ‘cheap’.
There’s no doubt 2026 has been a bumpy ride for shareholders. Whether it’s trade tariffs, oil prices, or war, there are plenty of things to keep investors up at night.
However, uncertainty also creates opportunity. As Warren Buffett said: “Be greedy when others are fearful, and be fearful when others are greedy”.
Two FTSE 100 names have been smashed lately. Here’s why I think the market could be wrong about both of them.
Barclays bargain?
The first stock on my list is Barclays (LSE: BARC). I think the current risks are overblown, and the bank’s growth trajectory remains on track.
The worry around it is easy to understand. The shares were knocked after reports linked it to potential losses from the collapse of UK mortgage provider Market Financial Solutions.
Investors are clearly worried about hidden credit problems. Still, I think the sell-off has gone too far. After all, the price-to-book (P/B) ratio of 0.7 is a steep discount to the likes of HSBC (1.4) and NatWest (1.2).
In its full-year 2025 results, Barclays reported an 11.3% return on tangible equity, a 14.3% capital ratio, and said it aims to deliver more than £15bn of capital returns to shareholders between 2026 and 2028.
In other words, it remains profitable, well-capitalised, and willing to return cash to investors.
That doesn’t make it risk-free. If the economy weakens, bad debts rise, or the private credit story worsens, it could spell trouble. But when a large bank is still producing solid numbers, I think a 20% year-to-date drop looks harsh.
Even after the recent wobble, the stock is still up 114% over five years as I write, ahead of the market open on 16 March.
Is Sage oversold?
The other Footsie stock I’ve been watching is Sage (LSE: SGE). The recent weakness looks like a different kind of opportunity.
The concern is that advances in artificial intelligence could undercut existing software providers and impact future earnings.
The Sage share price has been under pressure, falling 20% year-to-date to 840p as I write on Sunday (15 March). It’s not alone. AI concerns have weighed on software stocks around the world in recent months.
However, Sage’s underlying business still looks strong to me. Its full-year 2025 results showed 11% growth in annual recurring revenue, 10% revenue growth, and a 17% rise in underlying operating profit. Management also reiterated guidance for 9% or more organic growth in FY26. That’s not what I’d expect from a business in imminent trouble.
Of course, there are risks. If AI tools put pressure on pricing, or if customers move faster than expected towards newer software options, the shares could still fall further.
But with recurring revenue, healthy margins, and steady growth, I think the market may be panicking unnecessarily.
Why the market could be wrong
I think both of these companies are cheap shares right now. The recent repricing, amid wider uncertainty in the market, could be overdone.
Both companies are facing genuine risks. But neither business looks fundamentally broken to me and so could be worth considering.
That doesn’t mean either stock will bounce back quickly. It just means that when fear causes a sharp 20% decline, it makes me wonder about a potential buying opportunity.
