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These FTSE 100 stocks are on sale! I’d buy them in an ISA today

The FTSE 100 might be continuing to edge higher, sure. But there remains a wealth of blue chips that continue to trade far too cheaply.

Broadcasting colossus ITV (LSE: ITV) is one of these. Now it’s no shock to see the TV titan’s share price sink because of the Covid-19 crisis. It depends heavily on advertising revenues and stands to suffer significantly in the near-to-medium term amid a painful economic downturn. The FTSE 100 business saw ad sales slump 42% in April as the pandemic took hold.

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Screen idol

This recent stock price reversal leaves ITV dealing on a forward price-to-earnings (P/E) ratio bang on the widely accepted bargain benchmark of 10 times (and below). And in my opinion this provides a perfect opportunity for long-term investors to nip in and grab a slice.

It may take some time before revenues at the company recover. But it will be in excellent shape when the bounceback eventually comes. ITV has invested a shedload into improving its online proposition and bolstering its ‘on demand’ capabilities through the ITV Hub. These segments will play a huge role in the future of broadcasting, clearly.

I’m also encouraged by the earnings potential of its ITV Studios production arm. Revenues here sank 11% in quarter one as it was forced to close its studios and delay programme deliveries. But the profits picture for the rest of the decade and beyond remains exceptional, bolstered by the huge spending ITV has made to make it a pan-global production colossus. I for one would happily buy this firm for my own Stocks and Shares ISA.

Screen of price moves in the FTSE 100

Another FTSE 100 bargain

Housebuilder Taylor Wimpey (LSE: TW) is another Footsie share that’s too good to pass on at current prices. It’s no wonder that its share price has plummeted as market participants fear the impact of an economic crash on homes demand.

As a Taylor Wimpey shareholder myself I’m not too perturbed. Home sales in the near term could indeed struggle as unemployment levels likely rise and lenders start asking for larger deposits, making it unaffordable for many first-time buyers to get on the housing ladder.

Remember, though, that the key to successful long-term investing is to buy stocks with a strong trading outlook for at least a decade, not just for the here and now. In this respect Taylor Wimpey’s appeal remains quite compelling then.

Home comforts

Britain isn’t building enough homes to accommodate its rising population, and many believe that even if the government meets its construction target of 250,000 new homes per year that it will not be enough. Let us not forget that ministers have been failing to meet their building targets for years now anyway.

Right now Taylor Wimpey trades on an undemanding forward P/E ratio of around 12 times. It’s a reading I think fails to reflect the firm’s bright long-term earnings picture. Not to mention the peace of mind that its rock-solid balance sheet provides.

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Royston Wild owns shares of Taylor Wimpey. The Motley Fool UK has recommended ITV. 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.