The Motley Fool

3 cheap FTSE 100 shares I’d buy in August

Image source: Getty Images.

Despite the recent market recovery, there are still plenty of cheap FTSE 100 shares on the market that may produce high total returns for investors in the years ahead. 

With that in mind, here are three FTSE 100 shares that could be attractive long-term investments today. 

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Cheap FTSE 100 shares

B&Q owner Kingfisher (LSE: KGF) has had a profitable coronavirus crisis. As cheap FTSE 100 shares go, the stock stands out for its impressive sales performance over the past few months. 

Its latest trading update showed a 21.6% increase in sales across its businesses during the second quarter of 2020. As a result, it now expects to report a year-on-year rise in first-half profit. 

City analysts had expected the company to report a 50% decline in earnings for the year before this release. It now looks as if the company will beat this projection. For the past six years, the group has reported average earnings per share of around 24p.

If earnings return to this level, the stock is currently trading at a forward price-to-earnings (P/E) ratio of just 10. This suggests Kingfisher may offer a wide margin of safety at current levels. 

British Land Co

Another company that may feature on a list of cheap FTSE 100 shares is British Land (LSE: BLND)

The coronavirus crisis has had a significant impact on commercial property values across the UK. With a substantial proportion of its portfolio invested in commercial property, British Land has suffered as a result. 

However, the business also has a diversified office portfolio and a significant property development pipeline. This puts it in a unique position compared to other cheap FTSE 100 shares. 

Even after factoring in the recent decline in commercial property values, the strength of the rest of British Land’s portfolio has helped the company weather the crisis. What’s more, after recent declines, shares in the real estate investment trust (REIT) are trading at just 50% of their net asset value. 

As such, the stock appears to offer a wide margin of safety and may produce high total returns for investors in the years ahead. 

Smurfit Kappa 

And finally, if you’re looking for cheap FTSE 100 shares, it may be worth taking a closer look at Smurfit Kappa (LSE: SKG)

The boom in e-commerce activity during the coronavirus crisis may have put the provider of paper-based packaging products in the perfect place to prosper from the pandemic. As of yet, the business has not provided detailed information on its trading performance. However, figures from other companies and parcel delivery services, suggest the demand for packaging has exploded over the past few months. 

As Smurfit is one of the largest packaging producers in Europe, it has a definite competitive advantage in this market. It is also one of the few cheap FTSE 100 shares that dominate its respective market. Even if the company has not prospered in the pandemic, its market position should help it stage a rapid recovery in the years ahead. 

This may lead to attractive total returns for shareholders when the stock is owned as part of a well-diversified portfolio. 

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Rupert Hargreaves owns shares in British Land. The Motley Fool UK has recommended British Land Co. 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.