The FTSE 100’s back above 6,000 points! 3 UK shares I think still look too cheap to miss

Fancy shopping for bargains on the FTSE 100? Here are three UK shares that Royston Wild thinks are far too cheap to ignore!

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Extreme investor nervousness forced the FTSE 100 back below the 6,000-point marker during the middle of September. And there it stayed until Friday when several days of sustained upward pressure pushed the UK’s blue-chip index back above this critical level.

The FTSE 100 hasn’t benefitted from a miraculous upswing in risk appetite, though. The index moved back through 6,000 points late this week because of fresh weakness in the pound. A large proportion of Footsie companies report their results in foreign currencies, meaning that their profits columns receive a boost when sterling takes a hit.

Tension across financial markets remains high and I can’t safely predict that I expect the FTSE 100 to keep rising. What I am happy to say, however, is that the Footsie’s packed with shares that are too cheap to miss. Even if the Covid-19-related news flow worsens and the global economic rebound stutters I’m confident that they can continue to deliver exceptional shareholder returns.

Stack of new bank notes

3 FTSE 100 firecrackers on my radar

Here are a few of these low-cost FTSE 100 stocks I’m thinking of adding to my own Stocks and Shares ISA:

  • Aviva provides plenty for value investors to get stuck into today. The FTSE 100 insurance colossus trades on a forward price-to-earnings (P/E) multiple of just 6 times. It carries an eye-popping 10% dividend yield too. Some would say that these readings suggest Aviva’s a classic dividend trap, but I don’t agree. It’s one of the best-capitalised insurers out there with a Solvency II ratio north of 200%. And it has the capacity to raise even more cash through additional asset sales.
  • Fresnillo’s share price has zoomed higher in 2020 as extreme macroeconomic tension has boosted demand for safe-haven silver. Precious metals prices have retraced again recently on significant profit booking. But I’m backing them to rebound strongly thanks to these ongoing fears as well as the support offered by central bank monetary support. I’m not alone, either, with 70% of respondents to a recent Jefferies survey predicting that metals like silver will rise again in value. Fresnillo trades on a rock-bottom forward price-to-earnings growth (PEG) ratio of 0.4. And this makes it too cheap to miss.
  • I reckon AstraZeneca is also one of the best-value FTSE 100 shares out there. As well as carrying a forward PEG multiple of 0.1 the pharmaceuticals giant boasts a meaty 2.6% dividend yield. It’s a stress-free share for investors as medicine demand remains steady through economic downturns and upturns. AstraZeneca’s role as a leading drugs manufacturer in many therapy areas provides an extra layer of security too.

These hot tips could help you get rich!

AstraZeneca et al are just a taster of the FTSE 100 bargains that you and I can buy right now. They have the capacity to deliver terrific shareholder returns despite the murky macroeconomic outlook. And The Motley Fool’s epic library of special reports can help you discover even more with which to get seriously rich.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Fresnillo. 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.

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