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The FTSE 100 is at its lowest for six months. I’d buy these FTSE 100 stocks now

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In the last week, the FTSE 100 declined 5%, mainly due to rising coronavirus cases and fears (now realised) of a second national lockdown. This means that it’s currently at its lowest level since March. But despite the difficult economic climate, this has definitely created a number of opportunities with certain FTSE 100 stocks. These three are my current favourites and I believe could see large gains throughout November.

A pharmaceutical giant

GlaxoSmithKline (LSE: GSK) has always been seen as a great defensive stock, but even so, it hasn’t been able to avoid the negative effects of the pandemic. In fact, in its recent third-quarter results, its sales fell 8% from last year to £8.6bn. Its EPS also fell by 20%. This was mainly due to a reduction of sales in its vaccines business.

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The FTSE 100 stock has lost around 28% of its value this year and to me, looks oversold. For example, its consumer healthcare sector has performed well and in the last quarter it has received three regulatory approvals for different treatments. This bodes well for the firm’s future.

Finally, a 5.9% dividend yield would potentially attract income investors, especially in the current climate of dividend cuts. I also cannot see a dividend cut imminent, and as such, I think its current cheap valuation offers an opportunity to buy the stock.

This FTSE 100 stock looks far too cheap

BAE Systems (LSE: BA) is another stock that looks way too cheap to me. In the past week, the defence and aerospace company has fallen by 12%. But this decline has mainly been due to the general decline of the FTSE 100 and, at under 400p, it now looks oversold.

In fact, the stock has remained fairly resilient to the pandemic. For example, in the first-half trading update, sales actually increased 4% to £9.9bn. Unfortunately, the firm did see EPS decline 15%, but this still represents a very strong performance in challenging economic conditions.

Following this recent decline, I therefore believe that BAE Systems offers an exceptional buy at its current price. With geopolitical tensions high, defence spending is sure to increase in the next few years. As a result, I reckon that this stock will be able to thrive in the near future.

The drinks giant

The final FTSE 100 stock that I believe offers exceptional value at the moment is Diageo (LSE: DGE). The drinks maker has fallen over 20% this year, and despite disruption due to the pandemic, sales have remained strong.

In fact, the firm’s strong position was demonstrated recently when it bought the gin and vodka distillery Chase, expanding its UK gin business. Its $610m acquisition of Aviation Gin last month was further demonstration of the group’s strong financial position. I also believe that it indicates that further growth is on the cards.

As such, I think that now is an excellent time to buy this FTSE 100 stock at a discounted price. Of course, the pandemic will continue to place pressure on profits, but it also looks in a strong position to thrive following the crisis.

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Stuart Blair owns shares in BAE Systems and Diageo. The Motley Fool UK has recommended Diageo and GlaxoSmithKline. 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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