The Iran war has rattled markets, but housebuilders have been hit especially hard. The three worst-performing blue-chips over the past month all hail from that sector: Persimmon, Berkeley Group Holdings (LSE: BGK) and Barratt Redrow have each fallen by a bruising 25% or so.

It was a different story at the start of the year, when investors anticipated falling interest and mortgage rates. The oil price spike has reversed that.

Housebuilders tend to be on the front line whenever economic sentiment takes a hit. They took a beating after Brexit, the cost-of-living crisis and the inflation spike. Now they’re being pummelled again. All three are trading at 10-year lows. Which will tempt some, and terrify others.

Berkeley Group is downbeat

Developers have taken a string of sector-specific hits too. The end of the Help to Buy scheme in 2023 squeezed demand for new homes. Builders have had to absorb huge bills linked to cladding remediation following the Grenfell tragedy. They’ve also been hit by higher employer’s National Insurance contributions, two big hikes to the minimum wage, and more expensive materials. The pressure has been relentless, and it showed in Berkeley’s latest update on Wednesday (2 April).

The board warned it’s scaling back activity after what it described as an unprecedented surge in costs and regulation. It’s struggling to generate acceptable returns on new projects, has paused land purchases and plans to slow construction across existing sites.

Delays in approvals from the building safety regulator have added to the strain. Even if the Iran war ends quickly, management expects mortgage rates to remain elevated for some time.

Berkeley still expects to deliver about £450m in pre-tax profit this year, but longer-term expectations have been cut sharply. Forecast profits for the years to 2030 are now far below previous estimates. The shares plunged almost 10% on the day, and dragged the wider sector down with them.

Struggling FTSE 100 sector

This was a bleak update, and it has left the stock looking cheap on paper, trading on a price-to-earnings ratio of around 8.5. The yield, however, is only about 1%. Given the outlook, that’s not enough to tempt me.

Persimmon and Barratt Redrow offer far higher yields of 5.45% and 6.78%, respectively. The question is whether those payouts can be sustained if conditions remain tough. I’m not wholly optimistic. Bargain hunters who want exposure to what remains a key part of the UK economy might want to take advantage of today’s low valuations. But they’ll need to be patient, and brace themselves for further volatility.

I can’t see a clear path out of the current difficulties. Years of near-zero interest rates drove prices to unaffordable levels, especially for younger buyers, the market’s lifeblood. With demand uncertain, costs elevated and borrowing getting more expensive, this recovery could take time. After the recent correction, I can see plenty of stocks to consider buying on the FTSE 100, and most look a lot more tempting than these three.

The post Down 25% in a month! Are these the 3 best stocks to buy in today’s correction… or the worst? appeared first on The Motley Fool UK.

Wednesday’s drop means Berkeley’s share price has slumped 31% over the last month. At £29.68 per share, they trade on a price-to-earnings (P/E) ratio of 9.1 times for this financial year (to April 2026). For financial 2027, this falls to 8.8.

The question is, are Berkeley shares now too cheap to resist?

So what’s happened?

In an unscheduled market update, the builder said it still expects to deliver pre-tax profit of £450m for the current financial year. It also confirmed its £300m net cash target remains unchanged.

But that’s where the good news stopped. Warning of worsening conditions after a modest recovery in January and February, Berkeley said:

[As indicated in March], recent geopolitical events and the macroeconomic consequences, including reduced potential for further rate cuts, could reduce confidence in a near-term market recovery. This has now become a reality.

As a consequence, Berkeley said it’s now expecting to deliver £1.4bn of pre-tax profit between fiscal 2027 and 2030. That’s roughly 30% to 35% lower than City analysts had been forecasting.

Pulling up the drawbridge

But Berkeley wasn’t done yet. Amid “unprecedented” rises in costs and regulations, alongside increasing interest rates and weak buyer demand, the builder said it would stop purchasing new land until conditions improved.

The firm said it doesn’t believe it can make its “required rate of return on investment in new land acquisitions… due to the continuous increase in the tax and regulatory burden on residential development“.

Battening down the hatches isn’t a bad idea in the current environment. But it doesn’t exactly smack of confidence, and raises questions about when exactly the firm will return to growth. No wonder, then, that Berkeley shares are now trading at their cheapest for a decade.

Is this FTSE stock a buy?

I like to buy quality FTSE 100 shares when they slump in value. So I’m asking myself, should I buy Berkeley after today’s share price collapse?

I’ve long been bullish on the builder, which focuses on building new homes in London and the Home Counties. As the UK population rapidly grows, these companies have enormous earnings potential over the medium to long term. But today’s update changes things for me.

Berkeley isn’t the only national housebuilder sounding the alarm. As interest rates rise, sector profits are in enormous jeopardy. Yet the scale of the company’s profit downgrade — combined with its drastic plan to stop new land buys — suggest to me that it’s far less operationally robust than its peers.

It may be a FTSE share for risk-tolerant dip buyers for consider. But I won’t be buying Berkeley shares for my portfolio.

The post Down 31% and with a P/E of 8.8, is this FTSE 100 share too cheap to ignore? appeared first on The Motley Fool UK.

Even with the UK’s flagship index sitting comfortably above 10,000 points, several institutional analysts have highlighted some seemingly terrific bargains to consider. And even someone investing as little as £10 a day (roughly £300 a month) can use these bargains to build a seven-figure ISA. Here’s how.

Compounding to £1m

By taking advantage of discounts in top-notch stocks and avoiding value traps trying to lead investors astray, a portfolio can go on to earn impressive returns that outpace the market.

To demonstrate, the average long-term return of the FTSE 100 has historically sat near 8% a year, including dividends. Investing £300 each month at this rate would grow a brand-new ISA beyond the £1m threshold in around 40 years.

By comparison, if an investor capitalising on bargain-buying opportunities achieved an 11% average return, just 3% more, the journey is shortened to 32 years.

So what are the cheap FTSE 100 stocks investors should be looking at today?

What the experts are recommending

There are a lot of ideas floating around among professional analysts in 2026. However, one FTSE 100 stock that seems to be a recurring name is Berkeley Group (LSE:BKG).

The analysts’ teams at JP Morgan, Berenberg Bank and Barclays have all recently reiterated a Buy recommendation with share price targets ranging 4,500p-5,230p.

Compared to where the stock’s trading today, that represents a potential 16%-35% capital gain over the next 12 months.

So what’s driving this aggressive forecasting?

Digging deeper

Berkeley is a specialist in brownfield and urban regeneration homebuilding. But instead of focusing on high volumes like more traditional homebuilders such as Taylor Wimpey, Berkeley’s more focused on complex, unique projects, such as converting obsolete office blocks or former industrial sites.

In recent years, the group’s had to tackle a number of headwinds plaguing the property sector, the most prominent being higher interest rates, which have had an outsized impact on Berkeley’s core markets like London.

This has translated into a bottom line that’s been steadily shrinking since 2022. Yet that could all be about to change.

With interest rates slowly coming down, property specialist Savills has projected that London house prices are on track to recover and will rise by 14% by 2030. This improved price environment creates a supportive tailwind for Berkeley, with management even projecting a potential rebound in earnings later this year.

This momentum could be further supported by the government’s planning reforms designed to simplify the whole process and reduce costs for homebuilders. But it’s worth pointing out that this might be a double-edged sword. After all, if planning permission’s easier to obtain, the barriers to entry from smaller competitors also fall.

Forecasts are never perfect. And Berkeley could end up falling short of its own targets if interest rate cuts are delayed due to a resurgence in inflation. Nevertheless, with an optimistic outlook and an undemanding price-to-earnings ratio of just 10.7, this FTSE 100 stock might be worth a closer look.

The post Invest £10 a day in cheap FTSE 100 shares to aim for a million-pound ISA appeared first on The Motley Fool UK.

Want to see what I’ve found? Read on to find two FTSE heroes I think could be too cheap for investors to ignore.

Home comforts

Risks are growing for Berkeley Group (LSE:BKG) as conflict in the Middle East intensifies. Leaping oil prices are fuelling inflationary pressures, and with them hopes of interest rate cuts. A much-expected reduction in Bank of England (BoE) lending rates this month may now have been kicked into the long grass.

Higher interest rates are extremely damaging to home sales by crimping buyer affordability. But could this be baked into Berkeley’s cut-price valuation? I think so. The housebuilder trades on a trailing P/E ratio of 10.6 times.

Over the long term, I remain convinced this FTSE 100 stock retains excellent investment potential. This is thanks to its focus on London and the South East, where severe market undersupply is supporting prices. Real estate services specialist Savills predicts average property values in the capital will rise roughly 14% between now and 2030.

As I say, the interest rate outlook is more uncertain now than it was just a week ago. But on the whole, the broader picture regarding borrowers remains encouraging for Berkeley and its rivals. The BoE is likely to keep cutting rates to kickstart the UK economy when it can. Buyers should also being helped by a fierce mortgage rate war that’s steadily intensifying as challenger banks move in. That’s despite some mortgage rate rises last week in response to the Iran situation.

With the British population rapidly growing, I expect Berkeley’s profits to grow strongly between now and the end of the decade. I feel now represents a good time to consider buying.

What about The Pru?

Berkeley’s share price is up 9% over the last 12 months. That’s not a bad return, but Prudential (LSE:PRU) has blown it out of the water. Its share price is up a whopping 42% since last year.

Yet I believe it still offers excellent value and is worth considering. Its trailing P/E ratio is 10.7.

So why are The Pru’s shares trading so cheaply? It’s safe to say jitters remain over the health of the key Chinese recovery. Last week Beijing predicted its slowest rate of annual growth since the early 1990s for this year. The Middle East crisis hasn’t helped things either.

Investors shouldn’t write off these risks, but Prudential’s long record of resilience soothes any nerves I have as a shareholder. New business profit continues to beat expectations, up 10% in January to September according to latest financials. I’m optimistic earnings can keep rising as demographic factors drives broader financial services demand and Prudential pivots towards higher-margin products.

Given low product uptake in its emerging markets, I think Prudential has incredible growth potential over the next decade. Statista expects Asian life insurance premiums to grow 5.3% a year between now and 2035.

The post 2 insanely cheap FTSE 100 shares to consider buying today! appeared first on The Motley Fool UK.

Housebuilders have suffered from the cost-of-living crisis, the soaring cost of labour and materials, higher mortgage rates, buyer affordability issues, and the end of the government’s Help to Buy scheme.

I’ve always felt the sector would recover once interest rates began to slide. That seems to be happening, and analysts now expect a further 0.25% cut to 3.5% at the Bank of England meeting on 19 March.

Berkeley Group shares are up

I’ve already positioned myself for the sector revival buy adding FTSE 250-listed Taylor Wimpey to my SIPP, but two FTSE 100 housebuilders also tempt me: Berkeley Group Holdings (LSE: BKG) and Persimmon (LSE: PSN). Both climbed in lockstep in February, rising around 7.5%.

Over 12 months, Berkeley is up a 17.5% and Persimmon 30%. Five-year performance figures show the scale of the troubles they’ve seen though. Berkeley is up just 7% in that time, Persimmon is down more than 40%.

High-end London-focused builder Berkeley got a boost on 4 February when JPMorgan upgraded it from Neutral to Overweight and raised its price target from 4,700p to 5,000p. Today, the shares trade at 4,344p. So that would mark a 15% rise if that target is met.

JPMorgan cited improving trends in Berkeley’s core business and said the shares look cheap on a 40% discount. It compares with 31% for the sector.

Berkeley also looks cheap judging by a price-to-earnings (P/E) ratio of 11.7, although the trailing dividend yield underwhelms at just 1%. My Taylor Wimpey shares yield a fabulous 8.2%. Just saying.

There’s still some way to go though. Berkeley’s half-year results in December showed pre-tax profits down 7.7% to £254m, with selling prices falling too. London’s growing undersupply and rising affordability should boost the business over time.

Persimmon looks robust but pricey

Persimmon is pricier, with a P/E of 16.5, but offers a yield of almost 4%. Full-year results, published in January, showed earnings at the top of guidance after a 12% rise in completions to 11,905 homes. That’s higher than anticipated. The board expects underlying pre-tax profit of £415 to £440m and highlighted a “robust order book” for 2026.

Yet it is wary, warning that it’s “not expecting any material improvement in market conditions this year”. I’ll echo that. The UK economy remains fragile, unemployment is rising, and the government is falling short of its ambitious housebuilding targets.

I’d love to say that housebuilding stocks are primed for a boom, but my experience with holding Taylor Wimpey has made me cautious. Both Berkeley and Persimmon are picking up momentum, but the path ahead isn’t smooth. However, I’d rather buy before the recovery than afterwards, and I think both are worth considering today with a long-term view. Income-focused investors might want to check out Taylor Wimpey instead. It rose more than 7% in February too.

The post Can these 2 fast-recovering FTSE 100 turnaround stocks do it again in March? appeared first on The Motley Fool UK.

More specifically, I’m looking for underpriced gems with scope for particularly exceptional gains next year. Diageo (LSE:DGE), Berkeley Group (LSE:BKG) and Rio Tinto (LSE:RIO) are three such stocks I think might soar in 2026 and are worth considering.

Want to know why?

Recovery stock

At 13.2 times, the price-to-earnings (P/E) ratio on Diageo shares is substantially below the 10-year average of 21 times.

I’m not surprised by this bargain basement reading. As a shareholder, I recognise the enormous challenges it faces such as tariff pressures, weak consumer spending and rising demand for non-alcoholic drinks.

Yet I’m hopeful 2026 could be the start of a turnaround for the Guinness maker. Conditions in the US, Diageo’s largest market, are improving rapidly, as this month’s blockbuster Q3 growth numbers show.

Things could get even better too across all the company’s regions if (as expected) interest rates keep toppling.

I’m also hopeful Diageo’s share price could rebound as its new chief executive cracks the whip. Former Tesco saviour Dave Lewis has a strong record of resurrecting battered businesses.

London calling

Housebuilders would also gain significantly from further interest cuts next year. Building society Nationwide expects average home price growth of up to 4% in 2026.

In this climate, I think Berkeley could be in pole position to capitalise on this. Its P/E ratio of 11.8 times is among the cheapest among the UK’s listed builders, leaving substantial room for a price rebound.

I’m also encouraged by recent data on the London housing market, as Berkeley generates the lion’s share of profits from the capital and surrounding counties.

Estate agent Hamptons says homebuyer migration away of London has dropped to its lowest level since 2013. A continuation of this trend could significantly boost investor appetite for the FTSE 100 stock.

On the downside, sales of its newbuilds could disappoint if low growth continues in the UK. But with mortgage rates falling, I’m confident of a strong year ahead.

All-round bargain

Rallying industrial metal prices have supercharged Rio Tinto’s share price in late 2025. But the mining giant still offers tremendous value, based on expected earnings.

Its forward P/E ratio is just 11. More impressive is its price-to-earnings growth (PEG) multiple of 0.8. Any ratio below 1 implies bargain basement territory.

Key commodities including iron ore and copper have surged on improving supply/demand fundamentals. This could continue as China’s economy gathers pace, and infrastructure investment there takes off. At the same time, mounting production challenges across the base metals are supporting price forecasts into the new year.

There are possible challenges facing Rio Tinto, like rising iron ore supply from Australia and Brazil that could dent prices. But on balance, things are looking good, and especially as the company accelerates cost cuts (it announced $650m of cost savings earlier this month).

A 5.2% dividend yield for next year underlines the miner’s value credentials. This is miles above the 3% average for FTSE 100 stocks.

The post 3 dirt-cheap FTSE 100 stocks to consider for 2026! appeared first on The Motley Fool UK.

In recovery

Berkeley Group (LSE:BKG) shares have dropped by almost a third over the past year. This reflects two substantial threats to the UK’s housing market recovery: rising inflation with its impact on Bank of England interest rate policy; and the possibility of a prolonged economic downturn.

I think London-focused Berkeley’s price decline may represent an attractive dip-buying opportunity, though. Migration out of London continues to slow rapidly, and reached its lowest level since 2013 in the first seven months of the year:

Londoners purchased just 5.3% of homes outside the capital in the period, according to estate agent Hamptons. Interestingly, this was also below the 5.9% average between 2010 and 2020.

There’s no doubt weaker home price growth in London is encouraging people to stay put. That’s a risk. But other factors, like a greater appeal for city living and the decline of working from home are also boosting demand. As a result, some analysts expect property value growth in London to outpace that of the broader UK over the next few years.

I believe Berkeley is well placed to capture this opportunity. The FTSE 100 company has a strong balance sheet, underpinning its plans to make £2.5bn of land acquisitions over the next 10 years. I also like its decision to enter the red-hot rental sector by building and renting out 4,000 properties to tenants in the coming decade.

Latest financials last week showed that its steady rebound remains intact, with 85% of pre-tax profits already secured for this financial year (ending April 2026). While risks remain, I think it’s a great recovery share to consider.

Bursting higher

Unlike with Berkeley, shares in precious metal miner Endeavour Mining (LSE:EDV) have taken off over the past year, rising more than three-quarters in value.

Prices have been driven by a strong and sustained increase in gold prices. Bullion is up more than 40% in value over the last year, reaching record peaks above $3,600 per ounce on a range of macroeconomic and geopolitical factors.

And I feel the yellow metal can continue rising given growing tension over global inflation, Western nations’ debt levels, and economic and political conditions in the US. Sustained weakness in the US dollar is also boosting investor demand for safe-haven gold.

Gold isn’t just receiving support from retail investors either, with central bank gold demand also rising sharply. These institutions now hold more bullion in their reserves than US Treasuries for the first time since 1996, a trend driven by mounting concerns over US debt levels.

I think Endeavour’s an attractive way to capitalise on gold’s bull run. The unpredictable nature of metals mining means it’s a higher-risk way of investing in the commodity. However, purchasing gold stocks can also lead to profits — and thus share price gains — that grow faster than the metal price.

Thanks to buoyant bullion prices and increased production, Endeavour’s EBITDA more than trebled between January and June, to $1.1bn.

With the business also offering a healthy 2.8% dividend yield, I think it could be a great gold stock to consider. Remember that owning physical bullion or a price-tracking gold fund doesn’t provide an income.

The post 2 FTSE 100 and FTSE 250 shares to consider this September appeared first on The Motley Fool UK.

Could this represent an attractive dip-buying opportunity though? I think it’s worth examining, and especially given the cheapness of Berkeley’s shares versus its FTSE 100-listed peer group.

Today, the company trades on a forward price-to-earnings (P/E) ratio of 11.4 times. That’s below corresponding readings of:

• 14 times for Persimmon.
• 14.7 times for Taylor Wimpey.
• 17.3 times for Barratt Redrow.

Here’s my take.

Still on course

The UK housing market remains tough as the domestic economy splutters. Yet the industry’s rebound from 2022’s meltdown remains intact, as lower interest rates and competition in the mortgage market help homebuyers.

Berkeley’s latest trading statement today (5 September) revealed that it continues to make slow but steady progress. It said “trading has been stable… over the first four months of the year, following a similar pattern to last year.”

The firm maintained its pre-tax profit guidance of £450m for the 12 months to April 2026, albeit down from £528.9m in the previous fiscal year. And it said 85% of expected full-year profits have already been secured through exchanged sales contracts.

It added that “we anticipate pre-tax profits to be weighted broadly evenly between the first and second half of the year, subject to the timing of completions.”

Berkeley also confirmed it expects to report similar profits to the current year in financial 2027.

Green shoots

There’s no doubt Berkeley’s focus on London and the South East has muted its recovery. An abundance of new supply means home price growth in the capital and surrounding regions is lagging the rest of the country, as latest data from Zoopla shows.

But signs are growing that conditions in London are improving thanks to a weaker development pipeline and favourable demographic factors (such as the steady return to the office following Covid-19).

Indeed, boffins at Capital Economics think prices in the capital will rise at an average of 6.5% in 2026. That beats the 5% rise predicted for the broader UK.

A continuation of the trend that Capital Economics tips could pull Berkeley’s share price sharply higher.

Growth opportunity

There are of course risks to these forecasts. Signs of stickier inflation cast doubt on the pace of future interest rate cuts. Worrying economic indicators like rising unemployment also present cause for concern.

But on balance, I still think Berkeley could be an attractive option for investors seeking recovery shares to consider. And especially when one considers the cheapness of the builder’s shares.

I certainly remain upbeat about the housebuilder’s long-term prospects as population growth drives demand for new homes. Statista analysts think the number of Londoners will grow by almost 700,000 between now and 2047 to 9.97m. And government plans to ease planning restrictions should help Berkeley better capitalise on this significant opportunity.

The post Down 30%, here’s a fallen FTSE 100 share to consider today appeared first on The Motley Fool UK.

Could these stocks offer better returns in the future? Let’s take a look at City analysts’ share price and dividend forecasts for Taylor Wimpey, Persimmon (LSE: PSN), and Berkeley Group (LSE: BKG) shares to see what the experts think.

Taylor Wimpey

Shares in national housebuilder Taylor Wimpey currently trade for 101p. That’s about 15% lower than the level they were at five years ago. Analysts see the potential for a rebound however. Currently, the average price target’s 135p – about 34% above the share price.

Turning to the dividend forecast, the yield for the 2025 financial year is expected to be 9.2%. Add that the projected gain of 34% and total returns are expected to be higher than 40% over the next year or so.

Persimmon

Budget housebuilder Persimmon has really underperformed in recent years. Currently, it’s trading for 1,146p which is quite astonishing when you consider that it was trading above 3,000p a little over four years ago.

Now, analysts don’t see this stock rising back to 3,000p any time soon. However, they do see the potential for decent gains from here. Currently, the average price target is 1,539p. That’s about 34% above the current share price.

The yield forecast is about 5.4%. So again, total returns are expected to be attractive.

Berkeley Group

Turning to Berkeley Group, which is focused more on high-end properties, it’s currently trading for 3,722p. However, the average analyst price target is 4,428p – roughly 19% higher.

The yield forecast is about 4.2%. So total returns are expected to be healthy but analysts don’t quite see as much potential here relative to Taylor Wimpey and Persimmon.

Worth considering?

Looking at these forecasts (which should be taken with a grain of salt), analysts clearly see the potential for decent returns from here. When dividends are factored in, total returns in the medium term are expected to be high.

I can’t say I’m tempted to buy any of these stocks personally however. I do think conditions for the housebuilders should improve if UK interest rates continue to come down (rates were lowered by 0.25% last week). Lower rates could improve affordability and potentially boost revenues for these companies.

However, there are other issues that could limit profit growth in the years ahead. These include higher costs (eg materials and staff) and increased regulations. Note that Taylor Wimpey has been hit by soaring costs recently while Berkeley has warned about the impact of the Building Safety Levy, which is expected to be rolled out in September.

Of course, with these stocks, investors also need to think about the potential for a major economic slowdown. In that scenario, housebuilders can be some of the worst-hit stocks in the market because they’re so economically sensitive.

So while these stocks could produce some gains in the near term, they’re not for me. I think there are better – and safer – stocks to buy for my portfolio today.

The post Here are the latest share price and dividend forecasts for Taylor Wimpey, Persimmon and Berkeley Group appeared first on The Motley Fool UK.

In a release on Friday (20 June), the housebuilder announced the long-standing chief executive will move over to become chair on 5 September. He will replace Michael Dobson, who has held the role for the last three years.

The merry-go-round will also see Richard Stearns, Berkeley’s chief financial officer since 2015, take over from Perrins in the autumn.

Continuation plan

Regarding Stearn’s appointment, Berkeley was upbeat, commenting that the incoming CEO

Has a strong understanding of the industry and Berkeley’s business model. His appointment will uphold Berkeley’s longstanding tradition and preference for promoting from within which maintains the culture and values of the organisation and provides continuity and stability for the Company, our people and shareholders

Yet, it’s not surprising investors’ nerves are rattled by the departure. Perrins has been chief executive for 16 years. The change is especially sensitive as it comes just after the company launched its Berkeley 2035 10-year growth strategy in December.

Berkeley’s share price sank 8% on the news. Has the market overreacted, though?

Safe pair of hands?

As with all chief executive appointments, only time will tell. What’s encouraging, however, is that Berkeley’s new chief executive is another company veteran. Stearns first joined the business in 2002, and he understands the company inside and out.

Indeed, Stearns’ journey echoes that of the man he is set to replace. Perrins held the role of CFO for eight years before becoming chief executive in 2009.

On top of this, Stearns is taking over amid signs that the housing market is on course for a strong and sustained recovery.

Berkeley’s full-year financials, also released Friday, showed revenues rise 0.9% in the 12 months to April. Property deliveries (including joint ventures) increased to 4,329 from 3,927 the prior year, while average asking prices dropped to £593,000 from £664,000.

Pre-tax profits dipped 5.1%, however. But things could be looking up for the FTSE builder as buyer affordability improves.

Three-quarters of sales have already been secured for the new year, it said yesterday. And despite the poor outlook for the UK economy, reservations could keep climbing if (as expected) falling inflation prompts the Bank of England to keep slashing rates.

Value for money

Following Friday’s price drop, Berkeley shares offer attractive value for money in my view. Its price-to-book (P/B) ratio of 1.1 times sits just above the conventional value watermark of one. But this is still well below the company’s 10-year average of around 1.6.

There are risks given the change of chief executive and the broader economic environment. But I feel it’s still a strong FTSE stock to consider as population growth supercharges demand for housing, and its Berkeley 2035 strategy boosts newbuild output and exposure to the white-hot rentals sector.

The post Searching for FTSE 100 shares to buy ‘on the dip’? Here’s one that’s worth a serious look appeared first on The Motley Fool UK.