Consider Buying These 2 UK Value Stocks at 10-Year Lows
Investing in undervalued FTSE 100 stocks can yield significant returns, particularly when purchased at low prices. Noteworthy examples include Rolls-Royce, which experienced an astonishing share price increase of 1,208% over five years. Those who invested £10,000 then would now see their investment soar to £130,800. In 2025, the FTSE 100 still offers various value stocks poised for recovery.
Consider Buying These 2 UK Value Stocks at 10-Year Lows
This article explores two potential investment opportunities in the UK market: Bunzl and Croda International. Both show signs of renewal, making them attractive candidates for investors seeking to capitalize on current market conditions.
Bunzl’s Recovery Signs
Bunzl (LSE: BNZL) is a distribution and services company that saw its shares plummet last summer due to a dip in earnings in the US. This downturn presented a potential stock-buying opportunity. Bunzl had previously enjoyed consistent growth fueled by an aggressive acquisition strategy.
- Down 37% over the past 12 months
- Price-to-earnings (P/E) ratio at a modest 11.1
- Shares are trading near a 10-year low
- 5% increase in the last week
- Expected revenue growth of up to 3% at constant exchange rates
- Trailing dividend yield at 3.44%
The outlook for Bunzl relies heavily on a recovering US economy, and a stronger dollar would positively impact revenues reported in sterling. Investors seeking long-term gains may find Bunzl worth considering for their Stocks and Shares ISA.
Croda International on the Up
Croda International (LSE: CRDA), a specialty chemicals manufacturer serving beauty, agriculture, and life sciences sectors, is another stock to watch. Following strong sales during the pandemic, the company faced a drop as demand normalized.
- Shares down 55% over the last five years
- Recent 5% increase in stock price
- Trailing dividend yield has risen to 3.8%
- Trading at a 10-year low, P/E ratio slightly above 20
Despite challenges, including a need for a more dynamic global economy, Croda’s stock may have potential for recovery. The company’s commitment to annual dividend increases for 30 years suggests stability that could be attractive for investors.
While neither Bunzl nor Croda may reach the heights of Rolls-Royce, they do represent slow-burning investment opportunities. Both companies are starting from lower price bases, potentially paving the way for future growth and accumulating wealth through consistent dividends.
