Ftse 100 Today: Cheap Shares Persist as Index Nears 11,000 Peak
Bargain-hunting investors can target Persimmon and JD Sports as deeply discounted blue-chip options while the broader market heads toward fresh highs. Friday at 9: 14 a. m. ET the FTSE 100 is now within striking distance of new record highs of 11, 000 points, and the index is up 21% over the past 12 months; Ftse 100 Today highlights where cheap stocks remain.
Ftse 100 Today: Persimmon’s cheap price and housing signals
Persimmon trades at £14. 69 per share with a price-to-book ratio of 1. 2, well below its 10-year average P/B of 1. 9 — a direct reason investors can consider the stock despite the broader rally.
Nationwide data show average UK house prices rose 0. 3% month-on-month in February and were up 1% year-on-year, and the Bank of England’s cuts to interest rates have supported a steadier housing market; Persimmon also reported completions jumped 12% last year and its asking prices rose 4%.
Persimmon’s order book increased 2% to £1. 2bn, offering visible near-term earnings support even as questions remain over economic growth and rising unemployment.
JD Sports’ valuation gap and US sales recovery
JD Sports sits at 77p per share with a price-to-book ratio of 1. 4 compared with a long-term average of 4. 2, and its forward price-to-earnings ratio has tumbled to 7. 3 versus a 10-year average of about 15–16.
Like-for-like revenues fell 1. 8% in the latest quarter, reflecting weak consumer spending, yet sales growth has returned in the United States, the company’s single largest market — a concrete operational improvement investors can watch for signs of a rebound.
Berkeley and Prudential trade cheaply amid rate, oil and geopolitical pressures
Berkeley Group trades on a trailing P/E of 10. 6 and its share price has risen 9% over the last 12 months, making it one of the cheaper-housebuilder options on the index despite region-focused exposure.
Prudential’s share price is up 42% since last year, but it still trades on a trailing P/E of 10. 7; new business profit was 10% higher in the January-to-September period, offering earnings momentum to justify continued investor interest.
Market risks include an intensifying Middle East conflict and leaping oil prices that have added inflationary pressure, and those developments have complicated expectations about the Bank of England’s next move; mortgage product competition is intensifying, although some mortgage rates rose last week in response to Iran-related tensions.
For investors, the immediate consequence is clear: several FTSE 100 names still trade on depressed multiples even as the overall index approaches fresh highs, creating selective buying opportunities but also exposing positions to macro and geopolitical shocks.
Next scheduled event: the Bank of England’s expected lending-rate decision this month (no ET time confirmed). If the BoE cuts rates, Nationwide’s forecast implies housing market activity could recover in the coming quarters, which would likely improve visibility for Persimmon and other homebuilders.
