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- Investor sentiment in the UK is expected to improve soon owing to some recent positive data.
- Oil prices, war material costs, and mortgage rates have started to fall.
- Inflation has been rising and value stocks are considered as a good investment option during such times.
2022 has been a troublesome year for UK investors so far. Inflation levels in the country have been climbing sharply, recently hitting a new 40-year high level of 9.4% in June. To counter the impact of soaring inflation, the Bank of England has been going for interest rate hikes, but this stance of monetary policy tightening has nudged the country towards a slowdown.
Apart from inflation, other reasons that have created a negative sentiment in the market include the Chinese manufacturing slowdown, labour shortages across industries post Brexit, and the tragic Russia-Ukraine crisis which has not only shaken Europe but the entire world.
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However, owing to some recent positive data, the investor sentiment may improve soon. Oil prices have already started to drop, raw materials and other commodities are also following the downward trend, and even mortgage rates are beginning to fall.
As the economy recovers, stock market will follow suit. Investors can perhaps keep an eye on certain value stocks having a good rebound potential. Value stocks are basically cheap stocks which are trading below their real worth and typically have a low P/E ratio.
Here are 3 FTSE 100 value stocks that UK investors may consider buying in August.
Centrica plc (LON: CNA)
The shares of Centrica plc was witnessign a dip by 2.30% at 1:30 PM (GMT+1) on Friday and were trading at GBX 86.90. Centrica has reported an adjusted operating profit of £1,342m for H1 2022 on Thursday. The FTSE 100 firm has a P/E ratio of 8.66 and a positive EPS of 0.21.
Shell plc (LON: SHEL)
The shares of the British oil and gas giant, Shell plc, surged by 0.59% at 1:34 PM (GMT+1) on Friday and were trading at GBX 2,136.50. Shell has reported cash flows worth $18.7bn from operating activities for Q2 2022 on Thursday. The FTSE 100 firm has a P/E ratio of 8.78 and a positive EPS of 2.59.
Standard Chartered plc (LON: STAN)
The shares of the British banking and financial services firm, Standard Chartered plc, were rallying by 0.32% at 1:40 PM (GMT+1) on Friday and were trading at GBX 568.60. Standard Chartered has today reported an income hike of 8% in H1 2022, reaching $8.2bn. The FTSE 100 firm has a P/E ratio of 11.11 and a positive EPS of 0.61. It has provided its investors returns of 26.67% and 37.54% on YTD basis.
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