- FTSE 100 index lost 5.8% in June amid rising inflation and recession worries.
- Undervalued FTSE 100 stocks mat offer great growth potential to investors amid the rising market volatility.
The month of June wasn’t very kind to the UK’s FTSE 100 index. The blue-chip index lost 5.8% over the month amid the escalating inflation, rising interest rates, and fears of recession looming over the economy. Weighing the recession risks, investors have been worried and thus have been trying to move away from riskier investments toward safer ones.
©2022 Kalkine Media®
At present, the UK’s economic growth is weakening amid the growing cost-of-living crisis. Consumer confidence has taken a hit with the rising inflation, and increased costs have reduced business activity, leading to overall GDP contraction. Amid this market turmoil, FTSE 100 stocks are on the radar of investors as they are considered to be comparatively more stable.
Generally, these blue-chip stocks also offer dividends to the investors, helping them in securing a passive income stream. There are several FTSE 100 stocks that are undervalued, offering great growth potential to investors. These cheap stocks trading below their real value can be added by the investors to their portfolio for decent returns.
We have picked 3 FTSE 100 cheap stocks that investors may put their lens on.
Shell plc (LON: SHEL)
Shell plc is a British oil and gas firm. The company's market cap stood at £156,111.64 million as of 4 July. Shell has provided its shareholders with a return of 48.35% on a one-year basis, while its YTD return stands at 35.04% on Monday. Offering an annual dividend yield of 3.8%, Shell’s earnings per share (EPS) stand at 2.59. Shell plc’s shares were trading at GBX 2,190.00, witnessing an uptick of 3.25%, at 12:19 PM (GMT+1).
Airtel Africa plc (LON: AAF)
UK-based telecommunications company Airtel Africa plc's market cap stood at £5,159.94 million as of 4 July. Airtel Africa has provided its investors a return of 75.08% on a one-year basis. Besides, its YTD return stood at 3.78%. and it is offering an annual dividend yield of 3%. Airtel Africa plc’s shares were trading at GBX 138.70 and were up by 1.02%, at 12:21 PM (GMT+1) on Monday.
Centrica plc (LON: CNA)
Centrica plc holds a market cap of £4,808.74 million as of 4 July. The leading electricity and gas supplier offered its investors a return of 55.70% on a one-year basis as of 4 July, along with YTD returns of 14.23%. Centrica’s EPS stands at 0.21. Centrica plc’s shares were trading at GBX 81.66, up by 0.32%, at 12:27 PM (GMT+1) on 4 July.