Barclays, Segro, SSE: Should you buy these stocks now?

Highlights

• Value stocks usually perform better than growth stocks during periods of high inflation.
• To counter the impact of rising inflation, the Bank of England may go for a rate hike in March 2022.
• Ratios such as PE and PEG are used to recognize undervalued stocks. 

Inflation levels in the UK have been skyrocketing over the past months. During the periods of high inflation, value stocks, or stocks trading below their real worth, generally tend to perform better than growth stocks, which offer returns above the market average.

In general, the rate of inflation has a direct relationship with the market price of value stocks, and an inverse relationship with the market price of growth stocks. Therefore, high growth stocks, like tech stocks, have been taking the brunt of soaring inflation. To counter the impact of rising inflation, the BoE may go for a rate hike in March 2022.

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PE and PEG ratios are used to recognize undervalued or cheap stocks. If the PE ratio is on the lower side and the PEG ratio is less than 1, then the stock is typically undervalued. Based on these ratios, let’s look at 5 cheap FTSE100 stocks which may be added to your portfolio for good returns.

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Segro plc (LON: SGRO)

The current market cap of leading UK-based REIT Segro plc stands at £14,850.31 million, and it has provided its shareholders with a return of 29.83% over the past one year, as of 23 February. However, its year-to-date return stands at -13.85%. As of 23 February, the PE and PEG ratios of the FTSE100-listed firm stand at 3.66x and 0.30x, respectively.

Segro plc’s shares were trading at GBX 1,235.50, up by 0.04%, at 12:37 PM (GMT) on 23 February 2022.

3i Group plc (LON: III)

The current market cap of the UK-based private equity firm, 3i Group plc, stands at £12,739.60 million, and it has provided its shareholders with a return of 18.24% over the past one year as of 23 February, however, its year-to-date return stands at -7.38%. As of 23 February, the PE and PEG ratios of the FTSE100-listed firm stand at 4.53x and 0.73x, respectively.

3i Group plc’s shares were trading at GBX 1,342.00, up by 2.52%, at 12:42 PM (GMT) on 23 February 2022.

Barclays Plc (LON: BARC)

The current market cap of the London-headquartered international bank, Barclays Plc, stands at £31,864.24 million, and it has provided its shareholders with a return of 28.55% over the past one year as of 23 February. Its year-to-date return stands at 6.04%. As of 23 February, the PE and PEG ratios of the FTSE100-listed firm stand at 6.08x and 0.16x, respectively.

3i Group plc’s shares were trading at GBX 1,342.00, up by 2.52%, at 12:42 PM (GMT) on 23 February 2022.

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SSE PLC (LON: SSE)

The current market cap of Scotland-based global energy firm, SSE PLC, stands at £16,867.22 million, and it has provided its shareholders with a return of 15.76% over the past one year as of 23 February. Its year-to-date return stands at -1.72%. As of 23 February, the PE and PEG ratios of the FTSE100-listed firm stand at 6.30x and 0.52x, respectively.

SSE PLC’s shares were trading at GBX 1,603.00, up by 1.30%, at 12:49 PM (GMT) on 23 February 2022.

Anglo American plc (LON: AAL)

The current market cap of the British mining firm, Anglo American plc, stands at £47,854.83 million, and it has provided its shareholders with a return of 27.36% over the past one year as of 23 February. Its year-to-date return stands at 18.53%. As of 23 February, the PE and PEG ratios of the FTSE100-listed firm stand at 8.96x and 0.46x, respectively.

Anglo American plc’s shares were trading at GBX 3,576.00, down by 0.01%, at 12:54 PM (GMT) on 23 February 2022. 

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.