Segro, 3i Group, Barclays: Value stocks to keep an eye on in March

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Segro, 3i Group, Barclays: Value stocks to keep an eye on in March

 Segro, 3i Group, Barclays: Value stocks to keep an eye on in March
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Highlights

  • Recently, UK inflation levels touched a 30-year high of 5.5% in January, and this inflationary trend may continue due to the ongoing Russia-Ukraine crisis.
  • Value stocks generally perform better than growth stocks during times when inflation levels are high.

Inflation levels in the UK have been touching the roof over the past months, recently hitting a 30-year high of 5.5% in January. This trend may continue due to the ongoing Russia-Ukraine crisis, which has affected the global markets. Russia is among the biggest oil exporters and sanctions being levied on the country by the West is bound to impact the energy markets and further raise the already high energy costs. Ukraine, also known as the breadbasket of Europe, is the leading exporter of wheat and other food products, and thus food prices are also expected to rise globally due to the same reason. Overall, the Russia-Ukraine crisis may potentially raise the global inflation levels further, as per market experts.

Several asset classes are being impacted by the ongoing crisis and rising inflation, however during the times when inflation levels are high, value stocks, or stocks trading lower than their real value, largely perform well as compared to growth stocks which deliver higher than average market returns. The market price of value stocks typically has a direct relationship with the inflation levels, but it’s the opposite with growth stocks, which tend to perform badly during periods of high inflation. The Bank of England will potentially go for an interest rate hike in March 2022 to offset the effect of soaring inflation.

Amid the fears of inflation rising even further, investors are going for value stocks, which have the potential to outperform growth stocks during these tough times. To recognize these value stocks, ratios like PE and PEG are considered. A low PE ratio and PEG ratio of less than 1 generally mean that the shares are undervalued.

Based on these two ratios, let’s look at 5 undervalued FTSE100 stocks which you can buy in March for good returns.

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value stocks to buy in March

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Segro plc (LON: SGRO)

The current market cap of Segro plc stands at £15,649.94 million as of 1 March 2022. The UK REIT has delivered a return of 41.22% to its shareholders over the last one year as of 1 March, however, its year-to-date return stands at -10.79%. As of 1 March, the PE and PEG ratios of the REIT stand at 3.85x and 0.31x, respectively.

Segro plc’s shares were trading at GBX 1,282.00, down by 1.50%, at 12:42 PM (GMT) on 1 March 2022.

3i Group plc (LON: III)

The current market cap of 3i Group plc stands at £12,997.51 million as of 1 March 2022. The private equity firm has delivered a return of 17.64% to its shareholders over the last one year as of 1 March, however, its year-to-date return stands at -10.04%. As of 1 March, the PE and PEG ratios of the firm stand at 4.62x and 0.75x, respectively.

3i Group plc’s shares were trading at GBX 1,303.50, down by 2.40%, at 12:48 PM (GMT) on 1 March 2022.

Barclays plc (LON: BARC)

The current market cap of Barclays plc stands at £30,644.37 million as of 1 March 2022. The global bank has delivered a return of 12.04% to its shareholders over the last one year as of 1 March, however, its year-to-date return stands at -4.37%. As of 1 March, the PE and PEG ratios of the bank stand at 5.01x and 0.12x, respectively.

Barclays plc’s shares were trading at GBX 178.84, down by 2.21%, at 1:18 PM (GMT) on 1 March 2022.

RELATED READ: Gazprom, Sberbank, Lukoil: Stocks impacted by Russia-Ukraine crisis

SSE PLC (LON: SSE)

The current market cap of SSE PLC is £18,167.57 million as of 1 March 2022. The energy company has delivered a return of 23.86% to its shareholders over the last one year as of 1 March, and its year-to-date return stands at 0.59%. As of 1 March, the PE and PEG ratios of the company stand at 6.79x and 0.56x, respectively.

SSE PLC’s shares were trading at GBX 1,640.50, down by 3.76%, at 1:22 PM (GMT) on 1 March 2022.

Anglo American plc (LON: AAL)

The market cap of Anglo American plc is £51,153.09 million as of 1 March 2022. The mining company has delivered a return of 39.91% to its shareholders over the last one year as of 1 March, and its year-to-date return stands at 28.65%. As of 1 March, the PE and PEG ratios of the company stand at 7.50x and 0.27x, respectively.

Anglo American plc’s shares were trading at GBX 3,879.00, up by 1.47%, at 1:24 PM (GMT) 1 March 2022.

Tags: value stocks, growth stocks, inflation, FTSE100 index, PE ratio, PEG ratio, cheap stocks, Barclays, Anglo American, SSE, 3i Group, Segro, BoE, Russia, Ukraine

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.

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