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I think these FTSE 100 shares are too cheap to ignore

July 5, 2021

first_img “This Stock Could Be Like Buying Amazon in 1997” Some share prices are limping along but in the right conditions could be future sprinters. Here are two stocks I think are right for patient investors wanting to identify cheap FTSE 100 shares.An expensive-but-cheap FTSE 100 shareShares in telecoms giant Vodafone (LSE: VOD) work primarily on two levels for me. One is they provide income, great for reinvesting and benefitting from compounding. The second aspect is the value of the shares.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Compared to the firm’s historic P/E the shares now are relatively cheap. If you look back to around this time last year, the P/E was over 30. Now it’s nearer 25. The dividend yield is also high at 6.7%.The group is continuing to grow in Europe as a result of transformation acquisitions, which may prove to be fruitful for investors. The underlying performance of the business is mixed and growth is low but that’s why the shares are cheap. High-growth shares have high P/E ratios.Like other telecoms companies, Vodafone has high levels of debt. Plans to sell off its towers network later this year should reduce that burden. Overall the shares look cheap and the rollout of 5G, along with selling more services to like broadband customers, could boost earnings in the future.Under-pressure FTSE 100 landlordUnderstandably with its exposure to retail and to offices, shares of British Land (LSE: BLND) have not done well so far this year. But I think investors may have overreacted and the shares are now too cheap to ignore. They trade on a P/E of 11.The dividend has been suspended. That’s understandable given the lack of clarity management has over future earnings, especially when the group is supporting its retail tenants through rent relief and delays.But even before Covid-19, the group was reducing its exposure to retail customers. In five years’ time, retail is expected to account for only about a third of assets.Right now though, the group is well-financed, with a portfolio of developments and a share price that’s looking cheap. I think it’s potentially too cheap to be ignored. The uncertainty means the group now trades for far less than its assets are worth. Something legendary investors like Warren Buffett would approve of. It gives investors a margin of safety.This is certainly a cheap FTSE 100 share. But are the shares really worth 38% less than that the start of the year? I’d argue not. There are opportunities for the business to develop more mixed-use sites and reduce its reliance on retail, which seems like a smart move. I think the shares are worth a look for any value-focused investor.Both of these companies face challenges, especially when it comes to growth. Both are mature elephants, but in the right conditions, I think they could charge. The shares look cheap and they’ll survive this economic slowdown. That’s why they’re difficult to ignore. Image source: Getty Images. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Andy Ross owns no share mentioned. The Motley Fool UK has recommended British Land Co. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Sharescenter_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Simply click below to discover how you can take advantage of this. I think these FTSE 100 shares are too cheap to ignore Andy Ross | Tuesday, 12th May, 2020 | More on: BLND VOD See all posts by Andy Rosslast_img

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