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It's been a bumpy start to the year for stock markets, meaning many FTSE 100 The shares now look like a great value. I would like to include these three world-class stocks in my stocks and Shares ISA before the market finally recovers.
luxury fashion business Burberry Group (LSE: BRBY) is high on my shopping list. For years, this premium brand traded at a premium price, with a typical price-to-earnings ratio of around 25 times. It benefited from the Chinese middle-class consumption boom, but China is struggling right now, as is Burberry. Markets did not appreciate this month's profit warning, which suggested a 27% drop in adjusted operating profits to between £410m and £460m.
High fashion, low price.
Burberry shares have plunged 43.96% in 12 months and now trade at just 10.39 times earnings. The yield has also risen to 3.32%.
The stock received a boost from recent news that Beijing is preparing a $278 billion stimulus package, up 8.84% last week. I would like to buy Burberry before it regains more lost value.
However, it was not the best-performing stock in the FTSE 100. That honor belongs to the private equity investment firm. Intermediate capital group (LSE: ICP) which ended the week up 14.37%. I took the news badly.
On December 28, I tipped the stock to perform well in 2024, but I didn't have enough cash to add it to my portfolio. Unfortunately, I can't buy all the businesses I like, I just don't have that kind of money.
Intermediate Capital Group provides capital for acquisitions, pre-IPO financing, and management buyouts, and tends to perform better when economic sentiment is high. It should get a boost when interest rates fall as this will reduce funding costs and increase confidence.
Its shares rose on Thursday (Jan 25) after the board reported strong growth in earning assets under management for the third quarter and said it had surpassed its $40 billion fundraising targets ahead of schedule. .
growing very well
The share price is up 31.05% over the last year, but it still doesn't look that expensive trading at 18.1 times earnings. It also yields 4.27%. However, private equity is volatile, so if the economy fails, the stock could fall, but I would still love to hold it.
I hold Smurfit Kappa (LSE: SKG), having bought the FTSE 100 paper and packaging giant last summer. I would like to buy it again, although its stock has been volatile since I bought it. They fell 10% in September when markets decided Smurfit had overpaid to secure its £16bn tie-up with US rival WestRock.
The markets will be right, but it gives the company access to the huge US market, under its proposed Smurfit WestRock brand.
Smurfit's share price is down 10.4% over the last year, but is now starting to recover from the September shock, rebounding 18.68% in three months. The risk is that we suffer a recession, affecting consumer spending and the desire for all that corrugated paper that fills our online purchases.
Smurfit is trading cheap at 8.19 times earnings and yields 3.91%. As with the other two stocks here, I'd like to buy before I have to pay more.
