I asked chatgpt to choose 3 brilliant ftse value shares and this is what he said

Value stocks are my favorite type. My wallet is full of them. But I was wondering if I had lost any obvious and called Chatgpt for a second opinion.

The artificial intelligence chatbot came up with three Ftse 100 stocks, but something was happening. The first was Rolls-Roycewhich looks more like a growth stock that is too expensive than a bit economical value game.

Then I made it clear. I told my robot assistant that a value action refers to a company that seems to operate at a lower price in relation to its foundations, with potential to recover.

ChatGPT is just a glorified computer program, but it is not dumb. He quickly clung.

I love the legal and general group too!

His first choice was the insurer and asset manager Legal and General Group (LSE: LGEN). I can completely support it. I sustain the stock and I love its bumper 8.4% performance.

However, the actions have had problems, falling 5% for 12 months. However, 5% have been reduced during the last month. That is mainly due to the growing hope of reduction of interest rates, which will reach yields in rival assets such as cash and bonds.

No dividend is guaranteed and the cover is still thin in 1.1. However, the Board is still positive and is planning constant increases from around 2% per year. Legal & General is not as cheap as it was, trading at a price/profits ratio (p/e) of profits 33 times. The price of the action could be volatile in the short term, but there is value waiting to be launched over time. In addition to those dividends.

I wish I would have bought Natwest shares too

The second value of chatgpt made me green of envy. That is because it is Natwest Group (LSE: NWG) whose shares increased 92% in the last 12 months. Why so green? Because I bought rival Lloyds banking group Instead, he has followed.

Natwest was rescued in the financial crisis. At its peak, the Government had 84% of the then group of the Royal Bank of Scotland. That has now been reduced to only 8.9% and Chatgpt says this “It has further relieved the previous concerns of the market, which could lead to greater appreciation of the price of shares.”.

Natwest still looks good despite his successful execution, quoting only 8.8 times the profits. However, dividend yield has fallen below 4%.

Interest rate cuts can squeeze net interest margins and the potential recession of the United Kingdom could increase loan breaches. I would still buy if I didn't hold Lloyds, but I do it. Oh good.

But I'm not too interested in Vodafone

Finally, Chatgpt chose a stock that swore that I would not touch with a bargepole: telecommunications giant Vodafone group (LSE: vod).

Mi ai Chum says that his P/E 11 suggests “It can be undervalued in relation to its foundations”. Also praise Vodafone's “Substantial dividend”ignoring that the final yield of 11% will be reduced by half from March.

To be fair, ChatGPT warns that intense competition in the telecommunications sector can press the profit margins, and that Vodafone requires “Substantial capital expenditure for the maintenance and expansion of the network, especially with the deployment of 5G technology ”.

The price of Vodafone shares is stable for a year, but 54% less than five. In fact, it has constantly fallen throughout the millennium.

I like value actions. However, Vodafone looks more like a value trap for me. Even so, two out of three are not bad.