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A myriad of FTSE 100 Shares faltered this week as constituents of the UK’s leading index continued to release their third quarter results.
At 7,292.7 points, the Footsie’s short-term performance is not the best. And despite an increase of nearly 4% over the past 12 months, the index has fallen about 7% over the past six months. This week, it has dropped more than 1% from its price.
Anyway, I’m not too worried. Instead, I’m thinking that in the coming weeks there might be opportunities to pick up some blue-chip stocks at discounted prices.
Here are two stocks I’m considering.
NatWest
As I write, the NatWest (LSE:NWG) share price has plummeted a whopping 12%, largely due to the bank cutting its profit outlook and increased attention surrounding the Nigel Farage scandal.
In its third-quarter results, the company cut its key profit margin guidance for the year. On top of that, its net interest margin, a measure of the profitability of loans, also fell. Now it is expected to arrive “greater than 3%” For 2023, compared to the previously announced 3.15%, it seems that investors may be scared.
However, being the fool that I am, I wonder if this might be a time to grab a bargain.
With the stock now sitting around the 185p range, this drop means it is now trading with a price-to-earnings ratio of just 4.6. It also offers a dividend yield of 8.6%.
In terms of value for money, it seems like a solid option. What’s more, with low credit losses and impairment provisions, as well as an expected return on tangible equity in line with competitors, everything may not be as bad as it seems.
Lloyd’s
Continuing with the financial topic, I am also analyzing Lloyd’s (LSE: LLOY). The last five years have been torrid for Black Horse Bank shareholders. And this has continued of late, with the stock falling more than 5% in the last year.
I am optimistic about Lloyds. And with its share price now at the 40p mark, I think it could be a good time to jump into the market.
I like the moves the company is making in the long term. This comes in the form of a new strategy it implemented in February last year. And as part of its £3bn plan, it aims to diversify revenue streams.
I’m always looking for passive income opportunities. And with a 6.2% yield covered roughly three times by earnings, Lloyds could be a smart move.
I would expect its share price to continue to suffer in the coming weeks and months as uncertainty around inflation and interest rates persists. Given that it also announced in its latest update that house prices will continue to fall through 2025, this could impact the company.
That said, I think it is well positioned to thrive in the long term. With its income opportunity, I like the look of Lloyds.
my movement
Despite its decline, I still won’t be buying NatWest shares. I think there is too much volatility around the stock right now to buy it. But in the coming weeks I will follow their movements very closely. As for Lloyds, I’m looking to increase my holdings with the cash I have left over.
