With the FTSE 100 continuing its fall and now being down over 2% since the start of October, a number of high-quality mega caps are trading at very attractive prices.
Certainly, they could dip further in the short run, as the Eurozone economy continues to struggle and question marks are raised regarding a tightening of monetary policy on both sides of the Atlantic.
However, for long-term investors, now could be the perfect time to invest in great value stocks. Here are three that could fit the bill.
Shell
2014 has been a positive year for Shell (LSE: RDSB), with sentiment improving as the company’s new strategy begins to take hold. Indeed, Shell’s goal of becoming smaller, more efficient, and more profitable seems to be paying off – as seen in its most recent results.
However, shares in the oil major have dipped in recent weeks and now offer superb value for money. Certainly, a weak oil price is hurting sentiment (and could continue to do so over the short term) but, with shares in the company trading on a price to earnings (P/E) ratio of just 10.1, they seem to offer superb value for money.
In addition, a yield of 4.8% should keep demand for shares in Shell buoyant as interest rates remain well below their historic average of 4% – 5%.
J Sainsbury
Clearly, J Sainsbury (LSE: SBRY) is going through a hugely challenging period at present. Indeed, investors in the stock are not buying a company that is experiencing a purple patch.
However, J Sainsbury’s current share price seems to have fallen to a point where it is unjustifiably low. Certainly, trading conditions are tough, but for shares in the company to trade below net asset value seems to indicate a strong buy signal.
With J Sainsbury having a price to book ratio of just 0.74 and a balance sheet that comes with plenty of cash and property, it could turn out to be a superb turnaround story over the long term.
Standard Chartered
While the first half of 2014 was tough for Standard Chartered (LSE: STAN), with profit falling by 20%, the Asia-focused bank continues to offer enticing value for money.
For example, shares Standard Chartered currently trade on a P/E ratio of just 10.3, which seems hugely appealing when you consider that earnings are forecast to grow by 10% next year.
This puts shares in the bank on a price to earnings growth (PEG) ratio of just 0.9, which indicates that not only are they cheap, but they also offer growth at a very reasonable price.
