2 under the radar FTSE 100 shares investors should consider buying

Many FTSE 100 shares are easily identifiable. However, some may be lesser known but could still make great investments.

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It’s easy to get caught up in the fanfare of the top FTSE 100 shares, whether they’re popular names or consistently story stocks.

Others can often quietly go under the radar but also represent great investment opportunities, if you ask me.

Two picks I reckon investors should be taking a closer look at are Unite Group (LSE: UTG) and The Weir Group (LSE: WEIR).

Unite Group

Unite is set up as a real estate investment trust (REIT). It develops and operates student housing across the UK.

REITs are a great way to boost passive income, as these types of investment trusts must return 90% of profits to shareholders.

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Unite shares are up 1.5% over a 12-month period as they were trading for 979p at this time last year, to current levels of 994p. I reckon market volatility including rising interest rates and soaring inflation has hampered the shares from climbing further. This has also been the case for many FTSE 100 shares.

The positive for Unite is that demand for student beds is outweighing supply levels. If it can plug this gap, I can see performance and payouts growing in the future. Speaking of payouts, a dividend yield of 3.4% is attractive. However, it’s worth remembering dividends are never guaranteed.

From a bearish perspective, a recent government review into foreign student visas may curb new international student numbers. This could hurt Unite’s uptake, as well as performance and return levels. I plan to keep an eye on any developments on this front.

For me, demand outstripping supply, a great investor return policy and level of return, as well as extremely strong brand power, make a compelling investment case.

Weir Group

Scottish-based aero engineering firm may not be a well-known name among those who don’t know the industry well. However, I view it as another potentially great way to gain exposure to the sector. This is away from other larger names such as Rolls-Royce or BAE Systems.

Weir shares haven’t moved much over this past year. In fact, they’re down by 1.5% from 1,841p at this time last year, to current levels of 1,813p.

When the pandemic struck, the aerospace industry ground to a halt. However, since we seem to be over that, burgeoning demand could boost Weir shares in the long term. Plus, the business recently announced plans to strategically boost operating margins. It could also continue its acquisition strategy to stimulate further growth and boost market presence.

At present, a dividend yield of 2% helps the investment case. Plus, if the business can boost margins as it is trying to do, and grow, payouts could also be boosted.

A current valuation on a price-to-earnings ratio of 23 may seem expensive. However, if the firm achieves forecast targets for 2024, this could drop to 14, making the shares more attractive, in my eyes.

A risk I’ll keep an eye on is what looks to be rising debt levels on its balance sheet. This is especially as it can be costlier to pay down during times of high interest, like now. Higher debt levels could impact growth aspirations as well as investor returns.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Sumayya Mansoor has no position in any of the shares mentioned. The Motley Fool UK has recommended Weir Group Plc. 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.

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