The stock market crash has prompted some investors to avoid buying cheap UK shares. That’s understandable. They face challenging operating conditions at the present time in many cases. And that could lead to disappointing share price performances over the coming months.
However, long-term investors who can build a diverse portfolio of stocks could benefit from buying undervalued British shares after the recent market downturn. In time, they may produce sound recoveries that improve your financial prospects.
With that in mind, here are two FTSE 100 stocks that appear to be undervalued. They could be worth buying today, and may even boost your retirement prospects.
A buying opportunity among cheap UK shares
Glencore (LSE: GLEN) could offer good value for money relative to other cheap UK shares. The FTSE 100 mining business has experienced a tough period due to coronavirus. But its assets have largely been able to remain operational throughout the year.
In fact, its marketing division produced a record half-yearly profit that strengthened the company’s overall performance. It could remain a key differentiator for Glencore versus sector peers, since it offers counter-cyclical earnings potential.
Looking ahead, the company is forecast to return to positive earnings growth next year after a challenging 2020. This should aid it in seeking to reduce debt to more manageable levels. Meanwhile, its forward price-to-earnings (P/E) ratio of 12.5 suggests that investors may have factored in further disruption for the wider sector.
Clearly, a weak economic outlook is likely to cause investor sentiment towards commodity businesses to remain subdued in the short run. However, Glencore’s share price could offer recovery potential over the long run as part of a diverse portfolio of cheap UK shares.
A long-term recovery opportunity
Whitbread (LSE: WTB) is another FTSE 100 stock