These FTSE 100 shares are near 52-week lows. I’d buy all of them!


Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop

Image source: Getty Images

Some FTSE 100 shares have rocketed in the past year while other arguably far-better businesses have struggled. Personally, I see this as a huge opportunity.

Here are three of the latter that I’d buy without hesitation if I had the money to invest.

Diageo

Shares in premium drinks firm Diageo (LSE: DGE) are down 14% over the last year and now trade barely above the 52-week low hit in early July.

To some extent, this is understandable. The tragic loss of long-running CEO Ivan Menezes coupled with cost pressures have combined to unnerve some investors. Even a recent beat of full-year sales forecasts hasn’t been enough to raise spirits.

But let there be no confusion. Strong capital gains and consistent (and consistently rising) dividends mean Diageo has been an absolute corker for owners over the long term.

As all Fools know, the past isn’t necessarily a guide to the future. So, research showing that the young folk of today aren’t quite as partial to alcohol as previous generations, for example, is a bit worrying. Then again, we know they are more willing to pay for premium brands when they do drink.

For this reason, I think Diageo shares should continue to deliver very decent returns.

Halma

A second FTSE 100 member I’d have no issue buying today would be life-saving technology firm Halma (LSE: HLMA).

At first glance, that’s pretty contrarian. The £8bn cap’s share price hasn’t recovered from the big market sell-off at the beginning of 2022.

Again, however, I see this as an opportunity for those blessed with a bit of patience. Tellingly, the shares are still up 52% over the last five years.

Let’s not forget that Halma has managed to grow its annual dividend by 5% or more for the last 44 years either. This is primarily due to a superbly executed strategy of buying other businesses specialising in products that are increasingly deemed mandatory by regulators.

Unfortunately, this reliability brings its own problems. Despite its poor showing over the last year and a half, Halma’s valuation — a price-to-earnings (P/E) ratio of 26 — still looks high relative to the market, albeit justifiably so.

That could come back to haunt new investors if we get another market meltdown and/or targets aren’t hit.

Still, I think this is a risk worth taking, so long as I’m nicely diversified elsewhere.

Scottish Mortgage Investment Trust

A final FTSE 100 share within touching distance of its 52-week low is one I’m already invested in: Scottish Mortgage Investment Trust (LSE: SMT).

Frustratingly, SMT shares remain under the cosh as investors continue to fret over various economic headwinds. To make matters worse, the revival in US tech stocks seen in 2023 has barely registered in the stock’s valuation.

So, why would I buy (more) today? There are two main reasons.

First, an eventual pause in interest rate hikes should push SMT shares to outpace the market because its portfolio is chock full of disruptive growth companies that are favoured in a “risk on” environment.

Second, the shares still trade at a discount to net assets. In other words, I’m being asked to pay a price lower than what the portfolio is estimated to be worth.

That rarely happens with this particular investment trust.



Leave a Reply

Your email address will not be published. Required fields are marked *