FTSE 100 is currently down about 3.5% versus its year-to-date high in last month. But there’s a bunch of U.K. stocks that are trading at a much more attractive discount at writing. Here is our list of top three you should consider owning in 2024.
easyJet plc (LON: EZJ)
Down well over 20% versus its year-to-date high, easyJet is an undervalued U.K. stock that is worth owning this year.
EZJ shares may be a great pick at writing because the management is committed to lowering net debt and improving the balance sheet at large and signs of their strategy working are already becoming evident.
easyJet will likely benefit as the air carrier continues to improve its passenger capacity in the coming months.
The London listed firm currently pays a dividend yield of 1.0% as well which makes it all the more attractive to own in 2024.
Centrica PLC (LON: CNA)
Centrica makes it to our list of best undervalued U.K. stocks as it’s down well over 15% versus its year-to-date high in early January.
Shares of the multinational are worth owning not only because it’s a top energy and utilities services company in the United Kingdom but also because it has a bunch of notable subsidiaries including Dyno, British Gas, and PH Jones for broader services like heating, plumbing, and drainage.
$CNA ended 2023 with £2.2 billion in free cash flow that speaks to the strength of its financial stature.
Plus, a healthy 3.02% dividend yield serves as cherry on top in terms of making Centrica stock suitable for those interested in undervalued U.K. shares.
Reckitt Benckiser Group Plc (LON: RKT)
Reckitt stock is currently undervalued in U.K. listed names by as much as over 40%, as per discounted cash flow mode.
The consumer goods giant has been under immense pressure ever since a U.S. court ordered it to pay $60 million to the mother of a premature baby that allegedly died due to its Enfamil.
But $RKT has confidence in the safety of its products and, therefore, has launched an appeal to the aforementioned verdict that may remove a long-standing overhang from Reckitt stock if it’s successful.
In April, Reckitt said solid demand for dettol and lysol helped it beat comparable sales growth expectations in its fiscal Q1. $RKT does not, however, pay a dividend at writing.
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