Revealed! The 10 most discounted FTSE 100 shares of 2024

Which FTSE 100 shares are trading cheaper compared to the start of the year? This list shows the top 10, which are all double-digit percentages down.

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Fireworks spelling out the numbers '2024'

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What are the most heavily ‘discounted’ FTSE 100 shares so far this year?

The most obvious way to answer the question is to look at year-to-date performance. In what is turning out to be a pretty fine year (the index is up 8% already with three more months to go) we might think there wouldn’t be too many companies trading at discounted prices. In fact a total of 34 companies are cheaper as I write than they were on New Year’s Day, several of them double-digit percentages in the red. Here’s the ‘top’ 10.

Top 10

My initial thoughts on seeing that list are, it must be said, a great feeling of relief. I don’t own any of these stocks and haven’t suffered the hit on my brokerage account either. 

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That’s not to say I’m some wizard of the market. A lot of this comes down to timing and luck. The BP and Centrica share prices have taken sizeable haircuts thanks to oil prices falling for much of the year and recently dipping below $70 a barrel. Thus a list like this of poor-performing stocks does not in itself tell us that much about the respective companies. 

What it can do rather is to form part of the initial fact finding when looking at stocks to buy. 

One name that might intrigue me is Barratt Developments. Housebuilders are in a much better place than they were a couple of years ago. And with interest rates on the way downwards a 14% discount sounds enticing (and perhaps surprising). 

But maybe it is less of a surprise given that there are changes coming out the company. However I’m not fully on board with the firm’s proposed merger with competitor Redrow. The deal still hasn’t gone through. And even if it does Barratt is paying a pretty penny to complete the move. I’ll avoid for now. 

Another stock in the list that stands out is Entain (LSE: ENT), the gambling group that owns PartyPoker, Coral and Ladbrokes.

Fact finding

The shares were on a downward trend even before 2024 and have slid around 64% from the all-time high. The current market cap of £5bn (around $6.7bn) is also some drop from a buyout offer of $11bn the company received back in 2021. Highlighting the possible opportunity here further is the fact that gambling, unlike many of the sectors the FTSE 100 is renowned for, is a growing market. 

Created with Highcharts 11.4.3Entain Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Gambling comes with its own baggage of course. People can and do ruin their lives with it. There is no getting around that an investment here is an ethical grey area. 

The other side of the argument is that a flutter at the weekend on a couple of footie games is harmless. But it is certainly a reason to be put off. Not just for the ethical side either, but for potential regulation that could come in down the line. Still, for those looking for cheap stocks, this is one to keep an eye on. I’ll add it to my watchlist.

But there are other promising opportunities in the stock market right now. In fact, here are:

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

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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.

John Fieldsend has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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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This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

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