After starting 2026 on the front foot, FTSE 100 company Ashtead Group‘s (LSE:AHT) share price has slumped again. At £48.20 per share, the rental equipment supplier’s now fallen 6% since 1 January.
It’s not an ideal start as the firm prepares to float in the US. Ashtead shares will have dual-listing in New York and London from 2 March.
But it’s not all bad. For investors seeking cheap FTSE 100 stocks, this recent price weakness could be a fresh tasty dip-buying opportunity. So what makes the company a top value stock to consider?
Why did Ashtead shares fall?
First, let’s talk about why Ashtead shares have dropped again. On Wednesday (28 January), United Rentals (NYSE:URI) — the world’s largest rental equipment supplier — released disappointing trading numbers after Stateside markets closed. This prompted its FTSE rival to fall when the London market opened Thursday.
For Q4, United Rentals’ revenue was up 3% at $4.21bn, but below consensus forecasts of $4.24bn. With margins also being squeezed by inflationary pressures and rising costs, adjusted earnings missed estimates too — at $1.9bn. This was flat year on year and below expectations of $1.93bn.
Did Wednesday’s trading update warrant the sharp drop in United Rentals’ (and Ashtead’s) share price? Perhaps not, when taking into account United’s solid forecasts for 2026. Predicted revenue and adjusted earnings are tipped to rise 4%-7%, and 3%-7% respectively this year. These numbers were also in and around the midpoint of analyst expectations.
That said, Q4’s underwhelming numbers don’t help when worries over weak end markets and inflation and cost headwinds remain high. So perhaps a price drop wasn’t all that surprising.
What next?
Like United Rentals, Ashtead sources more than 90% of revenues from the States. And while it’s also gaining share, the firm’s struggled to grow sales more recently amid weak conditions in key end markets.
But could 2026 be a turning point for the company? It’s more than possible, in my view, leaving its year-to-date share price to suffer a bump in the road.
On one hand, the uncertain outlook for the US economy poses ongoing challenges for construction markets. However, revenues could pick up significantly if (as expected) interest rates in the US and elsewhere continue to fall. It’s also on course to win business from a number of major building projects this year and beyond.
A FTSE growth opportunity?
Indeed, Hargreaves Lansdown analysts have described its North American market as “real growth opportunity over the medium term [with] several growth drivers here“. The range from “the onshoring of supply chains, to government legislation looking to expand infrastructure and chip manufacturing“.
What’s more, a market recovery in 2026 could fuel fresh rounds of acquisitions using Ashtead’s significant cash flows. This could also help propel it back into red-hot growth stock territory.
At current prices, Ashtead’s share price commands a price-to-book (P/B) ratio of 3.4. That’s below the 10-year average of 4.6, and represents an attractive dip opportunity, in my view. It’s not without risk, but I think the FTSE 100 company’s worth serious consideration today.
