It may not feel like it right now, but today could prove a brilliant moment to go shopping for cheap shares. The FTSE 100 ended February at 10,910, within touching distance of the 11,000 mark for the first time. Today (9 March), it’s closer to 10,150. That’s a peak-to-trough slide of roughly 7%, and plenty of individual stocks have dropped faster.
Markets are rattled by the war with Iran and rising oil price. It’s hugely worrying on both a humanitarian and investor level, but a stock market sell-off may also a buying opportunity for the brave. I’m looking at two FTSE 100 stocks that look good value today, while yielding more than 5%. Should investors consider them?
Admiral shares hold steady
General insurer Admiral Group (LSE: ADM) tempts with a modest price-to-earnings ratio of 12.4 and generous trailing yield of 5.5%. It’s also one of only a handful of FTSE 100 stocks to be in positive territory today. I suspect it’s still benefiting from last Thursday’s strong full-year results. The board flagged up an “exceptional” performance from its UK motor division as group pre-tax profit climbed 16% to a record £957.9m. Customer numbers increased 7%, as the business continues to grow despite a competitive insurance market.
The dividend per share rose 7% to 205p and the company further rewarded loyal investors with a special payment of 17.2p. Admiral shares are now forecast to yield 6.15%.
Longer-term share price performance has been bumpy though. The stock is broadly flat over the past 12 months and up only about 4% over five years. There are risks. If oil prices continue rising, pressure on household finances could intensify. Motorists might shop around harder for cheaper insurance or cut back on driving to save fuel. Some households could even sell second cars if living costs climb further.
Yet the market reaction suggests investors still see Admiral as a relatively defensive business with strong pricing power.
NatWest Group’s stock gets cheaper
The big FTSE 100 banks have taken a knock lately, including NatWest Group (LSE: NWG). Its shares are down more than 12% over the past month, pushing the price-to-earnings ratio below 8.5. That looks striking given that only a weeks ago it was starting to look expensive with a P/E of 15.
That number was slashed by a strong set of full-year results on 13 February, with earnings per share jumping 27% to 60.8p. Profits surged 24.4% to £7.71bn in 2025 and the group announced a £750m share buyback covering the first half of 2026.
Banks are vulnerable to a wider economic shock. A surge in living costs could hit both households and businesses, increasing the risk of loan impairments. There’s also concern about stress in private credit markets, although other banks may be more exposed.
Yet in one respect, an oil-driven inflation spike may support profits. If interest rates rise, or cuts are delayed, that could help banks maintain net interest margins, the difference between what they pay savers and charge borrowers.
Both shares are well considering with a long-term view. If the crisis deepens, their prices could fall even further. I can see lots of other bargains surfacing as the FTSE 100 sinks.
