The FTSE 100 stock index is up 19% over the last year. But I think now’s still a great time to go shopping for blue-chip shares.
Why? As AJ Bell analyst Dan Coatsworth says:
the UK stock market is cheap as chips and there are real bargains on offer. Certain companies are in the bargain bin for good reason, but there are also golden nuggets that have flown under the radar.
That comment may have been made way back last July. However, plenty of top-class Footsie shares continue to trade below value.
Take the following growth and dividend stocks:
Want to know why they’re top bargain shares to consider?
Rock-bottom PEG ratios
Barratt’s forward price-to-earnings (P/E) ratio of 10.6 offers top value in my view. Though it’s the firm’s price-to-earnings growth (PEG) readings that really demand serious attention. These are:
- 0.1 for this fiscal year (to June 2026).
- 1 for next year.
- 0.4 for financial 2027.
Any reading below 1 indicates a stock trading below value. Combined with dividend yields of 5.5%-6.7% for the next three years, Barratt Redrow shares provide excellent all-round value.
So why is the housebuilder trading so cheaply? There’s no doubt risks have grown in 2026 after the Iran war began, raising inflation and likely leading to interest rate hikes. This has the potential to choke off the housing market’s fragile recovery.
Yet it’s my opinion Barratt’s ultra-low valuation more than reflects these risks. Besides, the long-term outlook for housing stocks like this is as robust as ever in my view, as the UK’s growing population drives demand for new homes. I’m confident this will underpin a strong share price rebound.
As the UK’s biggest builder by volume, Barratt is well-placed to seize this market opportunity too. Net cash sits at around £550m-£650m, giving the firm substantial financial firepower to do things like building its land bank. What’s more, its three different brands — Barratt (entry level), David Wilson (mid-market) and Redrow (premium) — help it effectively target different types of buyer.
A 9.4% discount opportunity?
While Barratt shares have dived, Polar Capital Technology Trust’s have rocketed. This reflects a rebound among high-growth US tech shares over recent months.
Yet Polar’s technology trust still offers excellent value. Why? Its shares trade at a 9.4% discount to the net asset value (NAV) per share.
Discounts like this can arise when investors sell a trust’s shares more aggressively than the underlying holdings. This could continue, if concerns over the economic landscape raises worries over holdings like Nvidia, Alphabet and Apple.
For me though, this discount reflects an attractive dip-buying opportunity. Polar Capital Technology Trust has surged 1,149% in value over the last decade, helped by its focus on market leaders with strong balance sheets and long records of innovation. I’m expecting it to keep rising as growth trends such as AI, quantum computing, robotics and cybersecurity gather pace.
Should you invest £5,000 in Barratt Redrow right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barratt Redrow made the list?
Royston Wild holds shares in Barratt Redrow.
