Value stocks can be hard to find when markets are hitting new peaks, but they haven’t disappeared. In fact, even as the FTSE 100 reaches record highs in 2026, there are still plenty of pockets where prices haven’t kept up.
Right now, Vodafone (LSE:VOD), BT Group (LSE:BT.A) and Kingfisher (LSE:KGF) all trade under £3. And while all three are up over the last 12 months, several professional analysts still see them as potential value stocks to buy in June.
So should I be considering these stocks for my portfolio today?
Is Vodafone finally turning a corner?
Many investors still see Vodafone as a slow, heavily-indebted and complicated telecoms group. That’s exactly why the valuation’s low despite showing promising signs of genuine improvement.
Banking advisory service Berenberg recently upgraded Vodafone from Hold to Buy and hiked its price target from 82p to 123p, arguing that the group can deliver sustainable free cash flow and dividend growth over the next four years.
The team at Barclays has also upgraded its outlook, increasing its own share price target from 100p to 120p, pointing to better growth prospects in Germany and the UK, plus the potential benefits of its merger with Three UK.
Across most forecasts, the bull case is that simplification, cost cuts and more focused capital spending could finally unlock the kind of steady cash generation investors have waited years for.
But it’s important to remember that Vodafone has disappointed before. Integration risk around Three, regulatory pressure on pricing, and still‑intense competition mean any setback could quickly erase the value gap that analysts see.
What about BT and Kingfisher?
BT Group remains another controversial telecoms play. JP Morgan recently lifted its price target to 310p, saying it believes the company is “past peak pain” on alternative network competition and that Openreach line losses should now steadily improve.
The analysts at Berenberg have gone even further, raising their target from 250p to 300p, arguing that deregulation of fibre pricing could be a big long‑term upside driver that the market’s current underappreciating.
Similar to Vodafone, this positive outlook hinges on BT executing on its cost-cutting initiatives while also finishing its fibre buildout without blowing the budget. Yet even if it becomes a cash-generative infrastructure business, high debt and large pension obligations nonetheless remain a persistent risk factor to consider.
On the other hand, Kingfisher, which owns the B&Q and Screwfix brands, looks like the most traditional retail value stock of the three.
Analyst opinion here is very mixed. Barclays, Jefferies, and Berenberg have all issued a Hold recommendation but have placed share price targets at around 300p – above where Kingfisher shares trade today.
Clearly, the pros aren’t entirely convinced of the potential value opportunity here, particularly with the current sluggish state of the DIY market. But the brands nevertheless remain strong with self-help initiatives already underway to boost margins.
Which value stock looks most promising?
All things considered, BT Group seems to be offering the most interesting potential. Capital expenditures have already peaked, it remains a critical national infrastructure asset, and management has already begun delivering visible cost savings.
That’s not to say it’s a guaranteed winner – far from it. But it’s definitely a business worth investigating further for a potential bargain hiding in plain sight. That’s why I’ve already added it to my watchlist.
Should you invest £5,000 in Bt Group Plc 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 Bt Group Plc made the list?
Zaven Boyrazian does not hold any positions in the companies mentioned.
