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3 broad FTSE 100 stocks offering value today

3 broad FTSE 100 stocks offering value today

3 broad FTSE 100 stocks offering value today

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Wide-moat companies have historically been some of the best stocks to own in the world. FTSE100 index. Because these companies are able to maintain their market shares and achieve continuous growth and profits.

The good news for investors is that there are many large-cap businesses in Footsie offering value today. Here are three that I believe are worth considering.

Global brands

Alcoholic beverage giant Diageo‘s (LSE: DGE) moat comes from its brands, including: Johnny Walker, Tanqueray, SmirnoffAnd Guinness. These brands have been around for decades and as a result are trusted and purchased repeatedly by consumers around the world.

This has led to Diageo achieving higher revenues and profits over the years. This also led to more than 20 consecutive dividend increases.

Diageo shares are currently trading price-earnings (P/E) ratio is 17.9. this is up there FTSE100 average. But given the group’s brand strength and track record, I think it’s quite reasonable. Recently portfolio manager Nick Train said he believes this stock could potentially have a P/E ratio of up to 33.

It is worth noting that attitudes towards alcohol are changing. Therefore, there is no guarantee that the company will achieve the same level of success in the future as it has in the past.

But as an investor in the company, I’m optimistic that its brands will continue to be popular with consumers.

market dominance

Then we have move to the right (LSE:RMVOperating the UK’s largest property portal.

Again, the moat here comes from the brand, which is very well known in the UK (Rightmove is often the first place people turn to when looking to buy or rent property). Given its brand power and market dominance, agents cannot ignore the platform when listing available properties.

Currently, Rightmove’s 2025 earnings forecast has a P/E ratio of 20.7. I think this is a steal considering it’s one of the most profitable companies in Footsie.

And I’m definitely not the only one who sees value here. Recently Australian company REA Group Tried to buy the company.

It’s worth noting that rival OnTheMarket has a new owner and has quite a bit of financial firepower. This could test Rightmove’s moat in the coming years.

Still, I’m pretty optimistic that the brand will endure.

sticky software

Finally we have Sage (LSE: SGE), which offers accounting and payroll software for small and medium-sized businesses.

The moat here comes from the ‘stickiness’ of the company’s services. Once a business signs up for Sage’s software (and trains its staff, etc.), it’s unlikely to switch to a competitor.

At first glance, this stock looks expensive. Currently the P/E ratio here is 24.1.

However, I believe there is value offered in this multiple. Software companies generally have higher valuations because they tend to have recurring revenues. And compared to some other software companies, Sage is trading at a relatively low valuation. Rival Intuitionfor example, the P/E ratio is 32.

Of course, there are risks here. One of these is economic weakness. This may indicate that small and medium-sized firms are cutting back on IT spending.

But from a long-term perspective, I think this stock will perform well as the world becomes more digital.