Cheap UK stocks: down 50%+ in a year, would I buy these 4 FTSE 100 shares?
See all posts by Jonathan Smith “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. Cheap UK stocks: down 50%+ in a year, would I buy these 4 FTSE 100 shares? Jonathan Smith | Monday, 5th October, 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Human nature means that we all want to get a good deal when we buy something. This can be negotiating over buying a car or a house, or even snapping up sale bargains. This carries over into investing in the stock market. For many, buying a UK stock when it’s at all-time highs isn’t as appealing as buying a cheap UK stock. Buying when the share price is heavily in the red can make you feel that you’ve got a good deal.This view can be correct and work out well long term, but investors need to be very careful. Sometimes the stock is cheap for a reason as the business is struggling, rather than falling (perhaps unfairly) along with its peers during a market crash. Over the past 12 months, several FTSE 100 stocks are down over 50%. So are they cheap buys, or are their low prices a warning sign?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…AviationTwo stocks that fall into this category are linked to the airline sector. These are Rolls-Royce and International Consolidated Airlines Group (IAG). Rolls-Royce supplies engines and works on service and maintenance. IAG owns British Airways and Aer Lingus, along with other brands. Between the two firms, the share prices are down between 70% and 84%. This is in large part due to the pandemic, with associated lockdowns and a reluctance by many to travel.Does the slump make these UK stocks cheap? This is a really tough one to answer at the moment. Rolls-Royce is struggling to operate, made evident by the news late last week about a new rights issue and bond issue, aiming to raise £5bn. IAG is also looking to raise fresh capital. In my opinion, this sector is too risky to invest in at the moment. A small speculative investment could be warranted, but I wouldn’t invest more than you’re happy to lose.OilThe other major industry that has massively underperformed over the past year is oil. Shares in BP are down 56%, with Royal Dutch Shell down 59%. Both firms have suffered indirectly from the pandemic. For example, demand for jet fuel has fallen off a cliff, which impacts revenues. Demand for petrol and diesel also slumped during Q2, although this has almost returned to normal. Pressure on the oil price has also eaten into margins. This makes the two stocks look cheap.I’m more optimistic on the two oil majors recovering in the long term. The firms are part of a small club that dominates the industry, so demand will always be shared out between them. Demand for refined products should continue to head back towards normal, as governments cannot afford to have prolonged national lockdowns as earlier this year. Further, if dividends are reinstated back to the level seen before the pandemic, this should attract a wave of income investors. So I think these shares do look cheap but potentially valuable too.Cheap UK stocks worth buyingOne of the signs of a good investor is deciding when not to buy a stock. Fear of missing out is simply not a valid investing strategy. So do your homework and see whether a stock is a cheap buy, or something to steer clear of!