Stock market

2 FTSE 100 value stocks I’ll be buying for my stocks and shares ISA in March!

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I’m hoping to have cash in my pocket to buy something in March. FTSE 100 value stocks. I look for companies that both trade at low price-to-earnings (P/E) ratios and boast market-beating dividend yields.

M&G (LSE:MNG) and WPP (LSE:WPP) are two blue chip companies that I am currently watching. Their share price can be seen below.

FTSE 100 stocks Forward P/E ratio Forward dividend yield
M&G 10.4 times 9.1%
WPP 8.5 times 5%

Here’s why I’ll be buying them into my stocks and shares ISA next month.

M&G

Investment experts like M&G are facing uncertainty right now. For one, financial markets may remain tight in the current economic and geopolitical environment. If high interest rates persist and the economy performs poorly, demand for their services may also remain low.

But I am still considering buying this FTSE 100 stock for my portfolio. The long-term outlook for companies like this is extremely encouraging as demographic changes drive demand for wealth and retirement products.

I particularly like M&G because of its huge dividend yield. It is approaching double-digit percentage territory, with generous broker forecasts supported by the company’s strong balance sheet. Its Solvency II capital ratio was a fantastic 199% in mid-2023.

Finally, I am encouraged by the firm’s ongoing turnaround strategy to help it grow profitability and support the balance sheet. This includes doubling down on its asset management and wealth allocation to restore its declining net income in recent years, and focusing on cost reduction across the group.

These steps can help provide huge returns for years to come. Of course, profits are never guaranteed.

WPP

Media stocks like WPP may remain under pressure in 2024 if the global economy remains under pressure. When companies cut costs, marketing budgets are one of the first things to go.

But I believe the FTSE firm’s increased focus on the more resilient digital advertising segment could help it weather the worst of the storm. As Statista’s chart below shows, digital ad sales are tipped to continue growing strongly this year and into 2028.

Forecast growth in digital advertising sales

Forecast growth in digital advertising sales.
Source: Statista

WPP’s heavy investment on the digital side of things appeals to me as a long-term investor. And so in the field of artificial intelligence (AI) he is spending big money. Last month he promised to spend “Around £250m in proprietary technology to support our AI and data strategy” every year.

Debt at the FTSE 100 firm has soared recently. But it still looks well-positioned to continue expanding its strategic and geographic footprint through organic investments and further acquisitions. This month it also acquired a minority stake in ‘digital first’ agency OH-SO Digital ahead of its launch in March.

WPP will have to continue pedaling hard to succeed in the competitive and changing advertising landscape. But I believe he has the scale, expertise and growth strategy. And given the cheapness of its shares, I think it’s a high-value stock to buy in March.


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