The FTSE 100’s a great place to look for bargain shares. The London stock market’s blue-chip shares have underperformed significantly in recent years, a reflection of weak economic conditions and political turbulence in the UK.
But investors need to be careful before piling into cheap stocks. Some low-cost FTSE 100 aristocrats have delivered brilliant returns in years gone by. Yet their current weak valuations reflect the challenges they face going forwards.
Here are two Footsie legends I won’t touch with a bargepole next month.
Tesco
You’d think Tesco (LSE:TSCO) could be a dead cert to grow earnings as the UK’s population rapidly expands. In theory, more mouths to feed should translate to higher grocery sales, not to mention greater demand for the company’s non-edible items.
The Office for National Statistics thinks Britain’s population will swell by 9.9% in the 15 years to 2036, to 73.7m.
The…
