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Last week was another blockbuster for the FTSE 100 index of leading shares. The blue-chip benchmark hit a new all-time high. It has increased 13% over the past year.
Despite the strong performance of the index overall, some of the companies in it continue to look like potential bargains to me.
Associated British Foods
As an example, consider Associated British Foods (LSE: ABF). I added it to my portfolio recently.
I reckon the current valuation looks cheap. After a 16% price decline over the past year, the FTSE 100 member now trades on a price-to-earnings ratio of less than 10.
I do see risks. Sugar pricing this year is expected to be weak, eating into profits. The company’s Primark clothing business is operating in an environment where it is squeezed on one front by cheap rivals like Shein and on the other by an increasingly complex (and therefore costly) global supply…
