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It may not sound like it right now, but today may prove to be a good time to go buy cheap stocks. I FTSE 100 it ended February at 10,910, within a touching range of the 11,000 mark for the first time. Today (9 March), it is close to 10,150. That’s a slide of nearly 7%, and many stocks fell quickly.
Markets are being shaken by the war with Iran and rising oil prices. It’s a big concern for the level of philanthropy and investors, but the stock market selloff may be a buying opportunity for the brave. I’m looking at two FTSE 100 stocks that look good value today, while yielding more than 5%. Should investors consider themselves?
Admiral shares are stable
General insurance The Admiral’s team (LSE: ADM) tempts you with an average earnings ratio of 12.4 and a trailing gross yield of 5.5%. And it’s one of the few FTSE 100 stocks that will be in a good place today. I suspect it is still benefiting from last Thursday’s strong results for the rest of the year. The board raised the alarm on “unique” performance from its UK automotive division as pre-tax group profit rose 16% to a record £957.9m. Customer numbers increased by 7%, as the business continued to grow despite the competition in the insurance market.
Dividends per share rose 7% to 205p and the company also rewarded loyal investors with a special payment of 17.2p. Admiral shares are now expected to yield 6.15%.
Long-term share price performance has been difficult however. The stock is at its lowest in the past 12 months and is up about 4% in five years. There are risks. If oil prices continue to rise, the pressure on the domestic currency may intensify. Motorists may shop harder for cheaper insurance or cut back on driving to save on fuel. Some households may sell used cars if the cost of living rises significantly.
However the market reaction suggests that investors still see Admiral as a defensive business with significant price potential.
NatWest Group’s lowest share price
Major FTSE 100 banks have taken action recently, including NatWest Group (LSE: NWG). Its shares have fallen more than 12% in the past month, pushing its price-to-earnings ratio below 8.5. That looks shocking as a few weeks ago it was starting to look expensive with a P/E of 15.
That number was undercut by a strong set of full-year results on 13 February, with earnings per share jumping 27% to 60.8p. Profits rose 24.4% to £7.71bn in 2025 and the group announced a £750m dividend payout covering the first half of 2026.
Banks are vulnerable to broader economic shocks. Rising costs of living can affect both households and businesses, increasing the risk of loan defaults. There are also concerns about stress on the private debt markets, although some banks may be more exposed.
However, on the other hand, oil-driven inflation may support profits. If interest rates rise, or cuts are delayed, that can help banks maintain interest margins, the difference between what they pay to savers and what they charge borrowers.
Both stocks are well considered from a long-term perspective. If the problem deepens, their prices may drop further. I can see a lot more selling as the FTSE 100 sinks.
