After plunging almost 10% in a week do these 2 UK shares now offer unmissable value?

Two UK shares on my watchlist suffered a punishment beating at the hands of disappointed investors last week. So is this a brilliant opportunity for far-sighted investors to consider buying these FTSE 100 stocks?

The first is business intelligence, academic publishing and events specialist Informa Group (LSE: INF), whose shares slumped 9.7% last week. 

This follows a stretch of modest performance, with the stock up just 3.7% over the past 12 months. It has climbed 30% over five years though, so isn’t exactly a basket case.

Have Informa shares been harshly treated?

Historically, Informa has traded at a premium, but the recent downturn has brought its price-to-earnings (P/E) ratio to 15.3, which is tempting.

Full-year 2024 results, published on Thursday (6 March), triggered the recent sell-off. They weren’t all bad news though.

Revenues climbed 11.4% to £3.55bn, while adjusted operating profit jumped 16.5% to £995m. Free cash flow surged 28.6% to £812.1m. What’s not to like?

In this case, it was a disappointing outlook. The board predicts underlying revenue growth will slow to just 5% in 2025. A wider concern is that if global economy struggles, as Donald Trump’s tariffs bite, the events industry could see attendance and sponsorship revenues decline.

On the plus side, a joint venture with the Dubai World Trade Centre should open up new lines of revenue in the Middle East.

The stock only yields 2.6% but the board hiked the dividend by 11.1% last week. It paid £425m share buybacks in 2024 too. The total cash return is to £675m. I think the market was a bit too tough on Informa last week.

Time to consider Bunzl shares?

Distribution group Bunzl (LSE: BNZL) has been on my watchlist for yonks. It’s the FTSE 100’s perennial dark horse and a solid long-term performer, until recently.

The Bunzl share price fell 8.7% last week, and it’s flat over 12 months. Although over five years, it’s up 60%.

That’s similar to Informa and here’s something else they have in common. Bunzl also released a poorly received set of full-year results last week, on Monday 3 March.

Adjusted operating profit rose a healthy 7.2% at constant exchange rates to £976m, but statutory operating profit edged up just 1.3% to £799m.

Revenues rose just 0.2% on a reported basis to £11.8bn. They’ve now idled for the second year in a row, as deflation squeezes prices amid tough competition.

Bunzl’s successful strategy of growth through acquisitions shines undimmed, but it needs to, amid signs of a slowdown in its core operations. The trailing yield is 2.4%. However, the board did lift the full-year dividend by a healthy 8.2%. That’s extended its track record of annual dividend growth to an impressive 32 consecutive years.

I think both Informa and Bunzl are well worth considering with a long-term view. But I think the next year or two could remain sticky, amid global uncertainty. I like both, but wouldn’t go as far as calling them unmissable buys.

The post After plunging almost 10% in a week do these 2 UK shares now offer unmissable value? appeared first on The Motley Fool UK.

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Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Bunzl Plc. 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.

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