Down 34%, I think this FTSE 100 stock’s a top share to consider in March!

The FTSE 100 is striking new heights as demand for cheap UK stocks soars. It’s a whisker away from 11,000, and could well take out this key milestone in March. But not all blue-chip shares are keeping pace.

Take Sage Group (LSE:SGE). This FTSE-listed company plummeted in 2025, and hasn’t exactly got the current calendar year off to a flyer. But could this mark an attractive dip-buying opportunity for patient investors?

I think so, and believe it could rebound strongly in 2026. Here’s why, along with an explanation as to why it’s a top stock to consider.

Cheap as chips

Like hundreds of software stocks the world over, Sage shares have toppled amid mounting worries over artificial intelligence (AI) disruption. At 830p per share, they’re down 20% since 1 January. They’ve dropped more than a third over a year (34%).

Has the market overreacted though? We’re still at the early stages of the AI revolution, so it’s hard to make a definitive conclusion. But investors are certainly spooked, fearing businesses will switch to cheaper alternatives for their accounting, payrolls and HR functions.

But here’s the thing: after Sage’s price correction, it’s possible that this danger’s more than reflected in its rock-bottom valuation. Today, the tech giant trades on a forward price-to-earnings (P/E) ratio of 18.5 times. That’s some way below the long-term average of roughly 31.

Is Sage AI-resistant?

In public at least, the FTSE 100 company’s putting on a brave face. In fact, it argues that AI has strengthened its business model, not weakened it.

You might be thinking “ah, but of course the company would say that”! But early evidence suggests it might be onto something. Its organic sales growth accelerated to 10% between October and December, which the company put down to the integration of the Sage Copilot tool in its products.

Again, these are early days. But I’m optimistic Sage can thrive in the AI era for many reasons. Accounting is a complex, highly regulated process and subject to different laws across regions. This creates natural barriers.

There’s also the trust issue — will businesses want to give control to critical processes like tax compliance to a new AI tool? I’m not so sure. In this regard Sage holds a trump card, with a track record of providing reliable accounting solutions since the early 80s.

The final thing to remember is that Sage’s products aren’t that expensive. In the UK, its more advanced AI-assisted Accounting Plus package is just £59 a month, plus VAT. At these prices, I’m not sure businesses will up and leave in massive numbers, and especially considering the points we’ve discussed.

A top FTSE 100 share

So will Sage’s share price rebound in 2026? I can’t be certain, naturally. None of us can. However, I have a feeling that fears over AI disruption here may have been overblown, leading to a potential price recovery. For more risk-tolerant investors, I think it’s a top FTSE 100 stock to consider.

The post Down 34%, I think this FTSE 100 stock’s a top share to consider in March! appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Sage Group 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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