FTSE 100 to end 2021 at 7,200 points? Why I think UK shares could be too cheap to miss!

July 5, 2021 0 Comments

first_imgFTSE 100 to end 2021 at 7,200 points? Why I think UK shares could be too cheap to miss! The Covid-19 crisis has largely been a catastrophe for UK share prices in 2020. The FTSE 100 has taken an almighty walloping and, at 6,650 points as of right now, is down 12% from 1 January.Hopes are rising though, that we could be on the cusp of a new bull market. With a no-deal Brexit catastrophe averted and a coronavirus vaccine breakthrough there’s huge optimism that the FTSE 100 could roar back and give us all some good news in 2021.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The experts at UBS are certainly expecting the FTSE 100 to rocket from current levels. They reckon Britain’s blue-chip share index to trade at around 7,200 points on 31 December, 2021. This is built on expectations that average annual earnings will rocket 21% next year and rise an extra 10% in 2022.This leaves the FTSE 100 dealing on an undemanding forward price-to-earnings (P/E) ratio of 16 times. The UK share index carries an average 3.9% dividend yield too which, in my opinion, isn’t to be sniffed at.FTSE 100 = top value!UBS reckons the FTSE 100 offers terrific value for investors heading into the new year too. The bank notes that “the UK equity market has been one of the worst-performing major global markets since the Brexit referendum in June 2016,” and, as a consequence, “valuations for UK equities relative to Europe [are] close to 20-year lows.”The FTSE 100 has also greatly underperformed other major global equity markets in recent months. It’s soared today following the recent passing of fresh stimulus measures in the US and by the thin Brexit deal. But its performance in recent weeks is still pretty tame compared to that of the Dow Jones. The US index has hit repeated highs and struck new peaks overnight. Japan’s Nikkei has also touched fresh 30-year peaks in recent hours.2 cheap UK shares on my watchlistI believe the FTSE 100 offers unmissable value at current levels. It was already looking undervalued prior to 2020. And the stock market crash of late February and early March leaves plenty of top UK shares trading at prices I consider too cheap to miss.Take GlaxoSmithKline for example. The pharmaceuticals giant doesn’t just trade on a cheap P/E ratio of 12 times for 2021. It carries a monster 6% dividend yield too. Legal & General offers even better value. The life insurer trades on an earnings multiple of 10 times and carries a huge 7.3% dividend yield. The list of blue-chip bargains is huge.Investors need to be careful before taking the plunge. Some FTSE 100 shares (like Lloyds) deserve to have slumped in value in 2020 as Covid-19 has significantly damaged their earnings opportunities.Many UK shares also have high debt levels that they may struggle to service in 2021 and beyond. But experts like The Motley Fool can help you avoid these duds and make a lot of money next year and beyond. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Royston Wild | Tuesday, 29th December, 2020 | More on: ^FTSE I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997” Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline and Lloyds Banking Group. 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.center_img Image source: Getty Images Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Royston Wild Our 6 ‘Best Buys Now’ Shareslast_img read more