3 beaten FTSE 100 stocks to buy now

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of FTSE 100 It performed remarkably well last year, growing nearly 5% over 12 months.

However, not all companies in the FTSE benefit from this strong support. Today I want to look at three unloved companies that I think could be bargain buys at current levels.

#1: DS Smith promises a 6% yield.

Shares in the packaging group DS Smith ( LSE:SMSDS ) has fallen 40% in the past year as investors priced in the risk of higher costs and a slowdown in demand.

However, CEO Miles Roberts recently said that trading since May has been in line with broker forecasts, despite rising commodity prices and rising gas prices.

According to Roberts, the company was able to pass on many of the increases by increasing its packaging costs. Insulation arrangements have helped to limit the impact of high energy costs.

Roberts said he remains confident in his outlook for this year and is looking forward to it “Significant improvement in performance”..

Brokerage forecasts currently value DS Smith shares at eight times forecast earnings, on a 6% dividend yield. Although there is a risk of declining demand, I think this could be a good time to buy.

#2: Berkeley should be the long-term winner.

My next choice is a shopping mall builder. Berkeley team (LC: BKG) This business has an impressive track record of successfully timing market cycles, so I pay close attention to its trading reports.

Berkeley said in its latest update that sales are running ahead of the same period last year. Strong demand for the company’s new homes – which sold for an average of £600k last year – has enabled the company to raise its selling price to cover higher costs.

Berkeley’s pre-tax profits are expected to reach £600m by 2022/23. This should continue to support the company’s policy of returning £282m to shareholders each year through share buybacks and dividends. This equates to a 7% return on the current share price.

The big risk here is that the UK housing market may experience a more severe downturn than expected. If housing transactions slow, Berkeley’s profits could decline.

Personally, I am comfortable with this threat. I think this FTSE 100 share is well-valued at current levels.

#3: ABF family names sound okay to me.

My final choice is a family-owned food and fashion group. Associated British dishes (Lesse: ABF)

This unusual business owns the Primark fast fashion chain as well as a wide range of food businesses. Popular ABF grocery brands include Twins, silver spoon, And Blue Dragon.

This year, food sales are performing well and profits are exceeding expectations.

However, despite the recovery in sales, profits from Primark are expected to remain low. High energy costs and a strong dollar have led to an increase in costs. ABF chose to accept lower profit margins to protect its market share rather than increase prices.

The news sent ABF’s share price to a 10-year low. However, my feeling is that this is probably a buying opportunity.

ABF has a lot of cash and can make short-term profits. With the stock trading at just 10 times forecast earnings, I view this FTSE 100 share as a long-term buy.

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