3 FTSE 100 shares at cheap prices I’d consider in February

I’m looking for it now FTSE 100 stock trading at discounted prices. The British blue chip benchmark looks poised to break the 8,000 point barrier for the first time. Even so, I think there are some value investment opportunities in the Footsie corporate line-up.

Here are three stocks that look cheap to me today.

British American Tobacco

The first FTSE 100 stock on my list is British American Tobacco (LSE: BATOS). The stock price is down 6% in the past year, and I think now might be a good time to buy more shares in the tobacco giant.

A modest one-year earnings result could make this stock a surprise. However, digging into the details, I think there are reasons to be bullish.

Consumers of non-combustible products increased by 4.2m to 22.5m. This is important as the tobacco business seeks to reinvent itself to overcome regulatory challenges.

I am also encouraged by the 6% growth in dividends. The company is a stalwart in the passive income portfolio as it returns 7.27%, which is higher than the Footsie average.

Admittedly, the unexpected new share buyback program and exit from the Russian market are headwinds impacting growth in British American Tobacco’s share price.

However, despite the risks, the stock looks oversold to me as the company remains on target to reach £5bn in revenue by 2025.

Move right

Move right (LSE: RMV) is the second FTSE 100 stock I would invest in if I had the spare cash. I believe online property portals have a lot of upside potential.

An anticipated fall in UK house prices could be bad news for Rightmove’s share price. However, I’m not sure. Rental yields remain strong, and the company makes money from letting agents as well as property sales.

Low debt levels, 84% market share, and 101% operating cash conversion are all strong reasons to invest. There is also a dividend yield of 1.4%.

Despite the near-term headwinds, I am optimistic about the long-term prospects of the housing market. Basic supply issues mean that the decline in activity should be temporary in my view.

The price-to-earnings ratio (P/E) today is 26 below the pre-pandemic level of 30. This represents a value opportunity.

Rio Tinto

Rio Tinto (LSE:RIO) completes the trio. With some spare cash, I will buy shares in the FTSE 100 mining company for a huge 8.89% dividend yield, but I think there is a good chance that the share price can go up a lot.

The reopening of China’s economy and anticipated stimulus measures to support the ailing real estate sector are key for the company.

Rio Tinto is heavily dependent on iron ore prices, which are supported by China’s infrastructure spending. The country accounts for about 66% of seaborne iron ore demand.

Copper is another major contributor to Rio Tinto’s revenue. Long-term demand should be strong because the metal has unique conductive properties that are very useful for renewable energy systems and electric vehicles.

In addition, political unrest in Peru threatens copper supplies in the world’s second largest producer. This can raise the price higher.

A global economic slowdown could hurt Rio Tinto’s share price, given the cyclical nature of the industry. This is the risk I’m willing to take for a market-leading dividend.