3 FTSE 100 shares to buy before February results?

many FTSE 100 the stock has gotten ahead of the upcoming announcement. I would not encourage efforts in the short term, but thinking about the company before the results can help us focus on those that we think have long-term prospects.

Barratt

Barratt’s Development (LSE: BDEV) posted its first round of results on 8 February. And it certainly seems that optimism has returned. Barratt shares have fallen sharply over the past 12 months, but we have seen a sharp rise since October 2022.

In its January trading update, the housebuilder reported a 7% increase in completions in half. The full effect of rising mortgage interest rates is uncertain. So we can see pressure on the company’s full-year outlook.

The forward order book, at 10,511 homes, was slightly down on the 14,818 orders at the same point last year. But it still looks healthy to me. Barratt should report about £965m in net cash, after dividends and share buybacks. It looks like it should be in a strong position to weather the expected property downturn.

I expect more volatility in 2023, and possibly pressure on dividends. But I see long-term undervaluation here.

Lloyds

Next we come to the perpetually undervalued Lloyds Banking Group (LSE: LLOY). Well, I think it’s been undervalued since I bought some, anyway. One year results will be done on February 22. And again, we’ve seen a recovery in stock prices since October.

As the UK’s largest mortgage lender, Lloyds is more exposed to the property market than any other banking sector. And while higher interest rates may boost lending profits, lower mortgage sales don’t bode well.

The first nine months of the year brought up 12% in net income. But the bank recorded a £1bn impairment charge, which reduced pre-tax profits.

The prospect of impairments is something I am concerned about, as it could contribute to renewed share price weakness through a possible recession. I’m not calling Lloyds recovery yet, and I expect another volatile year. But I see long-term undervaluation again.

Rolls-Royce

Rolls-Royce Holdings (LSE: RR.) is set to deliver its full-year figures on February 23. The stock has also been on the rise since the end of 2022. However, it has fallen slightly as it approaches results day.

The aero engine manufacturer seems to be making a comeback. In the four months to the end of October, Rolls reported a return to 65% of its large engine flying hours in 2019. The Power Systems Division also received a record number of orders, and two five-year defense contracts worth $1.8bn were renewed.

The downside is the company’s financial condition. After dumping ITP Aero, Rolls paid off £2bn of debt early. But still there”around £4bn of debt drawn down.” I would like to see the year-end outlook on this.

I look forward to long-term strength and a return to growth at Rolls-Royce. I’m just not sure about the current value, which may not leave a margin of safety.