Is now a good time to buy FTSE 100 shares?

At FTSE 100 has been in a very good run, put in more than 1,200 points since the beginning of October to break through the 8,000 barrier for the first time.

It has risen 6.91% over the past 12 months, and is up 5.17% so far this year alone. That’s below the benchmark set by US tech stocks during the golden period, but it’s surprising given the number of strong headwinds.

Blue-chips are rising

London’s top blue-chip stock index has rejected the war in Ukraine, the energy shock, the Chinese lockdown and inflation and interest rates. It has exceeded most global markets, for example, the US S&P 500 still down more than 10% over a year, with Nasdaq down 17.57%.

I have been enjoying the recovery of the FTSE 100. In October, I decided that it was too cheap to ignore and stocked undervalued stocks that started to rise intelligently.

At that point, buying FTSE 100 shares made no sense. It is packed full of top stocks trading at less than 10 times earnings and yielding anything from 5% to 9%. But is it still a good time to buy FTSE 100 shares today?

While many stocks are more expensive than a year ago, some have barely moved. Barclays Shares are up just 0.69% in that time. The insurer Legal & General Group has ticked up 0.85% in the same period. House builder Barratt’s Development it is a collision of 20.47%. Vodafone changed to +22.39%.

That’s the beauty of buying individual stocks instead of an index tracker. They act differently, and offer investors like me different things at different times.

When the stock price goes up, the yield automatically goes down. This is because it is calculated by dividing the dividend by the share price. But I can still see some incredible results in the FTSE 100.

The highest value of the stock is 00000

From the list above, Barclays is predicted to return 5.7%, covered 3.7 times by earnings. L&G’s forward yield is 7.91%, with a cap of 1.7 times. Barratt’s forward yield is 7.56%, double covered. Vodafone returns 9.1%, but with a wafer-thin cap of only 1.1 times.

These shares are also very cheap, with Barclays trading at 5.7 times, L&G at 7.52, Barratt at 5.4, and Vodafone at 10.2.

Just because stocks are cheap, now is not a good time to buy them. I can walk into a value trap, and have to check the company’s account carefully. Here we will be able to see how sustainable its profits are, whether it generates enough cash to finance dividends, and what threats it may face from new market participants.

I think now might be a good time to buy Barclays, L&G, or Taylor Wimpey, but I’m wary of Vodafone. While some fellow Fool writers admire this Dividend Aristocrat, I also like the prospect of capital gains. Vodafone’s share price has been on a two-decade high.

I don’t know where the index will go from here (although I suspect it may tread water for a bit). I won’t buy a tracker today, but I will buy individual FTSE 100 shares.

Time to add Barclays, L&G and Taylor Wimpey to the wish list.