These 3 FTSE 100 shares have crashed. One is a real bargain!

From December 30, the FTSE 100 index rose a respectable 3.8%, or about 1.3% month. That’s double the long-term monthly average of less than 0.6% over the past 20 years.

But this positive return has a lot of volatility in 2023 until now. On February 16, the blue-chip index reached an all-time high of 8,047.06 points. Then it collapsed when the banking crisis rocked the financial markets.

On March 17, the index fell to 7,335.40, down more than 8.8% from its peak. It has since rebounded and is trading at 7,739.59 as I write, up 5.5% in three weeks.

The FTSE 100’s biggest stocks

Of course, some Footsie stocks are better than others. For example, 19 FTSE 100 stocks have risen by more than 10% in the past three months.

As a veteran value investor, I’m often on the hunt for cheap stocks that could go down in value. So I’m looking for the worst performance in the index over the past three months.

I found 17 Footsie stocks that have lost at least 10% of their value in three months. For the record, here are the three biggest ones at the moment:

Company	Sector	Change for three months	Change a year	Change five years
Fresno	mining	-19.0%	-3.1%	-37.1%
Anglo American	mining	-26.1%	-35.9%	+61.1%
Ocado Group	Retail/technology	-28.8%	-57.5%	-1.4%

These three losers have seen their share prices fall between 19% and 29% in just three months.

What’s more, the three stocks also lost value in one and five years, except for the mining giant. Anglo American (LSE: AAL). And this cheap stock is what attracted me.

I’m angling to buy an Anglo

Anglo American is the world’s largest producer of platinum. It also mines copper, diamonds, iron ore, nickel, and metallurgical coal (for making steel).

At the current share price of 2,595.5p, the group is worth £34.5bn, making it a big FTSE 100 player. However, shares have bombed since hitting a 52-week high of 4,292.5p on April 19 last year.

In 2023, Anglo’s share price fell to 2,437.5p on March 16. How I would love to buy this stock at a deeply discounted price. However, even after bouncing back 158p (+6.5%) from March’s rock bottom, Anglo shares still look cheap to me.

This share appears to be undervalued

At current levels, the stock is trading at 8.8 times earnings, for a yield of 11.4%. This is a significant discount to the FTSE 100 figures, 12.1 and 8.3% respectively.

Additionally, this stock offers a market-beating dividend yield of 6.3% annually, compared to 4% for the Footsie. This cash payment is guaranteed 1.8 times by the back (history) of earnings, which offers some margin of safety.

He said, experience has taught me that miners’ earnings can be very cyclical, driven by boom-bust cycles in commodity prices. And in tough times, even the mega miners pay dividends. Indeed, Anglo reduced its cash payments in 2015, 2016, and 2020 – and could do so again.

However, I would like to buy these FTSE 100 shares for my family portfolio – if I get the money, that is!