Various FTSE 100 shares have loved a affluent 2024 to this point. Nevertheless, there are a couple of constituents which have lagged the index.

12 months up to now, the FTSE 100 has climbed 6.9%. However Centrica (LSE: CNA) and Burberry Group (LSE: BRBY) are down 8.4% and 45.4%, respectively. May this be as low-cost because it will get for the 2? I reckon they’re price buyers taking a better look.

Luxurious powerhouse

It’s robust to know the place to even begin with Burberry. The inventory’s dire efficiency this yr is a continuation of its underwhelming exhibiting in latest occasions.

It’s down 66.5% over the past 12 months and 66.9% over the past 5 years. For a enterprise related to top quality, its share price efficiency has been removed from that previously couple of years.

However I’m not giving up hope. And Burberry is a shopping for alternative that’s piquing my curiosity. The inventory is the most cost effective it has been since 2010. That’s on account of it issuing a number of revenue warnings in latest occasions.

The newest of those got here with its first-quarter outcomes, the place retailer gross sales fell 21%, fuelled by ongoing struggles in China.

These struggles will proceed within the months to return. Consequently, it expects to put up an working loss in its first half.

However as a long-term investor, is that this an opportunity for me to capitalise on a uncommon alternative? Rate of interest cuts over the subsequent couple of years will enhance spending. And whereas the Chinese language financial system has stuttered, I’m nonetheless bullish on the huge alternatives that exist within the area as wealth continues to develop. The long-lasting British model is coveted in Asia.

With a price-to-earnings (P/E) ratio of 10.1, significantly decrease than its historic common of twenty-two.6, in addition to a price-to-sales ratio of 0.9, I feel Burberry shares may very well be low-cost sufficient to think about significantly.

Vitality big

Shares in power big Centrica additionally look filth low-cost. Down 6.6% yr up to now, they’ve a trailing P/E of simply 6.3 and a ahead P/E of seven.5. The FTSE 100 common is round 12.

The agency has excelled prior to now few years, aided by hovering power costs. Nevertheless, its half-year outcomes launched on the tail finish of July have been a actuality test. Adjusted working revenue fell to simply over £1bn for the interval, down from over £2bn final yr.

However this was largely anticipated. And extra broadly, CEO Chris O’Shea mentioned that the enterprise is assembly its expectations. It’s on monitor to ship on its medium-term revenue goal two years forward of schedule.

Its meandering income spotlight that the inventory is cyclical. When power costs rise, so does the Centrica share price. After all, which means the other additionally tends to occur. To go together with that, the enterprise faces different challenges, such because the power transition.

However Centrica has a robust stability sheet to assist navigate this, with £3.2bn in money on its books. Consequently, it elevated its interim dividend to 1.5p and set in movement a £200m share buyback extension. That now means the inventory yields a wholesome 3.2%.