The FTSE 100 has had a powerful 12 months. Nonetheless, I nonetheless see loads of worth in UK shares proper now. 

Whereas this 12 months has produced spells of volatility, that’s inevitable within the inventory market. Wanting on the greater image, I feel UK equities may very well be primed to soar within the years forward. 

The FTSE 100 at present has a mean price-to-earnings (P/E) ratio of 11. That’s decrease than its historic common of between 14 and 15. 

I particularly just like the look of those two. If I had the money, I’d add them to my portfolio at the moment. 

JD Sports activities Vogue

First is JD Sports activities Vogue (LSE: JD.). Its shares have disenchanted this 12 months. They’re down 3.7%. That mentioned, the inventory is up 16.2% within the final six months and 14.3% within the final month. After a poor begin to the 12 months, it’s gaining good momentum. 

Even regardless of that rise, I nonetheless suppose the inventory appears like good worth for cash. It trades on a P/E ratio of 14.8. That’s significantly lower than it’s historic common of 23. 

Its share price had a poor begin to the 12 months because of powerful buying and selling situations. Gross sales had skilled a significant downturn and as such the agency issued a revenue warning. Spooked traders rushed to dump their shares. Within the months to return, this can proceed to be a risk to the agency as customers watch their spending habits and buying and selling situations stay tough. 

Nevertheless, wanting previous that, I feel JD Sports activities Vogue might thrive over the long term. To start out, rate of interest cuts ought to result in a choose up in spending. What’s extra, the corporate has been making strong progress with its plans for enlargement. It’s aiming to open 200 shops this 12 months and has additionally begun to focus extra on worldwide enlargement. As a part of this, it lately acquired US firm Hibbett earlier this 12 months, which has over 1,100 shops throughout the pond. 

NatWest

Not like JD Sports activities Vogue, NatWest (LSE: NWG) has had a superb 12 months. The inventory has been on a tear. 12 months so far, it’s up 55.9%. 

That blows the FTSE 100’s return out of the water. Nevertheless, even after rising, I feel its shares nonetheless look low-cost. 

They now commerce on a P/E of seven.1. In my eyes, for a enterprise of NatWest’s high quality, that appears dust low-cost. Its ahead P/E is 7.8. 

I additionally like NatWest for the passive earnings on supply. Its dividend yield sits at 5%, lined over two occasions by earnings. Final 12 months, the financial institution upped its payout by 26% to 17p per share. 

I’ve additionally been impressed by its efficiency in latest occasions. Revenue for the second quarter climbed by over 25% to £1.3bn. In its newest replace, NatWest additionally introduced it had acquired a portfolio of prime UK residential mortgages from Metro Financial institution for £2.5bn. 

The biggest risk I see to the agency is falling rates of interest. Whereas they’ll increase investor sentiment, they’ll shrink NatWest’s margins, which can dent its earnings. 

However with momentum on its aspect, in addition to its low valuation, I just like the look of NatWest.