The FTSE 100 index is stuffed with high-quality shares to purchase, and it’s outperforming the S&P 500 this yr. Britain’s main benchmark has delivered a 6.7% return, towards 1.7% for main US shares.

Supported by low valuations, some UK heavyweights are well-placed to be standout performers over the long term. Listed here are three price contemplating this month.

Centrica

British Fuel proprietor Centrica (LSE:CNA) is a inventory that I’d describe as boring however stunning. Nonetheless, the corporate’s very low price-to-earnings (P/E) ratio round 6.3 ought to spark worth buyers’ curiosity.

At first look, Centrica’s made a poor begin to the yr. Falling commodity costs are a danger for the corporate and buyers, evidenced by a 44% drop in working revenue in FY24 to £1.55bn and a 26% income decline to £26.2bn. Additional weak point could comply with within the coming quarters.

Nonetheless, these are comparative figures, relative to 2023’s extraordinary power market. Surpassing its prior yr efficiency was all the time going to be a mighty problem for Centrica. Promisingly, the group appears to have struck whereas the iron was scorching.

The enterprise is extra resilient right now following operational enhancements and a £4bn inexperienced funding plan, half of which has already been dedicated. Moreover, the 13% dividend hike to 4.5p per share and a brand new £500m share buyback programme fortify the funding case.

At right now’s low-cost valuation, I believe there’s nice long-term potential in Centrica shares regardless of near-term challenges.

Imperial Manufacturers

Subsequent on my listing of shares to contemplate shopping for is Imperial Manufacturers (LSE:IMB). The tobacco big’s notably enticing to dividend buyers due to a formidable 6.5% yield.

Tobacco shares elevate moral issues for some buyers. Moreover, with smoking charges declining throughout almost all international locations, there’s uncertainty concerning the trade’s prospects. Imperial Manufacturers should rise to these challenges with a brand new CEO following Stefan Bomhard’s latest retirement.

That mentioned, the group’s making encouraging progress. Half-year outcomes confirmed it gained cigarette market share in three core markets — the US, Germany, and Australia. Demand for the corporate’s ‘Next Generation Products’, which embody nicotine options equivalent to vapes, can also be sturdy. Web income rose 15.4% for this division.

Dangers dealing with Imperial Manufacturers shares look tolerable in gentle of a pretty P/E a number of of 9.6. Plus, a 4.5% dividend enhance and a transition from biannual to quarterly shareholder payouts give passive revenue seekers causes to be cheerful.

Worldwide Consolidated Airways Group

One other inventory to contemplate shopping for in June is Worldwide Consolidated Airways Group (LSE:IAG). This holding firm owns main airways like British Airways, Iberia, Vueling, Aer Lingus, and LEVEL.

Falling oil costs present a supportive setting for the shares to ship additional progress. Gas prices are the group’s largest single expense, totalling €7.6bn in 2024. Plus, the corporate’s well-prepared for any surprising shocks. Round 65% of its gas prices are hedged for the remainder of the yr.

Competitors dangers must be borne in thoughts, notably from low-cost carriers masking short-haul routes. Rivals are snapping on the group’s heels, placing stress on profitability and efforts to retain market share.

Nonetheless, the corporate has enough confidence within the buying and selling outlook to proceed with its strategic enlargement. Orders for 53 new widebody plane are scheduled for supply between 2028 and 2033. At a P/E ratio of seven.1, I believe Worldwide Consolidated Airways’ shares look tempting right now.