The financial markets are witnessing an interesting trend despite the FTSE 100 reaching record highs. Investors may find opportunities in stocks with attractive price-to-earnings ratios. Here, we explore two affordable stocks that could be great additions to any investment portfolio today.
Consider Buying These 2 Affordable Stocks Today
NatWest Group (LSE: NWG)
NatWest Group stands out with a low P/E ratio of 9.1. This comes after a remarkable increase of 212% in share price over the past five years. However, the stock has recently experienced some fluctuations, including a 7.3% decline in February, contrasting with a broader index rise of 7.5% during the same month.
Despite these recent dips, NatWest reported a significant 24.4% increase in full-year profits, totaling £7.7 billion. This growth comes alongside a £750 million share buyback announced for the first half of 2026. With performance targets updated, the company appears well-positioned, despite market concerns influenced by comments from Jamie Dimon of JPMorgan Chase regarding potential risks from technological disruptions in banking.
- Current P/E: 9.1
- 12-month share price growth: 30%
- Trailing dividend yield: 5.25%
Considering the potential volatility in Middle Eastern markets, now might be an optimal time to explore NatWest as a viable investment, especially given its competitive valuation.
International Consolidated Airlines Group (LSE: IAG)
Another noteworthy option is International Consolidated Airlines Group, the parent company of British Airways. Despite a stellar performance in 2025, the stock saw a decline of 7.35% recently. Over the past year, IAG shares have surged by 25% and 170% over three years.
In its latest report, IAG announced a 13% rise in operating profit to €5 billion, while revenue increased by 3.5% to €33.2 billion. The company also lifted its dividend by 8.9% and planned a €1.5 billion share buyback. However, investors expressed concerns over potential revenue slowdowns, particularly in the cargo segment, prompting some profit-taking.
- Current P/E: 7.2
- Operating profit for 2025: €5 billion
- Revenue for 2025: €33.2 billion
Investing in IAG may appeal to those who can tolerate the inherent risks in the airline industry. Factors such as geopolitical unrest and fuel price fluctuations continue to pose challenges, yet some investors might see this as a buying opportunity.
In summary, while the FTSE 100 is flourishing, NatWest and IAG offer potentially undervalued stock options for investors with a long-term perspective. As market dynamics evolve, keeping an eye on affordable stocks could yield significant rewards.
