2 Cheap FTSE 100 Stocks to Buy in 2026: WPP and easyJet (2026)

Are you tired of throwing money at overpriced stocks that leave you with regrets? Imagine discovering hidden gems in the FTSE 100 that could turn your investment strategy around just as we step into 2026. But here's where it gets controversial—picking cheap stocks isn't always a slam dunk, and some might argue it's just gambling on companies in crisis. Stick with me to explore two undervalued options that might surprise you, complete with the risks and reasons they could rebound. And this is the part most people miss: these picks aren't just about low prices; they're about spotting turnaround potential in a market obsessed with hype.

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As fellow investors, we all share that gut instinct to steer clear of companies whose stocks are inflated beyond reason and instead hunt for affordable shares in the FTSE 100. In principle, over the long haul, shares that are priced below their true worth should climb back up, potentially rewarding early buyers with solid gains. By leaning on a widely used tool called the price-to-earnings (P/E) ratio—a straightforward way to value a company by comparing its current share price to its most recent earnings per share—I've identified two standout bargains. To put this in simple terms, a lower P/E often signals a bargain, but remember, it's not the only factor; think of it as one clue in a larger puzzle. I typically use 10 as my reference point for what's reasonably cheap.

One of these is what some call a 'fallen angel' in the investment world: WPP (LSE:WPP (https://www.fool.co.uk/tickers/lse-wpp/)). This pick stirs debate, especially since its shares have plummeted 60% in the past year. Major culprits include repeated downward revisions to its sales and earnings forecasts in 2025, largely due to clients slashing marketing spends and cutting back on non-essential advertising. And here's the controversial twist—some analysts say this downturn exposes flaws in the ad industry itself, questioning if it's adapting fast enough to digital shifts. This ongoing uncertainty is a red flag for the future.

That said, I believe the stock has dropped to a level that makes it incredibly attractive, sporting a P/E of 6.50. There are compelling arguments for a potential recovery in 2026. For starters, the company is pouring resources into AI-powered tools and data analytics platforms, which could be a game-changer if clients start favoring agencies with cutting-edge insights. Plus, a comprehensive overhaul is underway, spearheaded by new CEO Cindy Rose who stepped in last September. In the coming months, we should see tangible signs of improvement, like better financial metrics or client wins—imagine how the stock might react if they land a big AI contract, similar to how tech giants like Google have boosted their ad businesses.

Shifting gears to another contender: easyJet (LSE:EZJ (https://www.fool.co.uk/tickers/lse-ezj/)), whose shares have dipped just 11% over the last year, with a P/E of 7.67. Despite delivering a robust annual report (https://www.fool.co.uk/investing-basics/understanding-company-accounts/) in November, the year brought challenges. For instance, revenue per available seat kilometer (RASK)—a measure of how much money the airline earns per seat flown—slipped 3% compared to the previous year. Analysts at JP Morgan recently highlighted intense fare competition in the short-haul market, pressuring prices. But here's where it gets interesting: is the market overreacting to these hurdles, or is easyJet truly at risk in a crowded sky?

In my view, pessimism about easyJet is overstated. Their earnings before interest and taxes (EBIT) for the 2025 fiscal year hit £703m, a healthy 18% jump from 2024. Diversification is also paying off, with profits split fairly between core airline operations and their holiday packages division. This balance should strengthen resilience moving forward, much like how airlines such as Ryanair have thrived by branching into related services.

Moreover, lingering pandemic fears might still rattle some investors—easyJet endured a brutal period back then, a classic black swan event (an unpredictable disaster). Yet, the airline has roared back stronger, arguably positioning itself better pre-COVID. As global confidence grows that another widespread outbreak isn't imminent, easyJet's share price could take flight again. And this is the part most people miss: viewing the pandemic as a distant memory rather than a looming threat could unlock significant upside.

Overall, I see solid value in both of these stocks at present and recommend them as worthy considerations for your portfolio. But what do you think—should we embrace 'fallen angels' like WPP in volatile sectors, or are they too risky? Do past pandemics justify discounting easyJet's future? Share your thoughts in the comments below; I'd love to hear if you agree or disagree!

(https://www.fool.co.uk/2026/01/01/prediction-in-2026-the-red-hot-rolls-royce-share-price-could-turn-10000-into/)

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