3 Footsie giants you should consider buying before it's too late

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GlaxoSmithKline scientist

The FTSE 100's gaggle of homebuilders have continued to defy predictions of a slump in the housing market following last summer's Brexit vote. Despite this fact, the sector continues to trade at a discount to its pre-referendum levels, and Barratt Developments(LSE: BDEV) for one is dealing 13% cheaper that it did on June 23.

I reckon investors continue to underestimate the builder's strong earnings outlook at current prices, and expect the company's next trading update (scheduled for Wednesday, February 22) to prompt a fresh share price spurt.

Sector rivals Persimmon and Taylor Wimpey have both been busy releasing chirpy market updates in recent sessions. And this comes as no surprise as favourable lending conditions continue to propel demand -- indeed, the Bank of England advised this month that mortgage approvals hit an eight-month high of 67,505 in November

And Barratt Developments' ultra-low valuations certainly leave room for a renewed move higher. For the period to June 2017 the firm deals on a P/E ratio of just 9.4 times, while the company also carries a market-mashing dividend yield of 6.9%.

Plane brilliance

The outlook for easyJet(LSE: EZJ) is a little more complicated, in my opinion, as the Brexit issue crimps consumer confidence and heaps inflationary pressures on holiday budgets. Meanwhile, the orange-and-white flyer also faces pressure from rising fuel costs and the impact of terrorist-related incidents in key destinations.

Having said that, I reckon there's still plenty for investors to be optimistic about. Demand for easyJet's cut-price seats continues to head through the roof -- passenger numbers shot 15.1% higher in December, to 5.6m -- and these are likely to keep rising as travellers demand more bang for their buck.

Furthermore, while easyJet has dialled back its expansion plans a touch recently, the company remains optimistic that its route expansion across the continent should deliver meaty revenues growth in the long term.

And I reckon the risks facing it are baked-in at current share prices. For the year to September 2017, the airline deals on a P/E ratio of 12.5 times, comfortably below the big-cap forward average of 15 times. Meanwhile, a dividend yield of 4.1% also outstrips the broader market.

The right medicine

Despite the City expecting earnings to flip higher again at GlaxoSmithKline(LSE: GSK), the market remains lukewarm over the medicines mammoth's growth outlook. And this is reflected in the company's pretty low valuations.

For 2017 the firm deals on a P/E rating of 14.1 times. And the business is exceptionally cheap in the dividend department -- a yield of 5.1% smashes the prospective average of 3.5% for the FTSE 100.

But I reckon investors may be missing out here. GlaxoSmithKline is concentrating on rapidly-growing therapy segments like HIV, COPD and vaccines to deliver future sales growth, and the success of recently-launched products such as Bexsero and Tivicay helped total new product sales roll 79% higher during July-September, to £1.21bn.

And GlaxoSmithKline's packed development pipeline leaves the firm in great shape to deliver the next generation of revenues drivers. I believe it could see its share price shoot higher should, as I expect, the business furnish the market with a slew of new drugs in the years ahead.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.