With P/E ratios of 7.2 and 9, I think these FTSE 100 stocks are bargains!

These FTSE 100 shares are sold. That is why I think they are worth considering by experienced investors.

Rio Tinto

2024 has been a tough year for mining companies. Aside from supply-side concerns, commodity prices have fallen due to continued economic weakness in China.

Things have been tough for major iron ore producers, too. A separate miner Rio Tinto (LSE:RIO), for example, recorded disappointing ore export forecasts again in the third quarter. At 84.5m tonnes, this misses estimates by around 800,000 tonnes.

This weakness reflects the problems in China’s property market in particular. It means that the value of Rio’s shares has fallen by 15% since the beginning of 2024.

As a result of this weakness, the major miner today trades at a forward price-to-earnings (P/E) ratio of just nine times. I think this represents an attractive dip buying opportunity worth considering.

I believe that the long-term vision for Rio remains very bright. That is why I hold its shares in my portfolio.

First, the demand for industrial metals such as iron ore, copper, and aluminum is said to increase in the coming decades. This is due to a number of factors including the growth of the green economy, the continued urbanization of emerging markets, and the rapid digitization of the world.

I also like large operators like these, as their greater financial strength gives them more growth opportunities. Rio itself put $6.7bn last month to buy Arcadium Lithium, whose product is an important element in the production of electric cars.

I don’t think these events are reflected in the cheapness of Rio Tinto shares.

One last thing to consider: Footsie’s company’s P/E ratio of 9 times is significantly lower than the corresponding readings of other diversified mining giants.

HSBC Holdings share price

HSBC‘s (LSE:HSBA) is also vulnerable to China’s economic slowdown. But it doesn’t end there. The bank is also facing increasing pressure on interest income as global interest rates begin to fall.

Yet despite the problems in Asia’s biggest economy, the bank’s share price has moved in the opposite direction for Rio Tinto. It is currently up 14% year to date.

While not out of the woods, HSBC’s trading has been encouragingly beating most expectations so far, driving investor interest. Revenue and pre-tax profit were up 5% and 10% respectively in the third quarter, the latest financial report said.

Despite recent price gains, HSBC shares still look cheap to me. Their forward P/E ratio of 7.2 times is about half that of the FTSE 100 (14.1 times).

The emerging markets bank is also cheaper than most of its blue-chip peers based on forecast earnings.

I would sooner buy HSBC shares than UK focused shares Lloyds again NatWest. And that’s not just because of its high price.

Its focus on fast-growing Asia provides an opportunity for earnings growth due to the region’s growing economy and population growth. Like Rio Tinto, I think it’s a top transaction to consider.