Who’s afraid of a market crash? These FTSE 100 stocks look cheap to me!

Both the FTSE 100 and the FTSE 250 have shown plenty of signs of turbulence of late but I believe this could open up some great buying opportunities.

A market crash can cause panic among investors and it might be tempting to withdraw all of your holdings and cash them in.

But I would think twice before doing this as by selling your shares, you will be turning a paper loss into an actual loss.

Think about why you chose to invest in these stocks in the first place. Are the fundamentals still the same? If nothing has changed, then why not continue holding them?

And you could even buy into new-to-your portfolio companies that have become more affordable due to a share price fall. Here are a couple of shares that might be undervalued in today’s markets.

International Consolidated Airlines

International Consolidated Airlines (LSE: IAG) is perhaps the most undervalued FTSE 100 stock, I feel.

The owner of British Airways and Iberia is one of the largest airline groups in the world. Understandably, with the global economy wobbling and the coronavirus outbreak, the IAG share price has taken a hammering of late. In the past month, it has fallen by 7%.

Despite this, over three years its stock price is up 12%.

From operating its airlines, IAG understandably has a large fixed-cost-base. Therefore, issues on the horizon like Brexit, the coronavirus outbreak, industrial action, the rising fuel price and a global recession make evaluating the company a challenge.

But it’s now trading at an ultra-low price-to-earnings ratio of 5.5, and has a prospective dividend yield of 4.7%. Buying the shares might be tempting for investors considering a second income stream.

For now, it might be best to sit tight and to watch before pouncing. But do your research and if you believe in its ability to bounce back after the current crisis, this could be a strong buy.

Legal & General

Unusually for a FTSE 100 stock, Legal & General (LSE: LGEN) has offered recent investors growth potential and a chunky dividend yield.

Over the past three years, the share price has grown by 22%.

The financial giant is also offering a prospective dividend yield of 5.4%. This is much larger than the FTSE 100 average, which is closer to 4.3%.

Despite this, the stock is trading at a price-to-earnings ratio of just 10. It’s now firmly in the bargain-buy category for me.

I believe Legal & General is well-protected against the competition. It’s one of the UK’s leading pensions players and continues to dominate the market. In its half-yearly report, released in August 2019, it reported that operating profit was up 11% to £1bn.

At the time, group chief executive Nigel Wilson stated that Legal & General has “a depth of management, track record and opportunities that mean all five of our businesses should contribute to future growth.” I tend to agree with him.

To find a company on the FTSE 100 that has the potential for substantial growth, while offering a larger than average dividend, is unusual. I’d buy.

Hopefully, opportunities like these might become even more frequent in a turbulent market!