Investors have been piling into FTSE 100 and FTSE 250 shares in recent days as part of a wider hunt for bargain stocks. Banking giant Lloyds (LSE:LLOY) is one UK blue-chip share whose share price has attracted lots of fresh attention. Talk that British shares are greatly undervalued has been doing the rounds for years. City analysts believe sentiment towards London-based companies may have turned as investors wise up to their excellent value. Many FTSE 100 stocks trade on rock-bottom price-to-earnings (P/E) ratios and also carry huge dividend yields. But some aren’t the stock market steals that they may appear at first glance. Plenty of them pose big risks to investors, which in turn are reflected in their low valuations. Take Lloyds shares, for instance. On the face of it there’s a lot to like here. Okay, City analysts expect earnings to fall 14% year on year in 2024. But profits are tipped to rebound 17% and 16% in 2025 and 2026 respectively as the UK economy accelerates. The bank also trades on a prospective P/E ratio of just eight times for this year. What’s more, the Black Horse Bank — which has long been a solid source of passive...