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Though the FTSE 100‘s risen by 16% since December 2024, it hasn’t been an incredible 12 months for 3 members of its index. Over the identical interval, WPP (LSE:WPP), Bunzl (LSE:BNZL), and Diageo (LSE:DGE) have seen their share costs fall 62%, 39%, and 35% respectively.
A £10,000 equal funding in all three a 12 months in the past, would now be value simply £5,500. However may every of them be a shopping for alternative? Let’s take a more in-depth look.
1. WPP
Promoting and advertising and marketing company WPP seems to be affected by the influence of synthetic intelligence (AI). Though it’s investing closely within the expertise to assist enhance its personal product supply, AI makes it more and more doable for corporations to do extra inventive work themselves. Why pay a 3rd occasion for one thing you are able to do your self for much less?
Some league tables have the group as the best yielding on the FTSE 100 in the meanwhile (15 December). However the group’s minimize its interim payout by 50% and has warned that it intends to take a “disciplined method to capital allocation”. This feels like a powerful trace to me that earnings traders shall be disenchanted once more when particulars of its ultimate payout are revealed early in 2026.
Though the group has a lot going for it, together with a powerful international presence and a formidable blue-chip consumer checklist, with a lot uncertainty surrounding the trade the inventory’s too dangerous for me.
2. Bunzl
Bunzl’s share worth fell off a cliff on 16 April (down 25%) after it issued a revenue warning and introduced a pause in its share buyback programme. Nonetheless, since then, the worldwide distribution group’s shares have been comparatively secure.
The corporate’s been affected by a “difficult financial backdrop”, notably in North America. However now there’s just a little extra certainty surrounding tariffs, the group was extra optimistic in its most up-to-date buying and selling replace. It reported “operational enhancements” and stated it sees “important alternatives” for “continued acquisition development”.
Though additional tariff bulletins can’t be dominated out and the worldwide economic system continues to face some headwinds, it seems to be to me as if the worst might be behind the group. And its dividend’s just about in step with the FTSE 100 common.
On this foundation, I believe Bunzl seems to be like one to contemplate.
3. Diageo
One other inventory I believe is value contemplating is worldwide drinks group Diageo. Gross sales have been falling as youthful shoppers seem like consuming higher, no more. In different phrases, they’re going upmarket.
In opposition to this backdrop, all eyes shall be on the group’s new boss, Sir Dave Lewis, who takes up his place on 1 January. Throughout his time at Unilever and Tesco, ‘Drastic Dave’ established a repute for reducing prices. In his new function, he’s going to should deal with the highest line too. And I’m certain he shall be in search of to deal with the group’s debt, which can also be going within the improper route.
However with over 200 manufacturers in its portfolio, together with 13 with annual gross sales of $1bn or extra, I wouldn’t be writing off the group simply but. And Diaego’s success with Guinness reveals {that a} model that’s been round since 1759 can proceed to be related and prosper.
One benefit of its falling share worth is that the inventory’s now yielding an above-average 4.6%.
