For at least a decade, the FTSE 100 has fallen behind its global peers. Over the past five years, the Footsie is up 7%, while the US S&P 500 has soared by 77.3%. Over one year, the UK index is up 2.2%, while the US index has leapt by 25.5%.
Of course, some FTSE 100 shares have done far worse than others in 2023/24. For example, there are the five stocks listed below, which I’ve identified as the index’s ‘dirtiest dogs’ over 12 months.
Five Footsie flops
These are the FTSE 100’s biggest fallers over the past year:
Company
Business
Share price
Market value
One-year change*
Five-year change*
Reckitt Benckiser Group
Consumer goods
4,301p
£30bn
-30.6%
-27.2%
Entain
Gambling & betting
814p
£5.2bn
-37.2%
+29.4%
Prudential
Insurance & investments
713.8p
£19.6bn
-37.4%
-49.8%
Burberry Group
Fashion/retail
1,206.5p
£4.3bn
-51.5%
-38.0%
St James’s Place
Financial advice
432.6p
£2.4bn
-63.9%
-60.4%
*Excluding dividends
There appears to be little in common to link these five flagging stocks. In terms of market value, they range from modest (under £2.5bn) to huge (£30bn). Likewise, their main markets are very different, though two companies do operate in the financial sector.
What’s clear from my table is that all five firms have severely disappointed shareholders in 2023/24. Share-price declines at the five range from over three-tenths to almost two-thirds.
What’s gone wrong at these businesses? Shares in both Reckitt Benckiser Group and Burberry Group plunged after they revealed falling sales in key markets and countries. That’s not a good look for consumer-facing firms.
Entain has a similar problem, with revenues taking a tumble after losing market share in the UK and Germany. St James’s Place is under investigation by the UK financial regulator for overcharging its clients, which is not a great place to be.
If I had been a shareholder in any of these groups, I’d be pretty cheesed off. Fortunately, I’m not, but I know well the pain of making investment howlers. Indeed, in almost four decades of investing, my three worst trades have lost me close to £1m. Ouch.
Another Footsie faller
Though I’m a value investor and bargain hunter, these smashed-up shares don’t grab my attention. Instead, I’m keen to increase my family portfolio’s holding in a different consumer-goods giant: Diageo (LSE: DGE).
Like Reckitt and Burberry, Diageo’s shares took a knock in 2023/24. As I write, this stock stands at 2,824.33p, valuing this alcoholic-drinks Goliath at a hefty £62.8bn. This makes it #8 in the FTSE 100 by size.
Over the past year, Diageo shares have tumbled by 22.8%, largely due to a sales setback in Latin America and the Caribbean. Young adults are drinking less alcohol than previous generations, perhaps due to the legalisation of cannabis in several nations and US states. Over five years, the stock has dropped by 9.4%.
My wife and I bought Diageo shares for 2,806.6p in December 2023, well below their 52-week high of 3,779.5p on 25 April 2023, almost a year ago. I have high hopes for a comeback for this stock, which pays me a dividend yield of 2.9% a year while I wait.
Of course, Diageo’s sales could slump further, hitting revenues, profits, and cash flows. And the cost-of-living crisis is crimping consumer spending. Even so, we are in Diageo for the long run!
The post Collapsing by up to 64% in a year, here are the FTSE 100’s dogs! appeared first on The Motley Fool UK.
Passive income stocks: our picks
Do you like the idea of dividend income?
The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?
If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…
Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.
What’s more, today we’re giving away one of these stock picks, absolutely free!
Get your free passive income stock pick
More reading
Best FTSE buy for April: Diageo or Unilever?
How I’d build a second income for £8 a day
2 superb FTSE 100 shares I’d buy before the next bull market!
2 beginner stocks to consider buying in April
£10,000 in savings? This dividend growth stock could return £1,000 a year in passive income
Cliff D’Arcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Burberry Group, Diageo, Prudential, and Reckitt Benckiser Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
