While the FTSE 100 has had a decent year, a lot of individual stocks within the index haven’t. Plenty of shares have fallen more than 10% while some have declined by more than 20%.
Here, I’m going to highlight some of the Footsie’s worst performers in 2024. Is there potential for a rebound in 2025?
JD Sports Fashion
JD Sports Fashion (LSE: JD.) shares have had a volatile year. The year started badly with a profit warning that sent the share price down sharply. We then saw the share price start to recover as trading improved. But then the shares crashed again after another profit warning.
As we head towards 2025, there remains a fair bit of uncertainty here. Consumer spending patterns are unpredictable right now. Meanwhile, the company is likely to be looking at higher costs after the recent UK budget.
However, the shares do look very cheap at present. Currently, the price-to-earnings (P/E) ratio is just 6.5. At that multiple, I see the potential for an explosive rebound if trading improves.
I should point out that I’ve taken a small position here recently as I like the long-term growth story associated with the casualisation of fashion. Currently, I’m under water. Yet having walked into several JD Sports stores recently and seen plenty of consumer activity, I’m happy to hold.
Schroders
Next, we have investment manager Schroders (LSE: SDR). This stock has basically been in a solid downtrend all year.
Now, at current levels, it does look cheap. At present, the stock is trading on a P/E ratio of 10 and offering a dividend yield of nearly 7%.
I’m not so optimistic about its prospects for 2025 though, if I’m honest. The reason why is that today, index funds are far more popular than active funds. So, active managers like Schroders are going to be facing really challenging conditions in the years ahead.
I’m also concerned by the share price action this year. If this stock couldn’t do well in a raging global bull market, when is it going to do well?
Of course, there’s a chance that the stock could bounce in 2025. I won’t be investing in it though as there’s too much uncertainty.
Prudential
Finally, we have Asia and Africa-focused insurer Prudential (LSE: PRU). It has been a dog for almost two years now due to weak economic conditions in China.
Looking ahead to 2025, share price performance is going to depend on China. If we get some good news about the world’s second largest economy, I think this stock could rip. However, if economic conditions deteriorate further, the stock may continue to decline. Note that trade wars with the US are a risk here.
Now, I own this stock myself. And I’m down heavily (it’s one of the worst performers in my portfolio). But with the stock trading on a low P/E ratio of 7.8, I do believe there’s potential for a recovery. It’s just hard to know if we’ll see this in 2025.
The post These FTSE 100 stocks tanked in 2024. Can they rebound in 2025? appeared first on The Motley Fool UK.
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Edward Sheldon has positions in JD Sports Fashion and Prudential Plc. The Motley Fool UK has recommended Prudential Plc and Schroders Plc. 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.
