Overall, the FTSE 100 enjoyed a good year. This was largely due to the Labour Party’s landslide win in the General Election and Bank of England beginning to lower interest rates.
Blue-chip UK index up by 5.36% in the past year after closing at an all-time record high of 8,445.80 point on May.
The FTSE 100 is well behind S&P 500’s 27% gain.
Many stocks in the FTSE 100 saw their share prices drop by over 10% and even as high as 20%.
This article will take a look at the worst performing FTSE 100 companies in 2024, and how they might recover for 2025.
JD Sports Fashion
JD Sports Fashion has had an eventful year, marked by numerous profit warnings which have driven the stock price of the company down by over 41% so far.
Uncertainty looms as 2025 draws near due to the unpredictable nature of consumer spending, and the rising cost resulting from UK budget.
With a P/E ratio of only 6.5 and positive trading conditions the stock could experience a significant rebound.
“At the moment, I am under water.” “I’m glad to be holding,” Edward Sheldon CFA of Motley Fool said, having recently walked through several JD Sports shops and observed a lot of activity.
Schroders
The stock of investment manager Schroders, (LSE:SDR), declined continuously throughout the year as the challenges faced by active funds management in general dragged down the price.
The share price of the company was lower than 27% in total since December 27.
The stock is currently priced at a reasonable level, as it has a P/E of 10, and yields a close to 7 percent dividend.
The rise in index funds is continuing to put pressure on active managers, such as Schroders. This creates an unreliable outlook for 2025.
Sheldon said, “Given the trend of this stock and its poor performance in a bull market around the world, I am skeptical that it will rebound next year. Therefore, I won’t add it to my investment portfolio.”
Prudential
Prudential, an insurer with a focus on Asia and Africa (LSE PRU), has been struggling for almost two years. This is mainly due to the weak economic conditions that exist in China.
On December 27, the share price of its shares was lower than 25% year-to-date.
China’s recovery is expected to have a major impact on the stock price’s movement in 2025.
The share price could rise if positive developments occur, but a further decline or an escalating of trade tensions between the US and the EU pose serious risks.
Now, I am the owner of this stock. It’s one my worst performing stocks. The stock is trading at a P/E of 7,8 and I believe that there could be a potential recovery. “It’s hard to say if this will happen in 2025.” Sheldon concludes.
The post Below are the FTSE 100’s worst performers in 2024: Will they rebound in 2025 This post appeared first on ICD
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