The Motley Fool

These 5 FTSE 100 stocks missed the 2020-21 boom!

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

macro shot of computer monitor with FTSE 100 stock market data in trading application
Image source: Getty Images

The FTSE 100 index has has a good 12 months, adding more than 1,110 points since 5 October 2020. That’s a gain of almost a fifth (+18.7%). However, not all of the Footsie’s 101 members (one stock is dual-listed) have enjoyed this boom. Indeed, several shares have grossly under-performed the index over 12 months. Hence, I went rummaging in the FTSE 100’s bargain bin to find some cheap shares to buy.

The FTSE 100’s winners and losers

Since 5 October 2020, the world has changed significantly. Back then, we battled Covid-19 infections while hoping for vaccine news. Then, on ‘Vaccine Monday’ (7 November 2020) came news of effective vaccines against coronavirus. This lit a fire under UK shares, sending prices soaring until August 2021. However, as autumn arrived, share prices eased off. As I write, the FTSE 100 stands at 7,065.07 points, down 2.2% from its 52-week high.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Over the past 12 months, 82 of the FTSE 100’s 101 stocks have risen in value. These gains range from 264.6% to just 0.9%. The average increase across all 82 winners is almost two-fifths (+39.2%). That’s more than double the wider index’s gain of 18.7%, largely because it excludes losers. At the other end of the scale lie the FTSE 100’s biggest losers over 12 months. These 19 stocks have lost between 2.0% and 37.7% of their value, with the average loss being roughly a seventh (-14.6%).

The Footsie’s five biggest losers

At the bottom of my table lie the FTSE 100’s five biggest losers over 12 months, in places 97 to 101. These beaten-down shares have underperformed their index by wide margins. Here they are:

Company Sector 12-month loss
Intertek Group Product testing -25.5%
Reckitt Benckiser Group Consumer goods -26.3%
Polymetal International Precious metals -26.9%
Fresnillo Precious metals -37.3%
Ocado Group Online grocer -37.7%

As you can see, losses among these five FTSE 100 flops range from more than a quarter (-25.5%) to almost two-fifths (-37.7%). The average loss across all five losers is more than three-tenths (-30.8%). The ‘best’ loser is Intertek Group, a British assurance, inspection, product testing, and certification company. Intertek’s stock has zigzagged up and down since October 2017, but has basically gone nowhere over the past four years.

The biggest loser among my FTSE 100 laggards is online supermarket Ocado Group. This go-go growth stock has seen its highly valued shares plummet over the past year. On 28 January 2021, with Ocado shares trading at 2,854p, I wrote, “I would not buy this FTSE 100 share today. For me, Ocado looks like a bubble waiting to burst”. Today, this FTSE 100 share hovers around 1,670.5p, down almost 1,185p. That’s a whopping dive of almost three-sevenths (-41.5%) in just over eight months. Ouch.

Manic miners

Notice that there are two miners of precious metals on my list: Mexican silver miner Fresnillo and Polymetal, an Anglo-Russian miner of gold, silver, and copper. Both stocks have crashed over the past 12 months. Predicting the future direction of silver and gold prices is fiendishly difficult. Even so, I feel there may be value hidden in these two bombed-out FTSE 100 miners.

Lastly, I’ve found one stock that I don’t own but would happily buy today: Reckitt Benckiser Group, a leading provider of fast-moving consumer goods. A year ago, this FTSE 100 share peaked at 7,774p, versus 5,574p today. I see this £22 price fall as overdone and would therefore buy this great British business today. However, I could be wrong and Reckitt could continue to be a value trap, as it has been over the past five years!

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Fresnillo, Intertek, Ocado Group, and Reckitt. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.