By and large, 2021 has been a great year to own stocks and shares. In the US, the S&P 500 index has soared by more than a quarter (+26.5%) over the past 12 months. Meanwhile, in the UK, the FTSE 100 index lagged behind, yet still racked up a double-digit return. Since late December 2021, it has risen by 11.6% (both returns exclude cash dividends). But while some FTSE 100 stocks did handsomely this year, others crashed brutally.
FTSE 100 winners and losers in 2021
Of 100 stocks in the FTSE 100 index for at least a full year, 77 have risen in value. Gains at these 77 winners range from an impressive 74.5% to a mere 0.5%. Across all 77 gainers, the average return over one year was 24.2%. That’s more than double the wider index’s return. At the other end of the scale lie 23 FTSE 100 losers. Losses at these laggards range from just 0.6% to a horrible 26.8%. Across all 23 decliners, the average loss was 11% — a fall of similar magnitude to the index’s rise.
The Footsie’s biggest losers
Of the FTSE 100’s 23 losers over one year, eight have recorded double-digit losses, while five have lost 20% and more. Here are the Footsie’s five biggest losers over 12 months:
| Company | Sector | 1-yr return |
| Fresnillo | Mining | -21.7% |
| London Stock Exchange Group | Financial | -21.8% |
| Polymetal International | Mining | -22.9% |
| Flutter Entertainment | Gambling & betting | -23.2% |
| Ocado Group | Online retailer | -26.8% |
As you can see, losses at these five bombed-out FTSE 100 shares range from 21.7% to 26.8%. Thus, each of these stocks is in a bear market, having fallen 20%+. Across all five, the average loss is 23.3%, which is almost 35 percentage points below the Footsie’s return.
Why these five FTSE 100 stocks have bombed
The two mining stocks — Fresnillo and Polymetal International — have suffered in 2021 as prices of precious metals declined. The gold price is down about 5% over 12 months, while silver has lost around 13% of its value over one year. Meanwhile, London Stock Exchange Group had a tough 2021 following its acquisition of Refinitiv, a financial data and analytics platform. LSEG’s stock price has suffered due to the soaring costs of integrating this bold acquisition.
Flutter Entertainment owns nine leading gambling and betting brands, including PaddyPower, Betfair, FanDuel, FoxBet, Sky Betting and Gaming, and PokerStars. It operates in over 100 international markets, serving 14m customers and employing 14,000 staff. Yet its shares suffered this year due to adverse sporting results and Flutter’s withdrawal from several markets. Lastly, online supermarket Ocado Group has been the worst performer in the FTSE 100 over the past year. As its shares peaked in January, I warned that Ocado shares looked to me like a bubble waiting to burst. Since then, this growth stock has collapsed by 41.9%. Yikes.
Which losing stocks would I buy today?
As a veteran value investor, I’m always looking for shares that have been tossed into the market’s bargain bin. Right now, I’d be willing to take a punt on four of these five slumping stocks. I don’t own any of these FTSE 100 shares today, but I’d buy all five except for Ocado. After a decade of losses as a London-listed company, I’m yet to be convinced by Ocado’s growth model, although I could be wrong. But I see rebound potential in the other four beaten-up stocks. Hence, I would buy all four as recovery plays for 2022-23. However, I would expect all five share prices to remain volatile next year!
