These 5 FTSE 100 shares crashed in 2022. I’d buy 1 today

Although the FTSE 100 index is flat in 2022, some Footsie shares have crashed hard this year. But I see deep value in one of these beaten-down stocks.

Hand flipping wooden cubes for change wording" Panic " to " Calm".

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Despite stock markets crashing in the US, Europe and elsewhere, it’s been a fairly flat year for the UK’s FTSE 100 index. On 31 December 2021, the Footsie closed at 7,384.54 points. On Friday, the index closed at 7,389.98, up 5.44 points (a mere 0.07%) in 2022.

This is a pretty decent performance from the UK’s blue-chip index, given the falls elsewhere. For example, the US S&P 500 index has dived 18.1% since 2021, while the tech-heavy Nasdaq Composite index has crashed by 27.4% in 2022. Compared to these US market indices, the FTSE 100 is sitting pretty.

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The FTSE 100’s winners and losers over six months

Of course, not all FTSE 100 shares have performed well in this calendar year. As you’d expect, some Footsie stocks have leapt, while others have slumped. Of 100 shares in the index, only 29 have risen in value over the six months. Gains among these 29 winners range from below 0.1% to a chunky 45.2%, with the average increase being 17.2%.

At the other end of the scale lie 71 FTSE 100 losers over the past six months. Losses among these 71 losing shares range from just 0.1% to a hefty 60.2%. The average decline across these 71 slumpers is more than a fifth (-21.7%).

The Footsie’s five biggest flops

For the record, these are the FTSE 100’s five steepest fallers over the past six months:

CompanySectorShare price (p)6mth change12mth changeMarket value (£bn)Price/earnings ratioEarnings yieldDividend yield
ITVMedia70.49-40.6%-45.2%2.87.613.2%4.7%
Hargreaves LansdownFinancial859.94-42.2%-48.6%4.115.36.5%4.5%
JD Sports FashionRetail120.95-47.7%-33.2%6.2146.10.7%0.2%
Scottish Mortgage Investment TrustFinancial738.75-51.2%-35.8%10.70.5%
Ocado GroupRetail770.61-59.3%-60.6%5.8

As you can see, these five FTSE 100 shares have taken a brutal beating over the past six months, with losses ranging from over 40% to nearly 60%. The worst performer — high-tech retailer Ocado Group — has lost around three-fifths of its market value over six months and one year. Yikes.

The other dogs of the Footsie include tech-stock investment fund Scottish Mortgage Investment Trust, sports- and leisurewear retailer JD Sports Fashion, and financial platform Hargreaves Lansdown.

I’d buy one of these dogs today

Among these five beaten-down FTSE 100 shares, I see one ‘fallen angel’ with potential to reward me with decent dividends and future capital growth. This battered company with prospects is broadcaster and TV producer ITV. To be honest, if I had ITV’s current market value of £2.8bn, I’d buy the entire group today.

Sure, competing against larger media rivals — especially the US streaming giants — is tough. But ITV shares trade on a lowly price-to-earnings ratio of 7.6% and a bumper earnings yield of 13.2%. Furthermore, the dividend yield of 4.7% a year is almost 1.2 times the FTSE 100’s cash yield of around 4%.

To sum up, faced with rampant inflation (rising consumer prices), rising interest rates, the Russia/Ukraine war and slowing Chinese economic growth, now isn’t an easy time to buy shares. Even so, though I don’t own ITV shares today, I’d buy them now in the hope of a robust rebound when sentiment finally improves!

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Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown, ITV, and Ocado 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.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

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