Are these FTSE 100 stocks the biggest bargains on the London Stock Exchange?

These are the worst-performing FTSE 100 stocks of 2024 so far. But is one a secretly amazing investment trading at a dirt cheap price?

| More on:

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.

Surprised Black girl holding teddy bear toy on Christmas

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The last six months have been terrific for the FTSE 100. The UK’s flagship index has been busy gaining momentum this year as economic conditions improve. And after years of lacklustre returns, British investors are reaping some chunky payouts.

Sadly, not all constituents have been so lucky. Despite overall positive momentum, some firms have been left behind, falling significantly. But could these downward trajectories secretly have created incredible buying opportunities?

Let’s explore the five biggest losers of 2024 so far and determine whether any bargains have emerged.

Should you invest £1,000 in Burberry Group Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Burberry Group Plc made the list?

See the 6 stocks

Inspecting FTSE 100 losers

Here are those biggest losers of the year to date.

  1. Burberry Group (LSE:BRBY) – down 48.9%.
  2. Entain – down 44.4%.
  3. Ocado Group – down 29%.
  4. Reckitt Benckiser Group – down 27%.
  5. Spirax Group – down 24.2%.

 Immediately, it’s clear that the losses haven’t been isolated to a single industry. This list of worst performers covers the fashion, leisure, retail, and engineering sectors. And plenty of other businesses from these industries have fared far better. The most obvious example in engineering would be Rolls-Royce, with shares surging over 50% in the last six months.

The catalyst behind the fall of each business is ultimately different. So let’s zoom in to the biggest loser – Burberry – to work out what went wrong and whether now’s a good time to buy.

What’s going on at Burberry?

Being a luxury fashion brand in 2024 isn’t easy. The higher cost of living’s proven to be a significant headwind for luxury retailers as households are more focused on saving rather than spending. However, the firm’s new creative direction doesn’t appear to have resonated with customers either. And the combined impact of these factors is perfectly clear when looking at Burberry’s financial performance.

Sales are down by double digits, and operating profits are on track to miss full-year analyst expectations. So it’s no wonder the stock’s tanking. But on a more positive note, management isn’t blind to what’s going on. And the firm appears to be rethinking its new creative direction to realign its designs toward what core customers are more familiar with.

To oversee this U-turn, the board’s decided on a change of leadership. And after less than three years in the role, Jonathan Akeroyd’s been ousted as CEO, replaced by Joshua Schulman, the former CEO of luxury accessories brand Coach. And his performance while running that business was admirable, driving up bag sales considerably.

Time to buy?

If Schulman can replicate his previous successes at Burberry, snapping up shares at their current price could be an immensely lucrative decision. After all, they’re now trading at a price-to-earnings ratio of just 9.3. However, at this stage, that’s a big “if”.

There’s no guarantee Schulman will be successful, and executing a turnaround strategy could take some time. Personally, I think it’s better to keep Burberry on my watchlist until some signs of progress emerge.

As for the other beaten-down FTSE 100 stocks, investors need to take time investigating what’s dragging down the shares to determine whether they’re bargains or a traps. Even if now might not be the best time to buy, it could reveal potentially interesting opportunities further down the line.

Should you buy Burberry Group Plc now?

Don’t make any big decisions yet.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — has revealed 5 Shares for the Future of Energy.

And he believes they could bring spectacular returns over the next decade.

Since the war in Ukraine, nations everywhere are scrambling for energy independence, he says. Meanwhile, they’re hellbent on achieving net zero emissions. No guarantees, but history shows...

When such enormous changes hit a big industry, informed investors can potentially get rich.

So, with his new report, Mark’s aiming to put more investors in this enviable position.

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

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 assessed. Consider taking independent financial advice.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Burberry Group Plc and Reckitt Benckiser Group 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.

More on Investing Articles

Smiling senior white man talking through telephone while using laptop at desk.
Investing Articles

Here’s why I just bought this gold stocks fund for my SIPP!

I think investing in gold stocks could be the best way to capitalise on bullion's bull run. Here's a top…

Read more »

Investing Articles

How much passive income an investor could earn if they put £250 a month in an ISA at 40

Harvey Jones shows how small, regular investments can flourish into a generous passive income to secure a comfortable retirement years…

Read more »

Investing Articles

Stock market chaos! 3 pieces of investing wisdom from Warren Buffett

Billionaire Warren Buffett has been investing for many decades, making some of his quotes worth remembering when markets head south.

Read more »

Investing Articles

10%+ yields! 2 cheap dividend shares to consider as the economy wilts

These great value UK dividend shares could deliver a spectacular passive income even if the global economy sinks, says Royston…

Read more »

Investing Articles

Here’s the dividend forecast for Rolls-Royce shares as Trump rocks the markets

Rolls-Royce shares have joined in the volatility over the past week. However, with the direction being largely downwards, the dividend…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

Dividend yields of up to 11%! Here are 3 UK passive income stocks to consider

Searching for ways to supercharge your passive income with UK dividend stocks? Here are three that have grabbed our writer's…

Read more »

Young Caucasian woman at the street withdrawing money at the ATM
Investing Articles

£10,000 invested in NatWest shares at the start of 2025 is now worth…

NatWest shares surged into 2025, but things have become a little more complicated in recent weeks. Dr James Fox explores.

Read more »

Investing For Beginners

Why the FTSE 250 could outperform the FTSE 100 for the rest of the year

Jon Smith explains why the FTSE 250 could do better than its big brother when factoring in domestic exposure and…

Read more »