3 beaten-down UK stocks to consider buying before they recover (rather than after)

Harvey Jones picks three UK stocks from the FTSE 100 that have had a poor run lately but may enjoy bags of recovery potential. Is it too soon to buy them?

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It’s been a strong year for UK stocks, with the FTSE 100 hitting new highs again and again. Yet, plenty of blue-chip names have missed out, and that’s often where the best opportunities lie. Picking shares that have lagged the market can feel counterintuitive, but they may reward patient investors when the cycle turns. I’ve been hunting through the laggards, and three stand out to me right now. In fact, I’ve just bought one of them.

Schroders in transition

Shares in Schroders (LSE: SDR) have had a rough decade. Back in 2014, they traded around 500p. Today, they’re closer to 385p. Cheapness alone doesn’t make a share good value, so does this privately run fund manager deserve some love?

Schroders has struggled as investors drift from traditional stockpickers towards low-cost passive exchange-traded funds (ETFs) and DIY trading platforms. The company has responded by cutting costs and selling weaker divisions, but investors remain cautious.

On 23 October, third-quarter results showed a 5% rise in total assets under management to £816.7bn, boosted by new inflows. Schroders also plans to launch an active ETF range in Europe to stay relevant in a changing market.

Its price-to-earnings ratio sits at 14.4, with a healthy dividend yield of 5.6%. Yet, I fear the company transition has further to run and success isn’t guaranteed. But sometimes it pays to invest before a stock gets its act together. Afterwards, the big gains may have passed.

RELX shares hit a bump

Shares in information and analytics group Relx (LSE: REL) have soared 181% to 3,376p over a decade, plus dividends. Over the last year, they’ve slipped 5.7%. Which could be the entry point long-term admirers like me.

Relx confirmed strong trading momentum in its 23 October update, with underlying revenue up 7% for the first nine months of 2025, and reaffirmed full-year guidance.

The stock has been expensive for years, with a P/E of around 35. That has now eased, but only to around 28. That’s still well above the FTSE 100 average of 18. I’ve long admired RELX’s consistency and pricing power. The big question is whether artificial intelligence enhances its products or lets customers go it alone. Still a great company and worth considering, with a long-term view.

Is Bunzl a better bet?

I’ve finally bought shares in Bunzl (LSE: BNZL). The distribution and services group was on a steady climb for decades, with an unbroken record of dividend growth. But a rough year changed that, and I saw my chance.

Sales were hit by US tariffs and a major customer switching to own-brand products. The share price has tumbled 33% in the past year and 5% in the last week. Yet, Bunzl looks solid under the bonnet. The P/E is now below 12, the dividend yield has risen to 3.25%, and third-quarter trading on 23 October was in line with expectations.

It’s an international business, and the global picture remains tricky. I see potential for a recovery, even if it takes time. My holding is down 7% since I bought it, but these are early days. If it falls again, I’ll average down.

All three are at different stages of their recovery story. There are no guarantees, but patience could pay off. Of the trio, I reckon Bunzl is closest to bouncing back.


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.

Harvey Jones has positions in Bunzl Plc. The Motley Fool UK has recommended Bunzl Plc, RELX, and Schroders 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.

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