In recent months, I’ve bought three exciting value stocks for my portfolio, hoping they’ll swing back into favour and make me rich.
Buying beaten-down FTSE 100 stocks is never risk-free. There’s usually a good reason why they’ve slumped. Turnarounds take time and patience is required. I may have to wait for these to come good.
Cheap Bunzl shares
The first is international distribution group Bunzl (LSE: BNZL). I’d wanted to buy this dark horse for years, as it’s delivered a terrific total return through steady share price growth and relentless dividend increases.
The board’s hiked shareholder payouts every year for more than three decades, so when the shares plunged in April after a shock profit warning, I finally felt I had my chance.
The Bunzl share price is now down 36% over the last year. That’s dragged the price-to-earnings (P/E) ratio down to just 10.9, while the yield has climbed above 3.5%.
Bunzl makes its money selling everyday essentials such as disposable coffee cups and rubber gloves to businesses, so it’s been hit by the global slowdown. Full-year 2025 profits look flat thanks to “macroeconomic challenges”, with only modest growth expected in 2026. I think it’ll bounce back, but it may take a few years to fulfil its potential. Investing’s a long-term pursuit. I’m willing to wait.
London Stock Exchange Group falls
Financial data and trading specialist London Stock Exchange Group (LSE: LSEG) was a rocket stock for years — until it wasn’t.
As a value investor, I couldn’t justify paying a P/E of more than 35, so I watched from the sidelines. Then in September I dived in, after a 30% share price fall cut that valuation to a more reasonable 22. As the shares slipped, I bought them on two more occasions. Over 12 months, the stock’s down 22%.
The London Stock Exchange Group share price was hit by broader economic worries and concerns that artificial intelligence (AI) could undermine its data business, although the board’s fighting back by embedding AI into its own systems.
There are early signs of recovery, with the shares up 10% over the last three months. The P/E’s rebounded to around 25, so it’s harder to call this a pure value play now. The real test comes in 2026.
JD Sports Fashion struggles
I started my final pick, sportswear retailer JD Sports Fashion (LSE: JD), more than 18 months ago. It’s a reminder of the risks of buying struggling companies, as one profit warning was followed by others.
Consumers are stretched, especially younger shoppers, as the jobs market cools and discretionary spending dries up. The JD Sports share price is now down 50% over two years, including a 13% fall in the last 12 months. I took the advantage to average down and buy more.
That leaves the JD Sports share price looking incredibly cheap, with a P/E of just seven. There’s nothing fundamentally broken here. When conditions improve, I think this one could recover fast.
All three are worth considering, in my view, but I’m not expecting an overnight recovery. Yet, I’m expecting them to reward my faith over the years.
