2025 was such a strong year for the FTSE 100 that even our American cousins have taken notice. I’ve seen a flurry of headlines on US investment sites noting that UK stocks have outperformed Wall Street, predicting more to come in 2026.
That’s certainly the view of JP Morgan, which sees the UK’s blue-chip index rising by as much as 10% over the year ahead. When it made that call, the FTSE 100 stood at 9,897. A 10% gain from there would lift it to 10,887, pretty close to 11,000.
Predictions are fun, but should be taken lightly. Anything can happen. Still, that shouldn’t stop people buying shares. Short-term volatility is the price investors pay for the superior long-term returns from equities.
It’s the long run that matters, and here are three FTSE 100 shares that have struggled recently but look interesting as a result.
Barratt Redrow shares to rebound?
The first is Barratt Redrow (LSE: BTRW). Like the rest of the housebuilding sector, it’s had a torrid time as high inflation, elevated mortgage rates and rising materials and labour costs squeeze margins from all sides.
The shares are down 14% over the last year and 43% over five. That’s brutal, but typical for housebuilders right now. Today, Barratt Redrow trades on a price-to-earnings ratio of 14.8 and offers a tempting dividend yield of 4.77%.
Interest rates are falling, with talk of sub-3% mortgages returning, which could revive demand. 2026 may still prove bumpy, as recession risks linger, but I think it has serious comeback potential over the next few years.
Marks & Spencer stock volatility
I sadly missed the great Marks & Spencer Group (LSE: MKS) share price recovery that saw it rocket back into the FTSE 100. Since then, it’s been volatile, with the shares down almost 15% over the last year.
The real blow was the cyberattack in April, which slashed first-half profits by 55% at a cost of £136m, although the company has since lodged a £100m insurance claim. Like other retailers, it’s also grappling with higher employer’s National Insurance and minimum wage hikes.
Its P/E has now slipped to a modest 10.4, although the dividend yield remains modest at 1.1%. Plans to open 500 new food stores over the coming years should drive growth, especially if the economy improves. And its clothing arm is improving but still needs a bit of a lift. Worth considering, but not without risk.
Croda still waiting to recover
Finally, Croda International (LSE: CRDA). It’s had another sticky year, with the shares down 16%, and a painful 55% over five years.
Croda makes speciality chemicals used in beauty, agriculture and life sciences. Demand surged during the pandemic as customers stockpiled, then slumped as inventories were run down. That process is still under way, but there are signs that sales volumes are now recovering.
It’s the priciest of the three, on a P/E of 19.6, although the dividend yield has climbed to almost 4%. The underlying business remains solid and feels due a revival. Will it come in 2026? We’ll see.
I think all three are worth considering although Barratt Redrow is my favourite here. There’s plenty more value lurking in the FTSE 100, and investors should do their research and dig it out.
