Down 39%, this FTSE 100 share could rocket to recovery!

The FTSE 100 has had a great 12 months, returning 28% to British investors and easily beating the US S&P 500 index. But could this stock be its hidden gem?

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The past few years have been fertile for the FTSE 100. Ignoring cash dividends, the UK’s blue-chip index is up almost a quarter (+23.5%) over one year. Furthermore, it has leapt by almost two-thirds (+65%) over five years.

Of course, adding in dividends boosts these returns even further. For example, the FTSE 100 Total Return Index (TRIUKX) has jumped by 27.8% in 12 months. This easily beats growth indexes such as the US S&P 500 and even the tech-heavy Nasdaq Composite index.

Sadly, not all Footsie stocks have followed the market higher. Indeed, I found 24 FTSE 100 shares have lost value over the past year. But which business in particular might be primed for a powerful comeback in 2026/27?

Bunzl gets battered

Ever heard of Bunzl (LSE: BNZL)? This British business is a leading distribution and outsourcing company for food-service providers and food retailers. Its main products include safety and hygiene equipment, chemicals, packaging, disposable tableware, personal protective equipment, cleaning machinery, and first-aid kits. In other words, quite a lot of plastic gear.

The company divides itself geographically into four business units: North America (the largest), the UK and Ireland, Continental Europe, and the rest of the world (largely Australasia).

For two decades, Bunzl’s revenues and profits grew rapidly, before hitting a hurdle in 2024/25. Falling sales growth and profits saw the shares take a beating in 2025, crashing 25.6% on a single day (16 April 2025) after Bunzl released disappointing results. That day, I grabbed this potential ‘falling knife’, buying Bunzl for my family portfolio at 2,292p a share.

As I write, the Bunzl share price stands at 2,120p, valuing this group at £6.9bn. At their 2025 high, the shares briefly hit 3,488p on 13 February 2025, so they have plunged 39.2% since that date. The share price is also down 5.2% over five years, making it a full-on FTSE 100 flop.

As a value/income investor, my lifelong love of bargains often draws me to potential ‘fallen angels’ such as Bunzl. Its falling share price has pushed up the dividend yield to 3.5% a year, above the wider index’s cash yield of below 3% a year. In addition, the shares trade on a modest rating of 14.6 times earnings, delivering an earnings yield approaching 6.9% a year.

Big news (and big moves?) on 2 March

For the record, if I were vastly wealthy and could afford to buy this entire business today, I would gladly do so. Indeed, it would take a global meltdown for me to part with this stock. At least, that is, until 2 March, when the group releases its 2025 full-year results.

If these are particularly bad — say, revenues, profits margins, earnings, and cash flow all slump — then I might be tempted to change my mind and dump our stock.

Then again, Bunzl’s human-intensive markets mean that it appears largely safe from the AI gloom hitting other industries. In short, 2 March is a huge day for us and other Bunzl shareholder-owners, so mark your diaries now.

Finally, what other shares could make big moves in 2025/26? Read on to find out!

The Motley Fool UK has recommended Bunzl. Cliff D’Arcy has an economic interest in Bunzl shares. 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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