These FTSE 100 stocks sank in Q4. Can they rebound in 2017?

Private healthcare provider Mediclinic International (LSE: MDC) emerged as the FTSE 100’s worst performer during the course of quarter four. The stock conceded 17% of its value between October and December, taking total losses during the course of 2016 to 30%.

Mediclinic suffered fresh share price weakness in November after the firm said it expected revenues from the Middle East to grow by low-to-mid single digits during the year to March 2017, reflecting changes to health insurance provision; a shortage of key medical personnel; and slower-than-expected new facility openings.

Despite its current problems however, the City still expects Mediclinic to report a 3% earnings rise in fiscal 2017. And growth is expected to surge to 20% next year as sales surge across the globe — the acquisition of Abu Dhabi-based Al Noor helped group revenues stomp 27% higher during April-September, for example.

The medical mammoth’s elevated P/E ratio of 20.6 times for the current year falls to a much-improved 17.1 times for fiscal 2018. Still, the company can hardly be considered cheap, and signs of fresh difficulties in the Middle East could prompt fresh share price weakness.

Regardless of possible near-term problems, however, I reckon the hospital giant remains a terrific long-term growth selection. Indeed, I reckon Mediclinic — whose facilities span Switzerland, South Africa, Namibia and the United Arab Emirates — is in pole position to reap the fruits of rocketing private healthcare demand in emerging regions, assisted by its promising acquisition drive.

Brand beauty

Tobacco titan Imperial Brands (LSE: IMB) has also been no stranger to severe share price weakness during the final quarter, the firm shedding 11% of its value in the past period.

But I see this as a fresh buying opportunity, and reckon Imperial Brands’ tremendous defensive qualities could underpin a robust price recovery in 2017 and potentially beyond.

While cigarette demand worldwide remains locked on a downtrend, the London company’s suite of top-level brands such as Davidoff and Gauloises Blondes command customer attention like few others. And with these labels stealing market share from their rivals, Imperial Brands’ tobacco net revenue climbed 14.7% during the 12 months to September 2016.

And Imperial Brands has added to its packed stable of industry-leading brands with the acquisition of cartons like Kool and Winston last year, bolstering its position in the white-hot US market. And the manufacturer’s huge investment in the e-cigarette market provides plenty of additional long-term revenue opportunities. Indeed, Imperial Brands is set to unveil its next-generation blu Max vaping product in early 2017.

The abacus bashers certainly remain bullish on Imperial Brands, and expect a 9% earnings advance in fiscal 2017 alone. This results in a mega-cheap P/E ratio of 13.1 times, some way below the FTSE 100 forward average of 15 times.

With demand for Imperial Brands’ products showing terrific resilience, and the business also ramping up its restructuring drive to underpin earnings growth — the firm has eyed an extra £300m of annual savings by 2020 — I reckon the cigarette giant is a solid bet to deliver decent shareholder returns.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Imperial Brands. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.