There was a time — not long after the beginning of the global pandemic — when no one would go near the company. Back then, this felt logical. In addition to drowning in debt, the engineer’s outlook was ominous considering air travel had pretty much ceased in an effort to contain Covid-19.

Of course, hindsight is a wonderful thing. We now know that this was precisely the time to load up on the shares. In a few years, CEO Tufan Erginbilgiç has managed to turn the company around through a combination of cost-cutting and streamlining. The share price has duly responded. And then some!

The question I’ve been asking is what will be the next brilliant turnaround stock in the UK market’s top tier?

FTSE 100 laggard

One potential candidate could be automotive marketplace provider Auto Trader (LSE: AUTO).

Yes, it’s true that this is a completely different entity to Rolls-Royce in many respects. Rolls-Royce earns its money from making engines and maintaining them and has a global reach. Auto Trader links UK buyers with sellers of vehicles and does it all online.

However, the latter is currently hated by the market, just as Rolls-Royce was back in 2020. Indeed, it features high up the list of most shorted shares among traders. In other words, many are betting its price — down nearly 40% in 12 months — has even further to fall.

They could well be right. In recent times, more and more investors have begun to question whether businesses such as this can withstand the onslaught of AI.

Elsewhere, the company has faced backlash from dealerships for new initiatives. Even the British competition regulator is now investigating Auto Trader as part of a crackdown on fake reviews.

It never rains but it pours.

Auto Trader isn’t broken

On a more optimistic note, I think there’s quite a lot to like here.

The £4bn cap still has a virtual monopoly in what it does. It still posts incredible margins that would turn most firms green with envy. Levels of debt are current negligible too thanks to its asset-light business model.

Then there’s the valuation. A forecast price-to-earnings (P/E) ratio of 14 practically screams ‘bargain’ if – and that’s a sizeable ‘if’ — relationships with dealerships can be repaired and the aforementioned AI threat proves overblown (it’s worth noting that the company is already integrating its own AI-infused tools into the site).

Worth a closer look

Notwithstanding this, I’m definitely not expecting a recovery like that of Rolls-Royce (if it comes). The latter’s revival has been epic, supported by a recovery in aviation and a boom in defence spending. It’s hard to see how Auto Trader could ever achieve the same levels of revenue growth.

Even so, I do think it might warrant attention from contrarian-minded long-term investors, particularly with the share price languishing where it is. With expectations so low, any chinks of light in the next set of full-year numbers — due 21 May — could be the catalyst value hunters have been waiting for.

But I would like to see some director buying before too long. Damningly, there’s been none of this for many years (and an awful lot of selling!).

The post Could this cheap FTSE 100 stock be the next Rolls-Royce? appeared first on The Motley Fool UK.

The key to figuring it out is looking past the short-term noise. And there are a couple of names that look interesting to me right now.

Auto Trader

Artificial intelligence (AI) fears have been weighing on Auto Trader (LSE:AUTO) shares recently. And the stock is down 19% since the start of the year. 

The firm’s key strength is its platform. But part of the concern is that buyers might be able to bypass this entirely. 

How should investors think about this risk? Comparing it to other platform businesses might be a good way to go. 

Airbnb is relatively immune to the threat of ChatGPT. The reason is that its hosts don’t list their properties on their own websites. That means ChatGPT can’t find them directly and present them to customers. So the threat is much lower. 

By contrast, virtually all of Rightmove’s listings come from estate agents. That means they can probably be found by AI going directly. Auto Trader is a mix of the two. But 95% of its listings are from dealers, compared to just 5% that are private listings. 

From that perspective, it looks a lot more like Rightmove than Airbnb. And that makes me worry about the AI threat. 

Auto Trader has survived the move from paper listings to the internet, so I’m not counting it out. But I am wary about the risks. 

Nike

Shares in Nike (NYSE:NKE) have been falling for some time. And the situation got worse earlier this week after the firm’s latest update.

The company has been doing well enough. But the outlook is for a 20% sales decline in China, which is set to weigh on overall revenues.

Nike is in a transition period. Strategic errors have cost the firm customers and retail partners and it’s working to win them back.

Losing market share in China is a big surprise and clearing the excess inventory that’s weighing on sales isn’t going to happen overnight. But there are real reasons for positivity.

The firm’s brand is a real asset. And it’s easy to underestimate the significance of this. 

Cheaper competition is a threat, but that’s nothing new for Nike. That’s a testament to its brand strength.

It’s also worth noting that switching costs for consumers are relatively low. That creates opportunities to win back lost market share.

Ultimately, there are signs of progress being made under the current CEO. The latest news, however, is clearly a setback. 

I think the stock is worth considering at today’s heavily-discounted prices. But only for investors who are prepared to be patient.

Stocks to consider

Falling share prices can be buying opportunities, but stocks rarely go down for no reason at all. There’s always risk one way or another.

Value investing is about working out when the market is overestimating that risk – and when it isn’t. And that’s not always clear.

Both Auto Trader and Nike are on my list of stocks to take a closer look at this month. But at the moment, Nike looks the more promising to me.

The post April stocks: 2 value shares I’m taking a closer look at appeared first on The Motley Fool UK.

After taking a painful 37% tumble over the last six months, the online automotive marketplace is now trading at a price-to-earnings ratio of just 14.5. That may not immediately sound like the shares are in value stock territory. But it’s the cheapest P/E ratio seen for Autotrader shares since its IPO in 2015!

Could this be a screaming buying opportunity for long-term investors?

What’s going on?

It’s one of the most profitable companies on the entire London Stock Exchange with net margins sitting at over 47%. So it’s a bit odd to see Autotrader shares take a tumble. But investors appear to be less concerned with profit margins and more with growth, or rather the lack of it.

In its latest interim results for fiscal 2026 (ending in March), revenue, operating profits, and cash from operations all ticked up by 5%, 6%, and 7% respectively, to record highs.

That’s certainly an encouraging sign. But it’s crucial to point out that single-digit growth for a business that’s historically and consistently achieved strong double-digit expansion isn’t what investors like to see. And it’s the slowdown that has analysts on edge.

But digging deeper, the pullback in price might be a bit overblown. The lacklustre growth isn’t being caused by competitive pressure or a lack of platform demand. In fact, Autotrader’s platform continues to be a near-monopoly, controlling over 75% of the online car purchasing market.

Instead, the problem lies in supply and demand dynamics. New car sales remain relatively weak due to ongoing economic challenges. Instead, demand for cheaper used cars has skyrocketed.

The only problem is that with the supply of used cars running thin, dealerships don’t need to spend as much money promoting their listings on the Autotrader platform. As such, management’s ability to upsell its premium marketing packages to customers is currently limited.

Bull versus bear

The threat of a slowdown is real and has already started emerging in the group’s financials. But at the end of the day, supply and demand dynamics are ultimately cyclical. And with Autotrader maintaining its industry-dominant position, growth will most likely return when the cycle shifts back in a more favourable direction.

Of course, the exact timing of when this recovery will happen remains a mystery.

There are also some valid longer-term concerns, particularly when it comes to electric vehicles (EVs). The used EV market is proving to be quite tricky, with consumer concerns about residual car values and battery longevity.

As such, dealerships are already reluctant to stock second-hand EVs. And if this pattern continues, there could be a long-term structural shift in the used car market that adversely impacts Autotrader’s business.

Where does that leave investors? Autotrader shares look like they’ve been overly punished. As interest rates steadily drop and car financing options become more affordable, the new car market should start heating back up. That should create stronger demand for customers to promote their listings.

The longer-term dynamics of the used car market need to be watched closely. But with the share price seemingly already pricing in catastrophe, the risk-to-reward ratio looks favourable to me and worth further research.

The post After crashing 37%, this FTSE value stock looks filthy cheap with a P/E of just 14.5! appeared first on The Motley Fool UK.

Here are two that I think long-term investors should consider snapping up in March (or before) for an ISA.

Down 25%

Let’s start with Wise (LSE:WISE), which surged 17% a month ago but has since lost almost all those gains.

The reason for the rise was strong trading in the money transfer firm’s Q3 2026 (ended 31 December). It said cross-border volume jumped 26% year on year at constant currency to £47.4bn, helping underlying income rise 21% to £424.4m.

By offering a cheaper and faster service, Wise is aiming to become the world’s major network for moving money around. And it’s making strides towards this, with 74% of transfers made instantly during the quarter, up from 65% the year before.

A deal was signed to deliver Google Pay for customers in the Philippines, while the Wise travel card was introduced in India. The firm ended the quarter with nearly 11m active customers, including a growing number of businesses.

Of course, as Wise moves deeper into complex markets like India and South Africa, regulatory and compliance risks multiply. Revolut also poses a potential competitive threat, with its significantly larger customer base.

However, on balance, I think the stock’s worth considering after falling 25% since September. It’s trading at 22.5 times forward earnings, which I don’t see as expensive for a solidly profitable firm with plenty of growth left in the tank.

Finally, it’s worth noting that Wise will list its shares in New York by June. This should raise the company’s profile in a major growth market while opening up its shares to a much larger pool of US investors.

Down 44%

The second UK share I want to highlight is Autotrader (LSE:AUTO). This FTSE 100 member has nosedived 44% in just six months!

There appears to be two main reasons. First, the company has upset some car dealers with its Deal Builder product, resulting in some of them cancelling and downgrading their subscription packages.

However, management’s working hard to resolve these gripes. And while most car buyers continue to browse Autotrader’s platform, sellers will need to be there too. I don’t see this issue breaking the firm’s powerful network effect.

Second, the stock’s been caught up in the whole data/software sell-off. For Autotrader, the fear appears related to disintermediation.

In other words, if a buyer can just ask an AI app, “find me a white Mercedes A45 within 50 miles of Luton with full service history”, the AI may pull data directly from dealer websites. Autotrader could start losing its gatekeeper status.

While a potential risk, it’s worth noting that Autotrader previously survived the competitive threat from Facebook Marketplace. The brand is highly trusted, with 82% of users habitually going directly to its site. For the other 18%, Autotrader’s increasing its visibility inside AI apps like ChatGPT. 

Looking ahead, the government’s new electric vehicle grant’s expected to support further volume growth.

And with Autotrader trading at just 12.5 times forward earnings, while buying back loads of its own shares, I think this stock dip looks attractive and worth thinking about.

The post 2 excellent UK shares to consider for a Stocks and Shares ISA in March appeared first on The Motley Fool UK.

In fact, as the graph shows us, plenty of sectors are in the firing line.

Investors are trying to price in a technology whose trajectory nobody can confidently predict — and that uncertainty cuts both ways. One week, AI is going to automate everything and make half the workforce redundant; the next, it’s overhyped and the bubble is about to burst.

One place I’ve hidden from AI disruption, ironically, is AI hardware. One thing seems clear: it doesn’t matter who wins the model race — Anthropic, OpenAI, Google, or some startup nobody’s heard of yet — they all need chips. 

So, where else can investors hide? Here are some ideas (not an exhaustive list).

Energy

Energy is boring in the best possible way. It’s a very physical thing and software breakthroughs are unlikely to have any impact. AI might optimise grid management or improve drilling efficiency at the margins, but it can’t replace the physical infrastructure that powers civilisation.

Importantly, demand for electricity is actually rising because of AI, not falling. And unlike software, you can’t download a power plant. The commodity is the moat.

This could mean anyone from Shell to Rolls-Royce, with its modular nuclear reactor programme, or even Greatcoat UK Wind.

Consumer staples

The same logic, different aisle. People need toothpaste, cereal, and toilet paper regardless of what Jensen Huang announces. Consumer staples companies can avoid disruption by a chatbot — their moat is shelf space, brand loyalty, and distribution. AI might shave their costs. It won’t remove their customers.

The only issue here is that consumer staples don’t always generate big returns. Unilever and Diageo will be interesting prospects for some. I’ve invested in Fresh Del Monte. The stock is performing well.

Marketplaces (maybe)

Marketplaces are a sector I cover a lot. Unfortunately, the threat of AI has put them under immense pressure. Rightmove and Auto Trader (LSE:AUTO) are trading at multiples that were simply unheard of in recent years.

Investors worry that AI assistants and super apps will be able to bypass these marketplaces. In theory, they can take results straight from dealer websites.

The issue is… this costs a lot of money. AI isn’t free and I just can’t imagine a world where asking AI to find and present vehicles to consumers will be as cheap as the simple cloud retrieval that powers these sites today.

Don’t get me wrong, pricing power could be eroded by AI. However, can it replicate marketplaces cost efficiently? I’m not convinced. After all, it’s not worth doing unless its profitable.

Auto Trader, and its peers, are starting to look a lot cheaper today. The stock trades at 12.3 times forward earnings and has a price-to-earnings-to-growth ratio of 1.4. The dividend yield now sits at 2.5%, complementing huge operating margins. It might be worth considering.

The post Stock market volatility: where can I hide from AI disruption? appeared first on The Motley Fool UK.

So, what’s going on?

It’s AI again

Auto Trader has experienced some pushback on its Deal Builder product and reported cancelations and downgrades from some of its members. However, the main issue for both companies is AI.

Both have been investing heavily in AI, and continue to do so, but we’re in a position where the market is looking for AI winners and AI losers.

For many, it’s hard to look beyond the likes of ChatGPT, Gemini and Anthropic as the winners.

That creates a difficult backdrop for vertical marketplaces.

While Auto Trader and Rightmove are deploying AI in pricing tools, search, and lead qualification, these are incremental improvements rather than category-defining breakthroughs. The risk is that such investments are perceived as defensive, or worse, mere table stakes. 

And a press release from Anthropic about its legal plugin — it released 11 new plugins on 30 January — was the straw that broke the camel’s back to some extent.

The press release highlighted that the legal plugin can undertake a lot of the grunt work such as reviewing legal documents and NDAs. But the implications are wider than that.

It’s about AI’s increasing capabilities. In the classifieds sector, AI will be able to source unstructured data straight from estate agents or car dealers. And that will represents a profound change.

It creates a new proposition for agents, dealers, and potential car/home buyers. In this context, Auto Trader may find itself in direct competition with Anthropic, for example. And while Auto Trader may contend it’s good value, Anthropic’s search could be a fraction of the cost to dealers.

The positive spin

Buyers are notoriously slow to change behaviour, particularly in high-value, infrequent transactions like cars or homes.

That inertia continues to work in favour of incumbents. Despite the noise around AI disruption, consumers still default to the platforms they trust, understand, and habitually use. 

This is particularly the case for homebuyers. You really want to see everything on the market before buying a new home. When it comes to cars, you may already know you want a white Tesla.

In that case, an AI chatbot may be quite efficient at finding all the white Teslas on the market. It can sift through data from independent car dealers and present them too you.

However, if you’re undecided and you want to browse the options, the marketplace interface may be preferable.

Sadly, I have no crystal ball. But the valuations are worth looking at.

Rightmove is now trading around 14.2 times forward earnings despite having a phenomenal 66% operating margin. Auto Trader is cheaper still around 13 times forward earning with a 63% margin.

For now, both companies are growing earnings, but it’ll be interesting to see how they evolve. The stocks, I believe, are still worth considering, but come with plenty of risk attached.

The post These stocks have the best margins on the FTSE 100, but they’re down 42% on average appeared first on The Motley Fool UK.

RELX was getting hammered, with its share price dropping as much as 16.5%. Next came London Stock Exchange Group (down 10%) credit bureau Experian (-8.25%), and specialist publishers Pearson (-7.9%) and Informa (-5.7%).

The shocking thing here is that many of these stocks already looked oversold before today’s crash. London Stock Exchange Group was down roughly 32% in a year, as was Experian. RELX is now 45% off its May peak.

The one thing they have in common is that they’re data companies. These were previously seen as AI winners, but the market has quickly changed its mind.

Across the pond, most US software stocks were also taking a pummelling. Here’s why.

A familiar AI-shaped culprit

The culprit for the massive sell-off was artificial intelligence (AI) firm Anthropic, the marker of Claude. It has launched a suite of 11 agentic AI plugins designed to automate various tasks. 

Specifically, it released a tool targeted at in-house legal teams and academic researchers. It can review documents and flag risks, as well as track compliance. So the worry is that this will take market share from products sold by RELX (which owns LexisNexis). 

Basically, all data/software stocks are currently under siege due to Claude Cowork’s new automation tools. 

Waves

I’ve been writing on these pages for some time about how AI is different to previous disruptive technologies. People dismissing AI as just silly chatbots are completely missing the point.

While the internet displaced print-based publishers and bricks-and-mortar retailers, that largely played out over two decades. It still is (look at many UK high streets today).

However, AI is a different beast altogether. As Scottish Mortgage‘s manager Tom Slater puts it, “AI is not a single product or service, it is a general-purpose technology that will ripple through every corner of the economy“.

Even if AI is in a ‘bubble’ that pops, that doesn’t mean the genie goes back in the bottle and we all carry on like before. There will likely be waves of disruption once the technology starts self-improving.

Opportunities

The good news for investors is that the selling right now is absolutely indiscriminate. Perfectly good stocks are being dumped due to blind panic.

And when things like this happen, there will inevitably be wealth-creating opportunities.

One stock that got caught up in the selling today was car buying and selling platform Auto Trader (LSE:AUTO). It fell 4.7%, bringing the decline to 44% inside eight months!

To be fair, the firm has faced a backlash from car dealers recently. Its Deal Builder tool was said to be reducing leads, which provoked an apology from the firm and a promise to tweak the product. So this adds some near-term uncertainty.

However, Auto Trader stock has also been pulled down by AI disruption fears, and I believe these to be overblown. Consumers are slow to switch habits, and the company is synonymous with online car buying in the UK.

Auto Trader has a trusted brand and boasts an incredible 63% operating margin. Now trading at a mere 13.5 times forward earnings, I think this stock is a dip-buying opportunity worth looking into.

The post Here’s why Experian, RELX, and LSEG just crashed up to 16% in the FTSE 100 appeared first on The Motley Fool UK.

Take the following FTSE 100 and FTSE 250 stocks: Forterra (LSE:FORT), Auto Trader (LSE:AUTO), and Greeencoat UK Wind (LSE:UKW). They fell heavily in 2025, but City analysts are expecting them to rebound spectacularly during the next year.

But the question is: are their share price forecasts achievable, or are they just fantasy?

Too bearish

Forterra shares slumped in 2025 on fears of a protracted housing market downturn. Such a scenario could have significant ramifications for brick demand. The company is the UK’s second-largest producer.

Have investors hit the panic button too soon though? I think so. Market uncertainty lingers, but with interest rates falling and mortgage lenders fighting a rate war, I’m confident sales could pick up sharply in 2026.

Strong housing market at the start of the year has fed my optimism. According to Nationwide, average UK house prices rose at their fastest monthly pace since mid-2015 in January.

Eight analysts currently have ratings on Forterra shares. Their average 12-month share price target is 234.5p per share, up 38% from current levels. Combined with expected dividends, this suggests a total return of 43%.

Motoring ahead

Of the three UK stocks discussed, City analysts think Auto Trader will deliver the biggest share price gains between now and early 2027.

Right now 16 brokers have ratings on the online car retailer. Their average price target is 785.6p per share, up 40% from today’s levels. If the company also pays the dividends analysts expect, shareholders could enjoy an overall return of 43%.

What could jeopardise these white-hot estimates? Well consumer spending remains under pressure, which could in turn impact motor sales. There’s also potential sales danger as the number of car dealerships steadily declines, reducing listings potential.

But on balance, I share the City’s bright outlook for Auto Trader and its shares. It enjoys stunning pricing power on its website listings, reflecting its position as the UK’s most popular online car sales platform. And helped by recent acquisitions, it has the chance to supercharge earnings from services (like finance integrations and data analytics).

47% total return?

City forecasts suggest Greencoat UK Wind will also deliver a juicy return over the next year. Three analysts currently have ratings on the FTSE 250 stock. Their average price forecast is 130.7p, up 36% from levels right now.

With expected dividends factored in, Greencoat UK shares might deliver a total 47% return. But what are the chances of this happening?

Like those other shares, I think the odds are pretty good of forecasts being met. Sentiment towards renewable energy stocks remains cautious, reflecting fears over interest rates and rising construction costs.

But I’m confident investor appetite will accelerate again as the Bank of England (likely) keeps cutting rates. There’s also a good chance power generation will be better following 2025’s wind slump, boosting investor confidence.

Trading at a 30% discount to its net asset value of 141.2p per share, I think the company could attract strong interest from bargain hunters.

The post 3 UK shares tipped to return 43% (or more) over 12 months! appeared first on The Motley Fool UK.

However, the company’s premium valuation has come under massive pressure, with the stock down 37% since May (and 28% since early November).

This is quite a shocking fall from grace for Auto Trader. But does this make the FTSE 100 stock an attractive dip-buying opportunity to consider?

The company

As mentioned, Auto Trader operates the UK’s largest online marketplace that connects car buyers with retailers and private sellers. In the six months to the end of September, over 75% of all minutes spent on automotive marketplaces were on Autotrader! 

As such, it benefits from a powerful network effect. Buyers go there because it has the most cars, compelling sellers to go there because it has the most buyers. 

The company makes the bulk of its money through dealership subscriptions (recurring revenue). At the end of September, there were 14,080 of them paying £2,994 per month on average.  

Why is the stock down?

Auto Trader’s share price started falling after the firm reported its first-half results in November (covering the six months to 30 September).

There were two main issues. The first was that group revenue increased 5% to £318m, while operating profit rose 6% to £200m.

Management admitted that this growth “was lower than our long-term average due to fast stock turn resulting in both prominence penetration and paid stock being marginally lower year-on-year“.

In other words, growth was weaker because used cars were selling so fast that dealers didn’t need to pay extra for premium adverts.

Revenue has tended to grow at about 10% over the past few years, so slower growth is an issue here. Investors are far less likely to pay a premium valuation for noticeably slower revenue growth.

The main issue, however, relates to the company’s Deal Builder digital tool. This allows a buyer to build an entire deal, including finance and part-exchange, directly on Auto Trader’s platform. 

However, some dealers say the reservation part of this process is leading to fewer leads, and a backlash erupted in November when 59 cancelled subscriptions and more downgraded theirs.

In response, CEO Nathan Coe issued a public apology and said the firm was continuing to “seek feedback and refine our offerings“. It will soon offer dealers more choice when it comes to the car reservation part.

Much cheaper stock

This backlash from customers has clearly caused significant near-term uncertainty. However, while most people continue to use Auto Trader to hunt for cars, I don’t think most dealers can afford to leave the platform entirely.

Following the pullback, the stock is now starting to look cheap. The forward price-to-earnings multiple is just 15, while the price-to-earnings-to-growth (PEG) ratio has fallen to roughly 1.4.

For a capital-light platform that boasts a 63% operating margin, I see this valuation as attractive.

On top of this, there are share buybacks. In the six months ended 30 September, it repurchased £100m worth, while the forward dividend yield has risen to 2.2%.

On balance, I see this FTSE 100 stock as a dip-buying opportunity worth exploring further.

The post This near-monopoly FTSE 100 growth stock has crashed 37%! Time to buy? appeared first on The Motley Fool UK.

But now could be the time to go hunting for bargains. In preparation, I’ve been running the rule over three of the ‘biggest losers’ out there.

Fallen FTSE 100 star

Shares in Diageo (LSE: DGE) have tumbled 37% in the last 12 months due to a toxic cocktail of sluggish sales growth, concerns over US tariffs and management changes. The arrival of weight-loss drugs and lack of interest among many young people for consuming alcohol have also been blamed.

Looking ahead, it’s hard to see this picture changing dramatically in 2026. Still, a lot of this is arguably reflected in the valuation. The price-to-earnings (P/E) ratio now stands at 13. That’s below the long-term average in the FTSE 100.

But based on its performance over the decades and portfolio of brands, this is far from a below-average company. And I wouldn’t want to bet against new CEO and former Tesco man Sir Dave Lewis working his turnaround magic here.

Half-year results in February will be essential reading. If these are even slightly better than expected, we could see some (big) positive momentum at last. The stock could also conceivably benefit from a rotation away from the AI/tech titans by investors.

Tough road ahead

Another top-tier struggler in 2025 has been automotive marketplace provider Auto Trader (LSE: AUTO). Its share price is down over 25% as I type and looks set to end the year at its lowest point.

I’ve long liked this growth stock for having a near-monopoly in its space. Thanks to being an online-only business, operating margins are among the highest in the FTSE 100 too.

Notwithstanding this, Auto Trader has generated quite a bit of negativity among dealers. Packages have been cancelled over concerns that its Deal Builder feature allows uncommitted buyers to tie up inventory and reduce customer leads. More generally, I wonder if investors are concerned about how the stock will react if there’s a slowdown in the UK economy. Car purchases can easily be postponed.

A P/E of 17 is far lower than it once was but feels about right considering these headwinds. Perhaps one to watch for now.

Essential buy?

Completing our trio of laggards is packaging, cleaning and safety products distributor Bunzl (LSE: BNZL). Most of its 37% year-to-date fall actually came in the spring as investors reacted to weaker-than-expected trading in key markets such as North America.

Bunzl now has a forecast P/E of just 12 for FY26. Whether this is sufficiently attractive for the risk involved is, of course, down to the individual Fool-follower to decide.

On one hand, this business should manage to hold its own in tough economic times due to the essential nature of what it supplies.

That said, the firm’s last update on 17 December didn’t bode well. Group operating margin is now expected to fall slightly in 2026. Analysts were anticipating a small improvement. This might explain why it’s the most popular stock of the three among short sellers (those betting the shares have further to fall).

With a recovery still looking some way off, we might not be in ‘screaming buy’ territory just yet.

The post Could these FTSE 100 losers be among the best stocks to buy in 2026? appeared first on The Motley Fool UK.