Capitalists And Money

Here are FTSE 100’s worst performers of 2024: will they bounce back in 2025?

The FTSE 100 had a solid year overall aided by the Labour party’s landslide victory in the general election, and the Bank of England starting to cut interest rates in what collectively helped boost UK stocks.

The UK’s blue-chip index is up 5.36% year-to-date after reaching an all-time high close of 8,445.80 points in May.

To be sure, the FTSE 100’s rise is still well behind the 27% return delivered by the S&P 500.

Many individual stocks within the FTSE 100 struggled with their shares dropping by more than 10%, and some seeing declines of as much as 20%.

Here’s a closer look at three of the FTSE 100’s worst performers in 2024 and their rebound potential for 2025.

JD Sports Fashion

JD Sports Fashion had a turbulent ride this year marked by multiple profit warnings that have pushed the company’s stock price down by more than 41% YTD.

As 2025 approaches, uncertainty looms due to unpredictable consumer spending and rising costs stemming from the UK’s recent budget.

However, with a price-to-earnings (P/E) ratio of just 6.5, the low valuation, aided by positive trading conditions, could see a substantial rebound.

“Currently, I’m under water. Yet having walked into several JD Sports stores recently and seen plenty of consumer activity, I’m happy to hold,” said Edward Sheldon, CFA, of Motley Fool.

Schroders

Investment manager Schroders (LSE: SDR) declined steadily throughout the year, as challenges in the broader active fund management space dragged the stock down.

On December 27, its share price was down more than 27% YTD.

At current levels, the stock appears to be attractively priced, with a P/E ratio of 10 and a dividend yield close to 7%.

However, the rise of index funds continues to pressure active managers like Schroders, creating an uncertain outlook for 2025.

“Given this trend and the stock’s poor performance during a global bull market, I’m skeptical about its ability to rebound next year and won’t be adding it to my portfolio,” said Sheldon.

Prudential

Asia and Africa-focused insurer Prudential (LSE: PRU) has struggled for nearly two years, largely due to weak economic conditions in China.

Its share price was down by more than 25% YTD on December 27.

The stock’s 2025 movement is likely to depend on China’s economic recovery.

Positive developments could push the share price up, but further deterioration or escalating trade tensions with the US pose significant risks.

‘Now, I own this stock myself. And I’m down heavily (it’s one of the worst performers in my portfolio). But with the stock trading on a low P/E ratio of 7.8, I do believe there’s potential for a recovery. It’s just hard to know if we’ll see this in 2025,” Sheldon adds.

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