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Although the FTSE 100‘s risen by 16% since December 2024, it hasnât been a great year for three members of its index. Over the same period, WPP (LSE:WPP), Bunzl (LSE:BNZL), and Diageo (LSE:DGE) have seen their share prices fall 62%, 39%, and 35% respectively.
A £10,000 equal investment in all three a year ago, would now be worth just £5,500. But could each of them be a buying opportunity? Letâs take a closer look.
1. WPP
Advertising and marketing agency WPP appears to be suffering from the impact of artificial intelligence (AI). Although itâs investing heavily in the technology to help improve its own product offer, AI makes it increasingly possible for companies to do more creative work themselves. Why pay a third party for something you can do yourself for less?
Some league tables have the group as the highest yielding on the FTSE 100 at the moment (15 December). But the groupâs cut its interim payout by 50% and has warned that it intends to take a âdisciplined approach to capital allocationâ. This sounds like a strong hint to me that income investors will be disappointed again when details of its final payout are revealed early in 2026.
Although the group has much going for it, including a strong global presence and an impressive blue-chip client list, with so much uncertainty surrounding the industry the stockâs too risky for me.
2. Bunzl
Bunzlâs share price fell off a cliff on 16 April (down 25%) after it issued a profit warning and announced a pause in its share buyback programme. However, since then, the international distribution groupâs shares have been relatively stable.
The companyâs been suffering from a âchallenging economic backdropâ, particularly in North America. But now there’s a little more certainty surrounding tariffs, the group was more positive in its most recent trading update. It reported âoperational improvementsâ and said it sees âsignificant opportunitiesâ for âcontinued acquisition growthâ.
Although further tariff announcements can’t be ruled out and the global economy continues to face some headwinds, it looks to me as though the worst could be behind the group. And its dividend’s pretty much in line with the FTSE 100 average.
On this basis, I think Bunzl looks like one to consider.
3. Diageo
Another stock I think is worth considering is international drinks group Diageo. Sales have been falling as younger consumers appear to be drinking better, not more. In other words, they’re going upmarket.
Against this backdrop, all eyes will be on the groupâs new boss, Sir Dave Lewis, who takes up his position on 1 January. During his time at Unilever and Tesco, âDrastic Daveâ established a reputation for cutting costs. In his new role, heâs going to have to focus on the top line too. And Iâm sure he will be seeking to address the groupâs debt, which is also going in the wrong direction.
But with over 200 brands in its portfolio, including 13 with annual sales of $1bn or more, I wouldnât be writing off the group just yet. And Diaegoâs success with Guinness shows that a brand thatâs been around since 1759 can continue to be relevant and prosper.
One advantage of its falling share price is that the stockâs now yielding an above-average 4.6%.
The post Is it time to consider gobbling up these 3 FTSE 100 Christmas turkeys? appeared first on The Motley Fool UK.
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More reading
- Is this the last chance to buy these FTSE 100 shares on the cheap?
- Would I be mad to buy more Diageo shares near £16?
- Down 60% since 2022: can Diageoâs share price ever stage a turnaround?
- If the AI bubble bursts, will cheap FTSE 100 stocks shine?
- Could this FTSE 100 stock be the next to make a 200% gain in one year?
James Beard has no position in any of the shares mentioned. The Motley Fool UK has recommended Bunzl Plc, Diageo Plc, Tesco Plc, and Unilever. 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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