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. FTSE 100 This year he was in an excellent double -digit form. According to my data provider, 71 shares will enhance, and this number would be a bit more if we took into account dividend payments.
However, there is a pair of FTSE 100 shares that are rooted at the bottom of the performance table. Here I will look at both to see if it looks like a high feedback in any of them.
WPP
Let’s start with the worst Blue Chip Index program: WPP (LSE: WPP). Actions of a fighting advertising group have fallen by 47.8% so far and at the lowest level since 2009!
Investors are afraid that generative artificial intelligence is in the process of disturbing part of the advertising industry. Platforms such as Facebook and Tiktok give brands powerful tools for creating, starting and optimizing campaign, potentially reducing the demand for agencies.
The outgoing director of Mark Reid was truthful in terms of threat, admitting that AI is “Completely disturbing” industry. This explains why the shares are trading in relation to the ahead of the forward to profit (P/E) of only six, while offering 9.2% of dividend profitability.
Of course, imaginative quality still matters, and the formulation of the brand’s strategy will probably always need people. Starting from September, WPP has a novel Cindy Rose -shaped CEO. Has experience with higher managerial positions at the address Microsoft. It may turn around the ship.
Bug
The second worst footing is Bug (LSE: BNZL). So far it has fallen by 29.8%.
The company provides the necessary non -food products, such as packaging, safety equipment and cleaning products for companies in various sectors. Until recently, Bunzl had a reputation of a lasting complicated (often the best investments).
But in the first quarter of the company’s operations in North America, which constitutes more than half of revenues, it was feeble. He suffered from price pressure and unsuccessful emphasis on the products of his own brand. As a result, the margin is weakened and managing now sees basic income ending essentially during the year.
The key risk is that a hard American macroeconomic background can get worse. Also, the planned redemption of shares worth 200 million pounds was detained after spending only 115 million pounds.
I consider it disappointing, because the actions are currently commercial at the level of 2016. In other words, it would be the perfect time to put the foot on the redemption accelerator, not hit the breaks.
My choice here
Considering the sedate challenges and uncertainty that WPP faces, I don’t think the actions look particularly attractive. It can be a falling knife, and it can change in the wrong direction for some time.
Bunzl, on the other hand, seems to fight for an enhance due to the gentle market and macroeconomic uncertainty. I don’t think something is wrong in the company.
Importantly, the general director of Bunzla, Frank Van Zanten, remains a certain average term: “My trust in the group’s growth strategy and a resistant business model remains unchanged … The group is still very well prepared to move periods of macroeconomic uncertainty. ”
After this year’s sale, the valuation looks economical, with the front p/E indicator of 13 and 3.2% dividend performance. I think that it is worth considering the Bunzl supply for your return potential.
