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Although the FTSE 100‘s risen by 16% since December 2024, it hasn’t 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? Let’s take a closer look.
1. WPP
Advertising and marketing agency WPP appears to be suffering from the impact of artificial intelligence (AI). Although it’s 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 group’s cut its interim payout by 50% and has warned that it intends to take a “disciplined approach to capital allocation”. 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 stock’s too risky for me.
2. Bunzl
Bunzl’s 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 group’s shares have been relatively stable.
The company’s been suffering from a “challenging economic backdrop”, 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 “operational improvements” and said it sees “significant opportunities” for “continued acquisition growth”.
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 group’s new boss, Sir Dave Lewis, who takes up his position on 1 January. During his time at Unilever and Tesco, ‘Drastic Dave’ established a reputation for cutting costs. In his new role, he’s going to have to focus on the top line too. And I’m sure he will be seeking to address the group’s 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 wouldn’t be writing off the group just yet. And Diaego’s success with Guinness shows that a brand that’s been around since 1759 can continue to be relevant and prosper.
One advantage of its falling share price is that the stock’s now yielding an above-average 4.6%.
