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the FTSE 100 It was in a double -figure good this year. According to my data provider, 71 shares have risen, and this number will be a little more if we include profit payments.
However, there is a pair of FTSE 100 shares rooted at the bottom of the performance schedule. Here, I will look at both to see if there is great potential in either of them.
WPP
Let’s start with the worst performance of the blue index: WPP (LSE: WPP). The shares of the troubled ads group have decreased by 47.8 % so far, and at their lowest level since 2009!
Investors are concerned that obstetric artificial intelligence is in the process of disrupting the parts of the advertising industry. Pits such as Facebook and Tiktok provide strong tools for creating, operating and improving campaigns, which may reduce the demand for agencies.
The outgoing CEO Mark Reed was honest about the threat, and he admitted that artificial intelligence “Completely disable” Industry. This explains the reason for trading the stock on a price rate (P/E) only six, with the profit revenue offered by 9.2 %.
Of course, creative quality is still important, and brand strategies will always need human beings. Starting in September, WPP has the new CEO in the form of Cindy Rose. She has experience with high leadership positions in Microsoft. Perhaps it can turn the ship.
Bonzel
The worst second worst to perform teeth is Bonzel (LSE: BNZL). 29.8 % has decreased so far this year.
The company provides basic non -food items such as packaging, safety equipment and cleaning products for companies across various sectors. Until recently, Bunzl has a good reputation for being a fixed compound (often the best investments).
But in the first quarter, the company’s business in North America, which represents more than half of the revenues, was weak. He suffered from pricing pressure and a failure in his brand products. As a result, the margins weaken and the administration is now witnessing that the revenues are widely ended for this year.
The main risks here are that the hard -working background of the United States can worsen. Also, a 200 million pounds re -purchasing a sterling arrow was suspended after spending only 115 million pounds.
I find this disappointing because the stocks are currently traded at 2016 levels. In other words, this will be the perfect time to put the foot on the re -purchase speed instead of hitting the breaks.
Choose my country here
Given the severe challenges and uncertainty facing WPP, I do not think the stocks look especially attractive. It may be a falling knife, and they can continue in the wrong direction for some time.
On the other hand, it seems that Bunzl is fighting for growth due to the soft market and total economic certainty. I don’t think there is anything wrong at work.
More importantly, Bunzl CEO Frank van Zanteen is still confident in the medium term: “My confidence in the group’s complex growth strategy and the flexible business model is still unchanged … The group is still in a very good position to move in periods of total economic uncertainty”
After sales for this year, the evaluation appears cheap, with the P/E front ratio from 13 and a 3.2 % profit return. I think Bunzl stocks deserve to consider its transformation capabilities.