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While the FTSE 100 has had a pretty stonking 2025, a few of our biggest companies have seen their share prices absolutely walloped.
But now could be the time to go hunting for bargains. In preparation, I’ve been running the rule over three of the ‘biggest losers’ out there.
Fallen FTSE 100 star
Shares in Diageo (LSE: DGE) have tumbled 37% in the last 12 months due to a toxic cocktail of sluggish sales growth, concerns over US tariffs and management changes. The arrival of weight-loss drugs and lack of interest among many young people for consuming alcohol have also been blamed.
Looking ahead, it’s hard to see this picture changing dramatically in 2026. Still, a lot of this is arguably reflected in the valuation. The price-to-earnings (P/E) ratio now stands at 13. That’s below the long-term average in the FTSE 100.
But based on its performance over the decades and portfolio of brands, this is far from a below-average company. And I wouldn’t want to bet against new CEO and former Tesco man Sir Dave Lewis working his turnaround magic here.
Half-year results in February will be essential reading. If these are even slightly better than expected, we could see some (big) positive momentum at last. The stock could also conceivably benefit from a rotation away from the AI/tech titans by investors.
Tough road ahead
Another top-tier struggler in 2025 has been automotive marketplace provider Auto Trader (LSE: AUTO). Its share price is down over 25% as I type and looks set to end the year at its lowest point.
I’ve long liked this growth stock for having a near-monopoly in its space. Thanks to being an online-only business, operating margins are among the highest in the FTSE 100 too.
Notwithstanding this, Auto Trader has generated quite a bit of negativity among dealers. Packages have been cancelled over concerns that its Deal Builder feature allows uncommitted buyers to tie up inventory and reduce customer leads. More generally, I wonder if investors are concerned about how the stock will react if there’s a slowdown in the UK economy. Car purchases can easily be postponed.
A P/E of 17 is far lower than it once was but feels about right considering these headwinds. Perhaps one to watch for now.
Essential buy?
Completing our trio of laggards is packaging, cleaning and safety products distributor Bunzl (LSE: BNZL). Most of its 37% year-to-date fall actually came in the spring as investors reacted to weaker-than-expected trading in key markets such as North America.
Bunzl now has a forecast P/E of just 12 for FY26. Whether this is sufficiently attractive for the risk involved is, of course, down to the individual Fool-follower to decide.
On one hand, this business should manage to hold its own in tough economic times due to the essential nature of what it supplies.
That said, the firm’s last update on 17 December didn’t bode well. Group operating margin is now expected to fall slightly in 2026. Analysts were anticipating a small improvement. This might explain why it’s the most popular stock of the three among short sellers (those betting the shares have further to fall).
With a recovery still looking some way off, we might not be in ‘screaming buy’ territory just yet.
