Listed below are the worst-performing FTSE 100 stocks over the past 5 years

Within the final 5 years, particular person FTSE 100 stocks have produced massively other returns. Some have soared whilst others have tanked. Right here, I’m going to zoom in at the 5 worst performers over this era. Are there any alternatives inside this team of shares?

Proportion worth motion

Ahead of I spotlight the laggards, I want to indicate two issues.

First, I’m handiest going to concentrate on percentage worth motion, so the efficiency figures don’t come with dividends. If I did come with dividends, a few of these shares most certainly wouldn’t be at the worst performers checklist as a result of source of revenue could make a large distinction to a inventory’s general returns.

2d, I’m handiest having a look at stocks which might be recently within the FTSE 100. Some shares have carried out so badly that they’ve been booted out of the index and at the moment are within the FTSE 250. Examples right here come with Ocado and Burberry.

The worst performers

Within the desk beneath, I’ve highlighted the ones worst Footsie performers over the past part decade. Fortuitously, I handiest personal one in every of them (extra in this later)!

It’s a captivating combine: the cheap airline operator, a telecoms corporate, an insurer, a housebuilder, and an asset supervisor.

All of those firms have confronted other demanding situations over the past 5 years. easyJet was once hit arduous by means of the pandemic and is but to recuperate. Persimmon has confronted decrease call for for its properties since rates of interest have risen. Vodafone has struggled with its debt pile in a higher-rate surroundings (and reduce its dividend). Prudential (LSE: PRU) has been hit by means of the commercial slowdown in China. And Schroders has confronted demanding situations as buyers have shifted clear of actively-managed funding budget.

In hindsight, a few of these demanding situations had been somewhat simple to identify. Vodafone’s debt pile, as an example, was once all the time a crimson flag. Alternatively, others had been tougher to are expecting. For instance, in early 2020, no person was once anticipating an international pandemic to convey the airline business to a standstill!

A takeaway this is that it’s a very powerful to diversify when development a portfolio. Regardless of how a lot analysis you do, there’s all the time the opportunity of issues nonetheless to move unsuitable.

Alternatives these days

Now, all of those shares may just probably rebound someday. Alternatively, the only I’m bullish on (and the only I personal) is Prudential. To my thoughts, it has probably the most doable in the end.

The explanation I say that is that the insurer’s now targeted at the Asian and African markets. And those have huge doable. Throughout those markets, there are over 5bn other folks. And these days, insurance coverage and financial savings product penetration stays very low.

For instance, in Mainland China, the share of the inhabitants that has existence insurance coverage is estimated to be lower than 10%. Right here in the United Kingdom, it’s estimated to be above 30%.

So there’s a large number of room for enlargement. I see Prudential as way more scalable than the opposite firms.

In fact, the downturn within the Chinese language financial system’s an issue right here. That is leading to much less enlargement and impacting sentiment against the inventory.

How lengthy this may occasionally final is any person’s bet. It will proceed for some time. Taking a five-to-10 12 months view then again, I believe the Chinese language financial system will come excellent. That’s why I’m striking directly to my Prudential stocks.