Down 30% in 3 months, this FTSE 100 share might be a bargain!

After a roller-coaster ride in April and May, the UK’s FTSE 100 index is back to levels seen at end-February. As I write, the blue-chip index stands at 8,786.37 points, just 0.3% below its close on 28 February.

Having peaked at 8,908.82 on 3 March, the Footsie then plunged after President Trump introduced hefty new tariffs on US imports. At 2025’s low, the index hit rock-bottom on 7 April, plunging to 7,544.83. This left it 15.3% below its all-time record high.

Fortunately, the UK stock market has come roaring back and now lies 16.5% above 2025’s low. However, some FTSE 100 shares have fared much better than others during this turbulent period.

Footsie stars and dogs

Within the FTSE 100, there is a wide gap between winning and losing shares over the past three months.

In total, 57 stocks have risen in value, with these gains ranging from 57.7% to 0.5%. The average gain across these winners was 11.4%. This leaves 43 losers, with declines ranging from 0.3% to 29.3%. The average loss among these laggards was 8%.

As it happens, I’m always looking out for slumping stocks, as I sometimes find ‘fallen angels’ among deeply depressed shares. And I think I found one among these 43 battered businesses.

Bunzl blows up

During the latest market meltdown, I spotted one stock suffering a particularly brutal fall. On 16 April, FTSE 100 firm Bunzl (LSE: BNZL) released an underwhelming set of results. The market’s reaction was swift and savage, with shares in this British distributor of workplace supplies crashing 25.6% that day.

As a value/income/dividend investor, I thought this reaction was overdone. Hence, my wife and I snapped up stock in this potential recovery play, paying 2,275p a share for our stake. As I write, Bunzl stock hovers around 2,368p, 3.9% above our buy price. This values the group at £7.8bn, more than 36% below its 2024/25 high.

Still, I hope for a sustained share-price recovery — especially, given the shares closed at 2,538p as recently as 12 May. Meanwhile, this Footsie stock trades on 15.9 times trailing earnings, generating an earnings yield of 6.3% a year. This means that the dividend yield of 3.1% a year is covered a respectable two times by historic earnings.

Then again, Bunzl has already warned of weakness in its North American markets, so earnings will come under pressure this year. And higher tariffs — currently suspended — could depress margins even harder. And lower revenues, earnings, and cash flow might send this stock even lower.

In short, I see Bunzl as a beautiful bargain buy for fans of fallen angels to consider. And that’s why my wife and I intend to hold onto this FTSE 100 share for the long run!

The post Down 30% in 3 months, this FTSE 100 share might be a bargain! appeared first on The Motley Fool UK.

More reading

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• The FTSE 100 is on a 15-day winning streak
• Is April’s worst-performing FTSE blue-chip the best share to buy in May?
• 1 month after ‘Liberation Day’, here are the FTSE 100’s winners and losers

The Motley Fool UK has recommended Bunzl. Cliff D’Arcy has an economic interest in Bunzl shares. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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