3 beaten-down UK shares to consider in an ISA before markets recover

UK shares have taken a hammering as Donald Trump’s trade threats rattle markets. Three FTSE 100 stocks have slumped around 20% in a month, making them the worst performers on the index.

So is this an opportunity to consider buying them in a Stocks and Shares ISA?

Stock	Sector	1 month performance	1 year performance	P/E ratio	Trailing yield
Bunzl	General Industrials	-22.75%	-23.17%	11.78x	3.23%
Melrose Industries	Aerospace	-21.4%	-34.63%	15.3x	1.46%
Glencore	Metals and mining	-19.79%	-45.91%	-26.1%	2.95%

Bunzl shares are struggling

I’ve previously hailed Bunzl (LSE: BNZL) an unsung FTSE hero. Today, investors will be howling with pain.

Its shares are down 23% in a month, and 23% over 12 months too. That’s a sharp fall for a stock I’ve viewed as one of the FTSE’s dark horses, which has a great track record for raising dividends year after year.

The group supplies everything from packaging to hygiene products to businesses around the world. It doesn’t make headlines often, but it does make money.

At least it did. On 16 April Bunzl cut guidance after a tricky start to 2025, notably in North America. Q1 profits dropped “significantly”.

The board warned of “significant uncertainties” over tariffs. Yet it looks reasonable value with a price-to-earnings (P/E) ratio sits at 11.8, while the yield has climbed to 3.2%.

Cost-cutting efforts could help margins recover in the second half. I’ve been tempted by Bunzl for years. Today, even more so.

The Melrose share price deserves better

Melrose Industries (LSE: MRO), owner of Aerospace engineer GKN, has been caught in the crossfire too, with shares falling more than 21% in a month and nearly 35% over the year.

That’s despite posting a solid set of results in March. Revenue rose 11% to £3.47bn, while adjusted profit jumped 38% to £566m. Dividends increased by 20%.

However, the good news was undermined as 2025 revenue projections of between £3.55bn and £3.7bn undershot expectations of £3.77bn.

That’s cast a shadow over the group’s optimistic five-year targets, including a plan to hit £5bn in revenue and £600m in annual free cash flow by 2029.

Now the global aviation sector has been pummelled by Trump tariff and recession fears.

With the P/E down to 15 times, I think Melrose is now worth considering with a long-term view. But we can’t rule our further short-term turbulence.

Glencore shares have lost their shine

Mining and metals heavyweight Glencore (LSE: GLEN) was struggling long before trade tensions flared, as falling demand from China hit prices.

Now we have tariff and recession fears to content with, too. No wonder the share price has collapsed nearly 46% over the year.

2024 results, published on 19 February, were nothing to shout about. Adjusted EBITDA earnings fell 16% to $14.36bn. This was mainly down to falling coal prices over the year. Net debt jumped from $4.9bn to $11.2bn, despite “healthy cash generation”.

Still, shareholder returns are holding up, with $2.2bn pledged in dividends and buybacks.

I hold Glencore. The income should softly blow while I wait for the shares to recover, but I may have to be patient as the global economy looks set to struggle for a while.

Investors should think carefully before considering Glencore. Bunzl and Melrose look better placed to benefit from the recovery, in my view.

The post 3 beaten-down UK shares to consider in an ISA before markets recover appeared first on The Motley Fool UK.

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Harvey Jones has positions in Glencore Plc. The Motley Fool UK has recommended Bunzl Plc and Melrose Industries Plc. 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.