What are the most heavily ‘discounted’ FTSE 100 shares so far this year?

The most obvious way to answer the question is to look at year-to-date performance. In what is turning out to be a pretty fine year (the index is up 8% already with three more months to go) we might think there wouldn’t be too many companies trading at discounted prices. In fact a total of 34 companies are cheaper as I write than they were on New Year’s Day, several of them double-digit percentages in the red. Here’s the ‘top’ 10.

Top 10

My initial thoughts on seeing that list are, it must be said, a great feeling of relief. I don’t own any of these stocks and haven’t suffered the hit on my brokerage account either. 

That’s not to say I’m some wizard of the market. A lot of this comes down to timing and luck. The BP and Centrica share prices have taken sizeable haircuts thanks to oil prices falling for much of the year and recently dipping below $70 a barrel. Thus a list like this of poor-performing stocks does not in itself tell us that much about the respective companies. 

What it can do rather is to form part of the initial fact finding when looking at stocks to buy. 

One name that might intrigue me is Barratt Developments. Housebuilders are in a much better place than they were a couple of years ago. And with interest rates on the way downwards a 14% discount sounds enticing (and perhaps surprising). 

But maybe it is less of a surprise given that there are changes coming out the company. However I’m not fully on board with the firm’s proposed merger with competitor Redrow. The deal still hasn’t gone through. And even if it does Barratt is paying a pretty penny to complete the move. I’ll avoid for now. 

Another stock in the list that stands out is Entain (LSE: ENT), the gambling group that owns PartyPoker, Coral and Ladbrokes.

Fact finding

The shares were on a downward trend even before 2024 and have slid around 64% from the all-time high. The current market cap of £5bn (around $6.7bn) is also some drop from a buyout offer of $11bn the company received back in 2021. Highlighting the possible opportunity here further is the fact that gambling, unlike many of the sectors the FTSE 100 is renowned for, is a growing market. 

Gambling comes with its own baggage of course. People can and do ruin their lives with it. There is no getting around that an investment here is an ethical grey area. 

The other side of the argument is that a flutter at the weekend on a couple of footie games is harmless. But it is certainly a reason to be put off. Not just for the ethical side either, but for potential regulation that could come in down the line. Still, for those looking for cheap stocks, this is one to keep an eye on. I’ll add it to my watchlist.