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The FTSE 100‘s risen a healthy 7% in 2024 as enthusiasm for UK shares has improved. But not all British blue-chips have had an enjoyable ride since the turn of the year.
B&M European Value Retail‘s (LSE:BME) fallen more than a quarter in value so far this year.
I wouldn’t rule out further share price weakness for the rest of the year or even during 2025 either. But as a long-term investor, I’ll consider buying it when I next have spare cash to invest.
Here’s why.
Fallen angel
A 29% share price decline in 2024 has seen B&M’s forward price-to-earnings (P/E) ratio topple to 10.5 times. This is well below the FTSE 100 average of 15 times. And it’s a multiple I believe is far too low.
Investors were spooked in June by the retailer’s failure to offer guidance for this financial year (to March 2025). And it’s failed to recover ground since then, with latest…
