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FTSE 100 stocks have been all over the shop in recent weeks due to the Iran war and the spectre of higher interest rates. By my count Thursday (2 April), there are now 15 Footsie shares — fittingly enough — that have dropped 15% or more year to date.
The biggest faller has been Barratt Redrow, which has crashed 30.6%. The housebuilder was already enduring a “subdued trading environment” back in February. With inflation rising and rate cuts on hold (or worse), mortgages are probably going to become even less affordable.
Similarly, two other housebuilders have sold off: Berkeley (-20.4%) and Persimmon (-19.2%). Leading property search platform Rightmove (-18.5%) makes an appearance, but it’s also been caught up in the AI-will-destroy-software panic.
Speaking of which, Experian (-22%), Sage (-21.3%), Auto Trader (19.5%), and RELX (-17.5%) also join this list. Investors fear autonomous AI agents could potentially cut out data platforms, or at least make their datasets less valuable.
This is probably unlikely for these four, in my opinion, but investors aren’t waiting around to find out. The technology definitely presents pricing power challenges (as well as opportunities) for some software companies.
Elsewhere, gambling group Entain has slumped 24.7% year to date, with concerns rising about the surging popularity of prediction markets across the pond. Former FTSE 100 peer Flutter Entertainment has crashed 53% in 2026!
Other abandoned names include Metlen Energy & Metals (-24.5%), Intertek (-19.7%), JD Sports Fashion (-16.6%), Pershing Square (16.3%) and private equity specialist ICG (-21.6%).
My favourite
Eagle-eyed readers will have spotted that I’ve only mentioned 14 FTSE 100 stocks. So which is my hidden favourite?
Well, I do like Experian, RELX, and ICG, while still holding shares in Pershing Square and Sage. But I’m going with 3i Group (LSE:III), which has bombed 21% year to date.
Private equity trust 3i has sold off because top holding Action is reporting slowing like-for-like sales. And the Europe-based discount retailer intends to invest up to €400m entering the US market over the next few years.
Both of these things add risk, especially if higher European energy and transport costs put further pressure on margins. However, a bit of perspective is needed here. In 2025, Action achieved net sales of €16bn and EBITDA of €2.37bn, up 16% and 14% year on year respectively.
It also intends to expand to 4,650 stores across Europe, up from 3,302 at the end of 2025. It had €900m in cash and cash equivalents in March and plans to make another dividend payment to shareholders in the coming weeks (including, of course, majority shareholder 3i).
Speaking of dividends, 3i’s forward yield has risen to 3.7%. Combine this with a sizeable 23% discount to net asset value, and I think the stock now deserves close attention.
Finally, it’s worth noting that CEO Simon Borrows bought 350,147 shares last week, for a total value of £8.94m. That’s certainly a head-turning sum.
But that’s not all, because on Monday (30 March) senior partner Peter Wirtz splashed out £584,722 on 25,000 shares. Clearly, these vastly experienced insiders think 3i is significantly undervalued right now.
I agree, and intend to follow them by making 3i my first investment this month. Mind you, it will be inside my Stocks and Shares ISA, so will be a tad lower than £8.9m!
This story originally appeared on Motley Fool
