As we embark on a new year, 2026, it's time to explore some of the most intriguing investment opportunities in the FTSE 100. Today, we'll delve into two stocks that offer exceptional value and could be a smart addition to your portfolio. But here's the catch: these stocks are not your typical blue-chip investments, and they come with their fair share of controversy and risks. So, let's dive in and uncover the potential hidden gems!
A Fallen Angel Rising?
Our first pick is WPP, a company that has seen its share price plummet by a staggering 60% in the last year. This dramatic decline has sparked intense debate among investors. The primary reason for this downfall is the company's multiple cuts to its sales and profit forecasts throughout 2025, which can be attributed to clients tightening their marketing budgets and reducing discretionary ad spending. However, this very decline presents an intriguing opportunity.
With a P/E ratio of just 6.50, WPP is now trading at a very attractive valuation. And there are several reasons to believe that a turnaround could be on the horizon. WPP is investing heavily in AI-driven tools and data platforms, which could position it as a leader in offering advanced insights to clients. Additionally, a major turnaround plan is being implemented under the leadership of the new CEO, Cindy Rose, who took charge in September. Over the next few months, we should start seeing signs of progress and a potential rebound in the company's performance.
Turning on the Engines: easyJet's Resilience
Next up is easyJet, a stock that has seen its share price decline by 11% over the last year. Despite this underperformance, easyJet released a very strong set of annual results in November. However, there were a few factors that contributed to this year's challenges. For instance, the revenue per available seat kilometre (RASK) fell by 3% compared to the previous year. Analysts at JP Morgan have also flagged that easyJet is facing pricing pressure on fares in the highly competitive short-haul market.
While these risks are certainly worth monitoring, I believe the market is being overly pessimistic about easyJet's prospects. The headline EBIT for the 2025 fiscal year was an impressive £703 million, up 18% from 2024. Furthermore, easyJet is becoming more diversified in its revenue streams, with a fairly even split between its airline operations and holidays division. This diversification should serve the company well moving forward.
Additionally, some investors may still be concerned about easyJet's performance during the pandemic. While it was undoubtedly a challenging time, the pandemic was a rare black swan event. easyJet has since rebounded strongly and is arguably in a better position now than before the pandemic struck. As people become more confident that another pandemic is unlikely in the near future, the easyJet share price should continue its upward trajectory.
Both WPP and easyJet offer compelling value propositions at the moment and could be worth considering for investors seeking growth opportunities.
Remember, investing carries risks, and it's crucial to conduct thorough research and seek professional advice before making any investment decisions.
What do you think about these investment opportunities? Are you ready to take the plunge with these controversial picks? Share your thoughts and opinions in the comments below!
