Invezz.com - The FTSE 100 index has lagged behind its global peers this year. It has risen by just 6% this year, while the S&P 500 and Nasdaq 100 indices rose by over 20%. The index has also underperformed its European peers like the German DAX and French CAC 40. So, here are some of the best and worst-performing Footsie companies of 2024.
Rolls-Royce Holdings (LON:RR)
The Rolls-Royce share price has done superbly well this year as it jumped by almost 100%. Altogether, the stock has soared by almost 500% from its lowest level in 2020, making it one of the best-performing industrial companies in the world.
Rolls-Royce stock has done well because of the ongoing recovery in key industries like civil aviation, power, and defense. Its civil aviation segment has continued to see robust orders from its top clients, while the number of flying hours has jumped.
Rolls-Royce has also benefited from the recent craze of artificial intelligence and data center spending. Its engines have become an integral part of powering data centers. At the same time, the management has worked to boost efficiency by selling off some businesses and even laying off some workers.
IAG (IAG)
IAG, the parent company of British Airways (LON:ICAG), is the second-best performing company in the FTSE 100 index. Its stock has jumped by over 91% this year, joining other airline stocks like United Airlines and Delta Airlines (NYSE:DAL) that are thriving.
The IAG share price has soared as the load factor soared, leading to higher revenues and profits. It also restarted its dividends. The company has also benefited from its balance sheet improvement which has seen its total borrowings drop. Still, airlines are always cyclical stocks, and I will not be surprised if it retreats in 2025.
NatWest Group (LON:NWG)
NatWest share price has done well this year and is the third-best-performing company in the FTSE 100 index. It has soared by more than 435% from its lowest level during the pandemic. Also, it has done better than other UK banks like Lloyds (LON:LLOY) and Standard Chartered (LON:STAN).
NatWest’s performance is mostly because the UK economy has not imploded as some analysts were expecting. Instead, it has had some modest growth this year. NatWest, like Lloyds, is often seen as a good proxy for the UK economy because it serves millions of customers in the country and has no major presence abroad.
InterContinental Hotels (LON:IHG)
The InterContinental Hotels Group share price has risen by over 40% this year, making it a top player in the FTSE 100 index. Its performance is because of the recovering and booming hotels industry now that global travel has resumed.
The company has published strong financial results and announced a large share repurchase program. Share repurchases help to boost a company’s stock by reducing the number of those that are outstanding.
3I Group (LON:III)
3I is a leading company in the financial services industry in the UK. It is a large player in the private equity and infrastructure investment industry, where it invests across Europe. 3I has invested in companies like Action (WA:ACT), Audley Travel, BoConcept, Scandlines, and Royal Sanders. It is also a top infrastructure investor, where it owns the Belfast City Airport, EC Waste, and Amwaste.
The 3I share price surged by over 40% this year as demand for alternative assets continued rising. Its business also continued doing well, a trend that may continue. Other private equity companies like Apollo and KKR have also jumped this year.
Other top companies that did well in the FTSE 100 index were firms like Anglo American (LON:AAL), Pearson (LON:PSON), London Stock Exchange (LON:LSEG), and Tesco (LON:TSCO).
On the other hand, some of the top laggards in the index are firms like Vistry Group (LON:VTYV), Whitbread (LON:WTB), Barratt Redrow (LON:RDW), and Prudential (LON:PRU).