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    Home » Up 10% and 9% in a week! Are these 2 FTSE 100 stocks set for a stellar recovery?
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    Up 10% and 9% in a week! Are these 2 FTSE 100 stocks set for a stellar recovery?

    userBy userMay 4, 2025No Comments3 Mins Read
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    Image source: Getty Images

    FTSE 100 stocks had some fun last week as investors reconsidered the likely impact of Donald Trump’s trade tariffs. Two in particular led the charge.

    The Howden Joinery Group (LSE: HWDN) share price jumped an impressive 9.77%. However, it’s still down almost 8% over 12 months, after a tough 2024.

    Howden sells kitchens, joinery and hardware to tradesmen, so it’s been hit by the slowdown in the UK economy and housing market.

    How has it done it?

    Last week’s rally was fuelled by a positive update on 29 April. Trading was in line with expectations, with UK revenue up 2.6%. Markets were impressed by its expansion plans, as the board aims to open 20 to 25 new depots this year and refurbish 60 more. 

    It also highlighted strong customer take-up of its click-and-collect service and reaffirmed its focus on supporting self-employed builders. A £100m share buyback is under way.

    This marks an improvement on February’s full-year results, which showed profit flat at £328m and revenue up just 0.5% to £2.3bn. The board hit investor sentiment by warning of further contraction in the UK kitchenS market in 2025.

    The outlook seems brighter today, despite Trump. Where the Howden share price goes next hinges on the broader UK economy. 

    It needs a UK rebound

    If the Bank of England cuts interest rates sharply to support growth, that could spur housing activity and kitchen refits. Labour’s promised building boom might help, though I’m not convinced its targets are realistic.

    One risk is that if Howden’s investment in depot expansion and digital infrastructure fails to translate into stronger sales or margins, profitability could come under pressure.

    I’m always aware of profit takers after a well received set of results. The trailing dividend yield is a modest 2.06%. Its price-to-earnings ratio of 17.7 is above the FTSE 100 average. Given today’s uncertainty, I would have liked a cheaper entry point.

    Shares in medical appliance maker Smith & Nephew (LSE: SN) have also had a strong week, climbing 8.99%.

    They’re up 9% over 12 months but this follows a long and dismal spell in the doldrums. The Smith & Nephew share price is down 28% across five years and still trades at a 10-year low.

    I briefly held the stock what feels like a trillion years ago, and having read that, I’m glad I sold when I did.

    It isn’t cheap either

    Last week’s bounce was also triggered by a better-than-expected Q1 update. Sales rose 1.6% to $1.41bn, or 3.1% stripping out currency moves. 

    US demand for hip and knee replacements led the way, helping offset continued weakness in China. The company reaffirmed its full-year forecast of around 5% revenue growth and a margin push towards 20%. Broker Saxo reckons it’s relatively immune to tariffs. We’ll see.

    Smith & Nephew isn’t a ‘bargain’, with a price-to-earnings ratio just below 17. The 2.63% yield is reasonable, but nothing to write home about. The business is mid-way through a complex operational overhaul, and if savings or sales don’t materialise fast enough, investor patience could wear thin.

    Management has promised 2025 will mark the start of a more meaningful turnaround. I’m not expecting fireworks, but there’s a chance it could start to reward shareholders again.

    A recovery? It’s possible. Just maybe not stellar. I continue to watch from the sidelines for now.



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