Taylor Wimpey (TW) is at a crossroads as it's about to be ejected from the famous FTSE 100 index. The Taylor Wimpey stock is down by 18% since the beginning of the year and will now be replaced by Metlen Energy and Metals.
The Taylor Wimpey stock will move from the FTSE 100 to the FTSE 250. A natural reaction to this move will be selling from funds that only invest in the FTSE 100.
At the same time, the corporate and individual traders will also likely sell their holdings of the Taylor Wimpey stock. So, we can expect the Taylor Wimpey stock to decline even more after its ejection from the FTSE 100.
It's safe to say that Taylor Wimpey had a tough year, and even harder times are ahead for the stock. The company is already struggling with cost inflation and has had to spend more money on fire safety remediation.
In the end, Taylor Wimpey ended up having a loss of 92 million before taxes during the 1H2025. According to experts, the full-year profit will be around 424 million.
Although the Taylor Wimpey stock is struggling, the company is still paying a dividend. So, with all the negative things going on, the only positive thing is the dividends.
There's no doubt that the biggest challenge for Taylor Wimpey is the rising costs, which are now eating away at the profits. That's why the P/E ratio of Taylor Wimpey is now also below 10.
Overall, more selling pressure will likely be seen in the Taylor Wimpey stocks. This will be from the institutions that will exit the stock now that it is leaving the FTSE 100 index.
Even if we look at the fundamentals, Taylor Wimpey has a lot to deal with on its plate. So even from that angle, there's not much to like about the Taylor Wimpey stock.