Whereas the FTSE 100 index of main shares hit a brand new all-time excessive earlier this yr, 2025 has not been with out important falls each within the index and within the costs of a lot of its particular person constituent shares.
Though many shares have completed very effectively over the previous month after early April’s market mayhem, I reckon some might nonetheless doubtlessly transfer loads greater.
Restoration tales
To begin with, there are shares which have been overwhelmed down and began to get better, however are nonetheless effectively under their earlier highs.
For example, I purchased Greggs (LSE: GRG) shares for my portfolio this yr. The share worth is up over 20% since earlier this month – however that also leaves it 23% under the place it started the yr.
Now, simply because a share (even a FTSE 100 one) falls doesn’t essentially imply it can ever get again to the place it was. Some preserve falling, are relegated into the FTSE 250, and proceed their downwards motion from there till obscurity.
However I reckon the present Greggs share worth undervalues the corporate’s future prospects. This week’s buying and selling replace for the primary 20 weeks of the yr reported complete year-on-year gross sales progress of seven% and affirmed the board’s outlook for the total yr.
Elevated wage prices are a danger to income, partly serving to to elucidate the earlier worth decline, whereas a heat begin to the summer season might additionally imply much less demand for warm pastries like sausage rolls.
However with its sturdy model, community of over 2,600 outlets, and compelling worth proposition for cash-strapped shoppers, I reckon Greggs shares might transfer greater from right here. I don’t plan to promote mine.
Development alternatives
What about shares which might be already doing brilliantly, however might do even higher in coming months due to sturdy enterprise progress alternatives?
Video games Workshop (LSE: GAW) has lengthy been a favorite with many retail traders. No marvel. It’s up 21% thus far this yr and 138% over 5 years. On high of that, it pays frequent dividends and has a 3% yield.
At this time (21 Could), the Video games Workshop share worth hit an all-time excessive. After rising 2,940% previously decade, may the FTSE 100 share now be overvalued?
Presumably, sure.
The value-to-earnings ratio of 30 will not be low. The corporate’s pricy merchandise might imply demand falls in a weak financial system. Its concentrated manufacturing footprint brings the chance that if one thing impacts productiveness at its core manufacturing facility website, gross sales volumes might undergo.
However the latest buying and selling replace, in March, mentioned 2025 had began strongly. Video games Workshop raised its full-year expectations. It continues to increase in excessive revenue margin areas like licensing its mental property.
The corporate’s distinctive mental property and dependable fanbase are huge aggressive benefits as I see it. Media offers might assist develop the recognition of the agency’s video games franchises – and its income.
I see substantial additional enterprise progress potential for the FTSE 100 agency and reckon that would doubtlessly assist preserve propelling its share worth upwards.
The put up These FTSE 100 shares might soar within the coming yr appeared first on The Motley Idiot UK.
Must you make investments £1,000 in Video games Workshop proper now?
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Extra studying
- What number of Greggs shares would I want for £1,000 a month of passive revenue?
- After optimistic Q1 outcomes, is the worst now over for the Greggs share worth?
- Prediction: this FTSE 250 inventory might bounce again on Tuesday
- Right here’s a portfolio of three FTSE 100 shares for passive revenue AND progress!
- £10,000 invested in Greggs shares 2 months in the past is now price…
C Ruane has positions in Greggs Plc. The Motley Idiot UK has really helpful Video games Workshop Group Plc and Greggs Plc. Views expressed on the businesses talked about on this article are these of the author and subsequently might differ from the official suggestions we make in our subscription companies reminiscent of Share Advisor, Hidden Winners and Professional. Right here at The Motley Idiot we consider that contemplating a various vary of insights makes us higher traders.
