Picture supply: Getty Photographs
Whereas the FTSE 100 index of main shares hit a brand new all-time excessive earlier this 12 months, 2025 has not been with out vital falls each within the index and within the costs of lots of its particular person constituent shares.
Though many shares have done very well over the past month after early April’s market mayhem, I reckon some might nonetheless doubtlessly transfer loads larger.
Restoration tales
To start out with, there are shares which were crushed down and began to get better, however are nonetheless properly under their earlier highs.
For example, I purchased Greggs (LSE: GRG) shares for my portfolio this 12 months. The share worth is up over 20% since earlier this month – however that also leaves it 23% under the place it started the 12 months.
Now, simply because a share (even a FTSE 100 one) falls doesn’t essentially imply it’ll 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 12 months reported whole year-on-year gross sales development of seven% and affirmed the board’s outlook for the total 12 months.
Elevated wage prices are a threat to income, partly serving to to clarify 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 robust model, community of over 2,600 retailers, and compelling worth proposition for cash-strapped customers, I reckon Greggs shares might transfer larger from right here. I don’t plan to promote mine.
Progress alternatives
What about shares which are already doing brilliantly, however might do even higher in coming months due to robust enterprise development alternatives?
Video games Workshop (LSE: GAW) has lengthy been a favorite with many retail traders. No marvel. It’s up 21% to date this 12 months and 138% over 5 years. On prime of that, it pays frequent dividends and has a 3% yield.
At the moment (21 Could), the Video games Workshop share worth hit an all-time excessive. After rising 2,940% up to now decade, would possibly the FTSE 100 share now be overvalued?
Probably, sure.
The price-to-earnings ratio of 30 is just not 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 unit web site, gross sales volumes might undergo.
However the newest buying and selling replace, in March, stated 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 large 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 development potential for the FTSE 100 agency and reckon that might doubtlessly assist preserve propelling its share worth upwards.
| CoinFN
