Picture supply: Getty Photos
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 lots of its particular person constituent shares.
Though many shares have completed very nicely over the previous month after early April’s market mayhem, I reckon some may nonetheless probably transfer quite a bit larger.
Restoration tales
To start out with, there are shares which have been crushed down and began to recuperate, however are nonetheless nicely beneath their earlier highs.
For example, I purchased Greggs (LSE: GRG) shares for my portfolio this yr. The share value is up over 20% since earlier this month – however that also leaves it 23% beneath 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 maintain falling, are relegated into the FTSE 250, and proceed their downwards motion from there till obscurity.
However I reckon the present Greggs share value 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 complete yr.
Elevated wage prices are a threat to earnings, partly serving to to clarify the earlier value decline, whereas a heat begin to the summer season may additionally imply much less demand for decent pastries like sausage rolls.
However with its sturdy model, community of over 2,600 retailers, and compelling worth proposition for cash-strapped customers, I reckon Greggs shares may transfer larger from right here. I don’t plan to promote mine.
Development alternatives
What about shares which can 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.
Immediately (21 Might), the Video games Workshop share value hit an all-time excessive. After rising 2,940% up to now decade, may the FTSE 100 share now be overvalued?
Presumably, sure.
The worth-to-earnings ratio of 30 isn’t low. The corporate’s pricy merchandise may imply demand falls in a weak financial system. Its concentrated manufacturing footprint brings the danger that if one thing impacts productiveness at its core manufacturing unit website, gross sales volumes may endure.
However the newest buying and selling replace, in March, mentioned 2025 had began strongly. Video games Workshop raised its full-year expectations. It continues to broaden 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 may assist develop the recognition of the agency’s video games franchises – and its earnings.
I see substantial additional enterprise progress potential for the FTSE 100 agency and reckon that might probably assist maintain propelling its share value upwards.
