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Whereas the FTSE 100 index of main shares hit a brand new all-time excessive earlier this yr, 2025 has not been with out vital falls each within the index and within the costs of a lot of its particular person constituent shares.
Though many shares have finished very effectively over the previous month after early April’s market mayhem, I reckon some might nonetheless probably transfer quite a bit greater.
Restoration tales
To start out with, there are shares which were overwhelmed down and began to recuperate, however are nonetheless effectively beneath their earlier highs.
For instance, 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% 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 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 whole year-on-year gross sales progress of seven% and affirmed the board’s outlook for the total yr.
Elevated wage prices are a threat to income, partly serving to to elucidate the earlier worth decline, whereas a heat begin to the summer time might 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 might transfer greater from right here. I don’t plan to promote mine.
Development alternatives
What about shares which are already doing brilliantly, however could 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 surprise. It’s up 21% to date this yr and 138% over 5 years. On prime of that, it pays frequent dividends and has a 3% yield.
Right this moment (21 Might), the Video games Workshop share worth 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 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 unit website, gross sales volumes might undergo.
However the latest 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 constant 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 progress potential for the FTSE 100 agency and reckon that might probably assist preserve propelling its share worth upwards.
