These FTSE 100 shares could rise 15% to 36% in the next year!

Is the market underestimating these top FTSE 100 stocks? Royston Wild explains why analysts expect these two blue-chip shares to rocket in value.

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The UK’s FTSE 100 share index has gone gangbusters in recent months. It could have much further to run too, given the steady improvement in investor confidence and the enduring cheapness of British stocks.

These Footsie-listed companies look especially cheap at current prices. In fact, City analysts believe their shares will soar between 15% and 36% in value over the next 12 months.

Here’s what investors need to know about them.

GSK

A weak development pipeline means GSK (LSE:GSK) has underperformed the broader healthcare industry of late. But recent signs of recovery mean profits could be about to accelerate strongly.

Just last week, the firm reported positive Phase III results for its Depemokimab asthma battler. This follows four impressive outcomes at the same testing stage during the first quarter.

GSK now has almost 90 products in its R&D pipeline. Given its impressive track record of getting new products off the ground, it now looks in great shape to get sales firing again.

City brokers certainly think so. It’s why they predict earnings growth will speed up from 3% this year to 10% and 11% in 2025 and 2026 respectively.

Fifteen analysts currently have ratings on GSK shares. And the average 12-month price target among them stands at £20.32 per share. That’s a premium of around 15% from current levels.

Of course, success at the testing phase is never guaranteed. And any failures could erode GSK’s share price. But on balance, I think investing in the drugs developer could be a shrewd move.

JD Sports Fashion

While the wider FTSE 100 has soared, sportswear retailer JD Sports (LSE:JD.) has failed to join in on the recent rally. This reflects enduring fears over consumer spending, given higher-than-expected inflation in its markets and, in turn, the possibility of disappointing interest rate cuts.

However, the City believes that investors may be overly cautious at the moment. It expects JD’s share price to hit £168.80 apiece within the next 12 months. That represents a 36% increase from current levels, and is based on the average price forecasts from 15 analysts.

At the turn of 2024, JD cut its profit forecasts for the 12 months to January, and its share price has failed to recover since. But reassuring trading news since then suggests the FTSE firm may be over the worst.

In March, it said that trading was “in line with our expectations” during the first seven weeks of the new financial year.

It also predicted that “trading conditions will improve as we move through the year, helped by a busy sporting summer, softer comparatives with last year from Q2 and an improving product pipeline towards the end of the year“.

It’s early days in the new fiscal period, but City brokers certainly expect earnings to rise significantly from recent levels. Growth of 8% and 15% is predicted for fiscal 2025 and 2026 respectively, rebounding from the 12% decline recorded last year.

JD Sports has a brilliant record of growing ahead of the broader athleisure market. And as it continues expanding — it announced the planned acquisition of US sportswear chain Hibbett in April — I think both profits and its share price could surge from current levels.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended GSK. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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