2 FTSE 100 shares with strong growth prospects for 2025

Sometimes the best growth prospects aren’t in the most obvious stocks. Stephen Wright looks at two FTSE 100 firms he thinks can do well in 2025.

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Investors need to be careful with growth stocks. Shares in companies with the potential to increase their earnings often come with high price tags, making the investment equation less attractive.  

The key, in my view, is to find opportunities where the outlook is better than the market might be expecting. And a couple of names from the FTSE 100 stand out to me at the moment.

Should you invest £1,000 in Bunzl Plc right now?

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Bunzl

Bunzl (LSE:BNZL) is a FTSE 100 distribution business that ships things like carrier bags, food packaging, and hygiene products. Around 60% of its revenues come from the US. 

The firm’s most recent trading update reported a decline in underlying revenues. But like Unilever, there are a couple of reasons for thinking things are brighter than they look.

One is that a lot of the drop seems to have been due to the dollar weakening against the pound between July and September. But this has already reversed over the last couple of months. 

Another is the company has a strong acquisition pipeline to drive future revenue increases. In 2024, the firm has announced 11 deals and it expects more to come next year. 

Investors should keep an eye on how the firm plans to finance its growth though. It’s currently above its leverage target and that represents a risk for potential shareholders to consider. 

Overall, though, Bunzl looks like a strong business with a competitive position that keeps improving as it grows. I think it could be one to watch carefully in 2025.

Unilever

Unilever (LSE:ULVR) probably isn’t the first FTSE 100 name that comes to mind for investors thinking about growth. But the company has done very well in 2024. 

The firm is expecting to report an increase in sales of roughly 5%. In my view though, the most impressive thing is where that growth is coming from.

Unilever’s strong brand portfolio should allow it to raise prices over time. But aside from its ice cream business – which it plans to divest – this isn’t where growth has been found.

Rising sales have largely been driven by higher volumes. This suggests to me that the company can increase prices later to unlock further revenue growth over time. 

With this type of business, consumers switching to other products – either due to price or preference – is always a risk. There are no contracts here that secure long-term revenues. 

That means Unilever will have to rely on its brand power to keep growing sales. But it has done a good job of this in 2024 and I expect this to continue next year as its restructuring continues.

Buying opportunities?

Neither Bunzl nor Unilever is an obvious bargain right now. Both trade at price-to-earnings (P/E) ratios of over 20 – well above the FTSE 100 average. 

Both are stocks for my watchlist though, as their future prospects are easy to underestimate. They’re steady, rather than spectacular, but consistency could be a winning formula over time.

I expect both businesses to keep moving forward in 2025. And if a better opportunity presents itself, I’ll look to buy the stocks.

But here’s another bargain investment that looks absurdly dirt-cheap:

Like buying £1 for 31p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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.

Stephen Wright has positions in Unilever. The Motley Fool UK has recommended Bunzl Plc and Unilever. 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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