Up 45%, will this FTSE 100 growth share soar AGAIN in 2025? I think it could

Looking for the best FTSE 100 growth shares to buy for the New Year? Here’s a soaring stock I plan to buy more of for my own portfolio very soon.

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This brilliant UK stock has risen from £99 per share at the turn of the year to around £143 today. I believe it could be one of the FTSE 100‘s best performing stocks in 2025 as well.

Here’s why.

Fantasy hero

Created with Highcharts 11.4.3Games Workshop Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Games Workshop (LSE:GAW) shares haven’t hit the Footsie just yet. But they will get a seat among the big boys just before Christmas, on 23 December.

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Other upcoming promotions from the FTSE 250 are Alliance Witan and St James’ Place.

Since the start of 2024, Games Workshop’s share price has surged a whopping 45%. It now has a market cap of £4.7bn, which — on the face of it — is remarkable, considering the niche products that it specialises in.

Beloved products

In a nutshell, the business designs, manufactures, distributes, and sells miniature plastic models in kit form. Individuals choose from a wide range of figures that they build and paint, and then put into battle in tabletop wargaming scenarios.

Two Warhammer 40,000 armies in action.
Source: Games Workshop Limited

This isn’t one of your everyday industries, then. But make no mistake: this is a fast-growing global phenomenon, and Games Workshop has positioned it at the forefront with market-leading franchises like Warhammer 40,000.

Collecting and building Warhammer miniatures is highly addictive, and has led to Games Workshop’s products being playfully referred to as ‘plastic crack.’ This allows sales to remain broadly stable even during downturns. It also means the company enjoys stunning profit margins (core gross margins were 69.4% in the last financial year).

Price drivers?

But what could lead Games Workshop’s shares even higher in 2025?

One potential driver could be further strong product launches. New releases have sold like proverbial hot cakes in recent quarters, with pre-orders (especially on Warhammer 40,000 products) selling out within minutes on Games Workshop’s own website, alongside those of third-party retailers.

Another could be rapid sales increases as the company grows its global store estate and improves its online shop. Soaring interest for fantasy gaming means it now has 548 stores, up from around 420 a decade ago.

Games Workshop could also see a further sharp rise in licencing revenue, which rose 22% in the last financial year. The firm is looking to increasingly licence its intellectual property to media and entertainment companies, and is in talks with Amazon to produce television and film content based on Warhammer 40,000.

A top buy

It’s important to note that Games Workshop’s shares carry a meaty premium at current prices. A price-to-earnings (P/E) ratio of 29.1 times is way above the FTSE 100 average of 14.3.

This may not only limit further price gains in the new year. It could even prompt a price reversal if profits come under unexpected pressure, such as from rising costs or increasing competitive threats.

But on balance, I’m still expecting the company to be one of the Footsie’s best peformers in 2025.

I already own Games Workshop shares in my Self-Invested Personal Pension (SIPP). And I’m planning on buying more as soon as I next have spare cash to invest.

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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.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has positions in Games Workshop Group Plc. The Motley Fool UK has recommended Amazon and Games Workshop Group Plc. 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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