2 FTSE 100 growth shares that could shine in 2025

Paul Summers picks out two FTSE 100 growth shares that, despite performing very differently in 2024, he thinks could end up doing rather well in 2025.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Considering the big gains made across the pond in 2024, UK-focused investors will surely be hoping for a more prosperous 2025. With this in mind, I’ve been scanning the FTSE 100 index for growth shares that investors with the goal of beating the market over the next 12 months might want to consider buying now.

Contrarian pick

Pest control giant Rentokil Initial (LSE: RTO) may seem like a strange choice. Holders had a poor 2024 with its shares ending the year 7% lower than where they started. However, it could have been far worse. By mid-October, that loss stood at over 20%!

Created with Highcharts 11.4.3Rentokil Initial Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

A lot of this poor form has been down to concerns over rising costs and problems relating to its acquisition of US-rival Terminix. In October, the company announced that synergies from the latter’s integration would be hit by a two-to-three-month delay. Clearly, this was never going to go down well with an already-skittish market. Any further delays could easily make a bad situation worse.

Should you invest £1,000 in Gsk right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Gsk made the list?

See the 6 stocks

On sale

If there’s an upside to all this, it’s that Rentokil Initial’s valuation has tumbled.

Sure, a forward price-to-earnings (P/E) ratio of 18 doesn’t scream ‘bargain’. But it’s an awful low lower than the firm’s five-year average of 34.

It’s worth noting that there’s not a lot of interest from short sellers in the stock either. Put another way, few traders seem to believe that the share price has further to fall.

I’m inclined to agree, especially if management’s cost-saving strategy (also announced in October) has worked. Any chink of light in March’s full-year results could see a rebound in demand for the stock.

Growing interest

Property portal Rightmove (LSE: RMV) could also have a great 2025. In fact, I wonder if the share price could do particularly well in the first few months due to prospective buyers wanting to avoid April’s rise in stamp duty.

Backing this up, the Royal Institution of Chartered Surveyors recently reported that its members — estate agents and surveyors — were receiving more enquiries and seeing more sales going through. I reckon this all bodes well for Rightmove’s next set of full-year numbers, due at the end of February.

In contrast to Rentokil Initial, the stock performed pretty well in 2024, benefitting from interest rates finally beginning to be cut. However, the real boost came as a result of multiple, if ultimately rejected, takeover bids from REA Group.

Created with Highcharts 11.4.3Rightmove Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Quality stock

Of course, now that takeover talk has died down, there’s an argument for saying that the shares might lose steam. A longer-than-expected bounce in inflation, and the consequences this would have for interest rates, could also impact sentiment. And what happens when that stamp duty rise kicks in?

As things stand, Rightmove shares aren’t exactly cheap either, changing hands for 22 times forecast FY25 earnings. That’s a far higher price tag compared to the average UK stock.

However, as at Rentokil Initial, that valuation is far below the company’s average P/E over the last five years. I also think it’s fully-justified given the £5bn cap’s incredible margins, solid finances and market dominance.

And who is to say another takeover approach won’t be made in 2025?

But what does the head of The Motley Fool’s investing team think?

Should you invest £1,000 in Gsk right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Gsk made the list?

See the 6 stocks

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.

Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Rightmove 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.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p 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 8.5%, 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

More on Investing Articles

Investing Articles

2 FTSE 100 and FTSE 250 stocks to consider as stock markets plummet!

Looking for lifeboats as growth-crushing trade tariffs loom? Here are two (including a FTSE 100 gold stock) I think merit…

Read more »

Number three written on white chat bubble on blue background
Investing Articles

Just released: the 3 best growth-focused stocks to consider buying in April [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Happy young plus size woman sitting at kitchen table and watching tv series on tablet computer
Investing Articles

£10,000 invested in Watches of Switzerland shares 1 year ago is now worth…

Watches of Switzerland shares have been decimated by Trump’s tariffs on Switzerland. Dr James Fox explores whether this is an…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Growth stocks are crashing! Here’s what I’m doing now

Our writer shares his thoughts as growth stocks get crushed, as well as a favourite from the Nasdaq that he…

Read more »

Investing Articles

What’s going on with the Nvidia share price now?

The Nvidia share price is tanking. Once the most valuable listed company, Nvidia has seen more than $1trn wiped off…

Read more »

Investing Articles

This FTSE AIM stock has £2.3bn in net cash, and a market cap of £2.4bn!

I love this FTSE AIM stock, but it really hasn’t delivered for me yet. The stock trades with crazily low…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Down 15% in a week! Are these 5 FTSE 100 fallers screaming buys as markets plunge?

Five of Harvey Jones's favourite FTSE 100 stocks all have the same thing in common – they've fallen around 15%…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

2 stocks that have been crushed and now offer a ton of value

Edward Sheldon has been scanning the market for stocks that offer value after the sell-off. Here are two shares he…

Read more »