Every year, we ask our freelance writers to share their top ideas for growth stocks with investors to consider buying in the year ahead — here’s what they said for 2025!
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easyJet
What it does: A no-frills budget airline offering short-haul flights between the UK and many European destinations.
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By Mark David Hartley. Four years later the UK’s longest-running budget airline, easyJet (LSE: EZJ), has finally reinstated dividends. At 4.5p per each £5.17 share, it’s not much (0.9%) — but it’s indicative of a recovery. With the devastating losses of the pandemic now behind it, it’s on track for growth in 2025.
Cost-cutting exercises combined with a strategic overhaul of operations helped it become profitable again this year. Earnings are forecast to enjoy steady growth in the coming year and the average 12-month price target is between 20% to 30% above current levels.
But the risk of further travel disruption is not entirely off the table, as viral outbreaks remain an ever-present threat. Besides, it faces tough competition from rival budget airlines like Ryanair, Wizz Air and Jet2. With high debt and a low profit margin, there’s much work to be done but it’s on the right track for now.
Mark David Hartley owns shares in easyJet.
Fresnillo
What it does: Fresnillo is the largest primary silver producer in the world, and Mexico’s largest gold producer.
By Andrew Mackie. In the last 60 years there have only been two gold cycles: during the inflationary decade of the 1970s and in the decade following the dot.com crash in 2000. I am of the firm believe that we are in the early innings of a third gold cycle.
In 2024, gold prices are up 35%. Despite significant margin improvements, the Fresnillo (LSE: FRES) share price is only up 10% over the same time frame. This disparity between stock prices and underlying metal prices is symptomatic of general investor sentiment toward precious metals miners.
In order to reduce risk, I am only interested in investing in miners with established cash-generating mines in neutral jurisdictions. With a 500-year history of mining to draw on, together with over 2bn ounces of silver resources and 39m ounces of gold resources, Fresnillo is one of the best UK-listed miners.
I could give a dozen reasons why investors should consider owning gold mining stocks today. At a fundamental level, though, spiralling government deficits means that investors need to own a neutral asset with no counterparty risk. Gold and silver have played this role for millennia.
However, miners constantly face challenges and Fresnillo is no different. Soaring costs, labour strikes and operational challenges have beset the company recently. But I believe gold is heading to $3,000 and beyond in the coming years, and I want to get into the sector whilst share prices are so depressed.
Andrew Mackie owns shares in Fresnillo.
Games Workshop
What it does: Games Workshop designs and manufactures miniature figures for its various board games set in the Warhammer universes.
By Zaven Boyrazian. The Games Workshop (LSE:GAW) share price surged more than 15% on the back of its latest trading update. With pre-orders for its most popular upcoming Christmas Battleforce box sets sold out within less than five minutes, the firm’s earnings jumped well ahead of expectations. And subsequently, management hiked its full-year guidance.
However, this growth doesn’t appear to be over. There’s a large pipeline of new Warhammer miniatures lined up throughout 2025. And its most recent reveals of the Astra Militarum and Aeldari factions (expected to be released in Q1 2025) appear to have been met with similar levels of enthusiasm.
Games Workshop shares aren’t cheap, with a forward price-to-earnings ratio of 28.7. As such, investor growth expectations are high. And if the new upcoming models fail to generate appeal from customers, the group’s expansion may fall short, sparking share price volatility.
However, Games Workshop has a habit of defying expectations. That’s why I’ve already bought more for my portfolio, even at the current premium valuation.
Zaven Boyrazian owns shares in Games Workshop.
Watches of Switzerland
What it does: Watches of Switzerland is a multi-channel retailer of watches and jewellery with 221 showrooms across the UK, US, and Europe.
By Paul Summers. Shares in timepiece seller Watches of Switzerland (LSE: WOSG) have been under the cosh for the last three years as high inflation and a cost of living crisis have played merry hell with sales. There’s a chance things might go from bad to worse if the recent bounce in inflation proves more than temporary and aspirational shoppers continue to steer clear.
However, I think a lot of this is already accounted for in the below-average valuation. Recent updates have been reassuring with management stating that it has seen “continued stabilisation of the UK market in both luxury watches and jewellery”. The recent acquisition of the North American division of designer brand Roberto Coin should also boost profit in time.
I reckon the UK’s biggest seller of Rolex and Omega should be well placed to recover strongly if (and that’s a big ‘if’) discretionary spending rebounds in 2025.
Paul Summers has no position in Watches of Switzerland
