Prediction: these FTSE 250 stocks could be among 2025’s big winners

Finding the coming year’s FTSE 250 winners isn’t an easy task, but we’re thinking about it at this time of year, aren’t we?

| 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.

I’m hoping for a return to growth for the FTSE 250 in 2025 after a disappointing few years. But which stocks do I think might lead the mid-cap index? My eyes have fallen on these three.

Healthcare income

I think 2025 could be the year when some of the FTSE 250’s undervalued real estate investment trusts (REITs) could make a comeback. Primary Health Properties (LSE: PHP) is one, after its share price ended 2024 on a bit of a slide.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Should you invest £1,000 in ITV 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 ITV made the list?

See the 6 stocks

The company owns healthcare facilities that it rents out largely to GPs, many in the NHS. With relatively reliable rental income, success doesn’t depend on property valuations.

Created with Highcharts 11.4.3Primary Health Properties Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Uncertain valuation

I think its assets look good anyway. At the 2024 interim, adjusted net tangible assets per share stood at 105p. The share price is just 89p at the time of writing.

That’s a non-standard accounting measure, and property valuations have been volatile, so there’s risk there.

But with strong earnings growth forecast for 2025, and a forward dividend yield of 8.2%, I think this trust could deserve a higher rating in 2025.

Cheap TV

The first half of 2024 made it seem like an ITV (LSE: ITV) recovery was on, though it cooled off. We’re looking at a decent 12-month gain of 17%, but I still think the shares could be too cheap.

The tough economy is putting the squeeze on advertising spend. But we just heard that December inflation was down, which hopefully bodes well.

The firm’s Q3 update spoke of revenue being impacted by the phasing of deliveries and the 2023 writers’ and actors’ strike in the US. And that gave the share price a hit on the day.

Created with Highcharts 11.4.3ITV PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Forward, not back

ITV still said “We remain on track to deliver at least £750 million of digital revenues in 2026“. And it sees only a small fall in 2024 ITVX streaming revenue.

We have a forward dividend yield of 7%, with an expected FY 2024 price-to-earnings (P/E) ratio of just nine.

There’s an earnings fall forecast for 2025, which could keep the shares down. But if we see early signs of the growth predicted for 2026, I think ITV could beat the FTSE 250 this year.

Plastic, fantastic

At polymer specialist Victrex (LSE: VCT), seeing a five-year share price fall of 57% and a trailing P/E of 50 made me pause for breath.

Looking closer though, I see things I like, including a forecast 6.8% dividend yield.

After a few years of falling earnings, forecasts show a return to growth starting with a boost in 2025. They put the forward P/E at 17, dropping as low as 11 by 2027.

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

Protective moat

On these valuation measures, I think we could have solid growth characteristics. But I want to see a competitive advantage to back that up.

Victrex makes high-performance polymers for safety-critical uses, and a number of them are patented products. That looks like a safety moat.

The biggest risk for me personally is that I haven’t researched the company properly yet. But I think investors looking for 2025 winners should consider doing so.

AI Revolution Awaits: Uncover Top Stock Picks for Massive Potential Gains!

Buckle up because we're about to dive headfirst into the electrifying world of AI.

Imagine this: you make a single savvy investment in some cutting-edge technology, then kick back and watch as it revolutionises entire industries and potentially even lines your pockets.

If the mere thought of riding this AI wave excites you and the prospect of massive potential returns gets your pulse racing, then you’ve got to check out this Motley Fool Share Advisor report – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And here’s the kicker – we’re giving you an exclusive peek at ONE of these top AI stock picks, absolutely free! How’s that for a bit of brilliance?

Get your free AI stock pick

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.

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV, Primary Health Properties Plc, and Victrex 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

Young female analyst working at her desk in the office
Dividend Shares

A 9.28% dividend yield? Here’s the forecast for HSBC in 2025 and beyond

Mark Hartley considers the long-term prospects of the UK's largest bank, examining the reasons behind its surging dividend yield and…

Read more »

Investing Articles

A rally could be coming for the UK stock market! Here’s how I aim to profit

Mark Hartley considers a strategy to profit from a potential UK market rally. Which stocks are best-positioned to sidestep the…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

Is the rare dip in this FTSE powerhouse’s share price just the right time for investors to consider buying it?

This FTSE 100 banking giant has seen its price tumble following the US tariffs news, but could the rare dip…

Read more »

Investing Articles

After an 18% fall, is Rolls-Royce’s share price now just too cheap for me to ignore?

Rolls-Royce’s share price was caught in the recent FTSE 100 sell-off. But now might be the time for me to…

Read more »

Investing Articles

11% yield! Could this UK stock  be a huge opportunity for investors targeting a second income?

An double-digit dividend yield could be second-income buying opportunity if the stock market is underestimating this UK translation company. 

Read more »

Group of young friends toasting each other with beers in a pub
Investing Articles

This FTSE 250 REIT’s been unaffected by Trump’s tariffs. And it’s yielding 8.3%

Our writer’s found a FTSE 250 real estate investment trust that hasn’t been caught in the fallout from ‘Liberation Day’.…

Read more »

Middle-aged white man pulling an aggrieved face while looking at a screen
Dividend Shares

Blimey, what’s happened to the Barclays share price?

After hitting a 15-year high at the end of February, the Barclays share price has plunged in the past two…

Read more »

Dividend Shares

On 8.6 times earnings and a cash yield of 9%, this FTSE 250 share seems too cheap

It's been a rough week or so for UK shareholders, with the FTSE 100 and FTSE 250 both plunging. Yet…

Read more »