Some UK shares have already doubled this year. I’m trying to find the next ones!

Our writer discusses a couple of UK shares. One’s down so far in 2025 and the other’s more than doubled. Why’s he been buying the second one?

| More on:
Bus waiting in front of the London Stock Exchange on a sunny day.

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.

sdf

Has it been a good year or a bad year so far for the British stock market? Some UK shares have done well, some have done badly and some have not done much of anything at all! That is the nature of a market with thousands of companies listed on it.

What about the shares that have done well? The FTSE 100 index has hit new all-time highs in the first half of the year and is up about 6% so far in 2025. Some individual UK shares though, have done much, much better than that…

This share has surged

Take for example a share that is still a long way off the FTSE 100 average: ITM Power (LSE: ITM). Since the start of 2025, the renewable energy share is up by 123%.

Now, I take a long-term approach to investing and from a long-term perspective, ITM’s performance has been much less impressive. Indeed, the price of this UK share has fallen 71% over the past five years, even including this year’s strong performance to date.

Understanding the reasons for that can be helpful. For many years, ITM has had promising hydrogen energy technology. Over the past year, a far sharper commercial strategy has seen impressive shifts in its financial performance.

At the time of its first half results in January, revenues were up 74% year-on-year. Since then, it has raised its full-year guidance and announced a stream of impressive contract wins.

Hunting for future winners

The rapid share price rise makes me feel ITM currently offers me too little margin of safety. After all, it faces risks including a heavily reliance on a small number of clients and a business model that has not yet proven it can be profitable.

Still, it is one of the UK shares I think could do well in years to come. If the price hits a level where the risk-to-reward ratio feels appropriate for me, I will consider investing.

But ITM illustrates that some UK shares have done brilliantly so far this year. I expect some will also have a strong second half – and may perform well in years to come.

So what am I looking for? Whereas ITM is yet to prove it can be consistently profitable, my general preference is for companies that have. In short, to paraphrase Warren Buffett, I look for great companies selling at attractive prices.

One share I’ve been buying

That brings me to one of the UK shares I have bought in recent months: plant hire company Ashtead (LSE: AHT).

It plans to move its primary listing to the US, but will still trade on the London market. So far this year, Ashtead’s 12% share price decline puts it in the shade compared to the likes of ITM Power. Over five years though, it has grown 68%.

It is up an even more impressive 3,558% over the past decade. Few UK shares can come anywhere close to that sort of performance.

But past performance is not necessarily indicative of what may happen in future. An uncertain economic outlook in its key US market is a risk to Ashtead’s revenues and profits.

But I reckon Ashtead’s proven business model, large customer base and extensive base of well-stocked depots are all valuable advantages that make it worth considering.

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.

C Ruane has positions in Ashtead Group Plc. The Motley Fool UK has recommended Ashtead Group Plc and Itm Power 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.

More on Investing Articles

A pastel colored growing graph with rising rocket.
Investing Articles

Here’s how long it’s taken £1k of Nvidia stock to turn into £10k today!

Our writer explains how money invested in Nvidia stock less than three years ago has grown in value over tenfold…

Read more »

Thoughtful man using his phone while riding on a train and looking through the window
US Stock

3 red flags I’m seeing right now for the S&P 500

Jon Smith points out some concerns he has with the S&P 500 at current levels and picks one stock he's…

Read more »

UK financial background: share prices and stock graph overlaid on an image of the Union Jack
Investing Articles

UK dividend shares are outperforming US tech stocks!

UK dividend shares aren’t just for passive income investors. Over the last 12 months, they’ve been outperforming their US tech…

Read more »

DIVIDEND YIELD text written on a notebook with chart
US Stock

Here’s how much passive income an investor could make with £2k in Meta stock

Jon Smith looks at Meta stock from a different angle to normal, considering it as an option for an investor's…

Read more »

Young black colleagues high-fiving each other at work
Investing Articles

1 of my top UK shares is up 15% in a day! Is it still a buy for me?

Celebrus shares are soaring after strong full-year results. At a P/E ratio below 13, is it one of the best…

Read more »

Close-up of children holding a planet at the beach
Investing Articles

£10,000 invested in Jet2 shares 2 years ago is now worth…

Jet2 shares have surged in recent months and finally appear to be pushing towards fair value. Dr James Fox shares…

Read more »

piggy bank, searching with binoculars
Investing Articles

This FTSE 100 blue-chip could rise 26% in 12 months, according to brokers

While this FTSE 100 dividend stock has put investors through the wringer in recent years, some analysts see brighter skies…

Read more »

Businessman hand stacking money coins with virtual percentage icons
Investing Articles

A 3-step passive income strategy to target major wealth

Want to invest in the stock market to build up a passive income stream? There's no fiendlishly complex multi-step mystique…

Read more »