Indeed, according to the Wealth & Assets Survey by the Office for National Statistics, the average pension pot for a 47 year-old is £27,000, excluding those with defined benefit schemes. Fortunately, it’s not too late to make amends.

According to Legal & General, there’s still a “window of opportunity” for those in their 40s and 50s to change their retirement prospects. And this includes those that haven’t started saving yet. Let’s take a closer look and see what’s possible.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Don’t give up

Although Legal & General’s research into retirement planning reveals that 9m people aged 25 to 54 are “not currently on track for an adequate retirement”, there’s no need to panic.

The group claims that a 47-year-old, starting with nothing, could build a savings pot of £116,000 over two decades. This assumes a contribution of 8% of the UK’s average salary and a real (post-inflation) annual investment growth rate of 4.1%. As an added bonus, after 20 years, this person would be entitled to receive the State Pension.

In cash terms, what does this mean?

Of course, it’s impossible to see into the future but, at the moment, someone with a full record of National Insurance contributions is entitled to a State Pension of £11,973 a year. And a person holding a £116,000 SIPP of dividend shares yielding 6% could earn a further £6,960. Overall, this would give an annual income of £18,933. Not bad for someone who only started saving seriously in their late 40s.

Conservative assumptions

If more people take control of their retirement planning, then FTSE 250 wealth manager AJ Bell (LSE:AJB) could be one of the beneficiaries. Although the group sold its pensions business a year ago, it still offers its clients access to SIPPs.

Since listing in December 2018, the group’s share price has risen 197%. This is equivalent to over 16% a year, which suggests Legal & General’s assumption of a 4.1% growth rate is on the cautious side. It’s also yielding 3% at the moment, although there can be no guarantees when it comes to dividends.

Some of AJ Bell’s success is due to the fact that it’s operating in an industry with high barriers to entry. New entrants are unlikely to be in a position to quickly achieve the scale necessary to be profitable. And it’s expensive building a robust investment platform. 

But there are risks. Income from its fee-generating advice could be affected by cheaper AI-powered alternatives. And the group operates in a tightly regulated market where the fines can be significant for any transgressions.

However, for the time being at least, the group’s successfully meeting these challenges.

In 2025, customer numbers in its platform business increased by 21% to 673,000. Assets under administration went up by 21% to £108bn. And given recent turbulence in global stock markets — likely to have resulted in increased buying and selling — I reckon it will have had a strong start to 2026.

Whether as part of a SIPP or not, I think AJ Bell’s a stock to consider.

The post Aged 47 with a SIPP worth £27,000? Legal & General says you can still have a comfortable retirement appeared first on The Motley Fool UK.

Is now the time to buy mid-cap shares to target long-term wealth? And is that sort of figure good enough to build a suitably large nest egg for retirement? Let’s take a look.

10.6% return

Since late 2022, the FTSE 250‘s average annual return has risen to 8.6%. On a 12-month basis, it’s delivered a total return of 10.6%.

That might be surprising given persistent weakness in the UK economy. With roughly half of the index’s earnings made from these shores, it it highly sensitive to conditions at home.

So why have the index’s returns ripped higher? Greater political stability in Britain more recently is one key factor.

The period from 2015 from 2022 was defined by Brexit and then pandemic pressures that claimed several prime ministerial scalps and caused some not insignificant policy chaos. It’s no surprise then that appetite for domestic shares was weaker then.

The FTSE 250 has also benefitted as demand for European shares on the whole has picked up. A volatile political landscape in the US has prompted global investors to diversify into overseas shares. And companies in the UK and Mainland Europe have been especially attractive given their cheap valuations.

Can it continue?

So can investors now expect the FTSE 250 to potentially deliver life-changing wealth? If the index continues its recent outperformance, the answer’s a clear ‘yes.’

With a 12-month return of 10.6%, a £500 a month investment in a tracker fund would generate a £1.4m nest egg after 30 years.

However, there’s some massive problems with this assumption. Using any short-term return to project eventual profits is dangerous business. Using a long-term figure better illustrates what can be achieved with a patient investing strategy.

The UK also faces significant challenges that could compromise the index’s future returns.

While it’s been more stable recently, Britain’s political landscape remains febrile as government polling sinks. What’s more, the UK economy faces still faces enormous challenges that could compromise long-term corporate earnings. These include labour shortages, falling productivity, trade tariffs, and high public debts.

A better way to target wealth?

The FTSE 250 is home to some great companies. However, I think purchasing individual shares is a better way to consider aiming for high returns than with a tracker fund. It’s a strategy I’ve taken by adding mid-tier shares like Greggs and Primary Healthcare Properties to my portfolio.

AJ Bell (LSE:AJB) is another high-powered UK share to consider today. The financial services group has been delivering impressive returns for much longer than the broader FTSE 250 — it’s delivered an average annual return of 13.3% since it listed on the London stock market in late 2018.

The financial services industry is highly competitive. But AJ Bell has proved it has what it takes to thrive. Customers numbers soared 19% during Q3 to 644,000, latest trading numbers showed, while record inflows drove assets under management to all-time highs (also up 19%).

I expect earnings here could surge as demand for financial planning services booms. I think AJ Bell’s one of the hottest FTSE 250 shares to consider.

The post Could drip-feeding £500 into the FTSE 250 help you retire comfortably? appeared first on The Motley Fool UK.

Take the following couple of shares: Endeavour Mining (LSE:EDV) and AJ Bell (LSE:AJB). I’m targeting at least one of these mid-cap shares for my portfolio when I next have money to invest.

Want to know why? Read on.

Striking gold

Gold stock Endeavour’s share price has leapt 134% in 2025, driven by a buoyant metal price. I think it can keep going as bullion demand shows no signs of slowing — latest World Gold Council (WGC) data showed holdings in gold-backed exchange-traded funds (ETFs) rise for their sixth straight month in November.

The yellow metal was trading around $2,640 an ounce just a year ago. Now it’s at $4,200 and blasting back towards October’s high of $4,381, a record that’s likely to fall sooner rather than later.

Goldman Sachs and Bank of America have tipped prices of $5,000 by next year. This is a realistic target, in my view, given 2025’s price action. Enduring factors like interest rate cuts, poor economic growth, geopolitical uncertainty and US dollar weakness also support the case for more price gains.

I like the idea of buying gold stocks over physical metal or a gold-tracking ETF. This strategy exposes investors to mine production issues that can smack profitability. Gold producers also carry leverage, meaning their prices can fall more sharply if the metal drops.

But the leverage effect works both ways, and in bull markets this can ignite prices as we’ve seen recently. Endeavour’s share price gains have dwarfed gold’s 60% rise in 2025.

The FTSE 250 miner’s earnings are tipped to soar this year and next, helped by steps to ramp up gold production. This pushes its price-to-earnings (P/E) ratio of 13.5 times for 2025 to a bargain-basement 7.9 for 2026.

Another top stock

AJ Bell doesn’t offer the same sort of attractive value on paper. Though annual earnings are tipped to grow, the P/E multiple remains elevated on paper at 17.9 times.

A valuation like this can invite price weakness when news flow is anything but exceptional. This is the position the financial services provider found itself on Thursday (4 December). Despite releasing record, forecast-beating results for last year, and announcing a £50m share buyback, AJ Bell dropped as it said higher investment would hinder margins this year.

I personally believe this pullback represents an attractive dip-buying opportunity. The company’s shares remain 10% higher than they were at the start of the year. I expect them to continue rising, as an ageing UK population and the growing importance of financial planning drive its revenues up.

AJ Bell’s customer numbers leapt 19% last financial year, to 644,000. The business could also gain from upcoming Cash ISA changes, as investors look elsewhere for tax-efficient products.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Though it faces competitive pressures, I’m optimistic the FTSE 250 company has what it takes to capitalise on this booming market, making it top stock to consider.

The post 2 incredible FTSE 250 shares I can’t wait to buy! appeared first on The Motley Fool UK.

UK stocks have largely benefitted from the movement of capital out of bonds, debt and savings as interest rates have fallen, and because some companies have consistently outperformed during the period.

In fact, a closer look at many companies in the UK shows that last year’s Budget, coupled with a misfiring economy, led to consistent downgrades of expected earnings.

Jet2, one of my favourite stocks, is a great example of this. Projected earnings for 2026 and 2027 have been greatly reduced in part due to later booking patterns, but also because of last year’s Budget. This was forecasted to add £25m in employment costs and £20m in sustainable fuel costs.

What’s in store this November?

Chancellor Rachel Reeves will deliver the Autumn Budget on 26 November. Speculation’s rife and it’s rumoured that the Budget will include stricter inheritance tax, higher capital gains tax, council tax reforms, and potential limits on tax-free pension lump sums.

This is driven by a £21bn-£30bn fiscal gap and weak growth.

FTSE stocks sensitive to UK consumption may come under pressure if household taxes rise. Meanwhile, capital flight risks rise if investor tax relief’s cut. Conversely, relief for business investment or ISA expansion could benefit select sectors.

Whatever happens, market volatility’s likely as investors shift to international, defensive or government-aligned assets to manage intensified fiscal uncertainty.

There’s also talk of higher taxes on UK banks, which I think would be incredibly disappointing. After all, following a decade of underperformance, they’re finally back on their feet.

As the Budget’s likely to target the wealthiest and most successful parts of the economy, there’s definitely scope for an outsized impact on stocks. However, a meltdown’s unlikely unless a big surprise takes place.

One to watch

There are plenty of rumours, including that Reeves could cut the tax-free limit on cash individual savings accounts (Cash ISAs). In turn, hypothetically, this could push capital into equities (stocks) even if the rest of the Budget appears to negatively impact UK companies.

With that in mind, investors may want to keep an eye on AJ Bell (LSE:AJB). The investment platform stock’s richly valued, but there’s a reason for this. It currently trades at 21.1 times forward earnings and 20.2 times forecasted earnings for 2026.

This valuation largely reflects its growth trajectory in recent years, which has largely tapered off in recent years — as well as the company’s strong operating margins of around 39%.

It’s also a decent dividend payer with a forward yield around 2.6%.

Why’s this one to watch? Well, as the UK’s largest listed brokerage — a popular choice for Stocks and Shares ISAs — it’s worth hypothesising that there could be some inflows as people move money out of Cash ISAs into well-regarded investment platforms.

But as I’ve suggested, it’s all very nuanced. There are potentially lots of moving parts.

The risk here’s the valuation. It’s expensive. Far pricier than Hargreaves Lansdown was before it was taken private. And because of that, I simply believe it’s one to watch rather than consider buying.

The post Could the Autumn Budget cause a stock market meltdown? appeared first on The Motley Fool UK.

At AJ Bell (LSE: AJB), millionaire ISA holders have 87% of their investments in shares, on average, including investment trusts. The average across other ISA accounts is just 33%.

Barclays conducts annual surveys — and has found the UK stock market easily beating cash savings and bonds for well over a century. And these ISA millionaires are the evidence of the success it can bring.

What about investment trusts? They’re companies that spread investors’ cash over a range of stocks and provide much-needed diversification. Some investment companies handle client funds while having owners’ profits to prioritise. But we buy shares directly in an investment trust — so we’re the owners.

Common theme

Other ISA providers, like Hargreaves Lansdown, also find their ISA millionaires put more into investment trusts and individual shares than the wider UK average.

But which actual shares do the UK’s most successful investors go for? Remember, they’ve achieved millionaire status by investing a maximum of £20,000 a year — and less in earlier years. So are they great at spotting the next big winner?

It doesn’t look like it. AJ Bell’s two most popular picks among millionaires this year are Shell and Lloyds Banking Group. And it was the same two last year.

They’re mature companies with track records of strong cash flow and progressive dividends. Dividends aren’t guaranteed, and sometimes they can be cut. But over the long run they can make quite a difference, especially if we buy more shares with them to compound our returns.

Defensive stocks

Aviva, GSK and BP make up the rest of the top five for the two years — though in different orders. And it strikes me that these all have good defensive moats, in businesses where newcomers would face a very tough task trying to muscle in.

Another company springs to mind that I’d say also has defensive characteristics. It’s AJ Bell itself. If managing investing platforms is such a good business, surely it could make sense to invest in the companies doing it, right?

It’s one of the UK’s best-known two. And almost everyone I know who has a Stocks and Shares ISA uses AJ Bell or Hargreaves Lansdown.

The shares aren’t obviously cheap, on a forecast price-to-earnings (P/E) ratio of 19.5. But we’ve seen a 91% rise in earnings per share between 2021 and 2024, with a further 43% predicted by 2027.

The expected 2.5% dividend yield isn’t that high. But dividends grew 80% in the same three years, with another 30% on the cards by 2027.

The high-ish valuation does seem like the biggest risk, and we could see the share price fall — like it did in 2022. But I think passive income investors should consider it.

What next?

The other key millionaire investor secrets might seem obvious. Invest as much as we can, and get started as soon as we can.

Only individuals can work out what they can afford. But for those who haven’t started yet… the ideal time is surely now.

The post Learn the habits of the UK’s most successful passive income investors appeared first on The Motley Fool UK.

Perfect mix

Financial trading platform provider IG Group (LSE: IGG) is one example. As I type (on 24 July), its shares are up 14% in 2025 and are now the most expensive they’ve ever been.

I’ve long appreciated this stock for many reasons, ranging from its consistent dividends to the chunky margins. But IG’s biggest draw is arguably that it makes more money when markets are volatile, giving it a defensive feel when everything else is going to hell in a hand cart.

Today’s full-year numbers back this up. Thanks to many events, including April’s tariff tantrum, IG revealed a 9% rise in revenue to nearly £1.08bn and adjusted pre-tax profit of £535.8m. The latter was well ahead of expectations (£523.5m).

Still cheap?

At the time of writing, the shares trade on a price-to-earnings (P/E) ratio of just 10. That looks cheap relative to how well things have been going and how robust its finances look.

Then again, there are a few risks to be aware of. Perhaps the most prominent is the threat of ongoing regulation. Protecting clients is never a bad thing in my book. But any sudden and unexpected new rules could conceivably bring IG’s share price crashing down.

Despite being the OG in this space, the company can’t rest on its laurels either. New rivals wanting a piece of the pie are constantly emerging.

So long as these risks are appreciated, however, I still see this as an excellent candidate to consider for a portfolio focused on generating both income and growth.

Record quarter

Another mid-cap stock whose share price is entering previously unchartered territory is Stocks and Shares ISA and SIPP provider AJ Bell (LSE: AJB).

Like IG Group, it also just provided a very solid update to the market.

Customer numbers rose by 27,000 in the three months to the end of June with the total number of clients coming in at 620,000. That’s a 17% increase on one year ago. The firm also reported its biggest ever net inflows, “reflecting a continuation of the strong momentum reported in the previous quarter“.

Expensive but…

With a P/E of 21, AJ Bell shares are pretty dear relative to its index peer. That’s despite the Salford-based business facing many of the same hurdles, such as the constant competition for clients and regulatory pressures.

As well as being probably more vulnerable to drops in general market sentiment, the £2.1bn cap also faces the challenge of getting more younger people involved in investing at a time when the cost of living is already prohibitive.

Still, the huge operating margins and returns on capital made to date go some way to justifying this premium. Its brand is strong and trusted too.

The 2.7% dividend yield, while below the FTSE 250 average, is decent for a growing company. Payouts have also been consistently hiked every year since it listed in 2018. To me, that signifies a business in rude health.

I wouldn’t feel comfortable betting the house here. But as part of a suitably diversified portfolio, I definitely think it warrants attention.

The post 2 brilliant FTSE 250 stocks hitting record highs appeared first on The Motley Fool UK.

Dividend stock revisted

I often think of National Grid (LSE: NG.) as possibly the best dividend stock I’ve never bought. Full-year results are due on 15 May, and I’m taking a fresh look.

The company shocked investors in May 2024 with a new rights issue. But I think those of us who expected it to just carry on unchanged for ever and a day were perhaps a little naive. The energy distribution business is changing. And that needs extra capital expenditure.

The share price has just about recovered to around its level before the resulting dip. And up 16% in the past five years, it’s some way behind the FTSE 100. But we’re looking at a pretty respectable forecast dividend yield of 5.1%.

There’s a risk that the new five-year capital expenditure plans could hold back dividend rises in the next few years. And we might even see more cash needing to be raised. But I still think I see a long-term cash cow that’s worth seriously considering.

Insurance reinvented

The same day brings us a Q1 update from Aviva (LSE: AV.), which has been through a pretty thorough transformation in the past few years.

Aviva is one that could benefit from falling interest rates. When that happens, and when Cash ISA interest rates drop, a steady dividend stream could start to look more and more attractive. Right now forecasts put the 2025 yield at 6.4%.

At FY results time for 2024, CEO Amanda Blanc said: “We have clear trading momentum which is generating strong and reliable growth. We have increased our dividend, again, and are committed to growing it further.“

Aviva is in the throes of its takeover of Direct Line, with cash consideration coming from existing resources. How that might affect shareholder returns remains to be seen.

My main concern is the stock valuation, with a forecast price-to-earnings (PE) ratio of close to 12. Is that too high to allow for the cylical risk in this business? Maybe. But the main reason I’m not considering an investment now is that I already bought enough.

Invest in investment

AJ Bell (LSE: AJB) has first-half results due on 23 May. I’ve looked at investing platform providers before, but I tend to be put off by relatively high P/E multiples. In this case we’re looking at a ratio of 18.5. And with forecast earnings growth fairly modest, that would only drop to around 15.5 by 2027.

But then, a good P/E depends on the nature of the business. And in this case I see a strongly defensive one. What happens when some catastrophe leads to a stock market slump? Well, the recent fall was down to fears that US tariffs genuinely could harm company earnings. And that led to a whole load of investors selling stocks.

That’s good for AJ Bell, which makes more money when more people are trading. And when markets are bullish… AJ Bell makes more money from more people trading.

I’m still undecided. I need to think some more about this, and give it some serious consideration.

The post 3 cheap UK shares to consider buying in May appeared first on The Motley Fool UK.

Its first suggestion didn’t surprise me. It’s the number-one FTSE 100 performer over the last year, and at the very top of my own shopping list. The other two did surprise.

I’m hungry to buy IAG

ChatGPT’s first pick was British Airways owner International Consolidated Airlines Group (LSE: IAG). It praised IAG’s “resilience amid past economic downturns” but I’m not sure I totally agree. IAG was on the brink during the pandemic, although that was an extreme case, to be fair.

The IAG share price has soared 110% in the last year, with people hungry to travel post-lockdown, while it’s whittled down debt to €6bn. That’s still high, but far from lethal.

Running an airline isn’t cheap, and IAG’s had to pour money into fleet modernisation to stay ahead of the competition. It’s exposed to volatile fuel prices, consumer downturns and geopolitical events, and always will be.

But with transatlantic routes – its niche – particularly buoyant, it looks good value trading at 7.7 times earnings.

I didn’t expect Bellway

Now for the first AI surprise: FTSE 250 housebuilder Bellway (LSE: BWY). My own play on the housebuilding sector’s Taylor Wimpey, so I haven’t paid much attention to the others. ChatGPT has a wider outlook.

My ‘bot buddy says builders will benefit from lower interest rates which “typically make mortgages more affordable and stimulate housing demand”. 

It added that Labour’s “commitment to addressing housing shortages, coupled with potential planning reforms, could further bolster the sector”.

ChatGPT highlighted Bellway’s strong balance sheet and strategic land acquisitions, while warning that it remains “exposed to fluctuations in the housing market and economic cycles”.

The Bellway share price has struggled lately, falling 4% over the last year, and 36% over five years. It looks a little pricey trading at 19 times earnings. The dividend yield‘s a modest 2%. With Taylor Wimpey at just under 12 times earnings and yielding almost 8%, I’ll stick with that.

Thanks ChatGPT, but no thanks.

AJ Bell shares are tempting but pricey

Finally, my chatbot chum picked out investment platform AJ Bell (LSE: AJB), saying that “as savings rates fall, individuals may seek higher returns through investments, driving growth”.

ChatGPT also praised its “user-friendly interface and diverse product offerings”, while warning it operates in a highly competitive industry with pressure on fees and margins. Stock mark volatility can also hit assets under management and associated revenues.

I’m wary. The AJ Bell share price has been going great guns, up 40% in the last year. It looks expensive though, trading at almost 22 times earnings.

Also, falling interest rates will cut margins on customer cash balances, a strong source of revenue lately. Of the three, IAG’s the one I want. It’s leading the charge right now, even without a bull market.

The post 3 UK shares ChatGPT thinks will lead the next bull market charge appeared first on The Motley Fool UK.

Berkeley

Investing in housebuilders like Berkeley (LSE:BKG) carries higher-than-usual risk right now. Build cost pressures remain significant, while on the demand side, a tough outlook for the UK economy threatens future sales.

On the bright side however, interest rates still look on course to fall steadily in the months ahead. And if homebuyer demand following recent rate cuts is anything to go by, builders could experience a strong rebound in 2025.

Things are looking particularly exciting in the London market right now. This is good news for Berkeley, which specialises in construction in the capital and surrounding areas.

On Tuesday (28 January), London-focused estate agent Foxtons said it was handling the highest number of homes under offer since the Brexit referendum in 2016. It added that volumes were “substantially” higher than those seen a year ago and reflected “strong under-offer activity in the fourth quarter.“

This follows Berkeley’s statement in early December that sales had experienced “a slight uptick in recent weeks“.

Once again, it’s too early to say that the housebuilders are out of trouble just yet. But a more favourable interest rate environment, allied with government plans to build 1.5m new homes in the five years to 2029, means industry earnings could improve significantly.

Berkeley’s plans to capitalise on London’s white-hot rentals market gives it added scope to grow profits, too. In June, the company announced it intends to put up 4,000 build-to-rent properties over the next decade.

Today Berkeley shares trade on a forward price-to-earnings (P/E) ratio of 10.7 times. This is lower than the corresponding readings of fellow FTSE 100 housebuilders Taylor Wimpey, Barratt Redrow and Persimmon.

All things considered, I think Berkeley’s a great recovery stock to consider.

AJ Bell

Retail investment platforms are other UK shares with considerable long-term growth potential. With the UK’s elderly population rapidly growing, and peoples’ engagement in financial planing also rising, sector revenues could enjoy strong and sustained expansion.

FTSE 250-listed AJ Bell (LSE:AJB) is one such company I feel is worthy o close attention. A strong set of financials today (29 January) has once again underlined the firm’s considerable growth potential.

As of December, the financial services giant had 561,000 customers on its books. This represented a 4% quarter-on-quarter increase, and a mammoth 16% rise on an annual basis.

As a consequence, total assets under administration (AUA) leapt 17% year on year to £89.5bn.

While its market has room for substantial growth, fierce competition means AJ Bell is by no means guaranteed to succeed. But ongoing platform investment, growing brand awareness and attractive pricing puts it in a strong position.

Its forward P/E ratio of 19.5 times looks toppy on paper. Still, I believe AJ Bell’s strong momentum in a growing market means its shares are worthy of a premium rating and further research.

The post 2 FTSE 100 and FTSE 250 shares to consider for a Stocks & Shares ISA! appeared first on The Motley Fool UK.

Here’s why I think they’re worth considering.

AJ Bell

Market conditions have been tough for financial services providers of late. But AJ Bell‘s (LSE:AJB) been a stellar performer in spite of weak investor confidence and higher-than-usual inflation.

Profits have ballooned over the past financial year. And so the company’s share price has risen an impressive 69.4% since the beginning of 2024.

The investment platform market’s highly competitive. But AJ Bell’s growing customers at a rapid pace, thanks to fee changes and efforts to raise brand awareness.

This dual attack’s paying dividends. Customer numbers rose 14% in the 12 months to September, to 542,000. So revenues soared 23% year on year to a record £269.4m.

Assets under administration meanwhile, increased 22% to £86.5bn. This was thanks to net inflows of £6.1bn, and favourable market movements of £9.5bn.

With margins also improving, pre-tax profits also touched all-time highs of £113.3m, up 29%.

The uncertain macroeconomic and geopolitical environment poses a threat to AJ Bell’s momentum in 2025. Yet I’m cautiously optimistic, with interest in its services also likely to be boosted by growing public awareness over the importance of financial planning.

City analysts expect annual earnings to rise 10% in financial 2025, and by the same percentage the following year.

Ibstock

Brickmaker Ibstock (LSE:IBST) hasn’t had such an enjoyable experience in 2024. Yet its share price has risen 26.4% since the start of the year.

Like many building material suppliers, the company’s suffered due to recent troubles in the housing market and a subsequent fall in homebuilding activity. Sales and pre-tax profits collapsed 20% and 60% respectively between January and June.

Despite its difficulties, Ibstock’s share price jumped in the summer and have remained stable since. It’s important to remember that markets are forward looking. And investors believe demand for Ibstock products could recover strongly from recent lows.

Ibstock’s prices took off around the time of the UK election, boosted by Labour pledges to build 1.5m new homes between now and 2029. It’s a pledge the now government continues to trumpet.

The brickmaker’s also been helped by a steady stream of data showing a rebound in the homes market. Nationwide data last week, for instance, showed average house prices rise at their fatest pace for two years in November, at 3.7%.

With interest rates tipped to fall next year, Ibstock’s sales could steadily pick up steam, pulling its share price higher. But remember that sticky inflation could halt any further recovery if it means the Bank of England tempers future rate cuts.

On balance, City brokers are bullish on Ibstock’s earnings prospects. They predict a 37% rebound in Ibstock’s profits next year, and a 34% bottom-line rise in 2026.

Signs of progress towards these targets could pull the firm’s share price still higher.

The post These FTSE 250 growth shares could soar over the next year! appeared first on The Motley Fool UK.