I’m searching for the best FTSE 250 growth stocks to purchase today. Games Workshop (LSE:GAW) and Greggs (LSE:GRG) are near the top of my shopping list.
Here’s why I think their share prices may shoot through the roof in 2025.
Games Workshop
Games Workshop isn’t tipped to deliver spectacular profits growth in its 2025 financial year. In the 12 months to May, City analysts expect the bottom line to swell just 2% year on year.
But make no mistake, this will still represent an impressive result given last year’s record profit. This remains one of the FTSE 250‘s hottest growth shares, in my opinion, and one I believe could eventually seal a place on the FTSE 100.
Fresh news on Games Workshop’s film and TV content partnership with Amazon could significantly boost its shares next year. Since December, the company’s been collaborating with the streaming giant to adapt its fantasy worlds for the screen. It’s a strategy that could elevate both product sales and royalties to new heights.
Source: TradingView
As you can see, the company grew annual earnings significantly between fiscal 2014 and 2023. And they rose by an impressive 12% last year, to 458.2p per share, helped by the new blockbuster Warhammer 40,000 product releases.
The business has plans to open even more stores in North America and Europe too, to keep the bottom line growing.
The Games Workshop share price has risen 6% to date in 2024. I’m expecting even bigger gains next year, although a meaty price-to-earnings (P/E) ratio of 22.3 times might be a drag on performance. It might actually cause the price to drop if trading conditions worsen, which they could.
Still, on balance, things are looking good for the hobby giant next year.
Greggs
Baked goods giant Greggs hasn’t had the same sort of sustained earnings growth as Games Workshop. Indeed, profits were battered during the pandemic as the firm was forced to close shops during lockdowns.
But excluding the Covid-19 crisis, this FTSE 250 stock’s largely delivered solid profits expansion over the period, as the chart below indicates.
Source: TradingView
Earnings were driven by a significant increase in the number of shops Greggs operates. And with store openings continuing at a healthy clip, City analysts are expecting earnings to rise another 7% this year before accelerating to 10% in 2025.
The baker now sells its tasty treats from just over 2,500 shops. That’s up 52% from the number seen a decade ago, and Greggs isn’t done yet. It hopes to have 3,500 shops up and running eventually.
Encouragingly, the company’s also investing heavily in its online channel to bring further growth. And it’s working to open two new manufacturing sites over the next few years to boost capacity. Of course execution risks exist that could hamper the firm’s ambitious growth strategy however.
Greggs’ share price has soared an impressive 19.6% since the beginning of 2024. I’m expecting another strong performance in 2025.
The post 2 FTSE 250 growth stocks I think could explode in 2025! appeared first on The Motley Fool UK.
5 stocks for trying to build wealth after 50
Inflation recently hit 40-year highs… the ‘cost of living crisis’ rumbles on… the prospect of a new Cold War with Russia and China looms large, while the global economy could be teetering on the brink of recession.
Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.
Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…
We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.
Claim your free copy now
More reading
Up nearly 30% in a year, will Greggs shares ever slow down?
With a spare £350, here’s how I’d start buying shares today
2 UK growth stocks I’d buy ahead of the Magnificent Seven
Here’s how much I’d have if I’d bought 1,000 Greggs shares 10 years ago
2 FTSE 250 stocks I’m watching like a hawk!
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has positions in Games Workshop Group Plc. The Motley Fool UK has recommended Amazon and Games Workshop Group 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.
