53% of investors expect a 2025 bull market! Here are some cheap UK stocks I’m thinking about

2024 has been a great time for UK stocks after years of disappointing returns. So far, i FTSE 100 increased by 6.3%. I FTSE 250on the other hand, it increased by 5.8%.

However, these performances pale in comparison to those recorded by major US stock indexes. I S&P 500 up 27.6% since the beginning of January.

The continued underperformance of domestic stocks means i London Stock Exchange it’s always full of great bargains. So I’m making a list of the best things to buy for the new year.

According to eToro, about 53% of its customers expect the global race to continue in 2025. Here is one UK share that I think could rise in value next year.

Setting the location

Economic conditions remain difficult as we head into the new year. According to the Credit Union, the number of companies in default rose to 1,966 in November, up 13% year-on-year.

The service expects the numbers to remain negative through 2025 as well. It says “Default rates remained high during the year [and] we expect them to remain the same through 2025 as firms continue to carry unsustainable levels of debt.”

Measuring inflation and falling interest rates provide support. However the upcoming increase in the National Living Wage and higher National Insurance contributions may offset these gains in the New Year.

A thriving stock

As Britain’s economy also contracts again, service providers are in short supply Begbies Traynor (LSE:BEG) should remain in high demand. The latest financials of 10 December underlined how Alternative Investment Market (AIM) the company is developing in the current environment.

Revenue here was up 16% in the six months to October, while sales were up 11% organically. It became the market leader in terms of the number of appointments, and the number of high-profile fraud cases in the group grew as well.

As a result, adjusted pre-tax profit also increased by 16% year-on-year.

Begbies has proved to be a reliable income farmer over time. They have increased in four of the last five years, in fact. The record looks set to continue, and especially as the company continues to spend on acquisitions.

The business snapped up White Maund Insolvency Practitioners earlier this month as part of its ongoing expansion drive. The acquisition contributed to 5% revenue growth in the first quarter.

An underrated gem

Today Begbies trades at a forward price to earnings (P/E) ratio of 9.1 times. I think this valuation fails to reflect the company’s strong momentum and strong balance sheet that should support more M&A.

I also think Begbies’ low valuation leaves room for a re-share price in 2025.

City analysts expect annual earnings per share to rise 1% this financial year (to April 2025) before rising 4% next year. The numbers I believe can be improved in the coming weeks and months.

A sudden uptick in the UK economy could hamper Begbies’ earnings growth. Benefits can also be disappointing if they receive illegal items. But as things stand, I am seriously considering adding it to my portfolio.