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Every year, we ask our freelance writers to share their top ideas for value stocks for investors to consider buying in the coming year – here’s what three of them have to say for 2025!
[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]Aviva
What it does: Aviva offers a range of financial products including pensions, insurance and investment accounts.
Written by Royston Wild. I have shares Aviva (LSE:AV.) for several years, and I last consolidated my holdings in September. I intend to increase my stake again early in the new year.
For me, the financial services giant is one of the best stocks in the FTSE 100. It trades at a price-to-earnings (P/E) ratio of just 9.9 times in 2025. Its price-to-earnings growth (PEG) ratio is 0.6, too, comfortably below the 1-watermark value.
Apart from the forecast profit, Aviva shares also look cheap relative to expected earnings, with its dividend yield for next year up 8%.
Finally, with a price-to-book (P/B) reading of 1.5 times, Aviva looks cheap relative to its asset value. The peer group average for its financial services remains close to 2 times.
I think business has great potential to invest in the long term. I expect sales to increase slightly as demographic changes drive demand for retirement products such as annuities and annuities.
Aviva’s shares could fall next year if economic conditions in the UK and Ireland market worsen. But I think this may be more than baked in to the low rating of Footsie company rocks.
Royston Wild is a shareholder in Aviva.
JD Sports Fashion
What it does: From 4,500 stores in 36 countries and through its website, JD Sports Fashion sells branded sports and casual wear.
Written by James Beard. On November 21, JD Sports Fashion (LSE:JD.) shares surged 15.5% after it said earnings for the year ending 1 February 2025 (FY25) would be “at the bottom end of our original guide” of £935m-£1.035bn. Analysts’ consensus forecast is £988m.
Previous announcement I thought the stock offered good value. Now, near its post-pandemic decline, I think it’s a benefit.
With expected FY25 earnings per share (EPS) of 12.6p, the stock trades at just 7.6 multiples. In FY21, EPS was down 63%, yet at the end of that financial year the share price was up 59%.
But Q3 saw a drop in sales in all regions, except continental Europe. And as NikeThe top customer, is suffering because of the American giant’s failure to innovate.
However, in the long term I am sure that the full year impact of its latest acquisition in the United States (1,169 stores) will help restore confidence.
James Beard is a shareholder in JD Sports Fashion.
NWF
What it does: NWF distributes UK fuel, pet food and feed with an established customer base,
Written by Christopher Ruane. As a shareholder in NWF (LSE: NWF), scratching my head at the stock’s poor 2024 performance. Is the market just not seeing the value in what I’m doing? Can you spot a price trap?
Yielding over 5% and a price-to-earnings ratio of 8, the shares look like a bargain to me. It has a proven business model that sells products to an established customer base. Competition is limited.
Yes, profit margins are thin: NWF made less than £10m last year on sales of £951m. Therefore risks such as oil price fluctuations are important for the company.
But even though the margins are slim, this is a consistently profitable company with a customer base set to continue to demand what it sells. NWF’s cash generation supports open dividends.
Even after huge costs including building a warehouse, it ended its last financial year with a turnover of £10m, more than a seventh of its current market capitalisation.
Christopher Ruane has shares in NWF.
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