Is Games Workshop the top stock to consider buying in December for the long term?

So far, I have failed to buy growth stocks Games Workshop (LSE: GAW). That’s a shame because in the last eight years it has increased more than 2,100%.

A small figure and a playmaker seemed like a miracle, and I didn’t see it coming.

I’ve got my inner nerd, but I’ve failed to understand the growing appeal and enthusiasm of Games Workshop’s fictional universe — I’m just not qualified.

A revolutionary agreement?

Is it too late to get involved in stocks? I do not think so. The company piqued the interest of investors last year when it announced a deal with Amazon.Com a subsidiary of Amazon Content Services.

This move was the first step towards the development of Games Workshop’s American giant Warhammer 40,000 the universe into films and TV shows and related merchandising rights.

Hey! If that doesn’t get a warm-blooded investor racing, nothing will. However, all that potential future money would not come quickly. In December 2023, Games Workshop said that the two companies planned to work together for a period of 12 months. “agreeing to the creative guidelines for films and television series to be developed by Amazon”.

Fast forward to today (December 10) – almost one year later – and there’s another announcement from the company.

Games Workshop has reached a final agreement with Amazon Content Services and the two firms have updated those creative guidelines as promised last year. Amazon now has exclusive rights to movies and TV shows placed inside Warhammer 40,000 the whole place.

This is great, isn’t it? If Amazon goes ahead with this, we could see another TV or video series and so on. However, there is a reality check in today’s statement. The company said the production processes in relation to these displays “it may take some years”.

High rating

In addition, the company said there was no change in its forecast for the 52-week period ending June 1, 2025. Meanwhile, City analysts are predicting that average wages will rise by low single-digit percentages that year and beyond.

If Games Workshop didn’t have the carrot of Amazon dangling in front of them, there’s a case to be made that the business might have gone into slow growth mode. Forward earnings estimates have been at record lows for a long time.

Meanwhile, investor enthusiasm has boosted the stock price and the valuation looks healthy these days.

With the share price close to 13,900p, the forward price-to-earnings (P/E) ratio works out to around 27 in 2026. At that rate, one of the biggest risks for new shareholders now is that the rate may be lower in the coming years.

Nevertheless, Games Workshop has a strong balance sheet and a well-protected market niche. Its products are popular and there is a possibility of gradual change in future income. So I think the business may be worth some investor research and time to consider now and long term to keep it in mind.