Up 92% year over year! Is my big winner my best share to buy even in 2025?

On November 30 last year, I decided FTSE 250 financial services advisor Just Group (LSE: JNE) was the best share I could buy for my portfolio. And I was right. It’s up 92.57% since then, more than any other stock I own.

It has a laser-like focus on later life and retirement income, selling products such as annuities and lifetime equity release mortgages. I thought it should do well as people age and hold the importance of these things.

Just Group is my best stock for 2024

Three days before I parted with my money, I wrote this on Fol: “It has much less product concentration than FTSE 100 peers such as Aviva again Legal and General Groupwhich caused chaos”.

In 2018, Just shares took a hit after the Prudential Regulation Authority (PRA) introduced new rules for calculating the reserves of annuity companies. This forced it to raise more money, disconcerting investors who feared a cut in capital.

Stocks plunged and continued to do nothing once the issue was resolved. JP Morgan was aware of this opportunity, noting that the Just “punches well above its weight” in the UK’s fast-growing pension risk transfer market, where it has a 10% share. It also benefited from the pension revival, as interest rates gave retirees better returns.

I should add a disclaimer here. When I don’t write for The Motley FoolI am a personal finance reporter, so I know the Just PR team. That affects a lot of financial firms but I also wouldn’t gamble my retirement pot for that reason.

This stock may break in 2025 again

I invested because I thought the shares looked ridiculously low trading at what I called “minimum revenue multiple of 4.24 times”. The price-to-book ratio was just 0.4. This proved unfair for a company that recently doubled first-half sales to more than £1.9bn. So I jumped.

Over the past 12 months, Just’s shares are up 85.66%. Yet the shares still look incredibly cheap, trading at 5.57 times earnings.

Last month, it just announced its biggest deal in years, a total purchase of £1.8bn G4S Pension Scheme, covering 22,500 members. On 19 November, JP Morgan reiterated an Overweight rating and raised the price target from 190p to 200p. Today, the shares are trading at 159.9p. That suggests another 25% potential increase.

One thing worries me. When interest rates fall, the increase in personal capital may decrease, reaching a profit. As a small player, that would beat just Aviva or L&G. Investors are optimistic today but that can change in a second.

Unlike other insurers, the yield isn’t much to shout about at 1.31%. That’s partly down to its floating share price though, as management moves on.

If I hadn’t caught Just Group I would have bought it. I expect another good year in 2025, although nothing like what we just saw. I have enough exposure now, thanks to a strong run, and I will look elsewhere for next year’s big winner.