These FTSE 250 shares have experienced substantial share price growth since 1 January. And I think they could continue to rise sharply in value in 2025.
Here’s why I think they’re worth considering.
AJ Bell
Market conditions have been tough for financial services providers of late. But AJ Bell‘s (LSE:AJB) been a stellar performer in spite of weak investor confidence and higher-than-usual inflation.
Profits have ballooned over the past financial year. And so the company’s share price has risen an impressive 69.4% since the beginning of 2024.
The investment platform market’s highly competitive. But AJ Bell’s growing customers at a rapid pace, thanks to fee changes and efforts to raise brand awareness.
This dual attack’s paying dividends. Customer numbers rose 14% in the 12 months to September, to 542,000. So revenues soared 23% year on year to a record £269.4m.
Assets under administration meanwhile, increased 22% to £86.5bn. This was thanks to net inflows of £6.1bn, and favourable market movements of £9.5bn.
With margins also improving, pre-tax profits also touched all-time highs of £113.3m, up 29%.
The uncertain macroeconomic and geopolitical environment poses a threat to AJ Bell’s momentum in 2025. Yet I’m cautiously optimistic, with interest in its services also likely to be boosted by growing public awareness over the importance of financial planning.
City analysts expect annual earnings to rise 10% in financial 2025, and by the same percentage the following year.
Ibstock
Brickmaker Ibstock (LSE:IBST) hasn’t had such an enjoyable experience in 2024. Yet its share price has risen 26.4% since the start of the year.
Like many building material suppliers, the company’s suffered due to recent troubles in the housing market and a subsequent fall in homebuilding activity. Sales and pre-tax profits collapsed 20% and 60% respectively between January and June.
Despite its difficulties, Ibstock’s share price jumped in the summer and have remained stable since. It’s important to remember that markets are forward looking. And investors believe demand for Ibstock products could recover strongly from recent lows.
Ibstock’s prices took off around the time of the UK election, boosted by Labour pledges to build 1.5m new homes between now and 2029. It’s a pledge the now government continues to trumpet.
The brickmaker’s also been helped by a steady stream of data showing a rebound in the homes market. Nationwide data last week, for instance, showed average house prices rise at their fatest pace for two years in November, at 3.7%.
With interest rates tipped to fall next year, Ibstock’s sales could steadily pick up steam, pulling its share price higher. But remember that sticky inflation could halt any further recovery if it means the Bank of England tempers future rate cuts.
On balance, City brokers are bullish on Ibstock’s earnings prospects. They predict a 37% rebound in Ibstock’s profits next year, and a 34% bottom-line rise in 2026.
Signs of progress towards these targets could pull the firm’s share price still higher.
