Every year, we ask our freelance writers to share their top ideas for value stocks with investors to consider buying in the year ahead — here’s what three of them said for 2025!
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Aviva
What it does: Aviva offers a broad range of financial products including pensions, insurance and investment accounts.
By Royston Wild. I’ve owned shares in Aviva (LSE:AV.) for several years, and last topped up my holdings in September. I’m aiming to boost my stake again early in the New Year.
To me, the financial services giant is one of the FTSE 100’s best bargain shares. It trades on a price-to-earnings ratio (P/E) ratio of just 9.9 times for 2025. Its price-to-earnings growth (PEG) ratio is 0.6, too, comfortably below the value watermark of 1.
Aside from predicted earnings, Aviva shares also look cheap with respect to expected earnings, its dividend yield for next year up at 8%.
Finally, with a price-to-book (P/B) reading of 1.5 times, Aviva looks cheap relative to the value of its assets. The average for its financial services peer group sits closer to 2 times.
I think the business has considerable investment potential over the long term. I expect sales to steadily rise as demographic changes drive demand for retirement products like pensions and annuities.
Aviva shares could fall next year if economic conditions in its core UK and Ireland marketplace worsen. But I think this possibility is more than baked into the Footsie firm’s rock-bottom valuation.
Royston Wild owns shares in Aviva.
JD Sports Fashion
What it does: From 4,500 stores in 36 countries and via its website, JD Sports Fashion sells branded sports and casual wear.
By James Beard. On 21 November, JD Sports Fashion (LSE:JD.) shares tanked 15.5% after it said earnings for the year ending 1 February 2025 (FY25) would be “at the lower end of our original guidance” of £935m-£1.035bn. The consensus forecast of analysts is £988m.
Pre-announcement I thought the stock offered good value. Now, close to its post-pandemic low, I think it’s a bargain.
With expected FY25 earnings per share (EPS) of 12.6p, the stock trades on a multiple of just 7.6. In FY21, EPS was 63% lower, yet at the end of that financial year the share price was 59% higher.
But Q3’s seen a slowdown in sales in all territories, except mainland Europe. And as Nike‘s top customer, it’s suffering as a result of the American giant’s failure to innovate.
However, long term I’m confident that the full-year impact of its recent acquisition in the United States (1,169 stores) will help restore confidence.
James Beard owns shares in JD Sports Fashion.
NWF
What it does: NWF is a UK distributor of fuel, animal feeds and food with an established customer base,
By Christopher Ruane. As a shareholder in NWF (LSE: NWF), I have scratching my head at the penny stock’s dismal 2024 performance. Does the market just not see the value I do? Might it see a value trap?
Yielding over 5% and with a price-to-earnings ratio of 8, the shares look like a bargain to me. It has a proven business model selling products to an established customer base. Competition is limited.
Yes, the profit margins are thin: NWF made less than £10m last year on sales of £951m. So risks like oil price volatility are significant ones for the company.
But while the margins are thin, this is a consistently profitable company with a customer base set to keep needing what it sells. NWF’s cash generation supports a generous dividend.
Even after capital expenditure including building a warehouse, it ended its last financial year with net cash of £10m, over a seventh of its current market capitalisation.
Christopher Ruane owns shares in NWF.
