After looking through all the options, experts have picked two UK stocks to buy in the year 2025. These stocks are Aviva and JD Sports Fashion as they present massive growth potential.
Aviva offers different types of financial products, such as investment, insurance, and pension accounts. Right now, this company is one of the best shares in the FTSE 100's financial sector.
The P/E ratio of Aviva is around 9.9x for 2025, while its PEG ratio is at 0.6. So, that's also below the 1 value watermark.
And when we look at the expected earnings from its predicted earnings, the Aviva shares also look like a bargain. On top of that, the dividend yield of Aviva is expected to be at 8%. Last but not least, the P/B of the stock is 1.5x which also makes it look relatively cheap.
If we talk about potential pitfalls, the biggest one is the worsening of economic conditions in the Ireland and UK marketplace. However, it seems that its already priced-in to the valuation of the firm.
The second UK stock on the list is JD Sports Fashion, which operates 4500 stores all over the world. The firm also operates a popular online website for selling its sports fashion products.
In November, the shares of JD Sports Fashion declined by 15.5% on the announcement that its earnings would be at the lower limit of guidance.
Although this was negative news, it has also made the shares of JD Sports Fashion cheaper. There's no doubt that JD Sports shares are now available at a bargain, given the solid presence of the firm in its sector. The expected EPS (FY25) of JD Sports is around 12.6p while it's trading on a 7.6 multiple.
In the long-term, the prospects of JD Sports Fashion look really bright and the company is also looking to acquire 1000+ stores in the USA.