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The FTSE 100 index has risen an unimaginable 17% to date in 2025. Whereas I’m shocked by a few of its strongest performers — Lloyds and BP, I’m taking a look at you — I’m not shocked by the gorgeous positive factors another UK blue-chip shares have loved.
Take Aviva (LSE:AV.) and Video games Workshop (LSE:GAW). These FTSE firecrackers have risen a shocking 36% and 46% respectively since 1 January. I’m satisfied they’ll proceed their spectacular ascents too.
A lot so, in actual fact, that I’ve purchased each of them for my very own portfolio.
However what might thrust these prime shares to new worth highs and makes them price contemplating? Let’s have a look.
Forecast beater
Aviva’s origins go all the way in which again to 1696. In that point, it’s established itself as one of many UK’s most trusted manufacturers.
In an trade coping with folks’s cash and monetary safety, it’s a top quality that may’t be overstated. It’s enabled the corporate to construct a 25m-strong world buyer base. It’s additionally the bedrock of Aviva’s resilience in what are powerful circumstances for the monetary companies trade.
For 2025, it’s heading in the right direction to develop working revenue 25% 12 months on 12 months (stripping out its acquisition of Direct Line).
Aviva isn’t simply surviving, it’s thriving. And that’s thanks in massive to the agency’s give attention to capital-light companies and a cost-cutting plan that’s smashing expectations. Working revenue and money era targets have been hit a 12 months forward of schedule, resulting in bold new three-year targets launched a month in the past.
This contains common working earnings per share (EPS) development of 11% between this 12 months and 2028.
There are challenges right here, like intense competitors throughout its markets. The enterprise might additionally endure within the occasion of adversarial regulatory adjustments.
But Aviva’s operational excellence and big market alternatives nonetheless make its shares a prime purchase. It’s in nice form to develop earnings as inhabitants ageing and the rising significance of monetary planning drive gross sales.
One remaining factor: with a ahead price-to-earnings development (PEG) of 0.1 and 6% dividend yield, Aviva’s share worth is grime low cost.
A mannequin inventory
On the different finish of the size, Video games Workshop’s shares look fairly dear on paper. Its ahead price-to-earnings (P/E) ratio of 35 occasions sails above the FTSE 100 common of 12.3 occasions.
But the Warhammer producer is displaying no indicators of slowing down. In actual fact, like Aviva it continues to surpass expectations, saying it anticipated core gross sales development of 15% this 12 months.
In my opinion, the corporate is greater than deserving of its premium score.
Video games Workshop sits on the prime of the tabletop gaming world. This can be a area of interest interest, nevertheless it’s a quickly rising one the place demand stays steady even when customers really feel the pinch. Its miniatures and video games programs persistently promote in huge portions to each informal and hardcore followers.
What’s most fun me is its plans to speed up IP licensing offers with media firms. Strikes just like the TV and licensing deal it’s inked with Amazon might supercharge earnings development over the following decade.
