The FTSE 100 is a stock picker’s index. This index doesn’t typically deliver prolific returns, however, it’s possible to generate strong gains by investing in individual companies within it. Looking for the best FTSE 100 stocks to buy for 2025? Here are three to consider.
AstraZeneca
Among the FTSE 100’s blue-chip stocks, pharma giant AstraZeneca (AZN:LON) stands out as a company with significant investment potential as we start 2025. Its share price fell substantially in the second half of 2024 and the stock is now trading at a very reasonable valuation.
One reason the shares fell in 2024 was that some AstraZeneca executives in China were investigated for fraud. It seems management is not too concerned about this issue however – in November both the CEO and Chairman bought a ton of AZN shares.
This year, AstraZeneca’s revenues are forecast to rise 7% year on year to $56.9 billion. Meanwhile, earnings per share (EPS) are expected to jump 14% to $9.13. With the shares currently trading on a forward-looking price-to-earnings (P/E) ratio of 14.7, I think the company – which currently has a pipeline of around 200 drugs – looks attractive from an investment perspective today. A dividend yield of around 2.5% adds weight to the investment case.
- Interested in trading FTSE shares? See our comparison of the best FTSE 100 trading platforms.
JD Sports Fashion
Another stock that experienced weakness in 2024 was athletic footwear and apparel retailer JD Sports Fashion (JD:LON). In Q4, its share price fell around 40%. After this big move down, I think there’s value on offer here. Right now, JD Sports Fashion shares trade on a forward-looking P/E ratio of just 6.7 – a very low earnings multiple.
Of course, consumer weakness is a risk with this stock. With budgets squeezed, a lot of people are cutting back on discretionary items such as trainers. However, today JD Sports Fashion generates around 40% of its revenues in the US where the economy is doing pretty well and consumers have more disposable income. Meanwhile, in the long run, the market for athletic footwear and apparel is expected to grow at a healthy rate, driven by trends such as the casualisation of fashion and increased awareness of the benefits of exercise.
For the year ending 31 January 2026, JD’s revenues are projected to rise 11% year on year to £12.9 billion. As for earnings per share, they’re expected to increase 14% to 14.5p. If the company can achieve this level of growth, I think there’s a good chance the shares will do well over the next 12-18 months. We may see some volatility in the months ahead, however, especially if trading is a little underwhelming.
- Prefer smaller cap stocks? Take a look at our best AIM shares picks.
Scottish Mortgage Investment Trust
Finally, I think Scottish Mortgage Investment Trust (SMT:LON) is worth a look as we start 2025. It’s a growth-focused investment trust that’s in the FTSE 100 index.
The beauty of this trust is that it provides exposure to a range of tech companies that aren’t listed in the UK. Some examples here include Amazon, Nvidia, ASML, and Meta Platforms. These kinds of companies are all growing at a rapid rate as the world becomes more digital. If artificial intelligence (AI) is a hot investment theme again in 2025 (I think it will be), these kinds of growth stocks should do well.
It also provides exposure to some really exciting unlisted businesses. Elon Musk’s space company SpaceX is a good example here. It’s a top 10 holding for the trust. And it has a lot of potential.
A risk with this investment trust is interest rates/bond yields. If they continue to rise, growth stocks could lose their shine in the short term. Taking a medium to long-term view, however, I think this trust will do well. In my view, it’s a great play on the tech revolution.
Edward Sheldon has positions in JD Sports Fashion, ASML, Amazon, Nvidia, and Scottish Mortgage Investment Trust.
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Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
Before establishing himself as a writer, Edward earned a Commerce degree from the prestigious University of Melbourne. Complementing his academic background, he holds the esteemed Investment Management Certificate (IMC) and is a proud holder of the Chartered Financial Analyst (CFA) qualification.
Widely recognized as a sought-after investment expert, Edward’s insightful perspectives and analyses have been featured on sites such as BlackRock, Credit Suisse, WisdomTree, Motley Fool, eToro, and CMC Markets, among others.
You can contact Ed at edward@goodmoneyguide.com
