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While the FTSE 100 index of leading shares hit a new all-time high earlier this year, 2025 has not been without significant falls both in the index and in the prices of many of its individual constituent shares.
Although many shares have done very well over the past month after early April’s market mayhem, I reckon some could still potentially move a lot higher.
Recovery stories
To start with, there are shares that have been beaten down and started to recover, but are still well below their earlier highs.
As an example, I bought Greggs (LSE: GRG) shares for my portfolio this year. The share price is up over 20% since earlier this month – but that still leaves it 23% below where it began the year.
Now, just because a share (even a FTSE 100 one) falls does not necessarily mean it will ever get back to where it was. Some keep falling, are relegated into the FTSE 250, and continue their downwards movement from there until obscurity.
But I reckon the current Greggs share price undervalues the company’s future prospects. This week’s trading update for the first 20 weeks of the year reported total year-on-year sales growth of 7% and affirmed the board’s outlook for the full year.
Increased wage costs are a risk to profits, partly helping to explain the previous price decline, while a warm start to the summer could also mean less demand for hot pastries like sausage rolls.
But with its strong brand, network of over 2,600 shops, and compelling value proposition for cash-strapped consumers, I reckon Greggs shares could move higher from here. I do not plan to sell mine.
Growth opportunities
What about shares that are already doing brilliantly, but may do even better in coming months thanks to strong business growth opportunities?
Games Workshop (LSE: GAW) has long been a favourite with many retail investors. No wonder. It is up 21% so far this year and 138% over five years. On top of that, it pays frequent dividends and has a 3% yield.
Today (21 May), the Games Workshop share price hit an all-time high. After growing 2,940% in the past decade, might the FTSE 100 share now be overvalued?
Possibly, yes.
The price-to-earnings ratio of 30 is not low. The company’s pricy products could mean demand falls in a weak economy. Its concentrated manufacturing footprint brings the risk that if something affects productivity at its core factory site, sales volumes could suffer.
But the most recent trading update, in March, said 2025 had started strongly. Games Workshop raised its full-year expectations. It continues to expand in high profit margin areas like licensing its intellectual property.
The company’s unique intellectual property and loyal fanbase are massive competitive advantages as I see it. Media deals could help grow the popularity of the firm’s games franchises – and its profits.
I see substantial further business growth potential for the FTSE 100 firm and reckon that could potentially help keep propelling its share price upwards.