Are these the top stocks to watch in 2025?

UK investors tend to turn to the FTSE 100 for the relative safety provided by the dividend stocks — while the index typically pays out circa 4% per annum, there are many popular choices which have been sustainably paying out more than this over many years.

While past performance is not an indicator of future returns, but the common trope is that investors in FTSE 100 dividend shares are eschewing the increased capital gains on offer elsewhere — for example, the S&P 500 — in return for reduced risk.
However, several FTSE 100 companies have delivered extraordinary returns in 2024, and while there is an element of subjectivity to ‘top stocks’ to watch in 2025, the following five could be on investor radars.

Top stocks to watch

Informa (LON: INF)

Informa shares increased by 4% in 2024. The company works to lead international events, conduct academic research and offers digital services.

The company reported strong H1 results with revenue increasing 10% year—over—year and operating profit up 18.8%. This was largely driven by growth in B2B and Academic Markets. These positive results have resulted in Informa increasing its full year guidance and it now expects to deliver an operating profit of up to £1 billion. If this strong performance continues throughout 2025, its share price could improve further.

Our analysts have given the stock a strong buy rating with a predicted price target of 1022p in the next 12—month period, up 20% from its current value.

Diploma (LON: DPLM)

Last year, Diploma shares increased by just over 20%. The company is responsible for the supply and distribution of specialised products and services throughout the world.

Although market conditions were challenging, the company reported strong H1 results bringing in a revenue of £638 million, up 10% year—over—year. It also saw just under a 20% increase in operating margin. Diploma have upped its full year guidance as a result.

During this 6—month period, the company welcomed 6 new businesses into the Group, two of them being PAR Group and Peerless. These companies are expected to add value to Diploma and positively impact its earnings report going forward.

Our analysts have given the share a buy rating with an average price target of 4543p in the next 12—month period.

Intertek (LON: ITRK)

Last year, Intertek shares increased by just over 10%. The testing laboratories company reported strong H1 results with revenue reaching almost £1.7 million, up 6.6% year—over—year and operating profit increased by 14%.

The company also expect to deliver a successful H2 and have upped its full year guidance as a result, with revenue growth now expected to be around 10%. If this robust performance continues throughout 2025, its stock price could continue to rise.

Our analysts have given the share a buy rating with an average price target of 45646p in the next 12—month period, up 11% from its current value.

Rightmove (LON: RMV)

In 2024, Rightmove shares increased by almost 16%. The company reported strong H1 results with revenue up 7% to £192 million as many new home developers and agents upgraded their packages and invested in some additional products.

Rightmove remain on track to meet its full year guidance, with membership growth expected to increase 2% and revenue to be up around 9%. The company continue to grow its commercial real estate, mortgage lead generation and rental services which in time should generate further gains.

On boxing day last year, Rightmove saw a record number of properties listed on its platform. Although it can never be guaranteed, this indicates a busy start to 2025.

InterContinental Hotels (LON: IHG)

InterContinental Hotels had a strong 2024 with its share price increasing 33% over the 12 months. Throughout H1, the company brought in a revenue of $1.1 billion, up 7% year—over—year and its EPS grew 12%.

During this time the tourism company continued to expand and added 126 new hotels to its offering, bringing its overall number of rooms to 955,000 worldwide.

To generate further growth, InterContinental Hotels have recently partnered with JPMorgan to launch a co—branded credit card for US IHG One Rewards Members. In 2023 the company earned $39 million from co—brand credit agreements and in 2025 this is expected to double.

Analysts anticipate another strong year for InterContinental Hotels as travel continues to be one of the top non-essential choices for most consumers.

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Top stocks to watch in 2025 summed up

Informa, Diploma, Intertek, Rightmove and Intercontinental Hotels could be some of the best shares to buy in 2025. These FTSE 100 companies performed well throughout 2024 and have the highest PEG ratio on the index. If this performance continues into 2025, further gains are possible.

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*Based on revenue excluding FX (published financial statements, October 2021).