Are these the best FTSE 250 shares to watch in 2025?

Heading into 2025, the UK’s economy is expected to continue growing with GDP anticipated to increase 1.5%.

Back in June CPI inflation reached the Bank of England’s (BOE) target figure of 2% and soon after interest rates were reduced 0.25 basis points from 5.25% down to 5%.

Since then, interest rates have been reduced a further 0.25 basis points to 4.75. At its next meeting on 19 December, it’s expected the BOE will hold interest rates as recent inflation figures show that it’s on the rise having reached 3.2%.

Throughout the next year, inflationary pressures are expected to ease. Whilst it’s clear that the UK economy has entered a phase where interest rate cuts are expected, their frequency and the amount by which they are cut will depend on inflation. If inflation continues to creep up, future cuts will be more gradual.

Factors including the uncertainty surrounding trading agreements with the US, potential changes to the planning system for housing and development and the new budget will all impact the UK economy over the next year.

This all makes considering the best FTSE 250 shares to watch next month somewhat of a challenge.

For perspective, the index has remained essentially flat for the year, reflecting this ambiguity. The FTSE 250 started out at 19,511 points, rose sharply to 21,600 points in August and is now at 21, 001 points.

However, where’s there’s uncertainty, there’s also often opportunity. But of course, past performance is not an indicator of future returns.

Open an account and start trading the best FTSE 250 shares today.

Best FTSE 250 Shares to buy now

1. John Wood Group
2. Victrex
3. Future PLC
4. Watches of Switzerland
5. DiscoverIE Group

John Wood Group

John Wood Group is an engineering and consulting company based in the UK with four main segments: projects, operations, consulting and investment services.

The company reported mixed H1 results with revenue down 5% to $2.8 billion which was largely due to a 13% drop in its projects segment and an 19% drop in its investment services segment.

Despite this, the John Wood Group are beginning to see results from its new turnaround strategy where adjusted EBITDA was up 8% from $202 million to $219 million. Higher margins, an increased order book and improved pricing were also achieved.

The company is confident that its new strategy will continue to generate growth potential and remains optimistic about its performance going into 2025. Because of this, John Wood Group could be one of the best FTSE 250 companies to invest in.

Our analysts have given the stock a buy rating with an average price target of 135p over the next 12 —month period, up 106.66% from its current price.

Victrex

Victrex manufacturers high performance polymers which are used across a range of industries including energy, aerospace electronics and medicine.

The company’s H1 results were mixed but remained in line with guidance. Revenue dropped 14% year—on—year, where growth in automotive and aerospace was offset with medical revenue decreasing by 19% due to reduced demand.

Throughout H2 Victrex are focusing on improving cashflow through lower capital, demand recovery and inventory reductions. The company’s strategic mega—programmes Magma, E—Mobility, Knee and Aerospace Composites are performing well and are expected to help Victrex reach its revenue growth target of 5—7%.

Over the past month, the company’s share price has increased by 27.23% and our analysts have given the FTSE 250 stock a hold position with an average price target of 1127.50p in the next 12 —month period, up 4.40% from its current price.

Future PLC

Future PLC is a media and content creation company based in the UK which produces videos, websites, newsletters, events and magazines for brands such as Space.com, GO.Compare, PC Gamer and Marie Claire.

The company reported strong FY24 results with revenue remaining flat year—on—year at £788.20 and operating profit increased 28% to £222.20 million. Particularly strong performance was seen from GO.Compare which accounted for 26% of the group’s total revenue.

In the past month, its share price has increased 22.25%, and with its strong financial position which looks set to continue, this could increase further.

Our analysts have given the FTSE 250 stock a strong buy rating with an average price target of 1315p in the next 12— month period, up 22.37% from its current price.

Watches of Switzerland

Watches of Switzerland is a luxury watch retailer based in the UK, with branches across Europe, the UK and the US. As well as Watches of Switzerland the company manages the following six other brands: Goldsmiths, Mappin & Web, Hodinkee, Mayors, Betteridge and Analog Shift.

The company’s H1 performance for FY25 was in line with expectations. Revenue increased 4% to £785 million which was driven by an 11% revenue increase in the US. Revenue in Europe and the UK was down 1% year—on—year.

CEO Brian Duffy has spoken out on this claiming its "newly acquired Roberto Coin business in North America has traded strongly since acquisition and is now making a good contribution to our group. Integration is progressing well, and growth plans are underway.”

The company’s share price has increased 21.51% in the past month. Full year guidance remains unchanged, and our analysts have given the stock FTSE 250 stock a buy rating.

DiscoverIE Group

DiscoverIE Group designs and creates electronic components for industries such as renewable energy and transportation. The company operates in over 25 countries and has two main divisions: Sensing & Connectivity and Magnetics and Controls.

DiscoverIE Group reported robust H1 results where its share price increased 15% following the announcement. Although both revenue and pre—tax profits were down by 5% operating margins increased by 13.8%.

The company is generating a strong cash flow and with new orders coming in faster than sales, and it’s confident it will meet its full year profit targets.

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Best FTSE 250 Shares Summed Up

John Wood Group, Victrex, Future PLC, Watches of Switzerland and Discoverie Group could be the five best FTSE 250 shares to buy now. These shares are the top returning FTSE 250 stocks in December.

Remember past performance is not an indicator of future returns.

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