Are these the best UK shares to watch in April 2025?

In 2025, the UK’s economic landscape continues to deliver a mixed outlook. GDP growth for January decreased, although this was largely expected after a strong December. Despite this small drop, the economy is anticipated to grow by 0.3% in Q1, with further growth expected into the latter half of the year.

The labour market is expected to remain stagnant as higher employment costs are expected to cause a slowing pay growth and fewer vacancies. Unemployment is also expected to increase slightly.

Whilst it’s clear that interest rates are on their way down, these cuts will be more gradual if inflation remains high. At its most recent meeting on 20 March, the BOE decided to keep interest at 4.50% after inflation rose to 3%.

Further cuts are expected later in the year, but with uncertainties surrounding potential US tariffs the BOE remain cautious. If inflation remains above the BOE’s target figure of 2% rate cuts are likely to be more gradual.

Best UK shares to watch

Considering these issues, here are five shares we think could be the best UK stocks to buy now. These dividend, growth or value shares have been selected from recent market news. Always do your own research. Past performance is not a guide to future performance.

Open an account and trade some of the best UK stocks now

1. M&G

2. B&M

3. JD Sports

4. Babcock International

5. Card Factory

Top dividend stocks

M&G (LON: MNG)

In its H1 results, savings and investment company M&G reported a 3.7% increase in assets under administration reaching £346bn, up from £333bn the year before. Underlying operating profit dropped 4% but remained higher than market expectations.

Looking ahead, M&G are looking to grow its Asset Management and Wealth side of the business so that it accounts for 50% of the business (it currently accounts for 42%). The company is also looking to phase out its annuity portfolio and legacy products.

In October this year, M&G paid out a dividend of 6.60p, up from 6.50p the year before. The company have a cover ratio of 1.66 which suggests that its well placed to continue its strong dividend payments throughout 2025.

Our analysts have given the stock a buy rating with an average price target of 235p in the next 12—month period, up 14.34% from its current value.

Dividend yield: 12.2%

Dividend cover ratio: 3.8

B&M (LON: BMEB)

Retail store B&M reported stable Q3 results with revenue increasing by 3.5%, with revenues in the UK growing by 3.7%. The company had a strong Christmas period, particularly in France where demand for seasonal products helped bring in a revenue of 12.5%.

In the next two years, B&M are planning to open 73 new stores and remain on track to do so. Strong profits enabled the company to pay out a special dividend of 15.0p to shareholders in February. Although future dividend payments aren’t guaranteed, with a cover ratio of 4.7 the company seems well positioned for future payments.

Our analysts have given the stock a buy position with a predicted upside of 62% over the next year.

Dividend yield: 11.3%

Dividend cover ratio: 4.7

Top growth stocks

JD Sports (LON: JD.)

Sports retailer JD Sports reported mixed results for the 9 weeks leading to 4 January. Challenging market conditions resulted in a revenue drop of 1.5%, which missed market expectations of 2.7%.

Although decreasing prices may help drive profits, the company has resisted heavy discounting to protect the brands premium image.

The retailer’s recent acquisition of US based company Hibbet has significantly increased its store count and helped it expand into America. Although these expansion plans prove costly and may impact short term profits, it also indicates a lot of growth potential in the next few years.

Many analysts believe the stock is currently undervalued and its recent acquisitions are not yet reflected in the share price. It’s PEG ratio currently stands at 0.23 which indicates the stock could have growth potential. This view is confirmed by our analysts who anticipate the stock could increase in value by 35% over the next year.

Babcock International (LON: BAB)

Babcock International is a security, defense and aerospace company based in the UK. It operates worldwide across 4 main areas: Nuclear (Submarines and engineering services), Marine (marine infrastructure and naval ships), Aviation (Piolot training and equipment support) and Land (vehicle fleet management and training).

After seeing growth in its nuclear operations and marine division, the company have increased its full year guidance expecting to bring in a revenue of £4.9 billion, up from its initial forecasts of 4.51-4.78 billion. Underlying operating profit is also expected to surpass its target of £3.39 million.

Babcock international’s PEG ratio stands at 0.04 suggesting its undervalued and has growth potential.

Our analysts have given the stock a buy rating and predict its stock price will rise by almost 10% over the next year.

Top value stocks

Card Factory

Retail company Card Factory reported a strong performance over the Christmas period with total sales increasing by 4.7% in November and December due to a higher basket value. Although an increase in the National Living Wage and employer National Insurance will rise costs by up to $14 million, the company remain on track to deliver its full year guidance whilst seeing continued sales growth despite the difficult economic environment.

Card Factory has a P/E ratio of 6.48, which is below the industry average of 12.44. Its P/B ratio is 1.03. These fundamentals indicate that the stock is undervalued relative to its assets and its stock price could increase in the coming months.

Our analysts have given the stock a strong buy rating with a predicted upside of up to 92% over the next year.

How to invest or trade in UK shares with us

1. Learn more about UK shares
2. Decide whether you want to trade or invest
3. Open an account with us or practise on a demo
4. Search for your chosen share on our web platform or app
5. Make your investment or trade

When you invest in shares you buy them outright and become a partial owner of a company with the view of building wealth over time.

Trading takes a shorter—term approach which involves leverage. This allows you to take a position that’s larger than your initial deposit so both profit and losses are magnified.

For example, if you trade with 5:1 leverage, you could manage a £5000 position by placing a £1000 deposit. A 10% market shift could result in 50% profit or loss on your initial margin.

Although negative balance protection stops you from losing more than your initial deposit, market movements are unpredictable, and you could still lose your full deposit.

Top shares to watch summed up

The above five companies are just a small selection of top UK shares to buy now. Remember that any company can also fail and always do your own research.

Trade and invest in over 17,000 UK, US and global shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading or investing in shares with us, or open an account to get started today.

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