UK stocks were recently named the most attractive in Europe, with analysts pointing to positive valuations and supportive trends within the British economy. That marks an incredible turnaround from a 18 months ago, when UK-listed companies were reportedly the least popular worldwide. So investors looking to benefit from this new wave of positive sentiment may want to consider these two stocks, both having been tipped to outperform the market.
Bargain fashion ( ) has been tipped by several analysts as a stock to surge into 2025, but some are suggesting the company has an image issue stemming from majority owner Mike Ashley. Some investors may not appreciate the group’s diversification away from the core Sports Direct chain and via the group’s ownership of luxury retailer Flannels and positions in businesses like and . And this is part of Frasers Group’s strategic shift, known as the ‘Elevation Strategy’, which focuses on targeting more affluent customers.
The strategy has also been beneficial for Direct, with the company deepening ties with brands such as Nike and Adidas. The plan for growth also includes entering the ‘buy now, pay later’ market. The company has faced some challenges, including poor weather and high interest rates impacting British retailers, but analysts say the stock’s now positioned for growth.
In July, it reported that profits had hit the top end of its guidance range, with pre-tax earnings expected to surge into 2025. Drawbacks? Well, the .