UK shares have delivered some pretty awesome returns in 2025. Both the FTSE 100 and FTSE 250 have delivered double-digit gains since the start of the year, and some British enterprises like Rolls-Royce have more than doubled!
Yet even with this tremendous growth under its belt, the British stock market looks primed for growth, especially in the sectors where there’s currently not a lot of love. With that in mind, here are three stocks on my radar right now.
AI spending inbound
We’ve already had a glimpse of the growth artificial intelligence (AI) spending can deliver in the US. Unfortunately, such investments are lagging behind here in the UK due to a variety of economic and political factors. However, with macro uncertainties slowly clearing up, 2025’s expected to be a year of booming AI spending here in the UK. And that’s something Computacenter‘s (LSE:CCC) aiming to capitalise on.
The firm’s one of the largest IT resellers in the world, helping customers pick and integrate solutions to automate and digitalise operations. Throughout 2024, investments into IT infrastructure have been fairly soft, especially from the public sector, which has been awaiting clarity on the newly elected government’s priorities in the October Budget.
That’s translated into lacklustre share price performance, which has seemingly created a buying opportunity. Of course, it’s not a risk-free one. Suppose AI fails to live up to expectations? In that case, British companies may continue to defer their investments, putting a drag on Computacenter.
Electronics rebound?
RS Group (LSE:RS1) similarly has found itself at the bottom of a spending cycle. The group operates at the heart of over one million manufacture’s supply chains around the world. RS offers a wide range of products (its portfolio spans over 750,000 items). However, it’s got a lot of exposure to the electronics market, which is currently in low demand due, once again, to weak economic conditions.
The cost-of-living crisis has caused a lot of households to postpone their latest smartphone or TV upgrade. As such, manufacturers haven’t needed to order new parts and components from RS Group resulting in growth flatlining. However, just like Computacenter, management isn’t sitting idle.
The firm’s successfully been finding new ways to minimise expenses and sustainably improve profit margins. It’s clear the cyclical risk attached to this enterprise is significant and will continue to persist over the long term. But buying near the bottom of a cycle’s a known recipe for success.
Time to buy?
Both Computacenter and RS Group look like intriguing opportunities. Their brands aren’t well-known among consumers, but in their respective industries, they’ve positioned themselves as go-to solution providers among businesses. That’s a quality that’s paved the way for robust investment returns over the last decade. And it’s a trend I believe will continue.
Therefore, I’m taking a closer look at both of these enterprises as potential additions to my portfolio this month. After all, if everything goes according to plan, 2025 should be a terrific return to growth for both businesses.
