A significant spike in Currys LON:CURY shares this week is setting the UK retailer up for a potentially very strong 2025. Currys shares are now up 20.6% in the last six months, and over 87% on a YTD basis. The stock is still only trading at a PE of 5.47x earnings.
Currys sets realistic growth targets in its latest set of results, but the focus is more on maintaining reliability than pursuing ambitious growth, according to analysts. Consumer confidence recovery will take time, but Currys’ strong supplier relationships and omnichannel strategy are key to navigating these headwinds.
With solid cost management and a seasoned leadership team, Currys has built strong foundations in the UK and Ireland. In contrast, the Nordics remain a challenge, with progress hinging on improved efficiency and economic recovery.
“B2B represents a huge untapped opportunity for Currys, in the UK and Nordics, where it could unlock significant value by leveraging its expertise and online platform,” observed Alex Doran, an analyst with research firm Third Bridge.
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Currys’ stores are more than just retail spaces, increasingly incorporating B2B hubs and initiatives like ShopLive, which could be pushed on further. Currys’ investment in omnichannel capabilities also cements its competitive edge in the UK and sets the stage to replicate this success in the Nordics.
Currys is seen as having an opportunity to capitalize on cross-sell and upsell potential, especially with durable, energy-efficient products that align with sustainability trends, moving beyond heavy reliance on promotions and discounts.
Currys share price performance vs close peers
Bridgewise rates Currys an Outperform, making it one of the FTSE 100 stocks to pay particular attention to in the New Year. Bridgewise has grouped it with peers like mobilezone [SWX:MOZN] and Ceconomy [DE:CEC] which are also performing well at the moment.
Currys rates well thanks to its return on equity ratio and the net change in cash when compared with its peers in the Consumer Discretionary sector. These two metrics are considered very important for the future performance of companies in this sector. It demonstrates Currys’ strength in the retail space, despite the decline in revenue and net loss in the last set of numbers.
Investors are encouraged to focus instead on the substantial increase in earnings per share relative to the corresponding quarter last year. The EBITDA margin was also up (4.4%), usually indicative of a company raising prices or implementing optimisation techniques in its key business sectors. The increase in free cash flow is also a positive step.
Currys share price momentum analysis
Looking at the momentum indicators supplied to us from Trend Intelligence, we can see some further strong movement by Currys versus the three year picture on the stock. The top three charts above – price overlay, D* momentum and R* momentum – clearly demonstrate that Currys shares are picking up speed versus the three year share performance picture.
The only fly in the ointment is the M* indicator, which is still reading positive, as the red M* line is operating just below the yellow signal line, but still above the blue signal line.
Currys could well end up being one of the better FTSE performers in Q1 next year – after that, Christmas sales numbers and the relative drag on the economy caused by higher UK inflation could start to impact the stock in the spring.
