Stock market

Prediction: This will be the next great FTSE 100 stock!

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gave FTSE 100 Home to a wide variety of different stocks. However, it is particularly popular in certain industries such as financial services, energy, mining, and fast moving consumer goods.

Like megacaps Shell, Lloyd’s, GlencoreAnd Unilever He has some notable sons. It’s incredible to think that a certain hobby stock could add its name to that hallowed list, but that’s what we’re seeing today.

Games Workshop GroupThe (LSE:GAW) share price has increased in value by an impressive 133% over the past five years. If it continues on its current path, the fantasy war gaming giant could soon be knocking on Footsie’s door.

In my opinion, the chances of that happening are high. Here’s why.

A wonderful mystery

Games Workshop’s Share Price Performance Since 2019

Games Workshop's share price performance.
Source: London Stock Exchange

It’s been 46 years since Games Workshop opened its first shop in Hammersmith, London. But for many, the products he created – and what makes them so popular with hobbyists – remain a mystery.

It’s easy to understand what’s what. British American Tobacco, Diageo And Barclays All do and make them investable companies. And that’s what makes them so popular.

Tabletop wargaming, by contrast, is a more obscure sector and harder to understand. So let me give you a potted history of what Games Workshop does, and what makes it an industry powerhouse.

Boom industry

gave FTSE 250 The company designs, manufactures, and then sells—through its own stores and websites, and through third-party vendors—a wide range of plastic miniatures and gaming systems. His miniatures represent the various legions, factions and characters of his fictional universes.

Hobbyists buy these models in boxed kit form, then build and decorate them (often using Games Workshop’s extensive collection of paints, brushes and crafting tools). Once finished, players then battle with their miniatures on the tabletop using a turn-based playing system incorporating dice.

Games Workshop UK Stock
Source: Games Workshop

It’s a unique hobby, to be sure, and certainly not to everyone’s taste. But it has a huge following. And it is still growing steadily in popularity.

According to researchers at USD Analystics, the industry is set to expand by 6.3 percent between 2024 and 2030.

A top stock to consider

Hobbyists have a variety of tabletop gaming systems to choose from. And the number of game manufacturers entering the market is increasing, which is a threat to Games Workshop.

But the Nottingham company has built a formidable fanbase of its own. This is thanks to the high quality of its products and the development of the story around its small armies and characters.

Its flagship Warhammer 40,000 The games universe, for example, has evolved over decades and spawned vast communities of players in that time.

The business is also busy marketing its products to new generations of devoted followers. It is continuously expanding its global store network. And the conversation with him is going on. Amazon To bring it Warhammer universe on the big and small screens to boost the model’s sales and generate huge revenue on its own.

Today Games Workshop trades at a forward price-to-earnings (P/E) ratio of 21.3 times. Given its position as a high growth stock I think this valuation is quite reasonable.

I believe this is a top stock to buy today and hold for the long term.

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