I’m looking for the perfect FTSE 100 shares to purchase this festive season. Right here’s one whose beautiful price forecasts for the New 12 months demand critical consideration from savvy traders.

Dipping once more

The power of the UK housing market restoration has taken the market unexpectedly in 2024. If this continues, builders like Taylor Wimpey (LSE.TW) might spring again to life within the New 12 months.

Corporations acoss the new-build sector have plummeted in current months. Fears that persistent inflation will restrict rate of interest cuts has solid doubts on the sustainability of the market upturn.

On prime of this, warnings from mega builders Vistry and Persimmon on prices haven’t helped the builders’ share costs.

So Taylor Wimpey’s share price is now down nearly 16% for the 12 months thus far. As an current investor, I believe that is a beautiful dip-buying alternative for traders to contemplate.

Restoration continues

The outlook for house gross sales stays fairly brilliant for subsequent 12 months. Rightmove — which has predicted 4 rate of interest cuts in 2025 — thinks annual home price development will speed up to 2.5% for the complete 12 months.

Newest research from the property lister confirmed development of 1.9% 12 months on 12 months in November.

Given worsening circumstances within the UK financial system, I believe the Financial institution of England ought to keep its urge for food to maintain chopping charges, even when inflationary pressures persist for longer than first thought.

Taylor Wimpey has carried out particularly strongly in current months. In August, a strong first-half efficiency inspired it to forecast full-year completions “towards the upper end of our previous guidance range of 9,500 to 10,000” models.

And in November, the agency affirmed its manufacturing and earnings steering for 2024 due to “steady signs of improvement in customer demand” from July.

Good worth

Metropolis analysts are assured that this buying and selling upturn will proceed into the New 12 months, pushing earnings sharply northwards.

Dealer consensus is that the builder’s earnings will leap 23% in 2025. And this leaves it trying extraordinarily low cost on paper.

At 121.8p, Taylor Wimpey shares commerce on a price-to-earnings-to-growth (PEG) ratio of 0.5. A reminder that any sub-one studying implies {that a} inventory is undervalued.

With the builder additionally commanding a 7.9% dividend yield, it provides respectable worth throughout the board. This might even lead it to rise sharply in 2025.

Sturdy upside in ’25?

Metropolis analysts actually charge the housebuilder extremely forward of 2025. Of the 18 brokers with scores on FTSE 100 firm, 13 contemplate it a Sturdy Purchase, with one other 4 classifying it as a typical Purchase.

One analyst charges the builder a Maintain. None suppose that it’s a Promote.

Reflecting these numbers, the typical 12-month price forecast for Taylor Wimpey shares is significantly larger than present ranges, at 165.4p.

That represents a premiun of 35.8% from present ranges.

A prime inventory

I have already got a sizeable publicity to the UK housebuilding sector. Alongside Taylor Wimpey, I additionally maintain shares in Persimmon and Barratt Redrow. Had been it not for this, I’d purchase extra Taylor Wimpey shares for my portfolio as we speak.

With Britain’s continual housing scarcity poised to tug on, I believe these shares might ship glorious returns in 2025 and over the subsequent decade.