Considered one of my favorite FTSE 100 shares is Rightmove (LSE: RMV). Over the long term, this firm’s been a unbelievable funding.

This morning (9 Could), the Footsie firm posted a buying and selling assertion with some steerage for 2025. And it didn’t disappoint, predicting sturdy income progress for the present 12 months.

Respectable top-line progress predicted

A variety of FTSE 100 firms are dealing with uncertainty in the mean time. Mix tariff points with a possible recession/client slowdown and the outlook for lots of companies seems murky.

Not Rightmove nevertheless. For the 12 months, it’s anticipating income progress of 8%-10%, which is an honest degree given the corporate’s maturity. The corporate’s additionally anticipating an underlying working revenue margin of 70%. There are just a few firms within the FTSE 100 that may generate that distinctive degree of profitability.

“In the current uncertain global climate, our UK-focused, subscription-based and B2B-oriented business model means that we are comparatively well insulated from the volatility that some other companies and industries are having to contend with. We look forward with confidence and are today reiterating our expectation of delivering 8-10% revenue growth this year.”
Johan Svanstrom, CEO of Rightmove

Different highlights

There have been a number of different snippets within the buying and selling assertion that I believe are price highlighting. One is that the corporate’s had a whole lot of success with its current promoting marketing campaign ‘if they can find it, so can you’. This advert (the place the girl dives into the ocean exterior her home) has led to sturdy social media engagement (3 times increased 12 months on 12 months).

One other is that customers can now request an ‘Instant Online Valuation’ from a property’s sold-price historical past. Within the first 4 months of the 12 months, this was used over 2m occasions.

A 3rd takeaway is that the digital firm’s now incorporating synthetic intelligence (AI) into its platform. Not too long ago, it has been trialling ‘AI Keywords’ as step one in the direction of a extra personalised and conversational consumer search.

“We’re making strong strides forwards in delivering new tools and products to make the property journey smoother for both consumers and our partners,” Svanstrom additionally stated.

Total, it was a really encouraging replace, in my opinion. Whereas a whole lot of Footsie companies are struggling a little bit proper now, this firm seems to be firing on all cylinders.

Price a glance at the moment?

Are Rightmove shares price contemplating at the moment? I believe so. It is a high-quality expertise firm with a powerful model, an enormous market share (80%+), and an insanely excessive degree of profitability and it’s not that costly. At present, the price-to-earnings (P/E) ratio utilizing subsequent 12 months’s earnings forecast is just 23.

Provided that the corporate is resistant to tariffs, and likewise comparatively proof against any downturn within the UK property market, I believe that’s a really affordable valuation. To my thoughts, this can be a traditional ‘growth at a reasonable price’ (GARP) inventory.

It’s price declaring that competitors from rivals is a threat. As we speak, there are a number of others within the UK property search house which are aggressively making an attempt to seize market share.

However I’m inspired by the strikes (talked about above) Rightmove’s making to strengthen its platform. I’m optimistic this Footsie winner can proceed successful.