5 stocks to watch in December

Important information - the value of investments and the income from them, can go down as well as up, so you may get back less than you invest.

Over the past 12 months, however, shares have been under pressure. The construction industry is cyclical, and there are concerns about demand for things like forklift trucks and cranes. In the year to April 2025, Ashtead’s revenue plateaued and profit before tax fell by 5%.

Investors will be hoping for better news in Ashtead’s interim results, which are due on Tuesday 9 December. The market certainly isn’t expecting surprises, given the company reiterated its revenue guidance and upgraded its free cash flow predictions in September.

Next year will bring big changes. Ashtead is due to move its primary listing from London to New York in March and rebrand as Sunbelt Rentals. The management team said the US was ‘the natural long term listing venue for the group’ which makes sense, given it makes over 90% of its sales in the region.

However, Ashtead may also be hoping to command a higher valuation across the Atlantic. The group currently trades on a forward price/earnings ratio of 15.7 times. Its largest American rival, United Rentals, trades on a multiple of over 17 times.

Ashtead will publish its half-year results on Tuesday 9 December.

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British American Tobacco

The death knell for tobacco stocks has been sounded several times in recent years. Governments around the world are trying to phase out smoking, and rules around branding and shop displays have got progressively tighter. None of this is good news for shareholders.

However, 2025 has been a great year for the tobacco giants. Shares have been rising and payouts have been generous, with British American Tobacco extending a share buyback programme to £1.1bn.

Traditional cigarettes still generate about 80% of revenue at British American Tobacco - according to Morningstar, the company sold 505bn cigarettes in 2024. However, with global cigarette consumption declining, it is throwing itself behind vapes, nicotine pouches and heated tobacco, and this appears to have rekindled investor appetite.

‘This strategy makes sense, and we think it has a good enough to portfolio that should allow it to drive low-single-digit top-line growth,” Morningstar concluded.

In the traditional cigarette space, volume declines are being offset by price rises, which is also supporting revenue growth.

British American Tobacco is due to publish a full-year pre-close trading update on Tuesday 9 December. Its annual results will follow in February.

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Chemring

It is common knowledge that defence giants have had a fantastic year. Global instability has driven the likes of BAE Systems and Rolls-Royce to new highs. Smaller companies are also benefiting.

Chemring is a FTSE 250 defence firm based in Hampshire. Since Russia invaded Ukraine in 2022 its order book has more than doubled in size, fuelled by Nato spending. Its ‘book to bill’ ratio also points to strong growth. This ratio compares the number of orders received with the amount billed for. According to analysts at Panmure Liberum , the ratio has been greater than 1 for eight years now.

Growth has not been evenly spread across the group, however. The ‘energetics’ division - which makes pyrotechnic devices for the missile and space markets - is expanding fast. In contrast, the smaller sensors business has encountered some obstacles, including delayed orders from the UK government.

What will investors be looking out for when Chemring reports its annual results?

Well, profits at Chemring are heavily weighted towards the second half of the year, which does leave room for surprises. Last December, for instance, shares fell after it missed its profit forecasts due to issues at a plant in Tennessee.

The European defence sector as a whole is also having a wobble, as President Trump makes another push for peace in Ukraine.

Chemring plans to publish its annual results on Tuesday 9 December.

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Goodwin

Goodwin is one of the FTSE 250’s most unassuming companies. It attracts very little coverage - either by analysts or in the media - it is still run by the founding family, and its annual report contains no frills, beyond a small heraldic crest on the first page.

However, Goodwin is one of 2025’s most extraordinary success stories. Despite the lack of fanfare, shares have risen by almost 150% since January. Investors will be hoping for more good news when it publishes its interim results in late December.

Founded in 1883, Goodwin is based in Stoke-on-Trent and specialises in mechanical and refractory engineering. This means it designs and manufactures components that are able to retain their form and strength at extremely high temperatures. These components are used in everything from military submarines to nuclear waste containers.

Family firms are known for their long-term outlook, and Goodwin is reaping the rewards of this approach. After decades of investment, lucrative nuclear and defence contracts are now flowing through. Last financial year, revenue and pre-tax profit jumped by 15% and 42% respectively.

An October trading update suggests there is plenty more growth to come. Profit before tax for the year ending April 2026 is expected to exceed £71m - double the number achieved last financial year. After such a successful run for shares, however, investors will be on high alert for any cracks in the investment case.

Goodwin has not set a date for its interim results. However, they are expected around 17 December.

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