2024 has been a great year for UK shares after years of disappointing returns. So far, FTSE100 increased by 6.3%. The FTSE250meanwhile, it increased by 5.8%.

However, these results pale in comparison to the results recorded by the main US stock indexes. The S&P500 since the beginning of January it has increased by as much as 27.6%.

The continued needy performance of domestic equities means that London Stock Exchange remains full of great deals. So I’m making a list of the best ones to buy in the New Year.

According to eToro, around 53% of its customers expect the global bull market to continue in 2025. Here’s one UK stock that I think could skyrocket next year.

Setting the scene

Ahead of the New Year, economic conditions remain arduous. According to the Insolvency Office, the number of business bankruptcies rose to 1,966 in November, an raise of 13% year-on-year.

The website expects the numbers to remain gruesome well into 2025. It says that “insolvencies remained high throughout the year [and] we expect this to remain the case in 2025 as businesses remain indebted at unsustainable levels“

Support comes from easing inflation and falling interest rates. However, the upcoming raise in the National Living Wage and higher National Insurance contributions could offset these positive effects in the New Year.

Thriving wrestling

With the UK economy also contracting again, insolvency providers like Begbies Traynor (LSE:BEG) should continue to enjoy powerful demand. The latest financial data on December 10 showed how Alternative Investment Market (AIM) the company is blossoming in the current landscape.

Revenue here was up 16% in the six months to October, with sales up 11% organically. It was the market leader in terms of the number of citations, and the number of higher value bankruptcy cases in the group also increased.

As a result, adjusted profit before tax also increased by 16% year-on-year.

Over time, Begbies proved to be a reliable source of income. In fact, they have increased in four of the last five years. It looks like this record will continue, especially as the company continues to spend money on acquisitions.

As part of its ongoing push for expansion, the company partnered with White Maund Insolvency Practitioner earlier this month. Acquisitions contributed to a 5% raise in revenues in the first half of the year.

An underrated gem

Begbies shares are currently trading at a price-to-earnings (P/E) ratio of 9.1 times. I think this valuation does not reflect the company’s solid progress and its powerful balance sheet, which should support further mergers and acquisitions.

I also believe Begbies’ low rating leaves room for a share price recovery in 2025.

City analysts expect annual earnings per share to grow by 1% this financial year (through April 2025), rising to 4% a year later. I believe these are numbers that could be raised in the coming weeks and months.

A sudden recovery in the UK economy could disrupt Begbies’ earnings growth. Earnings could also disappoint if it makes needy acquisitions. But as it stands, I’m seriously considering adding it to my portfolio.