Image source: Aston Martin
UK stocks have proven surprisingly popular in 2025. But there are a few that can’t seem to catch a break. And it’s usually for good reason. Luxury car manufacturer Aston Martin (LSE: AML) is one of them.
Stunning cars but…
As I’ve always said, this company makes undoubtedly beautiful cars. I understand the emotional pull of owning a slice of the same business that gets James Bond from A to B.
I also understand the temptation to buy this stock in the hope that — after falling 98% since listing — things simply can’t get any worse.
As much as that might sound like nothing more than (very un-Foolish) gambling, it’s interesting to note that Aston Martin doesn’t seem to be getting much attention from short sellers at the current time.
If these usually-very-well-informed traders aren’t circling the shares, that’s got to be a good thing, right?
I’m not convinced
The thing is, I reckon things could get worse. Revenue has been falling and costs have been rising in 2025. And Aston Martin still doesn’t look to be any closer to making a profit.
Debt has been going up too. Although this helps to explain why owners of this stock have never received dividends, it means there hasn’t been any compensation whatsoever for the derisory performance of the shares since listing.
Unless something happens to radically alter the company’s fortunes and inject some positive momentum into the share price, such as better sales of higher-margin models, it looks like those already invested will continue to see their stakes shrink in value.
And if a market crash comes along, I’d say all bets are off.
Another UK stock I’m wary of
I’m also steering clear of Sports Direct owner Frasers Group (LSE: FRAS).
This might seem a bit odd. In direct contrast to the luxury car maker, the shares are already up 18% in 2025, easily outperforming the UK-focused FTSE 250.
However, I wonder if the current run of form is about to come to an end. The catalyst might well be this month’s Budget.
Concerns over potential tax rises could push consumers to become even more cautious in their spending. That’s not ideal given that the run-up to Christmas is incredibly important for all retailers. The latter have already had to deal with National Insurance hikes in April.
Whatever Chancellor Rachel Reeves announces later this month, I suspect management will have a lot to say about it when half-year numbers drop in December. And any indications that Black Friday sales haven’t been as good as anticipated could tank the shares.
Deceptively cheap?
Frasers Group does have some positive features. As much as founder and major shareholder Mike Ashley might divide opinion, margins and returns on the money it invests have improved in recent years. Looking ahead, increased use of AI to target customers might help to grow sales.
As I type, the shares also look very cheap at the equivalent of just seven times forecast earnings.
But again, debt has been climbing. The fact that only a small proportion of the stock is actively traded in the market could lead to sharper-than-usual price moves as well.
Throw in the aforementioned concerns over consumer confidence and the label of ‘value trap’ might prove correct in time.
