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On the lookout for prime FTSE 100 momentum shares to purchase subsequent month? Listed here are two I consider may proceed rising after a strong begin to 2025 and are price contemplating.
Barratt Redrow
Housebuilder Barratt Redrow’s (LSE:BTRW) additionally printed strong positive factors in current weeks. Quickly bettering knowledge from the residential property market suggests it might need additional to go.
In line with Zoopla, the UK housing market has loved its strongest begin to a 12 months since 2022. Home costs rose 2% yearly in January as purchaser demand improved 13% over the interval.
This follows knowledge from the Workplace for Nationwide Statistics (ONS) and Rightmove additionally exhibiting home worth development at multi-year highs.
Questions persist over whether or not this momentum can proceed as Stamp Obligation prices for first-time consumers rise from April. Nevertheless, a mix of rising earnings and a probable regular fall in rates of interest may offset this influence on the broader market and hold the restoration going.
By combining its operations final 12 months, Barratt and Redrow are within the field seat to capitalise on a sustained market turnaround. It goals to develop annual completions to 22,000 over the medium time period, up from the 16,600-17,200 it has deliberate for this monetary 12 months.
Barratt Redrow’s newest buying and selling assertion confirmed personal reservations up nearly 37% between 22 August and 13 October. I’m anticipating additional encouraging positive factors when half-year numbers are launched this month (12 February), a situation that might — because it did following October’s assertion — immediate recent share worth positive factors.
The FTSE agency’s low valuation actually leaves scope for added worth upside. Its price-to-book (P/B) worth presently sits at simply 0.7. Any studying under 1 signifies {that a} share trades at a reduction to the worth of its belongings.
Fresnillo
Fresnillo‘s (LSE:FRES) additionally up at the beginning of 2025, the dear metals miner boosted by rising gold and silver costs. A rosy outlook for these treasured metals counsel the FTSE 100 digger may even have room for added positive factors.
At round $2,775 per ounce, gold’s again at multi-month highs and inside touching distance of a brand new file. As Mexico’s largest yellow steel producer, alongside being the world’s largest provider of silver, Fresnillo’s effectively positioned to capitalise on a recent transfer increased.
And there’s good purpose to count on demand for safe-haven metals to continue to grow, together with threats of inflation-boosting commerce wars, excessive geopolitical uncertainty, and strong shopping for urge for food from central banks.
There’s another excuse why I’m optimistic over Fresnillo and its share worth. Silver’s position as each funding and industrial steel means firm earnings may additionally soar if financial situations (and due to this fact manufacturing exercise) enhance. The gray steel’s used broadly throughout quite a lot of purposes together with photo voltaic panels, client electronics and chemical substances manufacturing.
The cheapness of Fresnillo shares may assist its share worth recognize if steel costs retain their upwards momentum. Its price-to-earnings (P/E) ratio’s simply 10 instances for 2025.
Income at mining shares will be risky relying on operational efficiency. However Fresnillo’s sturdy file of manufacturing — which included gold output beating forecasts in 2024 — might assist soothe any fears traders have.
