Looking for top FTSE 100 momentum stocks to buy next month? Here are two I believe could continue rising after a solid start to 2025 and are worth considering.
Barratt Redrow
Housebuilder Barratt Redrow’s (LSE:BTRW) also printed solid gains in recent weeks. Rapidly improving data from the residential property market suggests it might have further to go.
According to Zoopla, the UK housing market has enjoyed its strongest start to a year since 2022. House prices rose 2% annually in January as buyer demand improved 13% over the period.
This follows data from the Office for National Statistics (ONS) and Rightmove also showing house price growth at multi-year highs.
Questions persist over whether this momentum can continue as Stamp Duty costs for first-time buyers rise from April. However, a combination of rising earnings and a likely steady fall in interest rates could offset this impact on the broader market and keep the recovery going.
By combining its operations last year, Barratt and Redrow are in the box seat to capitalise on a sustained market turnaround. It aims to grow annual completions to 22,000 over the medium term, up from the 16,600-17,200 it has planned for this financial year.
Barratt Redrow’s latest trading statement showed private reservations up almost 37% between 22 August and 13 October. I’m expecting further encouraging gains when half-year numbers are released this month (12 February), a scenario that could — as it did following October’s statement — prompt fresh share price gains.
The FTSE firm’s low valuation certainly leaves scope for additional price upside. Its price-to-book (P/B) value currently sits at just 0.7. Any reading below 1 indicates that a share trades at a discount to the value of its assets.
Fresnillo
Fresnillo‘s (LSE:FRES) also up at the start of 2025, the precious metals miner boosted by rising gold and silver prices. A rosy outlook for these precious metals suggest the FTSE 100 digger could also have room for additional gains.
At around $2,775 per ounce, gold’s back at multi-month highs and within touching distance of a new record. As Mexico’s largest yellow metal producer, alongside being the world’s biggest supplier of silver, Fresnillo’s well placed to capitalise on a fresh move higher.
And there’s good reason to expect demand for safe-haven metals to keep growing, including threats of inflation-boosting trade wars, high geopolitical uncertainty, and robust buying appetite from central banks.
There’s another reason why I’m optimistic over Fresnillo and its share price. Silver’s role as both investment and industrial metal means company profits could also soar if economic conditions (and therefore manufacturing activity) improve. The grey metal’s used widely across a variety of applications including solar panels, consumer electronics and chemicals production.
The cheapness of Fresnillo shares could help its share price appreciate if metal prices retain their upwards momentum. Its price-to-earnings (P/E) ratio’s just 10 times for 2025.
Profits at mining shares can be volatile depending on operational performance. But Fresnillo’s strong record of production — which included gold output beating forecasts in 2024 — may help soothe any fears investors have.
