2 flying FTSE 100 shares to consider buying in February!

These FTSE 100 shares have the wind in their sails at the start of 2025. Royston Wild believes they could just be getting started.

| More on:

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

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.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has positions in Barratt Redrow. The Motley Fool UK has recommended Barratt Redrow, Fresnillo Plc, and Rightmove Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

How much does an investor need in a Stocks and Shares ISA to earn £1,000 a month in passive income?

A Stocks and Shares ISA's a valuable asset for investors. Not having to pay dividend tax can be a big…

Read more »

Investing Articles

9% dividend yield! Could buying this FTSE 250 stock earn me massive passive income?

Assura looks like an outstanding stock for dividend investors to consider. But is the 9% dividend yield the passive income…

Read more »

Man putting his card into an ATM machine while his son sits in a stroller beside him.
Investing Articles

Why I think this month could be critical for the Lloyds share price!

Our writer explains why he thinks the bank's 2024 results will have a significant impact on the short-term direction of…

Read more »

British Pennies on a Pound Note
Investing Articles

This former penny share has soared 168%. Is the best yet to come?

When Christopher Ruane saw a penny share as a potential bargain last year, he was spot on. So having not…

Read more »

Mature couple at the beach
Investing Articles

£20k in an ISA? Here’s how it could generate £1 of passive income every hour — forever

With a long-term approach, Christopher Ruane explains how an investor could aim to earn a pound per hour in passive…

Read more »

One English pound placed on a graph to represent an economic down turn
Investing Articles

FTSE shares: overpriced or still a bargain?

Christopher Ruane reckons a storming FTSE 100 performance of late doesn't tell us much about whether there are still possible…

Read more »

Blue NIO sports car in Oslo showroom
Investing Articles

Would an investor have made money investing £2k in NIO stock 5 years ago?

Our writer looks at how NIO stock has performed over recent years and weighs the bull and bear cases as…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

5 steps to start buying shares with £5 a day

In a handful of steps, our writer explains how someone new to the stock market could start buying shares for…

Read more »