Since 1 January, Lloyds shares have risen 43% in value. It’s risen far more than the broader FTSE 100 index of leading stocks, which is up 9%. That places Lloyds among the index’s top 10 performers so far this year.
Even so, its gains are below those of several other top UK blue-chip shares. Here are three stronger performers in the year to date, and reasons why I believe they’re better stocks to consider.
A sector leader
Fuelled by the defence sector boom, BAE Systems (LSE:BA.) shares have risen a whopping 65% in value. That takes total gains since Russia invaded Ukraine (in early 2022) to 217%.
Can it keep rising though? I think it can, but a forward price-to-earnings (P/E) ratio of 25.9 times makes it look expensive. That’s approaching double the five-year average of 13.7 times.
Supply chain issues and competitive pressures are a notable threats. Yet I’m optimistic BAE can still deliver strong and sustained earnings growth. Global arms budgets are at record highs, and European contractors like this are benefitting from robust regional spending. Revenues at this FTSE operator leapt 14% at constant currencies in 2024.
Furthermore, I see fears over slumping US defence budgets as overcooked, given rising tensions with fellow superpowers Russia and China. This should give the industry giant further steel.
Riding the gold wave
Gold and silver producer Fresnillo‘s (LSE:FRES) shares have also been driven by surging demand for its product. In fact, with gains of 131%, it’s by far the FTSE 100’s best performing stock in 2025.
Investing in mining stocks can be risk at times. Operational problems — such as the declining ore grades Fresnillo reported in Q1 — can dent their share prices. Even if the business performs well, it can still fall if commodity prices take a turn for the worse.
Yet I believe Fresnillo can continue rising, given the robust outlook for precious metals. A blend of heavy central bank buying, US dollar weakness, persistent inflation concerns, falling interest rates, growing geopolitical tension and macroeconomic turbulence should support healthy safe-haven buying.
Fresnillo’s forward price-to-earnings growth (PEG) ratio of 0.1 suggests it offers great value despite this year’s price gains, too.
Fizzy returns
Coca-Cola HBC (LSE:CCH) has also outperformed Lloyds shares so far in 2025, though its 47% gain is lower than those of BAE and Fresnillo.
Like many fast-moving consumer goods (FMCG) businesses, it’s vulnerable to what it describes as a “challenging and unpredictable” landscape. But so far it’s making a very decent job of things: it reported better-than-expected organic sales growth of 10.6% in Q1, driven by outstanding growth in its emerging markets of Africa and Eastern Europe (up 20.3%).
Coca-Cola HBC bottles some of the world’s most popular drink brands like Coke, Fanta and Sprite. These aren’t just staples in peoples’ shopping baskets, even during economic downturns. They’re also springboards for innovation that fuel the company’s long-term profits growth.
City analysts are tipping annual earnings growth of 14% this year, and further healthy rises of 10% in both 2026 and 2027.
