Lloyds has been one of the FTSE 100‘s best-performing shares in 2025. Thanks to several supportive factors — including a recent positive outcome to a car finance investigation — it’s risen 54% since 1 January.
Yet, despite its strong showing, the bank’s gains look modest beside those of some other UK blue-chip shares. Here are two that I think could continue to outperform Lloyds’ share price and that warrant serious consideration.
The copper stock
Runaway copper prices have driven mining stocks sharply higher this year. Antofagasta (LSE:ANTO), for instance, has leapt 72% in value, driven by the red metal’s ascent to 16-month peaks.
There are risks to the current copper price rally, and by extension to producers of the bellwether commodity. It’s notably cyclical, and is therefore vulnerable to threats like trade tariffs and higher interest rates.
But rising supply problems suggest copper values can continue climbing. Legendary metals trader Kenny Ives thinks they could reach $12,000 per tonne by the end of 2025. They were recently around the $10,600 mark.
Looking further ahead, copper faces growing shortages that could supercharge prices. Wood Mackenzie analysts believe the green energy transition and AI boom will drive copper demand 24% higher between now and 2035.
As a major producer with deep pockets for expansion, Antofagasta is well placed to capitalise on such an environment. It has four working mines in Chile and around half a dozen exploration projects.
City analysts expect the FTSE 100 miner to deliver strong and sustained earnings growth over the next few years at least. They predict it will follow growth of 64% in 2025 with rises of 11% next year and 21% in 2027.
The defence stock
Resurgent defence spending since 2022 has lifted weapons stocks sharply higher as well. Babcock International (LSE:BAB) was initially overlooked by investors, but it’s outperformed the UK stock market’s bigger beasts in 2025 due to its excellent value.
At £11.92 per share, the FTSE 250 company’s up 137% since 1 January. Yet, it still looks cheap in my view, which could open the door for further gains. Its price-to-earnings (P/E) ratio is 22.1 times.
That’s far below the 38.8 times that the broader European defence sector presently commands.
Defence shares are entering a new era of growth as NATO members and partner members rapidly rearm after decades of underinvestment. For Babcock, City analysts are tipping an 8% rise in annual earnings this financial year (to March 2026).
Further healthy increases of 12% and 11% are forecast for fiscal 2027 and 2028 respectively.
I’m not surprised by the City’s bullish estimates. Babcock’s effectively leveraging its expertise across multiple product segments and strong government relationships to seize this opportunity and grow revenues.
The FTSE firm’s order book rose to a robust £10.4bn as of March. It’s targeting mid-single-digit organic sales growth over the medium term and an underlying operating margin of “at least” 9%.
Babcock sources almost 70% of revenues from Britain. This leaves it vulnerable to potential government spending cuts as the UK struggles to balance the books.
But in the current macroeconomic climate, I’m confident demand for its services will continue to surge at home and abroad.
