Three diverse FTSE 100 stocks have led an outstanding rally for UK stocks in 2025, with the index hitting record highs. Those three stocks are Fresnillo, up 367% year-to-date (YTD), Airtel Africa, up 178% YTD, and Babcock International, up 140%.
So if an investor split £5,000 equally among these three stocks (33.3% each) at the beginning of the year, what would it be worth now?Let’s break it down.
Crunching the numbers
Split equally, £5,000 becomes about £1,666.67 in each stock at the start of the year. A 367% gain in Fresnillo turns that into about £7,777.78. A 178% gain in Airtel Africa turns £1,666.67 into about £4,629.63, and a 140% gain in Babcock translates into about £4,000.
Add it all together, and the portfolio would now be worth around £16,400. Another way to look at it, is to say the combined average growth of the three stocks is 228%. That’s £5,000 + 228% = £16,400.
A profit of £11,400 in just one year from such a small initial investment is almost unheard of. But it’s fair to say these three stocks each enjoyed unprecedented growth in 2025. In hindsight, they’d have been great buys — but there’s no promise they’ll do that again.
So what could change in 2026 and, more importantly, which stocks could benefit?
Winds of change
2026 is gearing up to bring several key macro changes to the UK stock market. Critically, easing inflation and gradual rate cuts are setting the scene for investors to shift their focus. With the dominance of the artificial intelligence (AI) trade and US mega-caps flagging, we could see a surge in cyclicals, rate-sensitive stocks and AI adopters (rather than enablers).
Promising areas to watch include energy transition, utilities and digital infrastructure (particularly AI). Equally, companies that provide the structural support for these industries could benefit too, such as copper and lithium miners.
One stock I’ve got my eye on is Endeavour Mining (LSE: EDV).
Metals still in play
Precious metals miners still offer substantial operational leverage to gold and silver prices, which have seen record or near‑record levels in 2025 and have triggered earnings upgrades across the sector.
Unlike Fresnillo, Endeavour still looks relatively well-valued with a price-to-earnings (P/E) ratio of 24. With gains that have already outpaced gold’s rise, it exhibits high leverage to the underlying commodity cycle.
Brokers highlight that when the metal price runs, geared producers’ earnings and cash flows can inflect sharply, creating scope for large share price moves. If it achieves expected production increases in 2026, its forward P/E could drop from high teens to single digits.
My verdict
While Endeavour shows a lot of promise in 2026, it isn’t without risk. As a miner, it operates in politically- and operationally-challenging regions, so there’s material risks around cost inflation, safety, ESG and localised risk. And if interest rates fall faster than expected, investors may move out of commodities, hurting the gold price — and Endeavour’s profits.
Still, the overall picture paints a positive outlook for the stock, so I think it’s worth considering. Investors looking to add income stability and diversification to a portfolio may also want to consider a renewables-focused and dividend-strong utility play like National Grid.
