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On the lookout for the perfect FTSE 250 shares to purchase subsequent month? Listed here are two momentum heroes to contemplate that I feel might carry on flying.
The miner
Rocketing costs for treasured metals have pushed Hochschild Mining (LSE:HOC) shares 119% increased over the previous 12 months. I feel there could possibly be additional to go.
Bullion costs are hovering to new highs close to $3,000 per ounce, as inflationary dangers and geopolitical tensions improve. These threats might linger as rigidity over US protectionism and defence coverage in Europe worsen.
Investing in mining shares like Hochschild continues to be a dangerous endeavour regardless of this encouraging image. Commodities markets are famously risky, and a sudden change in market sentiment might as an alternative pull treasured metals sharply decrease.
The enterprise of metals extraction may also be extremely unpredictable. Earnings-sapping issues on the exploration, mine growth and manufacturing levels might be commonplace.
Simply final month, Hochschild warned of higher-than-forecast prices because of inflationary pressures. Information of this pulled its share value sharply decrease in January, and it’s down round 12% within the 12 months thus far.
I’d argue that, on steadiness, the outlook stays fairly vivid for Hochschild and its share value. And I don’t imagine that is baked into the present share value of 195.2p.
Right now, the gold and silver miner trades on a ahead price-to-earnings (P/E) ratio of 6 instances. It additionally offers on a price-to-earnings progress (PEG) ratio of 0.1. Any studying beneath 1 implies {that a} share is undervalued.
Hochschild’s shares are recovering following final month’s shock. They’re up 3% prior to now month, and I feel they may proceed rising strongly, helped by the corporate’s rock-bottom valuation.
The defence contractor
Babcock Worldwide (LSE:BAB) shares have skilled no such turbulence firstly of 2025. They’re up 30% within the 12 months thus far in actual fact, that means the defence share’s up greater than a 3rd over the previous 12 months.
May it have additional to run? I feel so, fuelled by ongoing battle in Ukraine and indicators of wavering from the US for its NATO colleagues. It’s a combination analysts assume will increase European arms spending by lots of of billions of kilos.
Babcock’s sturdy relationships with NATO members France, Canada, Australia and the UK imply it’s prone to see sturdy and sustained demand for its companies.
Gross sales right here have been up 11% 12 months on 12 months within the six months to September. And final month the agency stated sturdy demand had continued through the third quarter and into January, main it to improve earnings forecasts for the complete 12 months.
Babcock’s valuation has risen sharply in 2025. But with a ahead P/E ratio of 14.4 instances, it nonetheless trades at a wholesome low cost to the broader UK defence sector. BAE Programs‘ shares, for instance, now command a P/E ratio of just below 18 times. On top of this, the firm’s PEG ratio sits at a discount basement 0.3.
Hovering sector demand leaves Babcock susceptible to potential provide chain points. However on steadiness, I nonetheless imagine the FTSE 250 agency’s a prime inventory to contemplate proper now.
