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Searching for the perfect FTSE 250 shares to purchase subsequent month? Listed here are two momentum heroes to contemplate that I feel may carry on flying.
The miner
Rocketing costs for treasured metals have pushed Hochschild Mining (LSE:HOC) shares 119% increased over the previous yr. I feel there may very well be additional to go.
Bullion costs are hovering to new highs close to $3,000 per ounce, as inflationary dangers and geopolitical tensions enhance. These threats may linger as rigidity over US protectionism and defence coverage in Europe worsen.
Investing in mining shares like Hochschild remains to be a dangerous endeavour regardless of this encouraging image. Commodities markets are famously risky, and a sudden change in market sentiment may as a substitute pull treasured metals sharply decrease.
The enterprise of metals extraction will also be extremely unpredictable. Earnings-sapping issues on the exploration, mine improvement and manufacturing levels might be commonplace.
Simply final month, Hochschild warned of higher-than-forecast prices attributable to inflationary pressures. Information of this pulled its share value sharply decrease in January, and it’s down round 12% within the yr thus far.
I’d argue that, on stability, the outlook stays fairly shiny for Hochschild and its share value. And I don’t imagine that is baked into the present share value of 195.2p.
At the moment, the gold and silver miner trades on a ahead price-to-earnings (P/E) ratio of 6 occasions. It additionally offers on a price-to-earnings development (PEG) ratio of 0.1. Any studying under 1 implies {that a} share is undervalued.
Hochschild’s shares are recovering following final month’s shock. They’re up 3% up 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 yr thus far actually, which 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 mixture analysts suppose will enhance European arms spending by tons 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 had been up 11% yr on yr within the six months to September. And final month the agency stated sturdy demand had continued in the course of the third quarter and into January, main it to improve income forecasts for the total yr.
Babcock’s valuation has risen sharply in 2025. But with a ahead P/E ratio of 14.4 occasions, it nonetheless trades at a wholesome low cost to the broader UK defence sector. BAE Programs‘ shares, for example, now command a P/E ratio of slightly below 18 occasions. On prime of this, the agency’s PEG ratio sits at a discount basement 0.3.
Hovering sector demand leaves Babcock susceptible to potential provide chain points. However on stability, I nonetheless imagine the FTSE 250 agency’s a prime inventory to contemplate proper now.
