Searching for the best FTSE 250 momentum shares to buy this month? Here are two I think are worth considering after their impressive starts to 2025.
Clarkson
Helped by strong trading news in early January, Clarkson‘s (LSE:CKN) share price is up a healthy 10.4% since the start of 2025.
And despite the threat of global trade wars, I think the shipbroker could have further to go.
Last month’s update showed that Clarkson expects full-year underlying profits to be “slightly ahead of current market expectations“. The firm’s impressive form is due to a variety of factors, including strong sale and purchase activity in the newbuild and second-hand markets, and robust charter rates.
With supply growth issues persisting, the outlook for charter rates in the short-to-medium term looks robust as well.
Clarkson is a share I think patient investors should consider buying. Its share price might experience turbulence during economic downturns. But over a longer time horizon I expect it to grow, supported by the significant structural opportunity of rising global trade.
At £43 per share, Clarkson’s share price has near enough doubled in the last decade alone.
The broker’s enduring commitment to raising dividends provides a not-insignificant bonus for investors, too. In 2023, it increased cash rewards for the 21st straight year. It’s a record City brokers expect to continue for the next few years at least, too, resulting in a healthy 2.6% dividend yield for 2025.
Clarkson shares trade on a forward price-to-earnings (P/E) ratio of 15.5 times. This isn’t exactly cheap on paper, but in reality I think it’s good value given the firm’s leading role in a growing market.
Babcock International
Positive noises around defence spending have helped Babcock International (LSE:BAB) gain value in 2025 too. At 545p per share, this FTSE 250 stock is up 8% since New Year’s Day.
Babcock provides an array of training and engineering services to armed forces around the globe. Since war broke out in Eastern Europe in 2022, it’s witnessed a significant pick-up in business. Latest financials showed revenues up 11% between April and September.
The geopolitical landscape has become even more dangerous during the last few years. What’s more, Donald Trump has reclaimed the US Presidency. It’s a blend that could support further strong growth in Babcock’s sales.
Trump’s demand that NATO countries raise defence spending to 5% of their GDP could be especially significant. Members of the defence bloc currently only spend 2%, leaving room for substantial growth. As well as the UK, Babcock provides services to fellow NATO members Canada and France.
Cost overruns remain a constant threat to businesses like this. Just last year, Babcock absorbed a £90m charge due to higher costs of building Type 31 frigates for the Royal Navy.
But a bright demand outlook still makes the company an attractive stock to consider. And given its sub-1 price-to-earnings growth (PEG) ratio of 0.3, I think it’s worth a particularly close look from lovers of value shares.
The post 2 flying FTSE 250 shares to consider buying in February! appeared first on The Motley Fool UK.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Clarkson Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
