Which FTSE 100 stocks have the best chance of leading the index by the end of 2025? I think the odds are good for these three.
BP (LSE: BP.) is among the top 10 FTSE 100 buys at Hargreaves Lansdown of late, and I think I can see why.
Yes, the world has to turn away from fossil fuels eventually. And yes, renewable energy investments might prove to be profitable in the long term — if we can find the right ones.
But I’m seeing a change in sentiment, with the love for alternative energy stocks fading a bit. And there’s a growing feeling that big oil could provide fat profits for some years yet.
BP’s low valuation
The BP share price had been sliding in 2024, but its already started to pick up. Why? Maybe because investors are looking past the expected earnings fall for 2024 and to a forecast price-to-earnings (P/E) ratio of just eight for 2025?
Oh, and there’s a 5.6% dividend yield on the cards.
Vodafone comeback?
After falling 55% in five years, can Vodafone (LSE: VOD) switch into top gear in 2025? I see a very good chance of it.
I think it could all depend on results for the year ending March 2025, due in May. We all know the dividend should be slashed to half of last year’s.
That’s part of CEO Margherita Della Valle’s plans to kickstart the company, launched in 2023. And 2024’s dividend was the last at the old rate.
Still, with the Vodafone share price falling since then, we’re already back up to a projected yield of 8.5% for this year.
Show us the results
Will the full-year update show results of the company’s shake-up, and provide confidence in the dividend going forward?
That’s what I think any possible 2025 resurgence could hinge on.
Sporting rebound?
JD Sports Fashion (LSE: JD.) was one of the worst FTSE 100 performers in 2024, losing more than 70% after the Christmas 2023 trading season fell short of expectations.
But it’s started to pick up a bit this year, and as we await 2024 festive figures.
One of my colleagues at The Motley Fool recently spoke of healthy footfall at JD. So I poked my head into my local branch, and yes, there were plenty of people in there.
Current fundamentals might not make JD look like a screaming buy, not with a forward P/E of 12 and only a 1% dividend yield. But that’s after a tough 2024. And analysts see the P/E dropping to around 7.3 in the 2025-26 year.
Watch for recovery
If JD looks like it might be hitting those forecasts, I wonder if it might even become a takeover target in 2025? I’d never buy just on that hope. And it’s always important to be cautious about forecasts. Oh, and retail could still face a tough year.
But JD Sports is one of my top recovery candidates to consider in 2025.
Eyes peeled
Will I buy any of these myself? I’m not sure yet.
I do think all of them stand a good chance of coming out on top in 2025. But I want to get a better handle on where I think they might go in the next five years first.
