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.
This post was originally published on Motley Fool
