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Which FTSE 100 Are stocks more likely to lead the index by the end of 2025? I think the odds are good for these three.
PA (LSE: BP.) is among the FTSE 100's top 10 buys in Hargreaves Lansdown Lately, and I think I can see why.
Yes, the world will have to eventually move away from fossil fuels. And yes, renewable energy investments could pay off in the long run, if we can find the right ones.
But I'm seeing a shift in sentiment, and the love for alternative energy stocks is fading a bit. And there is a growing sense that Big Oil could provide big profits for a few years yet.
BP's low valuation
BP's share price had been falling in 2024, but has already started to recover. Because? Perhaps because investors are looking beyond the expected earnings decline in 2024 and a projected price-to-earnings (P/E) ratio of just eight in 2025?
Oh, and there's a 5.6% dividend yield up for grabs.
The return of Vodafone?
After falling 55% in five years, can Vodafone (LSE: VOD) shift to full speed in 2025? I see many possibilities of that being the case.
I think it could all depend on the results for the year ending March 2025, which will be published in May. We all know that the dividend should be cut in half from last year.
That's part of CEO Margherita Della Valle's plans to boost the company, launched in 2023. And the 2024 dividend was the last at the previous rate.
Still, with Vodafone's share price falling since then, we're already back to a projected 8.5% return for this year.
Show us the results
Will the full-year update show the results of the company's restructuring and provide confidence in the dividend going forward?
I think any possible resurgence in 2025 could depend on that.
Sports rebound?
JD Sports Fashion (LSE: JD.) was one of the FTSE 100's worst performers in 2024, losing more than 70% after the 2023 Christmas trading season failed to meet expectations.
But it has started to improve a little this year and as we wait for the 2024 holiday numbers.
One of my colleagues from The Motley Fool He recently spoke of a healthy influx in JD. So I popped my head into my local branch and yes, there were a lot of people there.
Current fundamentals may not make JD look like a screaming buy, not with a forward P/E of 12 and a dividend yield of just 1%. But that's after a difficult 2024. And analysts see the P/E falling to around 7.3 in 2025-26.
Watch for recovery
If it looks like JD could be meeting those forecasts, I wonder if it could even become an acquisition target in 2025. I would never buy on that hope alone. And it is always important to be cautious with forecasts. Oh, and retail could still be in for a tough year.
But JD Sports is one of my top turnaround candidates to consider in 2025.
eyes wide open
Will I buy any of these myself? I'm not sure yet.
I think they all have a good chance of reaching the top in 2025. But first I want to get a better idea of where I think they could go in the next five years.
