2 cheap FTSE 100 stocks I think could keep rising in February!
The FTSE 100 leading index of stocks has enjoyed a strong start in 2025, extending the impressive gains it enjoyed last year and reaching fresh peaks around 8,600 points.
I think bullish investors seeking Footsie momentum stocks should consider these blue-chip bargains.
Persimmon
Housebuilder Persimmon (LSE:PSN) has risen thanks to a raft of impressive market reports. The latest of these, from Zoopla on Thursday (30 January), showed house price growth at three-year highs at the start of 2025.
January’s data is a very good omen for London’s listed homebuilders. According to Zoopla, “the first few weeks of each year tend to provide a clear indication of how the rest of the year will unfold“.
Zoopla also noted that 17% of homeowners are looking to move either now or within the next two years, which bodes well for Persimmon not only in 2025 but beyond.
Strong trading numbers from Persimmon itself have boosted the market buzz and lifted its share price. In mid-January, it announced a 7% rise in completions in 2024, beating expecations.
It’s possible that the setor rebound could stall if interest rates fail to fall much further from current levels. Yet on balance, I think investors can be optimistic of further Bank of England rate action that boosts buyer affordability and maintains the market’s momentum, prompted by steadily falling inflation and a stalling UK economy.
Persimmon has ambitious plans to capitalise on a sustained recovery, too. It plans to have 300 sales outlets up and running over the medium term, up from 270 at the end of last year.
Today, Persimmon shares trade on a price-to-earnings growth (PEG) ratio of 0.9. Given that this is below the value watermark of one, I believe the builder has room for further gains in the weeks and months ahead.
Scottish Mortgage Investment Trust
Despite recent volatility, Scottish Mortgage Investment Trust (LSE:SMT) has enjoyed double-digit share price gains so far in 2025. I’m optimistic that it can continue its rapid ascent.
The technology-focused trust has endured a rocky patch in more recent days. Striking performance numbers from DeepSeek’s R1 artificial intelligence (AI) model have rocked profitability expectations for the US tech sector. It’s feared the Chinese system could provide stiff competition for the likes of Microsoft and Alphabet, and sap demand for high-end microchips from Nvidia and its peers.
It’s too early to state the long-term impact of DeepSeek’s progress. But I’m encouraged by Scottish Mortgage’s recovery as US technology shares have rebounded.
It’s perhaps easy to see why appetite for Magnificent Seven shares has recovered so quickly. Aside from AI, these shares have a multitude of exciting growth opportunities to exploit, including:
- Quantum and cloud computing
- Cybersecurity
- 5G, and the emergence of 6G
- Blockchain
- Robotics and automation
It’s why global investors have piled back into the sector following its recent pullback.
Today, Scottish Mortgage shares trade at a near-11% discount to the value of the trust’s assets. This leaves scope for more price gains, though it’s worth considering that any fresh DeepSeek-related news could cause fresh price volatility.
The post 2 cheap FTSE 100 stocks I think could keep rising in February! appeared first on The Motley Fool UK.
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More reading
- Scottish Mortgage shares jumped almost 15% in January. Time to consider buying?
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- Here’s why the Scottish Mortgage share price is back above £10!
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- Hereâs one exciting alternative to Scottish Mortgage shares
Suzanne Frey, an executive at Alphabet, is a member of The Motley Foolâs board of directors. Royston Wild has positions in Persimmon Plc. The Motley Fool UK has recommended Alphabet, Microsoft, and Nvidia. 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.
