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While the FTSE 100‘s only risen by 4.3% over the past year, some stocks have easily beaten that. Let’s take a look at the top three (in reverse order) and see why investors have been so bullish.
A golden run
The third-best performer over the past year is Fresnillo (LSE: FRES), the world’s primary silver producer and Mexico’s largest gold miner. This stock’s up 79.5%.
The last time I looked at Fresnillo (July 2023), I wrote: “Given the uncertainty in the global economy, I expect gold to move back above the psychologically significant $2,000 per ounce level by next year. It could well surge higher from this symbolic price.”
$2,000? It’s now above $3,270!
Of course, this surge in the gold price underpins the stock’s outperformance. Last year, the precious metal producer’s adjusted revenue grew by 27% to $3.64bn, while EBITDA more than doubled to $1.55bn.
It should be noted that the 79.5% return doesn’t include dividends. The 2024 payout surged over 400% and there was a juicy one-off special dividend. The income outlook remains attractive, with the forward yield at nearly 5%.
One risk here is operational troubles, which could hit production volumes, while a slump in the price of silver or gold would cut profits.
Looking forward though, I think this gold stock could head even higher in the years ahead, especially with the amount of uncertainty regularly stirred up by the current US administration.
Taking to the skies
Second is Rolls-Royce (LSE: RR), whose shares are up a whopping 85.7%.
Like Fresnillo, the engine maker’s profits have marched higher and look set to continue doing so. Yesterday (1 May), the firm released a trading update, reassuring investors that its 2025 guidance of £2.7bn-£2.9bn in underlying operating profit and £2.7bn-£2.9bn of free cash flow remains unchanged.
This is impressive, considering the ongoing risks associated with global tariffs and supply chains. These are the main concerns I see here, along with a possible economic downturn impacting global travel demand.
However, as things stand, all three core divisions are performing well. As for small modular reactors (SMRs), the Czech Republic state utility ČEZ Group made a strategic investment into Rolls-Royce SMR in March.
Meanwhile, a decision is due next month for the construction of ‘mini-nukes’ across the UK, though government funding looks tight and might be lower than previously assumed.
In a far better place
The best Footsie performer has been St. James’s Place. Shares of the wealth manager have rocketed 132.2% over the past 12 months!
After reporting a loss in 2023, the company achieved a post-tax profit of £398m last year. This turnaround was supported by an efficiency drive and a simplified charging structure to deliver better value to clients.
The surging share price also saw the firm re-enter the FTSE 100 in December. In Q1 however, managed assets fell by 1.41bn, as President Trump’s tariffs sparked volatility. This risk obviously hasn’t gone away.
Foolish takeaway
So there it is, shares of a wealth manager, engine maker and gold miner. A diverse bunch. But all three firms have demonstrated significantly enhanced profitability (the fundamental driver of a company’s value).
These stocks highlight the breadth of opportunity across the Footsie. I think Fresnillo and St James’s Place are worth considering, while Rolls currently looks pricey to me.
