With the economy showing renewed resilience and UK inflation trending lower, retail and mid-level investors are now hunting for opportunity in short-term equity plays.
Sector rotation is becoming evident, with aerospace, defence, utilities, and banking all showing momentum. Against this backdrop, momentum trading is once again in the spotlight, making May 2025 an exciting time to reassess which are the top 10 best stocks to buy now in the UK.
Why Momentum Trading Matters Now
Momentum trading focuses on capturing price trends and short-term movements in equities. It’s built around the principle that “stocks in motion stay in motion,” especially when backed by positive news, strong earnings, or stock market sentiment shifts.
With improving UK macroeconomic indicators and high trading volume across the FTSE 100 and FTSE 250, now is an opportune time to tap into short-term gainers on the London Stock Exchange(LSE).
Top 10 Best Stocks to Buy Now UK – Momentum Picks for May 2025
1. Rolls-Royce Holdings (LSE: RR.)
Company Fundamentals
- EPS: 15.2p | P/E: 12.3
- Revenue Growth: 18% YoY
- Debt: Reduced by 10% YoY
- Dividend Yield: 2.5%
- Industry Trends: Strong resurgence in aerospace and civil aviation.
- Valuation: P/B: 1.8 | EV/EBITDA: 9.5 — competitive compared to sector peers.
- Leadership & Sentimeaerospace and civil nt: CEO Tufan Erginbilgic driving a leaner, more profitable structure.
- Investor mood: Bullish.
- Liquidity: 15M shares/day — highly tradable for short-term plays.
2. BAE Systems (LSE: BA.)
Company Fundamentals
- EPS: 45.6p | P/E: 14.2
- Revenue Growth: 10% YoY
- Dividend Yield: 3.8%
- Sector Outlook: Increased global defence spending is fuelling long-term optimism.
- Valuation: P/B: 2.1 | EV/EBITDA: 8.7
- Sentiment & Volume: Momentum building post-contract wins. Trading volume supports entry/exit flexibility.
3. Informa (LSE: INF)
Company Fundamentals
- EPS: 30.4p | P/E: 13.7
- Revenue Growth: 10%
- Dividend Yield: 2.9%
- Sector Trends: Events and publishing rebounding in post-COVID landscape.
- Valuation: P/B: 1.9 | EV/EBITDA: 10.2
- Investor View: Optimism surrounding live event recovery.
- Liquidity: 8M shares/day — well suited for momentum setups.
4. Diploma PLC (LSE: DPLM)
Company Fundamentals
- EPS: 60.2p | P/E: 22.1
- Revenue Growth: 15%
- Debt Levels: Low
- Dividend Yield: 1.8%
- Sector Focus: High demand for specialised distribution.
- Valuation: P/B: 3.2 | EV/EBITDA: 12.5
- Governance: Aggressive but smart acquisition strategy.
- Volume: 2M shares/day — lower but sufficient for disciplined trades.
5. Rightmove (LSE: RMV)
Company Fundamentals
- EPS: 25.3p | P/E: 27.0
- Revenue Growth: 8%
- Dividend Yield: 1.7%
- Sector Landscape: UK property searches remain high; stable demand for digital listings.
- Valuation & Sentiment: P/B: 8.1 | EV/EBITDA: 19.3 — priced for premium performance.
- Liquidity: 4M shares/day — decent for swing and intraday moves.
6. Ashtead Group (LSE: AHT)
Company Fundamentals
- EPS: 315.0p | P/E: 18.5
- Revenue Growth: 20%
- Dividend Yield: 1.3%
- Sector Trends: Construction boom in the US supports long-term upside.
- Valuation: P/B: 5.4 | EV/EBITDA: 10.8
- CEO Strategy: Growth-focused with high operational discipline.
- Liquidity: ~2M shares/day — suits tactical trades.
7. Ocado Group (LSE: OCDO)
Company Fundamentals
- EPS: -32.1p (Loss-making)
- Revenue Growth: 9%
- No Dividend
- Industry: Online retail and automation are still in the innovation phase.
- Valuation: P/B: 3.7 | EV/EBITDA: Not favourable
- Sentiment: Mixed: long-term bulls vs. short-term profit-takers.
- Volume: 6M shares/day — high volatility, high potential.
8. Vodafone (LSE: VOD)
Company Fundamentals
- EPS: 8.4p | P/E: 9.8
- Dividend Yield: 7.2%
- Revenue Growth: Flat
- Sector Outlook: Telecoms remain a defensive play with stable cash flows.
- Valuation: P/B: 0.9 | EV/EBITDA: 6.5
- Market Mood: Mildly bullish post-cost-cutting initiatives.
- Liquidity: Over 20M shares/day — ideal for day-to-day momentum setups.
9. Barclays (LSE: BARC)
Company Fundamentals
- EPS: 35.1p | P/E: 5.3
- Dividend Yield: 4.7%
- Revenue Growth: 6%
- Sector Dynamics: Interest rate tailwinds boosting margins.
- Valuation: P/B: 0.6 | EV/EBITDA: 4.3 — deep value.
- Investor Mood: Positive on earnings surprise.
- Liquidity: 25 M+ shares/day — perfect for high-frequency and swing trading.
10. National Grid (LSE: NG)
Company Fundamentals
- EPS: 59.0p | P/E: 16.2
- Dividend Yield: 5.5%
- Revenue Growth: 4%
- Debt: High (Capital intensive)
- Sector Focus: Green energy and infrastructure projects buoying future growth.
- Valuation: P/B: 1.6 | EV/EBITDA: 10.0
- Sentiment: Stable — driven by consistent income investors.
- Liquidity: 7M shares/day — meets criteria for short-term trades.
Quick Checklist Before You Buy (Summary Table)
The Quick Checklist Before You Buy serves as a fast-reference guide for evaluating each stock’s short-term trading potential. It highlights key metrics such as earnings performance, debt levels, sector strength, dividend value, and liquidity — all of which directly impact momentum and risk-reward balance.
These factors were carefully selected to help UK share investors quickly identify stocks best suited for short-term trading opportunities.
| Factor | Best Performer(s) |
|---|---|
| EPS and P/E Ratio | BAE Systems (BA.) – Strong earnings and solid valuation |
| Debt Levels | Diploma (DPLM) – Clean balance sheet supports stable growth |
| Sector Growth | Rolls-Royce (RR.), BAE Systems (BA.) – Benefitting from macro trends |
| Dividends | Vodafone (VOD), National Grid (NG.) – Yield-focused standouts |
| Analyst Ratings | Rolls-Royce (RR.), BAE Systems (BA.) – Consistently bullish outlook |
| Trading Volume | Barclays (BARC), Vodafone (VOD) – High liquidity, easy entry/exit |
| UK Economic Indicators | National Grid (NG.), Barclays (BARC) – Resilient in UK macro shifts |
Editor’s Choice: Top 3 Picks for May 2025
The list highlights the standout performers from our momentum trading shortlist. These selections combine strong financials, bullish technical trends, and high liquidity, making them ideal for short-term traders seeking reliable upside potential.
Each stock was chosen for its compelling blend of market timing, sector strength, and investor sentiment.
- Rolls-Royce (RR.) – Strong earnings momentum, improving fundamentals, and one of the most liquid stocks on the LSE right now.
- BAE Systems (BA.) – Benefitting from long-term defence contracts, excellent earnings consistency, and favourable global tailwinds.
- Barclays (BARC) – Deeply undervalued with strong momentum off the back of recent earnings. High volume makes it ideal for all momentum traders.
Disclaimer: The content provided in this article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult a qualified financial adviser before making investment decisions. UK News Blog and its contributors are not liable for any financial losses incurred from investment activity based on this content.
