To say that world markets have been slightly risky in 2025 is placing it mildly. Nonetheless, the FTSE 100 is managing to carry its personal. The truth is, just a few of its members are performing brilliantly.

Beating expectations

Shares in style/life-style retail big Subsequent (LSE: NXT) are up 22% within the final month alone and sit round a 52-week excessive. What’s gone so proper?

Properly, numerous the uplift is down to good, old style earnings development. Again in March, the corporate raised its steerage on revenue for FY26 after gross sales within the first eight weeks beat expectations. This adopted sizzling on the heels of a ten.1% enhance in earnings within the earlier monetary 12 months to above £1bn.

Now not a discount

As encouraging as all that is, it does really feel like numerous constructive information is now priced in. The shares commerce at 18 instances forecast earnings — a good deal greater than Subsequent’s five-year common (13 instances).

Though simply lined by anticipated revenue, a dividend yield of two.1% can also be a lower than that supplied by an inexpensive exchange-traded fund monitoring the FTSE 100.

On prime of this, the corporate expects this month’s tax rises to start impacting the roles market. Ought to this show to be worse than anticipated, even high quality operators like this won’t be capable to preserve the tills ringing fairly so incessantly.

With this in thoughts, I’m sceptical on whether or not latest momentum will persist for the remainder of 2025. However Subsequent does possess an ideal observe file of delivering for holders over the long run. Within the absence of something to recommend it will not be the case, I’d say the shares nonetheless warrant consideration, albeit as a part of a diversified portfolio.

Flight to security

Not less than a few of that diversification may come from energy supplier Nationwide Grid (LSE: NG). Like its index peer, the inventory has been in effective fettle within the final month, rising virtually 13% in worth. In contrast to Subsequent, this seems to be extra down to a flight by traders to extra defensive sectors in mild of Donald Trump’s tariff tantrum.

This makes excellent sense. No matter whether or not the US President modifications his thoughts or not within the forthcoming weeks, we’ll all nonetheless want entry to gasoline and electrical energy.

One other attraction to Nationwide Grid is that it’s liable for the infrastructure that delivers power throughout the UK slightly than being a provider to customers. Which means the £40bn-cap doesn’t function in a aggressive market, not less than within the conventional sense.

However as soon as once more, all that is arguably mirrored within the valuation.

Dividends value bagging

Nationwide Grid shares now commerce at a ahead price-to-earnings (P/E) ratio of 14. That’s across the common for a inventory within the FTSE 100 over the long run. Nonetheless, it’s not likely low cost for a utility whose skill to develop will all the time be capped by heavy regulation and excessive ongoing prices.

As such, I query whether or not traders can realistically count on extra positive aspects when full-year numbers arrive in mid-Could.

Nonetheless, the forecast 4.4% yield may be considered adequate compensation if the shares commerce sideways for some time.

As a manner of mitigating the danger served up by extra growth-focused shares, I believe the Grid nonetheless takes some beating.