The FTSE 100 has had an ideal begin to the yr, rising almost 5% to succeed in a file degree. So it’s hardly shocking to see a couple of Footsie shares additionally pushing skywards into uncharted territory.

Listed here are two which have began 2025 the way in which they ended 2024 — going up!

On a roll once more

First is Rolls-Royce (LSE: RR), which gained over 90% final yr and closed at a file 611p earlier this month. It’s pulled again barely to 592p, as I write, however that’s nonetheless increased than the place it began the yr (568p).

Past the restoration in worldwide journey, the corporate continues to learn from elevated defence spending. Final week, Rolls bagged its greatest ever deal, a £9bn contract with the Ministry of Defence to make nuclear submarine reactors for the Royal Navy.

There’s additionally rising pleasure about its small modular reactors (SMR) enterprise. Final yr, it received a landmark contract to assist deploy these mini-nuclear reactors within the Czech Republic. It could land a contract to do the identical within the UK too — the long-delayed choice is anticipated within the spring.

With nations eager to decarbonise vitality methods, and extra knowledge centres wanted to assist power-hungry AI methods, the worldwide SMR market may very well be large.

Nonetheless, it’s additionally one that could be a few years away (2030s). Within the meantime, the agency faces provide chain challenges and sky-high expectations from traders. It stays to be seen whether or not the share price will surge for a 3rd yr in a row.

Long run, nonetheless, I’m bullish on this blue-chip. The worldwide fleet of long-haul plane is anticipated to develop considerably within the coming many years, notably in Asia. The expansion alternatives needs to be plentiful for the FTSE 100 engine maker.

That mentioned, with the inventory buying and selling a excessive price-to-earnings (P/E) ratio of 32 for 2024, I’m not eager on including to my holding in the intervening time.

Scaling up quickly

Subsequent is InterContinental Accommodations Group (LSE: IHG). The share price is up 130% over the previous 5 years, leaving it close to its all-time excessive at slightly below 10,800p.

Like Rolls-Royce, InterContinental is one other international firm, with a rising lodge presence throughout Europe, Asia, and the Americas. Its capital-light franchising mannequin is enabling it to scale shortly, particularly in high-demand markets throughout Asia, the place it’s leveraging native companions’ sources and market information. 

This can be a inventory I’ve needed to purchase for a while now, however the seemingly excessive valuation has put me off. Proper now, the P/E ratio for 2024 is round 30.

Arguably, that valuation fails to account for the dangers of a possible commerce conflict and rising inflation that is perhaps triggered by Donald Trump’s proposed tariffs. That might hit disposable revenue and subsequently demand for journey and accommodations.

Once more although, I’m optimistic about this inventory transferring ahead. There’s a giant pushback on short-term leases on Airbnb in lots of main cities, which ought to in the end play into the agency’s palms.

The corporate owns a various portfolio of lodge manufacturers, together with the posh InterContinental Accommodations & Resorts, the mid-range Vacation Inn, and boutique Kimpton. I see it as one of many highest-quality companies within the FTSE 100 and count on it to hold on doing very effectively.

As quickly as there’s a big dip, I plan to take a position.