Since momentum can be such a powerful force in investing, I’m always keeping an eye on which UK stocks are in demand. And there have been two from the home-focused FTSE 250 that have been grabbing my attention recently.

Soaring passenger numbers

Shareholders of self-styled ‘global travel retailer’ WH Smith (LSE: SMWH) have had a very good few months, with the shares now sitting at a fresh 52-week high. If I’d had the skill (or luck) to buy back at the low in May, I’d be looking at a capital gain of around 40%! Just buying one month ago will have led to a gain of 17%.

The latest leg-up has come off the back of a (very) positively received update for the end of its financial year. Revenue climbed 7% as strong passenger numbers in H2 increased demand for travel accessories, food, drink magazines and books.

With inflation returning to more normal levels and interest rate cuts underway both here and in the US, I wouldn’t bet against this form continuing.

What’s the moat?

There are, of course, no guarantees. While trading in FY25 so far had been in line with expectations, next year won’t include some of the key sporting events (e.g. Paris Olympics, Euro 2024) that have seen more travellers coming to Europe and passing through airports where WH Smith has a presence. Oh, and there could be an unwelcome bounce in inflation.

On a more positive note, a price-to-earnings (P/E) ratio of 15 still doesn’t feel unreasonable for a stock in the Consumer Cyclicals sector. There’s a forecast 2.6% dividend yield that looks likely to be well covered by profit too.

Despite this, I’m not looking to buy because I hold a business that also has exposure to travel hubs: sausage-roll seller Greggs.

But I’ll definitely keep following the stock.

Meaty gains

Another company hitting a 52-week high is meat supplier Cranswick (LSE: CWK).

In the last five years, the shares have climbed a little over 70% in value. With dividends reinvested, the result would have been even better. Buying at the beginning of 2024 would have netted me a 32% paper gain alone.

Beating forecasts

The latest (and record) high comes off the back of a tasty half-year update. The Hull-based business reported that trading since the end of Q1 had been “stronger than previously expected“. As a result, it believes first-half performance will be ahead of the same period in 2023.

On top of this, management’s outlook for the whole financial year is now “towards the upper end of market expectations“.

That’s the sort of bullish talk I like hear!

Too hot?

What don’t I like about the investment case? Well, a P/E of 20 isn’t exactly cheap for a low-margin business that’s dependent on a small number of major customers. In fact, Cranswick’s reliance on a positive relationship between the UK and China (a key buyer) could prove problematic. It’s already mentioned being “cautious” about the current economic and geopolitical environment.

Whether I’ll get a chance to buy at a reduced price remains to be seen. Right now, investors are will to pay up for the growth story, which includes the company expanding its pig-farming operations.

But I think there are possibly better opportunities elsewhere in the market.