We have some exciting news to share! The Motley Fool UK has now become The Twelfth Magpie -- an independent, UK-owned company, led by our long-serving UK management team — Mark Rogers, Chris Nials and Heather Adlington. In practical terms, it’s the same team you know, now fully focused on serving our UK readers and members.

Just as importantly, our approach remains unchanged: long-term, jargon-free, and on your side. This site is our new home, and there will be extra tweaks made across the coming few days as we settle in. So if anything looks a little off, please bear with us!

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

£5,000 invested in these 5 stocks 1 year ago is now worth £12,350

A successful stock-picking strategy can deliver huge returns. James Beard looks at what might be achieved by investing in a handful of FTSE 100 stocks.

| More on:
Young black colleagues high-fiving each other at work

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Twelfth Magpie’s Premium Investing Services. Become a member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more, and get a free 'Best Buy Now' stock!.

Stocks on the FTSE 100 are often overlooked in favour of their more glamorous American peers. Despite this, the UK index has comfortably outperformed the S&P 500 since the start of the year.

That’s why – with some careful research — I reckon it’s possible to make some handsome gains from investing in UK shares. Let me explain.

Should you buy Next Plc shares today?

Before you decide, please take a moment to review this report first. Despite ongoing uncertainties from US tariffs to global conflicts, Mark Rogers and his team believe many UK shares still trade at substantial discounts, offering savvy investors plenty of potential opportunities to learn about.

That’s why this could be an ideal time to secure this valuable research – Mark’s analysts have scoured the markets to reveal 5 of his favourite long-term ‘Buys’. Please, don’t make any big decisions before seeing them.

Top and bottom

Since April 2025, the top five performing stocks on the FTSE 100 have delivered an amazing return of 147%.

RankStock1-year share price change (%)
1Fresnillo+268
2Endeavour Mining+152
3Airtel Africa+111
4Antofagasta+105
5Glencore+99
Source: Hargreaves Lansdown at 6 April 2026

However, as impressive as this might be, it has to be acknowledged that four of them are mining companies. Soaring commodity prices have helped lift their stock market valuations without the need for any improvement in their operational performance.

And their share prices could fall as quickly as they have risen. A three-figure annual gain must therefore be treated as an exception rather than the norm.

Anyone unfortunate enough to have invested in the Footsie’s five worst performers a year ago, have suffered a 36% paper loss.

Mid-table

But most investors are likely to achieve returns closer to the average. If we ignore the extremes and look at those in the middle — for example, the stocks ranked 49-53 in the one-year league table – it reveals that an equal investment in all five would have produced an 18% return.

And in my opinion, there’s nothing wrong with being average. After all, if this return was maintained for 25 years, a £20,000 investment would grow to over £1.25m.

RankStock1-year share price change (%)
49Smiths Group+22
50Coca-Cola HBC+21
51InterContinental Hotels Group+19
52F&C Investment Trust+15
53Next (LSE:NXT)+15
Source: Hargreaves Lansdown at 6 April 2026

I think these five are typical of the FTSE 100 in the sense that they go about their business with little fuss. Yet collectively, they reported over £4.5bn of operating profit in their last financial years.

Something to consider

The most valuable of them – Next – is one of the stock market’s unsung heroes. Despite rarely hitting the headlines, it’s repeatedly upgraded its earnings forecasts since the pandemic.

Its results for the year ended 31 January (FY26) beat analysts’ expectations. Earnings per share (EPS) increased 17% compared to FY25. It also reported an “encouraging” start to FY27.

However, if the Iran war continues things might take a turn for the worse. The Middle East is a small (28% of full-price international online sales) but increasingly important market for the group.

Indeed, overseas expansion (FY26 sales outside the UK grew five times faster) is likely to be the key driver of future growth as Next is already one of Britain’s largest clothing retailers. A slowdown in the UK economy remains a risk.

But at the moment (6 April), the group continues to deliver. Over the past five years, its share price has risen by an average of 10.2% per annum. EPS has more than tripled.

The group’s also supplemented its modest dividend (no guarantees) with a share buyback programme. The directors have set a ceiling price of £131 when it comes to repurchasing shares. With a current price of £129.50, they believe the retailer’s undervalued.

I believe Next is a well-run company with a strong brand, which proves that it’s possible to make money from ‘old-fashioned’ retailing by selling the right products.

And although it’s one of many UK stocks that continue to fly under the radar, I think it could be considered to help deliver reliable long-term gains as part of a diversified portfolio.

James Beard has positions in Airtel Africa Plc, Coca-Cola Hbc Ag, and Endeavour Mining Plc. The Motley Fool UK has recommended Airtel Africa Plc, Fresnillo Plc, and InterContinental Hotels Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Rolls-Royce's Pearl 10X engine series
Investing Articles

Up nearly 1,400% in 5 years! But are Rolls-Royce shares still secretly undervalued?

After skyrocketing, Rolls-Royce shares are now near an all-time high, but could the engineering giant still have more room to…

Read more »

Happy senior couple hugging and enjoying retirement at home
Investing Articles

By mid-2027, analysts expect £5,000 in Barclays shares to be worth…

Barclays shares have outperformed the FTSE 100 by a wide margin over the last year. And City analysts expect to…

Read more »

Man hanging in the balance over a log at seaside in Scotland
Investing Articles

Near 5-year lows, here’s what the experts say about the Diageo share price

Ben McPoland's questioning his sanity after investing in Diageo. Where do institutional analysts see its share price heading over the…

Read more »

British Airways cabin crew with mobile device
Investing Articles

Up 165% but still with a P/E of 7.9. Is the IAG share price a generational bargain?

The IAG share price has been on fire for the last two years, delivering some of the biggest returns in…

Read more »

Emma Raducanu for Vodafone billboard animation at Piccadilly Circus, London
Investing Articles

Here’s the latest Vodafone share price forecasts for 2027

Up 35% in 12 months, the Vodafone share price is beating the stock market right now, but can this momentum…

Read more »

Close-up image depicting a woman in her 70s taking British bank notes from her colourful leather wallet.
Investing For Beginners

At almost 20-year highs, here’s where the experts think the Barclays share price could go from here

Jon Smith points out that the Barclays share price could still move higher in the coming year, with several positive…

Read more »

Pakistani multi generation family sitting around a table in a garden in Middlesbourgh, North East of England.
Investing Articles

From £5k to £12.4k! Is the current Tesco share price still a bargain?

The Tesco share price has more than doubled investors' money since 2021, but is the stock still a bargain buy…

Read more »

Joyful mature couple having fun together enjoying vacation on city street. Two retired older people enjoying time together during autumn holidays or weekend getaway
Investing Articles

How I’m using a £20k ISA to aim for a £9,982 yearly second income in retirement

Harvey Jones shows how he hopes to generate a bumper second income from investing in FTSE 100 dividend stocks without…

Read more »