UK stocks have lagged behind this year as American stocks surge ahead. The FTSE 100 is up only 4.8%, while the S&P 500 is up over 10%.
Despite some periods of strength for the Footsie in 2026, British investors have been left watching American markets rally while domestic stocks overall are more sluggish.
But many analysts remain bullish about the UK market, with three stocks in particular tipped to make spectacular gains this year.
They are: RELX (LSE: REL), Experian, and Melrose Industries.
What does Wall Street expect of the S&P 500?
Major brokers expect the S&P 500 to rise by about 12% in 2026. Goldman Sachs lifted its year-end target to 8,000 on May 27, up from 7,600 in April.
Strategists said that forecast rests on 12% earnings per share (EPS) growth this time and a further 10% increase in 2027. Other major banks are clustering around the 7,400 to 7,800 range.
| Bank | Year-end target | FY growth | Key driver |
|---|---|---|---|
| Goldman Sachs | 8,000 | 16.7% | Strong earnings outlook, AI-driven growth |
| Morgan Stanley | 8,000 | 16.7% | Expects growth but cites political risks |
| JPMorgan | 7,600 | 10.27% | Solid earnings growth, improving valuations |
| Barclays | 7,650 | 10.93% | Cautious on valuations, expects slower momentum |
| Wells Fargo | 7,300 | 6.24% | Steady earnings growth, moderate upside |
| AVERAGE: | 7,710 | 12.17% |
The average consensus is around 7,710, which would imply roughly 12% growth from the start of the year.
However, the range is wide, depending on earnings delivery and AI momentum.
Let’s see why analysts are bullish about some FTSE shares.
Three UK stocks tipped to do better
| Stock | Current Price | Average price target (1yr) | Implied growth | Analyst Rating |
|---|---|---|---|---|
| Experian | 2,575p | 4,087p | 60% | 18 Buy ratings |
| Melrose Industries | 476p | 720p | 49% | 11 Buy, 3 Hold |
| RELX | 2,447p | 4,145p | 71% | 13 Buy, 1 Hold |
RELX shows the highest growth expectations of 71%, with a consensus target of 4,145p. Experian has the most analyst consensus strength, while Melrose Industries shows the widest range.
While these are 12-month targets, it’s realistic to expect half that growth to occur this year.
What prompts the high RELX expectations?
RELX is embedding AI functionality into its products at an accelerated pace, which CEO Erik Engstrom called “a key driver of our business for well over a decade.”
- The Risk division is using AI-enabled analytics and decision tools to drive strong underlying revenue growth, with 90% of revenue from machine-to-machine transactions.
- The Legal division is rolling out Generative-AI drafting, research copilots (Lexis+ AI), and analytics suites targeting higher revenue and expansion into corporate legal and compliance teams.
- The STM (Scientific, Technical & Medical) division is developing AI summarisation, literature-mapping, and EHR-integrated clinical decision pathways via its subsidiary Elsevier.
RELX is also shifting from traditional publishing to a platform-led, data-first model with recurring subscription revenue, now 75% of group revenues.
The business delivered a 9% rise in underlying operating profit in 2025, with free cash flow conversion near 90%+ of adjusted net profit.
The bottom line
All three of these stocks look promising, but RELX really stands out as one worth considering. But it’s not risk-free.
Ironically, the very same tech that’s a driver for growth (AI), is also the number one cause of fear among investors. And even though the company has been navigating change for over 100 years, AI’s real impact remains very unpredictable.
Still, in my mind, the potential outweighs the risk. The company’s shift to recurring subscription revenue (75%), strong free cash flow (90%+ conversion), and disciplined M&A strategy support sustained growth.
And these are just three of many FTSE shares that show promise in 2026…
Should you invest £5,000 in RELX right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if RELX made the list?
Mark Hartley owns shares in RELX and Experian.
