About two-thirds of my Stocks and Shares ISA is made up of growth shares. They’re a motley bunch, ranging from AI colossus Nvidia to sports nutrition firm Applied Nutrition from the FTSE 250.

In June, a handful of these growth shares suddenly jumped higher. These included:

• Applied Nutrition: +27.7%
• Axon Enterprise: +24.9%
• Beeks Financial Cloud: +30.4%
• Hims & Hers: +32.6%

Also, cross-border payments leader Wise (+23%) has recovered nicely from June lows, as has gaming platform Roblox (+33%) and digital bank Nu Holdings (+17%).

What’s been driving them higher? Well, the Iran ceasefire has certainly helped, as this has raised hopes that interest rates won’t jump higher.

However, there have also been positive company-specific developments. Applied Nutrition raised its full-year sales guidance, Wise dropped a strong set of results, and fintech infrastructure firm Beeks has been winning contracts for its new AI-powered analytics platform.

Meanwhile, Russia has lifted its ban on Roblox, President Trump (via a trust) bought shares of Axon, and data shows accelerating GLP-1 sales trends at Hims & Hers.

However, while the US-Iran agreement has given many growth stocks a shot in the arm, any restarting of hostilities could quickly send them into retreat. That’s a near-term risk for the seven names mentioned above.

A “crazy cheap” tech share

Moving on, I want to highlight Moonpig (LSE:MOON). This is a FTSE 250 growth stock that looks undervalued to me, despite rising 27% year to date.

As the UK’s leading online greeting cards company, Moonpig will be familiar to many readers. Through the app, customers can customise cards, adding photos and AI-generated images, and also send flowers and gifts.

This weekend, my daughter and I will create a thank you card on Moonpig for her teacher. We’ll personalise it, which should make him smile more than a generic card picked up off the supermarket shelf.

Our proprietary customer data remains an important part of our structural moat. Every day, we collect more than twice as much data as the rest of the greeting card market combined, deepening our competitive advantage.
Moonpig

In FY26, which ended 30 April, the company’s revenue increased 6.5% to £373m, with the core Moonpig brand growing 8.6%. Adjusted pre-tax profit jumped 13.4% to £76.5m, while free cash flow increased 11.2% to £73.5m.

From these numbers, we can see that the asset-light platform sports attractive fundamentals. In particular, the 20% free cash flow margin stands out. This cash is supporting ongoing buybacks and a higher dividend (25% hike last year).

The free cash flow yield here is approaching 9%. Last month, broker Panmure Liberum called the shares “crazy cheap for incredibly high quality and such a strong cash returns profile“.

Looking at the forecast for next year (FY28), the forward-looking earnings multiple is just 12. That’s despite Moonpig delivering consistent double-digit earnings growth, boosted by buybacks.

As for risks, the tough consumer backdrop isn’t ideal. This might see cash-strapped consumers opt for cheaper cards than larger, customised ones on Moonpig (or even just settle for a happy birthday message on Facebook or WhatsApp).

Taking a longer view though, I like the growth story here. Moonpig’s database of 113m customer occasion reminders helps drive repeat business, while it’s also growing nicely in new international markets, particularly Australia.

I’m considering Moonpig stock and think investors should too.

Should you invest £5,000 in Moonpig Group Plc 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 Moonpig Group Plc made the list?

Ben McPoland owns shares in Applied Nutrition, Axon Enterprise, Beeks Financial Cloud, Hims & Hers, Nu Holdings, Roblox, and Wise.

The post These 7 growth stocks went bonkers in my ISA in June! appeared first on The Twelfth Magpie.

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Nike (NYSE:NKE) hasn’t traditionally been a stock that offers a decent second income. In the past, this was more of a growth-oriented company that carried a modest dividend yield (often around 1%).

But after crashing by a staggering 75% inside five years, the yield today has risen to 3.7%. Admittedly, that’s not enough to stoke animal spirits, but it might not be a bad start given that Nike has raised its annual dividend for 24 years.

Should I buy this bombed-out stock in July? Here are my thoughts.

Why has Nike crashed?

Looking at the share price chart, it’s quite shocking to see a company of Nike’s calibre trading near an 11-year low. After all, this remains the leader in the huge global sportswear market.

However, its share of that market has been gradually eroded in recent years by fierce competition. As a result, the days of Nike just having to worry about what Adidas was doing are long gone.

In hindsight, a large part of the brand’s growth story hinged upon China, which regularly served up double-digit sales growth. For example, sales surged 25% at constant currency in Greater China in Q4 FY18.

But fast forward to Q4 FY26 (released earlier this week), sales in Greater China slumped 17%, bringing the full-year decline to 13%. This was hot on the heels of a 12% fall in FY24.

In FY26, total revenue fell 2% on a constant currency basis to $46.4bn, while net income dipped 3% to $3.1bn. Its Converse brand has fallen firmly out of favour, with sales crashing 34% due to declines in all territories.

Things have held up better in North America, where sales increased 5%. And wholesale revenue was up by an encouraging 10% in the final quarter, as Nike continues to rebuild relationships with partners after its direct-to-consumer pivot backfired under previous management.

Meanwhile, Nike Running has been winning back customers, posting its fifth straight quarter of double-digit growth. This is good to see for shareholders because the brand had lost ground to upstart brands like Decker‘s Hoka and On Holding.

On a less positive note, early data shows that Adidas has captured stronger consumer momentum at the World Cup.

Where next?

With Nike’s stabilised gross margin set to edge higher, the stock today could prove to be a great buying opportunity. The price-to-sales ratio is just 1.4 while the price-to-earnings multiple is 21. Neither strike me as expensive.

However, CEO Elliott Hill gave investors a reality check this week, warning that the next few months will remain difficult. Indeed, first-half revenue for FY27 is expected to decline by low-to-mid-single-digits, with broadly flat earnings per share.

Will I invest?

In some ways, Nike reminds me of Guinness and Johnnie Walker owner Diageo, which also yields around 3.7%. We have a durable brand struggling to find sales growth in a tough macro environment, but with capable management trying to turn the tanker around.

In both cases, this will take time. But whereas I’ve bought Diageo stock as a potential recovery play, I’m going to pass on Nike. It has been nearly two years since Nike veteran Hill returned and the recovery remains painfully slow.

Looking around, I see better opportunities elsewhere for my money this summer.

What income stock do we like better than Nike right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

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Ben McPoland owns shares in Diageo and On Holding.

The post Down 75% and yielding 3.7%, should I buy Nike stock for a second income? appeared first on The Twelfth Magpie.

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The Space Exploration Technologies (NASDAQ:SPCX) — or SpaceX as most already know it — share price has displayed more volatility in three weeks than a utility stock might in a decade. Moves of 5%-15% are almost the daily norm.

Before the 12 June IPO, some retail investors bought SpaceX shares through their investment platforms. But the number was restricted due to high demand.

However, getting in at the entry price of $135 (£100.65) per share has turned out alright so far, with SpaceX up around 16%. So a £5,000 investment would now be worth roughly £5,800.

Again though, the shares were in short supply. My mate applied for £10k worth and only got allocated £2k. But what about someone who was late to the pre-party and invested £5k on the first day of trading? Would they be up too?

All over the shop

SpaceX stock opened on the Nasdaq at $150, peaked at an intraday high of $176, and closed the session at just under $161. As I type, the share price is $157.

Assuming then that someone was able to invest at $160, they would be sitting on a slight loss. While early days, that would probably feel more disappointing than it sounds given that the stock was at $225 just a couple of weeks ago.

What about the future?

Of course, three weeks is a blink of an eye for SpaceX. Its mission is “to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars“.

For the record, my mate believes in this vision and has topped up his holding since the IPO. He will tuck the shares away for at least a decade and just let Elon Musk and SpaceX do their thing, believing this will be a significantly larger business by then.

I have some sympathy with this. After all, recent reports say that the company’s planning to launch a Starlink mobile service directly for US consumers.

If so, this would see it take on the likes of T-Mobile, AT&T and Verizon. Analysts​ at Oppenheimer reckon SpaceX will indeed disrupt the $1.6trn US communications industry.

By the 2030s, SpaceX could also have the 40-storey Starship rocket working reliably. That would lay the foundations for a supercharged Starlink network with next-generation satellites, including potentially space-based data centres, and a highly lucrative commercial cargo corridor to the Moon.

Should SpaceX execute on its mission… it will be the modern-day East India Company of space, controlling routes, infrastructure, and ​commerce of an ​entire frontier ⁠and giving it a quasi-sovereign reach, far beyond that of any ordinary corporation.

Oppenheimer analysts

A Magpie’s eye view

Nobody knows where SpaceX will be in 10 years, especially as it faces complex technical challenges around Starship reusability and orbital refuelling.

Meanwhile, the AI unit faces earthly competition from Microsoft, OpenAI and Google. My main concern remains loss-making SpaceX’s valuation, with a forward sales multiple of around 64.

This is too spicy for my liking, so I’ll wait patiently for a better price. For now, I see better opportunities in other more down-to-earth stocks.

Should you invest £5,000 in Space Exploration Technologies Corp. - Class A 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 Space Exploration Technologies Corp. - Class A made the list?

Ben McPoland has no position in any of the companies mentioned. 

The post £5,000 invested in SpaceX at the IPO share price would now be worth… appeared first on The Twelfth Magpie.

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For Diageo (LSE:DGE) shareholders, the long-awaited recovery has started to resemble Waiting for Godot. In that play, the characters wait for someone — or something — that doesn’t come.

The arrival is always promised, but never quite arrives.

This effect can be seen with the Diageo share price, which occasionally shows sporadic bursts of momentum before stalling and falling even further. A pattern of hope and disappointment basically, like in the play.

I escaped the cruel, endless loop 18 months ago when I sold the FTSE 100 stock. But I bought back in a few weeks ago, with Diageo near a 14-year low.

What on earth was I thinking?

The oil tanker might be turning

To begin, here’s a list of the main reasons why I sold Diageo:

• Stagnant sales
• Younger people drinking less alcohol
• Unrelenting cost-of-living pressures
• Stretched balance sheet
• Dodgy dividend growth prospects
• Management issues

Admittedly, some of these concerns still exist. Management expects full-year organic net sales to fall 2%-3% due to ongoing weakness in US spirits and Chinese white spirits. That’s not inspiring stuff.

Meanwhile, Gen Z consistently ranks health and wellness way above alcohol-driven socialising in their list of priorities. And they’re more likely to meet a new partner at the gym than a pub nowadays.

Plus, the cost of living continues to rise across the UK, US, and Europe. Is this a new normal that will last for many more years? Only time will tell.

Turning to the second half of the list, though, I’m more optimistic. CEO Dave Lewis has come in and is taking hard decisions to turn the tanker around, including cutting costs, asset disposals, and a 50% cut to the interim dividend.

As such, I’m optimistic that Diageo’s balance sheet will be strengthened. And, in my opinion, an outsider like Lewis will take a far less rose-tinted evaluation of underperforming brands than executives involved in building the current portfolio.

Finally, Gen Z are a paradoxical bunch, as they might be drinking less but they haven’t abstained completely. Look at the popularity of Guinness, which is thriving even as beer sales fall, and canned cocktails, which Diageo has earmarked as a growth opportunity.

Artemis sees value

Looking ahead, I think investors are underestimating the improvements that Lewis could bring in future years. Artemis Income Fund, which has a tremendous record since launch 26 years ago, thinks so too and recently bought Diageo shares.

Manager Andy Marsh says the dividend cut has removed some balance sheet risk, as well as making necessary changes within Diageo somewhat easier (because shareholders are sharing some of the pain).

Marsh says such actions have increased the company’s future cashflow and dividend prospects. And the market is currently underappreciated this.

What’s the latest price target?

According to analysts, the current share price is too low — their average price target is 32.7% higher.

Whether they’re right or not is unknowable at this stage, of course. But if they are, investors buying £5,000 worth of shares could see their stake rise to roughly £6,635 by this time next year, excluding dividends.

While I wouldn’t bet the farm, I think Diageo is worth considering. Godot could actually turn up at the end of this play.

What income stock do we like better than Diageo Plc right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at an income share we think is worth your time.

Ben McPoland owns shares in Diageo.

The post By July 2027, Diageo shares could turn £5,000 into… appeared first on The Twelfth Magpie.

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Now around 1,885p each, BAE Systems‘ (LSE:BA.) shares have performed splendidly for me since I bought them at 819p in November 2022. I also added twice on weakness in 2024.

However, since peaking at 2,360p in March, BAE’s slumped 20%. And the defence stock’s now gone sideways over the past 12 months, noticeably lagging the FTSE 100‘s 19% return. That’s quite disappointing.

The question I’m asking myself now is, should I recycle my gains into a different stock?

Sector sell-off

On one level, I’m not worried about BAE stock specifically as it has been caught up in a wider defence sector sell-off. In fact, it’s fared relatively well compared to others like Babcock International (down 33% since January) and Rheinmetall (down 45% since January).

And while the wars in Ukraine and Iran are hopefully going to end sooner rather than later, they won’t just be forgotten about. NATO allies and Gulf states are still committed to beefing up defence capabilities for any future conflicts.

But will Europe actually find the money to re-arm properly? After all, Germany just abandoned its planned six-ship F126 frigate programme.

Meanwhile, we’ve seen recently how the UK government has struggled to stump up what many military experts say is needed to defend the realm. Remember, Western European economies are stagnant and heavily indebted.

If the expected defence spending boom is delayed due to political wrangling, then investors could sour further on European defence stocks. They may even face a period in the wilderness.

The changing nature of warfare

Another risk is that warfare is changing. Cheap drones have been deployed widely in the Ukraine and Middle East conflicts, raising concerns that tanks and frigates are potentially expensive sitting ducks.

Areas of the defence market are developing at a rapid pace. Technology is being embraced, and a number of companies are competing, including new entrants who often don’t come from a purely defence background. This includes in drones [and] counter-drone systems.

BAE Systems.

However, recognising that allies can’t keep firing expensive missiles at swarms of cheap drones, BAE’s prioritising lower-cost interception methods, including electronic warfare jamming.

Back in 2024, BAE also acquired UK drone specialist Malloy Aeronautics to break into the unmanned systems market. As part of its Defence Investment Plan, the government has just committed £5bn to drones and autonomous systems.

So while the changing nature of warfare is something to monitor, I’m not overly worried. BAE already has a leading electronic systems division, which is probably more relevant than ever in this age of drone warfare.

My move

CEO Charles Woodburn says the defence giant’s order backlog and incumbent programme positions total around £260bn, nearly nine times annual sales.

And some of the biggest programmes, like the Global Combat Air Programme and AUKUS submarines, don’t come into full production until the mid-2030s. Then there will be new opportunities arising from higher defence spending.

Stepping back then, I think the long-term investment case here remains very strong. And the price target is 23% higher, suggesting the stock could turn £5k into more than £6k by next July (assuming these broker forecasts prove accurate, of course).

Weighing everything up, I’m not selling, and I actually think BAE’s dip is worth considering buying. It’s one of a few FTSE 100 opportunities I see right now…

Should you invest £5,000 in BAE Systems 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 BAE Systems made the list?

Ben McPoland owns shares in BAE Systems.

The post By July 2027, BAE Systems shares could turn £5,000 into… appeared first on The Twelfth Magpie.

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On Holding (NYSE:ONON) is a stock I’m quite excited about in my SIPP and ISA portfolios. Well, I would have to be to have it in both of them!

Yet, despite my enthusiasm, this growth stock hasn’t done much growing since I first invested last year. In fact, it’s now down 7% in total after falling 25% year to date.

But if Wall Street forecasts are anything to go by, my patience could be rewarded handsomely by this time next year. That’s because the average 12-month target is just under $53 — roughly 51% above the current level.

Why might On stock be undervalued at $34?

Initially sceptical

Confession: when I first started looking at the Swiss running shoe company last summer, I wasn’t entirely convinced.

That’s because there have been a handful of new kids on the block in the global premium athleisure market over the last decade or so. And after being popular for a few years, these brands have faded, resulting in very poor stock market returns.

Here are three that spring to mind (five-year performance):

• Under Armour: −71%
• Lululemon Athletica: −69%
• Smartbird (formerly Allbirds): −99%

Differentiating factors

So, what makes On potentially different? Well, Lululemon and Allbirds started with a single lifestyle angle (premium yoga pants and environmentally friendly footwear, respectively). But when fashion tastes shifted, they struggled to pivot.

Fist and foremost though, On has established itself as a hardcore performance running brand, building credibility with professional marathoners. And runners tend to be loyal to quality gear that protects their feet and joints.  

As for Under Armour, it started selling products at a discount to boost quarterly sales targets, which damged its premium brand image. But On manages its wholesale partnerships like a luxury brand by limiting which retailers can stock the shoes.

It very rarely does discounts, which has led to an industry-leading gross margin (64.2% in Q1, despite tariff pressures). 

Third, founder-led On stands out from the crowd in terms of innovation, as evidenced by the following two patented technologies: 

• CloudTec: the cloud styles on the trainer soles are a patented cushioning system to reduce muscle fatigue and boost performance.
• LightSpray: a robotic upper-manufacturing arm sprays a single continuous filament onto a sole inside three minutes, eliminating seams and waste.

The advanced engineering and serious attention to detail makes me believe this is not a flash-in-the-pan brand.

Finally, there’s China, where Western brands like Nike are struggling badly due to the popularity of domestic rivals. Yet in Q1, China helped On’s Asia Pacific sales rocket 61.4% on a constant currency basis, making up more than 20% of total global sales.

What about valaution?

As mentioned though, the company charges full whack for its premium products. So any further deterioration in consumer spending power, including potential AI-related job losses, is a risk to growth moving forward. Tariffs also add uncertainty.

For me, though, the company’s guidance for at least 23% full-year sales growth even in a challenging environment is impressive. And its apparel business is only just getting started, with a multi-year growth runway ahead.

Finally, the icing on the cake is that the shares can currently be picked up for a very reasonable 21 times forward earnings.

At this price, I think the stock is worth considering as part of a diversified SIPP/ISA.

Should you invest £5,000 in On Holding 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 On Holding made the list?

Ben McPoland owns shares in On Holding.

The post Prediction: this stock could surge 51% in my SIPP and ISA by 2027 appeared first on The Twelfth Magpie.

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Cash ISAs remain extremely popular in the UK today. A little too popular for the government’s liking it seems, as it has just set out some of the biggest overhauls to the ISA regime in decades.

The idea is to encourage more savers to invest in the stock market, which over longer periods of time wipes the floor with cash in terms of returns. Indeed, cash rarely even beats inflation, meaning savers lose real purchasing power.

But which is winning so far this year — cash or stocks? Let’s find out.

Cash

To start, I should make clear that I’m certainly not against Cash ISAs. As an investor, you don’t want to be forced to sell quality stocks to pay for a new car or unexpected tax bill. A cash buffer can certainly provide peace of mind.

Average Cash ISA interest rates throughout 2026 have generally been between 3.5% and 4.5%. Based on this then, £10,000 put into one at the start of 2026 would have generated somewhere between £175 and £225 in interest so far, depending on the type of account you chose.

By the end of the year, that £10k should have generated a total of roughly £350 to £450 in completely tax-free interest. That would be an okay result, albeit inflation is expected to average around 3% this year, according to the Bank of England.  

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Shares

What about the stock market? How has that fared in comparison?

Well, it depends on how you define the stock market, but below are three popular blue-chip indexes and how they’ve performed year to date.

As we can see, all three have beaten cash so far, particularly the Nasdaq-100. A £10,000 investment made in this tech-heavy index at the start of the year would now be worth around £11,800.

But none of these returns include dividends. Adding income to the mix, the Footsie’s year-to-date return rises above 7.5%, thereby also comfortably beating cash.

An ETF idea

Of course, nobody knows what the rest of the year will bring. The stock market could well end up pulling back sharply, especially the US indexes, which are currently trading very expensively.

But zooming in on the FTSE 100, is this worth considering for a Stocks and Shares ISA? I think so, especially if the fund is an accumulating one in the shape of something like iShares Core FTSE 100 ETF (LSE:CUKX).

In other words, the dividends are accumulated/reinvested back into the fund, helping fuel the compounding process. The FTSE 100’s starting yield today is around 3.05%.

Top holdings mirror the UK’s largest listed firms, including HSBC, AstraZeneca, Shell, Unilever, and engine maker Rolls-Royce. What I like here is that each represents a different part of the global economy — banking, pharmaceuticals, oil and gas, household goods, and aerospace and defence, respectively.

For me, this diversification is attractive. If there is an AI bubble and it pops, I would expect such names to hold up better than many tech shares.

That said, it’s worth mentioning that almost 28% of the fund is in the financials sector. So a global economic downturn at some point could impact performance and dividend reliability.

Despite this risk, I prefer the FTSE 100 over cash long term, making the index one to consider allocating some money to.

What income stock do we like better than iShares VII Public - iShares Ftse 100 Ucits ETF right now?

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Ben McPoland owns shares in AstraZeneca, HSBC, and Rolls-Royce.

The post £10,000 put in a Cash ISA at the start of 2026 is now worth… appeared first on The Twelfth Magpie.

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SpaceX (NASDAQ:SPCX) stock can mean different things to different people. Some see the rocket pioneer as the world’s largest company in the making, with stellar competitive advantages, while others dismiss it as an overhyped meme stock.

Whatever your take, it can’t be denied that Elon Musk’s company is already making waves. Exchange operator and index provider Nasdaq has even relaxed its entry requirements, allowing loss-making SpaceX to join the Nasdaq-100 index on 7 July.

As a result, SpaceX could get an index fund-buying boost as passive ETFs aiming to replicate the Nasdaq-100’s performance are obliged to buy shares. This may act as a fresh catalyst for the stock, which is down 22% from recent highs.

Should I nip in and invest before 7 July?

Nothing’s guaranteed

The company will initially enter the index with a weighting of less than 1%, but there’s quite a low float of publicly tradeable shares relative to SpaceX’s massive $2.06trn market cap. In theory then, this forced fund buying could well boost the stock.

In practice though, speculative capital will probably flow in beforehand. And artificial demand from index funds is a one-time event, meaning the stock could see a pullback once the inclusion is over.

Either way, there will likely be increased volatility.

As a long-term investor, none of this matters to me. All I care about is the underlying business, its growth prospects, and the valuation.

What do I think about these?

40-storey stock

The first two boxes are already ticked for me. SpaceX is the world’s dominant and most innovative rocket launcher. In 2025, it did 165 Falcon 9 missions, far outstripping any other company or organisation, and five suborbital Starship test flights.

Starship is the 40‑storey rocket that SpaceX plans to use to deploy orbital AI data centre satellites and, one day, cargo to the Moon and Mars. It would also turbocharge deployment of satellites for the Starlink internet-from-space service.

Growth is strong, with revenue surging 33% to $18.7bn last year. And despite it being early days, Starlink’s profitability is already impressive, with the division achieving an operating margin of approximately 39% last year.

On top of this, we have very strong management. Elon Musk provides the urgency and celestial vision (making life multi-planetary), while president and COO Gwynne Shotwell runs the day-to-day operations on the ground.

My problem

Turning to valuation though, this is where things break down for me. You see, the stock resembles the 40-storey Starship in terms of loftiness — at 104 times sales!

But SpaceX is a $2trn company, not a start-up anymore. So I don’t want just growing sales. I want to value the company’s earnings, but I can’t due to the AI-related losses that are expected to last until at least 2028.

To my mind, this makes the stock extremely speculative. The valuation is essentially predicated on the firm getting Starship working reliably in the next few years.

In this sense, it’s a bit like Tesla with the self-driving taxis and humanoid robots. Musk has been promising these for years, and Tesla’s current valuation assumes they’ll be a slam-dunk success.

That said, SpaceX is a fascinating company and I might consider investing at a lower price. But that’s not today’s $156, and it won’t be before 7 July.

Should you invest £5,000 in Space Exploration Technologies Corp. - Class A 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 Space Exploration Technologies Corp. - Class A made the list?

Ben McPoland has no position in any of the companies mentioned.

The post Dear SpaceX stock fans, mark your calendar for 7 July appeared first on The Twelfth Magpie.

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Greggs (LSE:GRG) shares have historically been a good source of rising passive income. Back in 2009, the dividend per share was 16.6p. This year, the figure is forecast to be around 69p per share.

Based on this, and the current share price, 1,000 shares in the FTSE 250 baker could pay around £690 in dividends per year. These would cost roughly £16,600, which is within the annual Stocks and Shares ISA contribution limit, meaning the income would be tax-free.

But is a 4.2% prospective dividend yield, which is not guaranteed, enough to justify considering Greggs stock today? Here’s what I think.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

What’s cooking at Greggs?

Ingredients costs are rising fast, conditions are “tough” on UK high streets, and like-for-likes (LFL) sales are only edging higher despite a record number of shops operating.

Heavy snowfalls certainly haven’t helped. Yet, management said that Greggs was “well placed for the challenges ahead“.

Sounds like a recent trading update, doesn’t it? In fact, that was from Greggs’ 2010 annual report. Wheat costs were through the roof after wildfires in Russia destroyed crops, while disposable incomes were under pressure and LFL growth was just 0.2%.

Yet since the start of 2010, the Greggs share price is up around 300%, with solid dividend growth on top. That’s despite a 47% crash inside two years.

On one level then, many of the difficulties that Greggs faces now (particularly rising cost inflation, slowing LFL sales, and weak consumer spending) are nothing new. The firm has faced such challenges before and still went on to create long-term wealth for shareholders.

What is new, however, is that there are expected to be nearly 2,900 shops open by the end of the year. That’s up from 1,480 in 2010.

Have we reached peak Greggs?

Cannibalisation data

If we just consider recent LFL growth, then we might assume the answer to that is yes. Last year, it was just 2.4%, down from 5.5% in 2024 and 13.7% in 2023 (boosted by a mixture of volume and price increases).

But as mentioned, it was almost non-existent in 2010, and yet Greggs kept expanding over time. And in the 10 weeks to 12 May 2026, LFL sales growth was 3.3%, indicating that this metric does move around quite a bit.

Clearly, we hadn’t reached peak Greggs in 2010, despite meagre LFL sales growth. Management doesn’t think we have now, as it’s expanding into new locations in under-penetrated catchments, including supermarkets and on roadsides.

Greggs is aiming for 3,500 shops in future. But to minimise the risk that new openings cannibalise existing shop sales, Greggs continues to analyse customer behaviour.

Current app data shows that where new Greggs stores open within a mile of an existing shop, sales cannibalisation averages just 5%. 

Cheap dividend-payer

Following the crash, Greggs stock is trading at 13 times forward earnings. That’s a significant reduction from its 10-year average of around 22.

And while some discount is arguably warranted due to high inflation, margin pressure, and weak consumer spending, the stock does look good value to me. Especially when you factor in the 4.2% yield.

The short-term outlook is a bit flaky. But taking a five-year view, I think Greggs stock is worth considering snapping up today. It’s one of many cheap FTSE 250 stocks I currently see.

What income stock do we like better than Greggs Plc right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at an income share we think is worth your time.

Ben McPoland has no position in any of the companies mentioned. 

The post Here’s how much passive income 1,000 Greggs shares could pay… appeared first on The Twelfth Magpie.

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• Here’s why Greggs’ sub-£16 shares look cheap to me anywhere under £35.14
• Here’s how a 40-year-old with no SIPP today could have one worth over £1,153,000 by age 67       
• Here’s how high these brokers think Greggs shares could soon climb!
• Here’s why I’m hanging onto my Greggs shares, even though they’ve fallen

Filtronic (LSE:FTC) has been on one of the most exciting rides of any UK stock in recent times. Just three years ago, it was a 13p penny share. Fast-forward to now and it’s a £490m company with a 214p share price.

However, Filtronic was trading at 469p in May, meaning it’s lost over half its value in a very short space of time. Is this stock now in the bargain basement?

Rocket boosters

As a brief reminder, Filtronic designs and makes radio communication hardware used across various industries, including telecommunications, defence, aerospace, and space.

It’s the last of these that has sent the stock soaring in recent years, with investors excited about a SpaceX partnership that has led to record contract wins. Underscoring the relationship, Elon Musk’s rocket and satellite giant has also taken an equity stake in the company.

We won’t get the results for the financial year ended 31 May (FY26) until 4 August. But Filtronic has already said it expects revenue of at least Â£55.5m and £11.1m in adjusted EBITDA.

For context, FY20 only produced £17.2m in revenue. So the SpaceX deals — particularly last year’s multi-year $62.5m contract for next-generation GaN E-band technology for the Starlink network — have put rocket boosters under Filtronic’s financials.

Why has the stock crashed?

There appear to be a couple of reasons for the sudden sell-off. First, because SpaceX was a private company, investors who wanted exposure to its rapid growth – specifically Starlink’s expansion – couldn’t buy the stock directly.

Instead, they appeared to use Filtronic as a proxy due to its deepening relationship with SpaceX. But now investors can buy a piece of the real thing, Filtronic’s allure has faded.

Plus, the recent performance of SpaceX’s share price — down 24% inside two weeks — hasn’t helped. In this time, Filtronic has crashed 43%!

Then there were valuation concerns after the massive run-up. Recently, the forward-looking price-to-earnings (P/E) ratio had crept above 100. So the stock was due a correction after nearing 500p.

Has the selling gone too far?

The question now is, might there be real value on offer after the 53% drop? Well, there might be if Filtronic can bag further contract wins moving forward.

For the current year, management says a strong order book already covers 90% of consensus revenue (about £56m). And it continues to diversify the sales mix with further contracts across the US and European space and defence markets.

One interesting win was a second contract with a US-based customer for a state-of-the-art high-frequency module to be used on satellites. The contract is only valued at approximately $0.5m (£0.4m) for now, but getting its latest tech on more satellite payloads could open up further growth opportunities.  

The award…deepens the relationship with a new technology offering for use on satellite payload, reinforcing Filtronic’s growing position across the satellite communications market.
Filtronic.

Having said that, the stock still doesn’t look a bargain today. The price-to-sales ratio is around 8.5 while the forward P/E multiple is roughly 57. Neither places Filtronic in bargain territory, in my opinion.

But for investors who reckon SpaceX is wildly overvalued, this UK stock offers space-related growth at a more sane price. I reckon Filtronic is one of many dip-buying opportunities in the UK worth exploring further.

Should you invest £5,000 in Filtronic Plc 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 Filtronic Plc made the list?

Ben McPoland has no position in any of the companies mentioned.

The post Down 53% since May, is this SpaceX-backed UK stock now in the bargain bin? appeared first on The Twelfth Magpie.

More reading

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• Filtronic shares: are they worth 200p or 500p?
• Could former penny share Filtronic still be a millionaire-maker at 320p?