The Rolls-Royce (LSE: RR) share price would hit £141 if the market applied SpaceX’s current valuation multiple to the FTSE 100 market darling today. That’s not a price target, but it does show the discrepancy between the two global technology-led aerospace companies right now.

There is a chasm between Rolls’s actual £14.13 share price as I write on 8 July and the implied £141.3 at SpaceX levels. So, what’s the real story behind each company’s valuation? And is there really significant potential benefit to owning Rolls-Royce shares today?

The valuation gap in numbers

SpaceX might be expensive, but it’s also got some real wins to substantiate its numbers. With recent large contracted deals announced with Anthrophic and Google through to 2029, analysts estimate 2026 revenues could reach around $38bn (£28.4bn).

Applying that to the current $1.97trn (£1.48trn) market cap gives SpaceX a price-to-sales (P/S) ratio of around 52 times.

If that was applied to Rolls-Royce’s FY2026 consensus revenue of £22.7bn, the implied market cap of £1.18trn works out to £141 per share:

• FY26 consensus revenue: £22.7bn
• Market cap (8 July): £118.1bn
• Rolls-Royce forward P/S ratio: 5.2x
• SpaceX forward P/S ratio: 52x
• Implied market cap at SpaceX multiple: £1.18trn
• Number of shares outstanding: 8.35bn
• Implied share price at SpaceX multiple: £141.3

So, why is there such a huge discrepancy in valuation between these two leading aerospace and defence companies?

Why is there a valuation gap?

Rolls-Royce Holdings is a world technology leader in aircraft engines, defence systems, and power solutions.

The defence and civil aerospace capabilities are top-tier and hard to replicate. Under chief executive Tufan Erginbilgiç since 2023, the turnaround has been real and well-documented.

We are delivering on our proposition to transform Rolls-Royce into a highperforming, competitive, resilient, and growing business.

Tufan Erginbilgi̤, Chief Executive, Rolls-Royce РFull Year 2025 Result

SpaceX is a genuine pioneer in markets that Rolls-Royce simply can’t access. Its biggest markets are space, satellite broadband, and now AI infrastructure through its xAI integration. The growth case is real, but the profits aren’t there yet.

The danger in that SpaceX number

SpaceX’s current valuation prices in years of flawless execution.

Morningstar described it as one of the most expensive stocks in its entire coverage universe on a trailing revenue basis. Any surprise miss on growth, revenue, or earnings could lead to a sharp decline.

More immediately, I worry about the expiration date of the insider lockup, when pre-IPO investors will be free to sell. That’s arriving around SpaceX’s first earnings report in August. That spike in supply could be brutal for a stock priced for perfection.

Time to consider buying into Rolls-Royce?

I’m not considering SpaceX right now, but I am actively looking at buying into Rolls-Royce. It’s not without risks — from reduced defence spending, supply chain problems, and frontier markets — but I like the defence sector’s prospects in coming years.

I don’t see any chance of the stock getting near £141.3, but it’s still one for investors to consider. The company’s half-year results are slated for 30 July and I think I’ll be allocating a small amount of my portfolio to it shortly.

Should you invest £5,000 in Rolls-Royce 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 Rolls-Royce Plc made the list?

Ken Hall does not hold any positions in the companies mentioned.

The post How the Rolls-Royce share price would hit £141 at SpaceX’s valuation appeared first on The Twelfth Magpie.

More reading

• Great news for Rolls-Royce shareholders this week!
• Could Rolls-Royce shares lock in another 34% gain before Christmas?
• Up nearly 1,400% in 5 years! But are Rolls-Royce shares still secretly undervalued?
• Here’s what the experts said about Rolls-Royce shares 5 years ago…
• £15,000 invested in Rolls-Royce shares at the start of 2025 is now worth…

The possibility of the stock market crash is weighing on a lot of investors’ minds. It’s understandable with global stock markets becoming increasingly volatile and conflict once again raging in the Middle East.

While investor concern is understandable, I’m not too worried about the noise at the moment. Here’s why.

The bigger picture still looks good

The FTSE 100 has managed to climb 7.4% year-to-date as I write on 7 July, and at one point was very much in stock market correction territory after a 10% pullback.

That was enough to set nerves jangling as investors positioned for an increasingly uncertain situation. However, taking a slight step back paints a very different picture. Here’s how the index has performed over different time horizons:

• 1 month: +3.1%
• 6 months: +6.4%
• Year-to-date: +7.4%
• 1 year: +21.4%
• 5 years: +50.1%

So, over the past 12 months, the index is still up 21.4%. That is an extraordinary return by any historical measure, and it is a reminder that short-term wobbles tend to look muted over a long enough time horizon.

That doesn’t mean risks aren’t real. Uncertainty over fuel supplies, the knock-on effects for the economy, and the broader geopolitical picture are all worth watching closely.

But uncertainty is just part and parcel of investing in stocks. Weighing up risk versus reward is the key, and long-term success requires both skill and patience.

Corrections can be a patient investor’s friend

There’s another way to look at a short-term pullback. For investors with a long-term horizon, a dip in price means the same companies can be bought for less than they cost a month ago. 

I think back to the old adage of time in the market is better than timing the market. Identifying strong businesses and holding them through the noise has been a historically successful strategy.

Not all stocks are telling the same story

One of the things I find most reassuring is how well different parts of the Footsie are performing.

The index’s strength comes from its diversity — it spans energy, financials, consumer staples, mining, pharmaceuticals, and more.

BP (LSE: BP) is a case in point. As I write in the morning of 7 July, the company’s share price is 475.2p, up 13.6% in the past month and 27.8% higher than it was 12 months ago.

The company’s share price is down 13% in the past month as crude oil prices have dropped. It’s a stock I’m actively considering buying because I think there is plenty of more uncertainty to come and it could be a good buying opportunity.

Right now, we’re operating in an environment of significant complexity, geopolitical tension, supply disruption, rapid technological change and shifting global energy demand. Energy has rarely been more central to the world’s concerns.

Meg O’Neill, Chief Executive, BP – First Quarter 2026 Results Presentation

The 5.2% dividend yield has been recovering strongly as improved cash generation has allowed the company to rebuild its payout so I’m considering it.

That said, BP is not without risk. A sharp reversal in oil prices or a deeper global slowdown would put pressure on the price-to-earnings (P/E) ratio which has expanded considerably alongside the share price recovery. 

In addition to BP, there are other top income stocks that I think yield hungry investors should be considering at the moment.

What income stock do we like better than Bp P.l.c. 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.

Ken Hall does not hold any positions in the companies mentioned.

The post Why I’m not worrying about a stock market crash in July appeared first on The Twelfth Magpie.

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• Should I buy BP shares in July or am I too late?
• By July 2027 the BP share price and dividend could turn £12,000 into…
• From above £6 to below £5 in a few months, can the BP share price scale its old heights?
• As the BP share price falls, here are 2 reasons the FTSE 100 oil stock could be worth a look

There’s one huge FTSE 100 share that’s worth watching ahead of a half-year results on 30 July.

The company that I’ve been analysing is Lloyds (LSE: LLOY). So, how do I think the stock is placed ahead of a crunch month for investors?

How do you value bank shares?

Bank earnings can be lumpy. There can be all sorts of provisions, one-off charges, and accounting treatments that can distort the earnings picture from one period to the next.

The price-to-book ratio strips that out, comparing the share price directly to underlying net asset value, which is why it’s the standard tool for valuing bank shares.

According to the company-compiled analyst consensus published by Lloyds on 14 April 2026 (based on 18 models), the stock’s tangible net assets per share are forecast to rise from 57p in FY25 to 61.8p this year.

Against the price it traded at early on 6 July of 115.5p, that puts the forward price-to-tangible-book (P/TB) ratio at 1.87 times. Here’s how that compares to some key peers:

• HSBC: 1.65x
• NatWest: 1.4x
• Barclays: 1x
• Peer average: 1.35x

Lloyds looks to be trading at a premium to the peer average of 1.35 times. That premium reflects some real strengths of the bank including its leading market position and strong loan book.

But it also means there’s a defined level the market could re-rate down to if results disappoint. So what’s driving that premium in the first place?

What’s behind the numbers?

The same consensus document explains why the market is willing to pay up: return on tangible equity is forecast to climb from 12.9% in FY25 to 16.7% by FY26. That’s a strong trajectory for a UK domestic lender.

Even using HSBC’s premium — the highest in the peer group — as the upper bookend, the implied price still sits slightly below where the stock trades today.

In other words, on this measure, the market is already pricing this stock as rich as, or richer than, any of its domestic peers.

That’s a useful context for investors who are considering buying the stock today, even if there are some nuances to each bank’s value proposition.

What are the risks?

The same consensus data shows Q1 2026 impairment more than doubling versus Q4 2025 (£380m versus £177m), with the asset quality ratio nearly tripling (0.32% versus 0.14%) and return on tangible equity dipping slightly (14.6% versus 15.7%).

Having said that, none of these numbers are alarming me at their current levels.

If July’s results confirm credit quality is softening faster than forecast, I think we could see Lloyds fall to around 102p per share based on a reversion to HSBC’s P/TB ratio.

It’s not all doom and gloom

Given management reiterated full-year guidance last quarter, my own expectation is that results day is more likely to confirm the growth and returns trajectory than derail it.

But the premium the stock trades at relative to peers means there’s certainly room for disappointment. Despite the solid yield, I don’t think Lloyds is worth considering at the current price.

But there are other income stocks out there that I think could be more compelling right now…

What income stock do we like better than Lloyds Banking Group 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.

Ken Hall does not hold any positions in the companies mentioned.

The post How far could this FTSE 100 share move on results day in July? appeared first on The Twelfth Magpie.

More reading

• At 112p, where next for the Lloyds share price? 168p or 56p?
• Near 5-year highs, here’s what the experts are saying about the Lloyds share price
• At 112p, are Lloyds shares still a slam-dunk buy?
• Stop fixating on SpaceX stock and check out the Lloyds share price instead
• Which offers better value, Rolls-Royce or Lloyds shares?

Generating passive income to cover household energy bills is one of the most practical income targets an investor can set. The average UK energy bill runs to approximately £1,717 a year under the current price cap.

At today’s best yields available from FTSE 100 dividend stocks, covering that requires a substantial investment. So, what does the maths look like?

Crunching the numbers

At a 5.9% yield, generating £1,717 in annual dividend income requires an investment of approximately £29,102. Here’s some basic numbers that illustrate the point:

• Target income: £1,717 per year
• Dividend yield: 5.9%
• Investment required: £29,102
• Monthly income equivalent: £143

That’s a meaningfully lower pot than the same income would need at the Footsie’s average yield of around 3.5%. In that case, the investment to cover the same bill would be £49,057.

The right high-yielding stock can shrink that target by nearly £20,000. But which stock offers that yield, and what’s behind it?

Strong dividend paying insurer

The stock is Aviva (LSE: AV.), one of the UK’s largest insurance and financial services businesses. The company provides life insurance, general insurance, and retirement solutions.

With a market cap of £20bn and a dividend yield of 5.9%, it is one of the more significant income plays in the Footsie. The stock has struggled year to date, falling 2.4% to 666.8p per share as I write on Friday afternoon (3 July).

Management has consistently prioritised returning capital to shareholders, and the dividend track record reflects that.

We have made an excellent start to 2026. Our continued strong trading performance, high quality balance sheet, and diverse set of leading businesses, gives us confidence that we are well placed to meet our group targets, and deliver even more for our customers and shareholders this year.

Amanda Blanc, Group Chief Executive, Aviva — Q1 2026 Trading Update 

What are the risks?

The company’s price-to-earnings (P/E) ratio of 25.1 is not cheap, but it’s still cheaper than Legal & General (37.2) as I write.

As an insurer, Aviva is also sensitive to interest rate movements: falling rates reduce the income earned on its bond portfolio, while claims inflation can squeeze underwriting margins in any given year.

Dividends are never guaranteed, and a more difficult operating environment could put the payout under pressure even for a business with as strong a track record as this one.

My verdict

In my view, Aviva’s combination of a near-6% yield and a well-established dividend track record makes it one for passive income investors to consider.

A £29,102 pot covering the average energy bill annually could be an achievable long-term target for a patient, consistent investor. But rather than rely on a single stock to carry the entire weight of an income strategy, it’s a good idea to spread the risk across a number of top income stocks.

What income stock do we like better than Aviva 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.

Ken Hall does not hold any positions in the companies mentioned.

The post How much is needed in an ISA for passive income to cover energy bills? appeared first on The Twelfth Magpie.

More reading

• Here’s how much £10,000 put into the FTSE 100 a year ago has earned – with and without dividends
• How you can invest £1,000 in UK dividend shares and start generating passive income right now
• How many Aviva shares would I need for a £5,000 second income?
• How much second income could a £20k Stocks and Shares ISA started now earn per year?
• £12k invested in a Stocks and Shares ISA 10 years ago is now worth…

Lloyds (LSE: LLOY) shares were changing hands at just 73.54p a year ago. That means if you bought 10,000 shares in the company back then, they would have been worth £7,354.

As I write on Friday afternoon (3 July), those same shares are now worth £11,362. That is a gain of £4,008, or 54.5%, in 12 months. With the stock hitting a fresh 52-week high of 115.45p towards the end of the week, is there still more to come?

Crunching the numbers

July 2025 was a period when the market was still uncertain about the UK economic outlook and the stock was trading at a cheaper level. Here is how that investment has performed since:

To put that in context, the same £7,354 sitting in a cash savings account at a generous 4% annual rate over the same period would be worth approximately £7,648 today.

The difference of nearly £3,714 illustrates what backing the right business at the right moment can deliver. But what has actually driven such a strong move — and what does a fresh 52-week high mean for investors weighing it up now?

From overlooked to outperforming

Lloyds is a really strong name in the UK banking sector. It’s also a consistent part of the FTSE 100 with a market cap of £66.2bn. The business has been quietly climbing higher over the past year as improving net interest margins, cost discipline, and generous capital returns have attracted fresh investor interest.

Our differentiated business model remains resilient in the context of the current economic uncertainties.

Charlie Nunn, Group Chief Executive, Lloyds Banking Group

The dividend yield of 3.2% adds income on top of recent capital gains, with management guiding for rising dividend payments through 2026 and beyond.

What could hold it back from here

A fresh 52-week high cuts both ways. It signals genuine investor interest, but it also means anyone buying today is doing so at the richest price the stock has traded at in a year.

Half-year results on 30 July will be the next real test. I’ll be watching management’s commentary closely on net interest margins, capital returns, and any update on the motor finance investigation.

As a predominantly domestic lender, the bank remains more exposed than internationally diversified peers to UK economic conditions. Any deterioration in asset quality or a weaker-than-expected impairment update could temper enthusiasm quickly at a price level that already reflects a great deal of the good news.

My verdict

In my view, the 54.5% gain from a year ago reflects a genuine reevaluation of a business that was too cheap for too long.

The improving dividend trajectory makes it a credible hold for patient investors already in the stock. But I won’t personally be buying at a fresh 52-week high, with results just weeks away. There are other income stocks that I’ve got my eye on as we enter a bumper month of earnings updates…

What income stock do we like better than Lloyds Banking Group 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.

Ken Hall does not hold any positions in the companies mentioned.

The post £7,354 invested in Lloyds shares a year ago is now worth… appeared first on The Twelfth Magpie.

More reading

• At 112p, where next for the Lloyds share price? 168p or 56p?
• Near 5-year highs, here’s what the experts are saying about the Lloyds share price
• At 112p, are Lloyds shares still a slam-dunk buy?
• Stop fixating on SpaceX stock and check out the Lloyds share price instead
• Which offers better value, Rolls-Royce or Lloyds shares?

Rolls-Royce (LSE: RR.) shares could be worth 1,653.75p by the end of 2027…. at least, that’s my opinion. It would mark a further 16.7% gain from the current valuation of 1,417p as I write on Monday 29 June.

It would certainly be an impressive result, given the 46.4% gain the stock has already delivered over the past 12 months. But how solid is that number really?

Crunching the numbers

I’ve been looking at the company’s forward price-to-earnings (P/E) ratio as part of my calculations.

Analyst consensus estimates of the company’s forward earnings per share (EPS) are 37.8p. Based on today’s 1,417p share price, that gives the stock a forward P/E ratio of 37.5 right now.

How about my price target for 2027? Here’s how the maths breaks down:

• Current price: 1,417p
• FY2026 consensus EPS: 37.8p
• Implied forward P/E: 37.5x
• FY2027 consensus EPS: 44.1p
• Projected 2027 price (same 37.5x multiple applied): 1,653.75p
• Implied upside: 16.7%

That 37.5 times forward P/E multiple is the key here. If the market keeps paying that much for Rolls-Royce earnings, the share price should track EPS growth fairly closely. So, what’s behind the forecasts?

Why the market pays such a rich multiple

Today, the company has a market cap of well over £100bn and has generated some serious returns for investors in recent years. There are a couple of big factors behind why investors are willing to pay a sizeable multiple to invest in the company.

The scale of the turnaround under chief executive Tufan Erginbilgiç since January 2023 has been enormous. Civil aerospace flying hours have recovered strongly, defence spending has surged globally, and margins have improved sharply.

We have transformed Rolls-Royce and delivered significant value for our shareholders. Our performance in 2025 demonstrates the strength of our strategy and the quality of our execution.

Tufan Erginbilgiç, Chief Executive, Rolls-Royce

The company is also operating in several markets with potential high growth prospects including aviation, defence and power systems.

Consensus forecasts (compiled from 12 analysts in April 2026) point to continued momentum: revenue is projected to grow from £22.7bn in FY26 to £27.5bn by FY28, with free cash flow rising from £3.7bn to £5.2bn over the same period.

That’s the kind of growth trajectory that can justify a rich multiple. So, what are the risks of delivering this?

The risk that could break the maths

The whole projection rests on the market continuing to value the company at roughly 37 times forward earnings. That’s a big assumption.

Any disappointment on civil aerospace flying hours, a slowdown in defence spending, or a miss against the consensus EPS figures could see that multiple compress sharply, dragging the share price down even if earnings still grow.

The shares are also trading 7.5% below their 52-week high of 1,532.6p, a reminder that sentiment here can shift quickly. The dividend yield of just 0.7% offers very little cushion if the growth story stumbles. And that’s exactly what I’ll be watching closely ahead of it’s half-year results release on 30 July.

My verdict

In my view, 1,653.75p is a defensible projection if the company keeps delivering against consensus — but it depends entirely on a rich valuation multiple holding up, not just on earnings growing as forecast.

I don’t currently hold the shares, but I am seriously considering buying in August after the company’s results announcement.

Should you invest £5,000 in Rolls-Royce 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 Rolls-Royce Plc made the list?

Ken Hall does not hold any positions in the companies mentioned.

The post Here’s how much I think Rolls-Royce shares will be worth by the end of 2027 appeared first on The Twelfth Magpie.

More reading

• Great news for Rolls-Royce shareholders this week!
• Could Rolls-Royce shares lock in another 34% gain before Christmas?
• Up nearly 1,400% in 5 years! But are Rolls-Royce shares still secretly undervalued?
• Here’s what the experts said about Rolls-Royce shares 5 years ago…
• £15,000 invested in Rolls-Royce shares at the start of 2025 is now worth…

A Stocks and Shares ISA worth £165,395 could generate enough dividend income to match the full State Pension of £12,570 a year without ever touching the capital. That’s the maths at a 7.6% yield. But is relying on a single high-yielding stock to get there actually a sensible plan?

Crunching the numbers

The pot required depends entirely on the yield assumed:

• At a 7.6% yield: £165,395 needed to generate £12,570 a year
• At a FTSE 100 average 3.5% yield: £359,143 needed for the same income
• Difference: more than £193,000 in required capital

That gap shows exactly why income investors are drawn to higher-yielding names — the right stock can roughly halve a potential savings target. But a higher yield usually comes with a trade-off, so what’s the catch with a stock yielding 7.6% today?

The insurer behind the yield

The stock in question is Legal & General (LSE: LGEN), one of the UK’s largest financial services companies. As I write on Friday 26 June, the shares are trading at 286.9p, up 13.4% over the past year. That gives the company a sizeable market cap of £15.9bn at present.

The dividend itself looks well supported by cash generation, even though the headline price-to-earnings (P/E) ratio of 36.7 looks rich at first glance.

The company is certainly one of the market leaders in the competitive pension risk transfer space. It has also consistently shown an ability to deliver strong payouts to shareholders. In fact, the annual dividend payment has been maintained or increased each year dating as far back as 2009.

The dividend yield of 7.6% sits well above the Footsie average, which is exactly why it shrinks the potential ISA pot needed so dramatically.

Why I wouldn’t rely on this alone

Dividends are never guaranteed — they’re paid entirely at a company’s discretion, and a downturn in markets or higher-than-expected claims could squeeze the payout.

Competition in the pension risk transfer market is intensifying too, with North American giants pushing hard into the UK and putting pressure on margins across the sector.

That’s exactly why building wealth around a single stock is so risky. A more resilient plan based on a diversified portfolio of high-quality names can minimise the risk of one stock derailing the whole plan.

My verdict

In my view, £165,395 is a realistic figure to work towards for investors who start early and stay consistent. I wouldn’t personally be building my strategy around one stock, however attractive the yield looks today.

Diversifying across a handful of dependable dividend payers is, in my view, a far more sensible route to matching the State Pension than betting it all on a single 7.6% yield.

Should you invest £5,000 in Legal & General 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 Legal & General Group Plc made the list?

Ken Hall does not hold any positions in the companies mentioned.

The post How much would you need in a Stocks and Shares ISA to match the State Pension? appeared first on The Twelfth Magpie.

More reading

• Legal & General vs Investec: which is the best stock for second income?
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• How much do you need in an ISA to earn £2,000 monthly passive income?
• Can someone put money in the stock market, quit work, and live off the passive income instead?
• With a 7.5% yield and P/E of just 12.4, is now the best time to buy Legal & General shares?

A second income of £2,392 a year would be enough to cover the average Band D council tax bill in England for 2026/27. Assuming you could build a portfolio with an average 5% yield, that would require an investment of around £47,840.

That’s a concrete, achievable-sounding target for a bill every homeowner dreads. But what are things that you should keep in mind when building a resilient portfolio and steady passive income?

What do the numbers say?

The council tax bill itself isn’t getting any smaller — the England average Band D rate rose to £2,392 for 2026/27 (1 April), up 4.9% on the year before. Here’s what it takes to cover that entirely from dividends:

• Target income: £2,392 per year
• Assumed yield: 5%
• Investment required: £47,840

If we assumed the average FTSE 100 yield of 3.5% instead, the required pot of money would climb to £68,343. That gap of more than £20,000 shows why investors are drawn to higher-yielding stocks. But what’s actually behind that yield and is it too good to be true?

High-yielding banking stock

NatWest (LSE: NWG) is one stock that has a 5% dividend yield at the moment. That’s in line with the maths outlined above, and the bank trades on a price-to-earnings (P/E) ratio of just 9.4.

That’s substantially cheaper than both Lloyds (14.1) and HSBC (15.4) on the same metric, which makes it one that I would consider further.

Recent results showed net interest income rising sharply as margins widened in the bank’s favour. However, there’s one very big risk that is making me hesitant to buy in right now.

Too big of a risk?

The political risk surrounding the banking sector right now is rather large. It’s worth flagging specifically with the current uncertainty about who will take over as prime minister.

Former Mayor of Greater Manchester Andy Burnham has emerged as a likely candidate for the post following Sir Keir Starmer’s resignation.

Analysts are working to understand what a change of leadership could mean for markets, including discussion around changes to banking taxes.

We still need to get clarity on what will change if the fiscal rules stay the same.

Michael Metcalfe, Global Macro Strategist, State Street Markets

Political risks aside, impairments have also been climbing, a reminder that bank earnings can move quickly in the wrong direction if the UK economy weakens.

These are just a couple of reasons why I think a genuinely resilient second income relies on portfolio diversification. Things can change quickly for a given sector or stock, particularly one as highly regulated as the banking sector.

My verdict

NatWest has has built a reputation as a steady dividend payer in recent years. While a 5% yield is a solid starting point, I think the political risk is a little high for me to consider buying at the moment.

I’m focusing my attention on several stocks that I think have the potential for both growth and income well into the future.

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

Ken Hall does not hold any positions in the companies mentioned.

The post How much would you need invested for a second income that covers council tax? appeared first on The Twelfth Magpie.

More reading

• 3 second-income shares tipped to grow dividends by 10%-20% over the next 3 years
• £15,000 paid into a Cash ISA 1 year ago is now worth….
• I’m searching for the FTSE 100’s best dividend stocks to buy in July. Have I found them?
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The Shell (LSE: SHEL) share price has dropped 8.4% in just five trading days, wiping out a chunk of the gains built up since February’s escalation in the Middle East.

The trigger was a US-Iran memorandum of understanding signed on 14 June, which has pushed crude oil prices sharply lower as fears of a wider supply disruption start to fade. So how much further could the shares realistically fall from here?

Crunching the numbers

The move has been sharp. The shares opened last Thursday (18 June) at 3,217p and now sit at 2,946.5p as I write on Thursday morning (25 June). That’s a fall of 270.5p, or 8.4%, in just a week. Zoom out, though, and the picture looks rather different:

• 5-day change: -8.4%
• 12-month change: +14.9%
• 52-week high: 3,758.5p
• 52-week low: 2,499p
• Distance from today’s price to the 52-week low: a further 15.2% fall.

In other words, even after this drop the shares are still comfortably up over the past year. The recent fall has only unwound part of the stock’s gains that built up during the conflict rather than erased it entirely. So is the 52-week low a realistic target, or is that overstating the risk?

Why I don’t think it will fall that far

Investing is a tricky game and no one knows just how far a given stock will fall. We’ve seen already this year that market shocks can appear (and disappear!) rapidly and impact valuations.

The company’s 52-week low was set back in June 2025 when the world looked very different. I think there are a few reasons why a return to that sort of level is unlikely.

The biggest factor here is the US-Iran war in the Middle East. While talks are ongoing and the 60-day memorandum of understanding has been signed, this already looks a bit shaky. Meaningful details remain unresolved, and any breach could send sentiment, and oil prices, straight back up.

Second, supply doesn’t recover as quickly as headlines suggest. Goldman Sachs expects Middle East oil exports to normalise only by late August, and Morgan Stanley has suggested production could take up to four months to fully recover. Shipping confidence through the Strait of Hormuz will also take time to rebuild, even with a deal nominally in place.

The risks that remain

This isn’t a one-sided story. A more durable, lasting peace deal would likely normalise crude oil prices and compress the current price-to-earnings (P/E) ratio premium the market has assigned. A sustained period of weaker crude would weigh on cash generation and the pace of future buybacks. 

The company itself has shown some caution already. On 12 June, Shell paused its $3bn share buyback programme, which suggests management wanted flexibility while oil prices were moving sharply, not that they expected a collapse.

My verdict

In my view, a fall all the way back to the 52-week low looks like a worst-case scenario rather than a realistic base case.

However, I want to see how the dividend yield of 3.8% holds up at the next results before buying any shares given the current uncertainty.

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

Ken Hall does not hold any positions in the companies mentioned.

The post Down 8.4% in a week! How far could the Shell share price fall? appeared first on The Twelfth Magpie.

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One month’s average full-time take-home pay, or £2,636, invested in this red-hot FTSE 250 tech stock three months ago would now be worth £6,384.

That’s a quarterly gain of 142.2% from a business most people have heard of for an entirely different reason. But after a brutal week, is the Raspberry Pi (LSE: RPI) story starting to crack?

Crunching the numbers

The longer-term numbers are extraordinary. As I write (25 June), the shares sit at 796.5p, up 166.7% since the start of January. But zoom in and the picture gets a bit messier:

• Year-to-date: +166.7%
• 3 months: +142.2%
• 6 months: +139.1%
• 1 week: -12.8%

That combination of a huge multi-month rally next to a sharp double-digit fall this week might be telling an interesting story. So what’s actually behind both the surge and the mini reversal?

Blowing Raspberries?

The Cambridge-based designer produces single-board computers, compute modules, and semiconductors. It’s best known for the tiny, affordable computers beloved by hobbyists, schools, and increasingly industrial customers with the rise of artificial intelligence (AI).

For the first time, semiconductor device volumes exceeded those of boards and modules — a milestone on our journey towards a two-franchise business.

Eben Upton, Chief Executive, Raspberry Pi Holdings

The valuation is the real talking point here. With the shares trading on a price-to-earnings (P/E) ratio of 92.5 and a market-cap of £1.5bn, at the time of writing, the market’s pricing in years of continued hypergrowth.

So is there still value here or is the stock overheating on AI mania right now?

What are the risks?

A double-digit share price drop in a single week, sitting on top of a near-tripling year-to-date, is a textbook sign of a value trap building.

This is a relatively small, thinly-traded stock, and that combination of a rich valuation and high volatility means swings in either direction can be swift and large. The shares are still some way below their 52-week high of 1,082p, which only adds to the sense that sentiment here can shift quickly.

There’s also some concentration risk worth highlighting. A meaningful chunk of revenue comes from industrial and embedded customers, and any slowdown in chip demand, or a single large customer pulling back, could hit earnings hard.

My verdict

This is a really interesting company that has really come to the fore as interest around AI has reached fever pitch. However, I think the valuation has run well ahead of the fundamentals, and this week’s sharp fall may be the market starting to acknowledge that.

I’m not currently invested, and I’d want to see some further evidence of stabilised demand before buying in. For now, it’s one I’m watching closely rather than acting on.

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

Ken Hall does not hold any positions in the companies mentioned.

The post £2,636 invested in this red-hot FTSE 250 tech stock 3 months ago is now worth… appeared first on The Twelfth Magpie.

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