That means if an investor manages to build a massive £500k ISA portfolio, all of it can be enjoyed without HMRC knocking at the door to take a slice. Therefore, having a large ISA at retirement can definitely go a long way to improve your lifestyle.

But for those who want to live a life of luxury, is £500k going to be enough?

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.

The uncomfortable truth about a £500k ISA

The average UK retirement pot is around £137,800. So anyone who builds a £500k ISA is already doing 3.6 times better than the average Briton in terms of retirement savings while also being massively ahead of the average UK ISA investor.

It’s a genuinely impressive feat. And yet, sadly, it might not be enough. According to Pensions UK, a comfortable lifestyle in retirement requires an income of around £45,400 a year. Following the 4% withdrawal rule, a £500k ISA would only generate around £20,000 annually.

Luckily, the State Pension roughly adds another £12.5k on top of this. But that still falls short of the estimated benchmark needed for genuine comfort.

However, by continuing to make smart moves and picking the right companies to invest in, even a modest Stocks and Shares ISA can eventually grow into something far more substantial, surpassing £500k and even venturing into millionaire territory.

The only question is, which stocks should investors be looking at today?

The long-term compounder analysts love

Right now, one of the most high-conviction buys among institutional analysts in the UK market is AstraZeneca (LSE:AZN).

Twenty seven expert analysts are actively tracking the pharmaceutical giant, with 22 recommending the shares as either an outright Buy or an Outperform. And this bullish sentiment carries over into the share price forecasts as well.

The average share price target for AstraZeneca currently sits at 16,446p – around 28% higher than current levels. And looking at the latest results, it isn’t hard to understand why.

In the first quarter of 2026, total revenue grew 13% to $15.3bn, with oncology sales rising 16% and rare disease revenues climbing 15%. At the same time, core earnings per share reached $2.58, beating analyst estimates. And full-year guidance was once again reiterated in full, along with its $80bn revenue target by 2030.

Having said that, even a mature industry titan like AstraZeneca carries genuine investment risks. US drug pricing policy remains a live threat that could jeopardise future launches in other markets as well.

Meanwhile, a recent manufacturing scandal in China also required management to take a $0.3bn write-off, and its Chinese business is now facing even more regulatory headwinds.

But even if leadership is successful in overcoming these challenges, AstraZeneca shares nevertheless remain perpetually exposed to the risk of a clinical setback which can spark significant volatility – something investors will need to get comfortable with before allocating any capital.

The bottom line

Building a retirement pot that genuinely delivers £45,400 a year takes time and the right stocks. And in my opinion, AstraZeneca’s combination of consistent revenue growth and a world-class pipeline certainly makes it a business worth mulling.

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

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post Is a £500k Stocks and Shares ISA enough to retire in style? appeared first on The Twelfth Magpie.

In layman’s terms, that means the drug can now be sold in the EU to treat certain adults. Specifically, those whose cancer has spread or cannot be removed with surgery, as long as the cancer has a specific marker called HER2.

That’s big news for UK investors interested in the healthcare sector. Regulatory approvals are difficult to secure and can open up new sales channels quickly – especially in oncology, where treatment demand is high and prices are often premium.

So for investors who’ve been considering investing in a stock like AstraZeneca, what does this mean – and more importantly, what do the experts think?

What major brokers are saying

While not all analysts have had a chance to react to the news so far, the overall tone is understandably positive.

Goldman Sachs initiated coverage on 1 July with a Buy rating and a 16,370p target, while Jefferies had already started at Buy on 26 June with an 18,000p target. That suggests both brokers see further growth potential, likely because of AstraZeneca’s oncology pipeline and the chance that new approvals can support sales growth.

However, earlier in June, Deutsche Bank took the opposite view, setting a Sell rating and an 11,500p target. It’s a surprising take, and one that means it thinks the market’s already pricing in too much optimism – or that the risk/reward balance looks less attractive than other brokers surmise.

For investors, that gap between the highest and lowest targets is a useful indicator: the stock may be popular, but it isn’t universally loved.

So how does it hold up against competitors?

Industry backdrop

The wider healthcare sector has done well over the past month, with most UK and US stocks achieving moderate gains. Overall, AstraZeneca remains one of the stronger big pharma names.

When compared with key US rivals, it showed 5.33% revenue growth and a 22% return on equity (ROE). Meanwhile, the industry average revenue growth in that table was 9.6%. Still, Merck looks stronger on profitability and scale, helped by its broad oncology franchise.

Pfizer looks weakest, with -2.43% revenue and negative EPS data in the comparison. Johnson & Johnson looks healthier and more stable, with a more defensive profile than Pfizer and stronger profitability.

With a price-to-earnings (P/E) ratio of 28, it’s not ‘cheap’ – but more affordable than J&J and Merck. So while AstraZeneca isn’t the top performer on every metric, it’s still holding up better than some slower growers.

Final thoughts

Overall, AstraZeneca looks more like a stable-at-a-reasonable-price stock to consider, rather than a pure growth story. That can work well in a long-term retirement portfolio, especially if you want quality and resilience rather than excitement.

But one thing it’s not is a standout income share, because the yield’s relatively low. So for the income-hungry dividend hunters out there, you may prefer to look for better options elsewhere on the FTSE.

What income stock do we like better than AstraZeneca 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.

Mark Hartley owns shares in AstraZeneca.

The post AstraZeneca share price edges higher on Enhertu drug gains cancer treatment approval. What are analysts forecasting? appeared first on The Twelfth Magpie.

The company is delivering broad‑based revenue growth across oncology, vaccines, and rare diseases. And this is supported by one of the deepest late‑stage pipelines in global pharma.

With strong earnings growth forecast, and multiple blockbuster candidates approaching key regulatory milestones, the long‑term outlook remains exceptionally strong.

So, where ‘should’ the stock be trading right now?

Where’s ‘fair value’ here?

The true worth (‘fair value’) of a share is often different to its price, and sometimes by a long way. This is because price is simply a short-term marker of where the market is prepared to trade at any point. But value reflects the long-term fundamentals of the underlying business.

The difference between the two things is crucial for investors maximising their profits over time. The reason is that history shows that share prices tend to trend toward their fair value over the long run.

The best way I have found to ascertain fair value is discounted cash flow (DCF) analysis. It uses cash flow forecasts for the underlying business and then discounts them back to today.

When those projections are less clear, the discount increases, and different assumptions can lead to varied DCF outcomes among analysts. My DCF modelling — including a 7.4% discount rate — shows AstraZeneca stock is 41% undervalued at its present £133.41 level.

That implies a fair value of £226.12 — much higher than where it is now. So, if historical price-to-value convergence trends continue, and the DCF assumptions hold good, this could be a potentially great buying opportunity.

Is it undervalued to competitors too?

DCF is the acid valuation test for professional investors, but comparisons with peers can provide a useful broader context.

On the key price-to-earnings ratio, AstraZeneca trades at 26.7 — second bottom of its competitor group, which averages 46.7. The firms comprise Novo Nordisk at 10.4, Pfizer at 28.5, Eli Lilly at 39.2, and AbbVie at 108.7.

So, it is very undervalued on this basis.

The same is true of its 4.6 price-to-sales ratio compared to its peer average of 8.

How good are the earnings forecasts?

The key question is whether AstraZeneca’s earnings trajectory is strong enough to pull the share price toward that fair value.

A risk here is any regulatory delays or adverse trial outcomes, which could slow the commercial rollouts of key late‑stage drugs. Another is intensifying competition in key areas such as oncology and immunology which may pressure pricing and squeeze margins.

Nonetheless, analysts project the company’s earnings will increase by a very strong 13.5% a year on average to end-2028 at minimum.

This looks well supported by its robust and diversified product pipeline, boasting over 180 projects in clinical development. This is squarely focused on hitting the company’s $80bn (£45bn) total revenue target by 2030 (from 2025’s $58.7bn).

My investment view

Taken together, these factors underline AstraZeneca’s deep pipeline strength, clear undervaluation, and robust earnings momentum.

Given these factors, I will certainly be adding to my holding in the stock very soon. And my eye has also been drawn to other deeply undervalued shares that offer high dividend yields too.

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

Simon Watkins owns shares in AstraZeneca.

The post Down 14% to below £135, here’s where AstraZeneca’s deeply undervalued share price ‘should’ be trading today appeared first on The Twelfth Magpie.

Here are three stocks that the pros think belong in every beginner portfolio right now.

Two powerful businesses with durable moats

AstraZeneca‘s (LSE:AZN) one of the world’s largest pharmaceutical companies, developing treatments across oncology, cardiovascular, and rare disease categories, with a pipeline that analysts at Bank of America (BofA) describe as ‘best in class‘.

The analyst team recently raised its price target from 14,500p to 16,500p, underpinned by multiple late-stage clinical trial catalysts expected to drive meaningful sales growth in the coming years. The bull case is straightforward: as a leading pharmaceutical giant with a deep pipeline, strong revenue visibility, and growing margins, AstraZeneca’s the kind of business that rewards patient long-term investors.

The risk, as with any pharma company, is clinical trial outcomes. A late-stage failure in a key programme can dent the share price sharply. And at a forward price-to-earnings (P/E) ratio of 17 times, the valuation already reflects a good deal of optimism.

RELX (LSE:REL) sits alongside AstraZeneca as another top pick from BofA for 2026. As a quick introduction, RELX is a global provider of information analytics, data, and decision tools serving professionals in legal, scientific, medical, and financial markets.

In the bank’s words, RELX is “a mis-priced AI beneficiary”.

Rather than being disrupted by AI, its LexisNexis and Elsevier divisions are actively embedding AI tools into their platforms, enhancing their value and deepening customer switching costs. And after a difficult 2025, the shares now trade at a meaningful discount to historical multiples, creating an attractive entry point.

The key risk is that the AI-driven sentiment recovery takes longer than expected. If customers perceive AI as a substitute for RELX’s tools rather than a complement, revenue growth could slow considerably.

A cash flow machine finding its stride

Rolls-Royce Holdings (LSE:RR.) completes the trio. The engineering giant powers wide-body aircraft through its civil aerospace division and supplies power systems to the defence sector – two markets with structural, long-term demand growth.

BofA believes Rolls-Royce is running well ahead of its own 2028 guidance targets and is projecting free cash flow of more than £5bn. And with capital returns expected to include at least £2.5bn in buybacks in 2026 alone, this is a business actively rewarding shareholders.

The risk for a beginner is volatility. Rolls-Royce has already risen sharply from lows and any disappointing update on engine flying hours or defence contracts could trigger a sharp pullback. But for investors with a long time horizon, dips in a business of this quality have historically proven to be buying opportunities.

The bottom line

All three of these FTSE shares combine strong competitive advantages, institutional conviction, and clear business momentum. But they’re not without risk. But for beginner investors looking to build a resilient long-term portfolio, these three blue-chips represent a genuinely compelling starting point.

So if I were starting a new portfolio today, these are definitely some of the companies I would first consider.

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

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post The top 3 FTSE shares for beginner investors to consider buying in 2026 appeared first on The Twelfth Magpie.

Here are two proven FTSE 100 stalwarts that many institutional investors already see as core holdings, not speculative side bets.

Why AstraZeneca could be a great starter stock

AstraZeneca‘s (LSE:AZN) one of the world’s biggest drugmakers. It develops medicines across oncology, cardiovascular, respiratory, and rare diseases, and that broad mix helps reduce dependence on any one product. That’s a handy advantage in generating diversified cash flows.

Its latest results showed momentum remained solid, with May guidance pointing to mid-to-high single-digit revenue growth and low double-digit growth in core earnings per share.

The bull case is straightforward:

1. Demand for innovative medicines continues to strengthen alongside an ageing population.
2. The development pipeline for new treatments and medicines remains deep.
3. The company has the scale to keep investing heavily in research.

However, like all investments, even a firm as big as AstraZeneca has its weak spots.

Drug development’s notoriously expensive, competition never sleeps, and setbacks in clinical trials or regulatory decisions can hit sentiment fast. The latter could prove particularly problematic in the coming years given several of AstraZeneca’s blockbuster drugs will be losing their patent protection – a key risk for investors to monitor.

A steadier consumer giant

The second pick to consider is Unilever (LSE:ULVR), the global consumer goods giant with brands across food, home care, beauty, and personal care.

For beginners, this kind of everyday-demand business can be a great foundation. After all, regardless of what the economy’s doing, people need to keep buying shampoo, soap, and other household staples. And with management unveiling plans to merge its food business with US-based peer McCormick, the company’s aiming to evolve and reshape its product portfolio in line with the times.

Yet even with this merger, Unilever still owns powerful brands, produces strong cash flow, and offers the sort of defensive quality that many first-time investors want in an ISA. The food deal could also sharpen the company’s focus by simplifying and creating a more streamlined consumer business over time.

However, just like AstraZeneca, there are some important risks to highlight.

The McCormick merger announcement has been quite controversial, with some investors questioning the logic and structure of the actual deal. And even if it goes ahead, there are all the risk factors associated with a merger of this scale, including integration, execution, and even regulation.

The market’s initial reaction was pretty chilly. So while the opportunity’s real, so is the uncertainty.

The bottom line

For beginners, these are the kind of FTSE shares that can help a new ISA feel less like a gamble and more like a long-term plan.

Neither’s a guaranteed winner, but both hold traits that set them up for long-term success. AstraZeneca brings medical innovation and earnings power, while Unilever offers defensive brands, cash generation, and a possible strategic reset.

Taken together, they look like a solid starting pair for investors who want quality first and excitement second. That’s why I think they both deserve a closer look.

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

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post 2 FTSE shares for beginners starting an ISA appeared first on The Twelfth Magpie.

If, like me, you have the time and inclination to do due diligence, you likely prefer individual stocks. In addition to the potential for outsized gains, individual stock picking gives me a feeling of control over my own destiny.

With that in mind, here are three leading UK stocks to consider for a retirement-focused ISA.

RELX

RELX is an ideal long-term British retirement holding because it delivers stability through recurring subscription revenues (over 50% of income), high margins, and exceptional free cash flow of ~27% of revenue.

The company has grown net income by 8.59% year-on-year, maintains a 20.5% net profit margin, and has increased dividends for 15 consecutive years. Dividend growth is typically in the high-single-digits and the payout ratio is around 62%.

With £2.59bn in annual free cash flow and £2.61bn operating cash flow, its debt load looks manageable, albeit a bit high.

A more pressing risk is the disruptional threat of generative AI, which could change how professionals access information.

AstraZeneca

AstraZeneca (LSE: AZN) is another standout long-term retirement holding to consider. It offers exceptional stability through a diversified oncology-focused drug portfolio, strong cash flow generation, and a disciplined balance sheet.

The company reported FY 2025 revenue of £46.3bn (up 8%), with Q4 2025 revenue rising 4% to £12.2bn. Looking ahead to FY 2026, the pharma giant anticipates mid-to-high single-digit total revenue growth and low double-digit core EPS growth.

The dividend yield isn’t much at just 1.73%, but the payout ratio of only 46% allows room for growth. Its balance sheet shows total assets of £82.3bn against liabilities of £50.5bn, demonstrating financial resilience.

A key risk is patent expirations, including Farxiga (£6bn annual sales) losing exclusivity, which could pressure revenue if pipeline launches don’t offset the decline.

Diploma

Diploma (LSE: DPLM) offers exceptional stability through diversified exposure to three essential industries: life sciences, industrial controls, and safety. It enjoys strong cash generation and enacts disciplined capital allocation.

The company reported strong FY25 numbers: an 11% rise in revenue to £1,524.5m and adjusted operating profit up 20% to £342.7m. It also has excellent operating margins at around 22.5%. Free cash flow was £247.2m with 105% conversion, while leverage is conservative at 0.8 times net debt/EBITDA.

Like AstraZeneca, it’s a growth-focused stock with a low 1.1% dividend yield. But with just a 43.85% payout ratio and 10.78% average dividend growth over three years, it shows promise.

A key risk is acquisition integration and execution, as Diploma’s growth strategy relies on both organic growth and selective acquisitions in competitive markets.

Final thoughts

When looking for stocks to hold for a decade or longer, it’s important to look beyond the headline growth and income figures. A company that’s up 100% in a year is unlikely to maintain that momentum indefinitely. A stock with a 9% yield probably lacks sufficient coverage and will need to reduce payments soon.

Instead, focus on things like diverse income streams, earnings visibility, and recurring revenues. The three mentioned here fit those criteria, but they aren’t alone — there are many other equally compelling options to consider on the UK market.

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

Mark Hartley owns shares in AstraZeneca, RELX, and Diploma.

The post 3 UK shares to consider holding in a Stocks and Shares ISA for a decade appeared first on The Twelfth Magpie.

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.

In my case, at least £20,000 a year feels closer to the mark if I want to cover the basics without making serious sacrifices.

The State Pension is currently £12,547 a year. So how much would you need to have in an ISA to make up the difference?

Calculating a comfortable future

To get from £12,547 to £20,000, I’d need another £7,453 a year. Using the recommended 4% retirement drawdown rule, I’d need an ISA worth around £186,325.

That’s a stately sum, but it’s not some fantasy number reserved for the ultra-rich.

So, how long would it take to get there? Consider the following compounding scenarios, using an average annual return of 8%:

• Investing £200 a month, you could hit the target in about 24 years and 7 months.
• £300 a month would take 20 years and 3 months.
• £500 a month could reach it in just 15 years and 5 months.

Although not guaranteed, 8% could be a conservative estimate. A more aggressively growth-focused portfolio could average 10% returns a year (many do). But some will average less, of course.

At that rate, £500 a month could compound to £183,920 in just 14 years. Still a long time, but achievable even for somebody in their 50s with no savings.

What kind of shares could deliver 10%?

A 10% average return isn’t easy, but it’s possible with the right mix of shares. Some FTSE 100 stocks have delivered strong 10-year annualised total returns when dividends are reinvested:

Impressive figures. But remember: past performance is never a guarantee of future results. The lesson is not to chase yesterday’s winners, but to understand why they won in the first place.

Take AstraZeneca, for example.

Long-term earnings visibility

It exhibits several characteristics that support long-term compounding. It combines resilient demand, a deep pipeline, and steady cash generation with a broad portfolio across oncology, CVRM, respiratory and rare disease.

That helps provide both a clear picture of future revenue and reduces risk through diversification.

In 2025, it reported 16 blockbuster medicines and is aiming for more than 25 by 2030. That matters because approved prescription drugs can keep producing revenue for years, sometimes decades.

FY2025 showed total revenue of $58.7bn, up 8%, while earnings per share (EPS) rose 11%. CEO Pascal Soriot said of the results:

“We are firmly on track to deliver our 2030 ambition.”

That sounds like a business built for endurance, doesn’t it? 

Still, it’s not a guaranteed bet. The key threat to any pharmaceutical company is the dreaded patent cliff, and AstraZeneca is no stranger. Farxiga is a key growth driver for AstraZeneca, with $7.7bn in 2024 sales but a patent expiry due this year. 

The bottom line

Passive income in retirement is not as hard as it might seem, but it does take time, discipline and a sensible plan.

A strong portfolio can make a big difference, so stable growth compounders like AstraZeneca are worth looking into as part of a diversified portfolio.

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

Mark Hartley owns shares in AstraZeneca, HSBC Holdings and BAE Systems.

The post How much would it take to supplement the State Pension up to £20,000 a year through ISA investments? appeared first on The Twelfth Magpie.

According to research by AJ Bell, 63% of all active analyst ratings on UK stocks are currently set to Buy – the most bullish institutional sentiment seen in over a decade. So even with markets near record highs, the experts clearly see plenty of opportunity ahead.

Here are three of their highest-conviction picks.

1. RELX: the data giant

RELX (LSE:REL) is a global information analytics company providing data, tools, and decision support across legal, scientific, medical, and financial sectors.

The long-term bull case is built on RELX’s extraordinary pricing power. Its customers are usually law firms, hospitals, and research institutions that are deeply embedded in RELX’s platforms and have very few credible alternatives. That kind of moat is exceptionally hard to replicate.

The bear case? Some worry that the rapid rise of artificial intelligence (AI) could gradually erode this moat by directly attacking the value proposition of the group’s proprietary datasets. After all, cheaper third-party tools can do a similar job, so why would customers pay a premium?

Luckily, so far, that narrative hasn’t proven to be true, but it’s nonetheless still a risk.

2. AstraZeneca: the global pharma titan powering ahead

AstraZeneca‘s (LSE:AZN) one of the world’s leading pharmaceutical companies, with a blockbuster pipeline spanning oncology, cardiovascular disease, and rare conditions.

Analysts at Citigroup, Barclays, and JP Morgan are all firmly in the Buy camp, with 81% of covering analysts recommending the stock. Why? Because the company might have one of the most impressive drug pipelines in the industry, with multiple late-stage trials that could unlock significant new revenue streams over the coming decade.

Of course, that doesn’t mean success is guaranteed. Drug development is exceptionally expensive and uncertain. And pipeline failures or pricing pressure from government healthcare systems could disappoint investors who’ve priced in significant success.

3. Beazley: the specialist insurer flying under the radar

Beazley (LSE:BEZ) is one of Lloyd’s of London’s leading specialist insurers, covering complex risks including cyber threats, marine, property, and professional indemnity across global markets.

Today, the company’s riding two powerful tailwinds. First, cyber insurance is one of the fastest growing segments in the entire insurance industry. And Beazley’s already recognised as a market leader with deep underwriting expertise that competitors struggle to replicate quickly.

The second tailwind is the higher-for-longer interest rate environment. Thanks to increased income from bonds and other short-duration fixed-income instruments, Beazley’s significant investment portfolio is already generating materially better returns than in previous years. And combined, these factors are boosting profitability from two directions at once.

But like all investments, there are risks to consider, most notably the inherently unpredictable nature of the specialist insurance business.

A major catastrophe or an unexpected surge in cyber claims could result in significant and sudden losses that pressure both the balance sheet and the share price.

The bottom line

These are three very different businesses, but all share a common thread: institutional analysts back them with rare conviction.

For investors wondering which FTSE shares to buy and hold through whatever the next decade brings, this trio looks like a compelling place to start investigating further. But they’re not the only opportunities I’ve got my eye on right now.

The post 3 FTSE shares experts think will lead the next bull market charge appeared first on The Twelfth Magpie.

Double‑digit revenue growth in key divisions, a stream of positive new drug trials, and a burgeoning pipeline all reinforce the company’s long‑term earnings power. Yet the market still seems reluctant to price in the strength of its underlying business.

So where ‘should’ the shares be trading and what are the catalysts that could power such a move?

What’s the stock’s ‘fair value’?

Price and value are different concepts for shares. Price reflects whatever buyers and sellers are willing to agree on at a given moment. But value is determined by the underlying strength and prospects of the business itself.

For long-term investors, that distinction matters because over time market prices tend to move toward a company’s fair value. This is why understanding the gap between the two metrics can be so powerful for building returns.

Discounted cash flow analysis is one of the most rigorous ways to estimate fair value. It projects future cash flows and discounts them back to the present. The greater the uncertainty in those forecasts, the larger the discount applied.

Analysts’ DCF models differ depending on their core assumptions. Using mine — including a 7.2% discount rate — AstraZeneca shares are 44% undervalued at their present £133.95 price.

That suggests a fair value of £239.20 — far above where the shares trade today.

Therefore, if market prices continue to converge toward fair value over time, this could represent a compelling opportunity, if those DCF assumptions prove correct.

What could force the gap to close?

Sustained earnings growth drives price gains for any stock over the long run. A risk for AstraZeneca is any slowdown in the ramp‑up of launches in its key Oncology and Rare Disease divisions.

Another is any regulatory or clinical setbacks across its late‑stage product-testing pipeline. These could delay commercialisation timelines and reduce the visibility of future cash flows.

Nevertheless, analysts forecast its earnings will increase by a strong average of 13.1% a year over the medium term at least.

Its Q1 2026 results saw core operating profit up 12% year on year to $4.25bn (£3.15bn). The number reflected strong demand across Oncology and Rare Disease and continued operating leverage despite higher R&D investment.

Total revenue grew 13% to $15.29bn, highlighting continued uptake of newer medicines and solid contributions from established brands despite ongoing generic pressures.

Consequently, management reaffirmed its full-year 2026 outlook, expecting low double-digit core earnings per share growth. It also reiterated its 2030 target of hitting $80bn in annual revenue.

My investment view

AstraZeneca’s strong and consistent earnings growth should catalyse the closure of the current price‑to‑value gap over time. As newer medicines scale and later‑stage assets reach the market, the company’s cash‑generation profile should become increasingly visible to investors.

Management’s reaffirmed 2026 outlook and its confidence in hitting the 2030 $80bn revenue ambition also provide a clear long‑term roadmap. If those targets continue to be met, the market may re‑rate the shares towards what I think is their fair value.

For investors seeking dependable growth backed by robust fundamentals, that potential convergence makes the stock worthy of serious attention. And it is certainly compelling enough for me to be looking to add to my holding in the firm very shortly.

The post 13% annual earnings growth forecast and 44% under ‘fair value! 1 FTSE 100 gem to buy today? appeared first on The Twelfth Magpie.

Using a Cash ISA to build up an emergency fund isn’t a bad strategy. But trying to build real wealth this way creates a meaningful and unnecessary opportunity cost. Even the very best ISAs offering up to 5% interest today still fall short of the stock market’s 8% long-term average.

So, with that in mind, which UK stocks are the experts buying right now?

AstraZeneca – the UK’s crown jewel

Few companies on the London Stock Exchange attract as much institutional conviction as AstraZeneca (LSE:AZN).

The pharmaceutical giant has transformed itself into a global oncology powerhouse, with blockbuster medicines like Enhertu, Tagrisso, and Calquence driving revenues toward an ambitious $80bn target by 2030.

Even in 2025, the top line expanded by another 9% to a record $58.7bn. And with 20 Phase 3 trials currently under way, the pipeline powering AstraZeneca’s future growth remains pretty impressive.

But risks are real. President Trump’s Most Favoured Nation drug pricing push, which aims to tie US prices to cheaper international rates, could meaningfully squeeze AstraZeneca’s most profitable market.

At the same time, the company is also navigating through an ongoing anti-corruption investigation in China’s pharmaceutical sector. And combined, the group’s position in both of these crucial markets could soon come under pressure.

Unilever – the unsung stalwart

Another top pick from the pros in 2026 is Unilever (LSE:ULVR), which seemingly combines robust growth with solid defensive traits that could help reduce portfolio volatility in an uncertain market environment.

Under CEO Fernando Fernández, Unilever is in the middle of its most dramatic transformation in decades.

Having already spun off its ice cream business in late 2025, the group announced in March 2026 that it would combine its entire food division, which contains brands like Hellmann’s, Knorr, and Marmite, with US spice giant McCormick in a $44.8bn deal.

What remains will be a pureplay beauty, personal care, and home products business built around Power Brands like Dove, Axe, and Domestos – categories that carry higher margins and faster structural growth than food.

However, it’s important to highlight that the McCormick deal hasn’t gone down particularly well with shareholders of both companies. Large-scale mergers are complex and have a habit of incurring lots of unexpected costs. And since Unilever will still retain a 65% equity stake in the newly formed business, weak performance in the future could have knock-on effects.

Even if the deal goes through as planned, there remains the challenge of consumers potentially trading down to cheaper non-branded alternatives to Unilever’s products, limiting the group’s pricing power – a key risk to be aware of.

The bottom line

No stock is ever without risk, even FTSE 100 titans like AstraZeneca and Unilever and I can’t say they’re ‘the best’ to buy today. Yet when weighed against their potential long-term rewards, both companies look like potentially top stocks for investors seeking a more defensive way to grow their wealth that could still outperform a savings account in the long run.

That’s why I think both companies deserve a closer look.

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