Importantly, however, the analyst community didn’t see this coming. The consensus view of the stock five years ago was Hold – and I think there’s a lesson in that for investors.

How it happened — and what comes next?

Five years ago, Rolls-Royce was in deep trouble. It was running out of cash, had huge amounts of debt, and revenues were being crushed by pandemic-related travel restrictions. 

Then everything changed:

• Engine flying hours recovered following the end of Covid-19.
• Defence budgets increased across NATO members.
• Tufan Erginbilgiç’s transformation programme boosted internal efficiency.

As a result, cash flows increased. The firm used these to strengthen its balance sheet, which resulted in lower interest costs, driving cash flows even higher.

A big part of the rising share price, however, isn’t just the fundamental business improvements. It’s how the stock market sees those changes.

The stock has gone from trading at a price-to-sales (P/S) multiple of 0.8 to 5.39. That’s a 10-year high and it’s matched by operating margins that are also at their widest levels in a decade.

Source: Fiscal.ai

The consensus among analysts now is Strong Buy. But at high multiples and with unusually wide margins, it’s not about recovery any more – investors are looking to break into uncharted territory.

The next Rolls-Royce?

I think Bunzl (LSE:BNZL) – a FTSE 100 distributor of consumables for businesses – looks a lot like the Rolls-Royce of five years ago. And it has an extra growth engine of its own.

There are a few key similarities:

• Bunzl is coming through a difficult part of the cycle, with deflation and destocking weighing on growth.
• Operational errors in its shift to own-branded products have created challenges in North America.
• The stock is trading at a price-to-earnings (P/E) multiple well below its 10-year average.

Investors didn’t really see the Rolls-Royce recovery coming. I think, however, there are clear signs that Bunzl is moving in the right direction.

Organic sales growth is starting to pick up. And the firm’s June update reported that its North American business is “largely restored” after its problems last year. 

On top of this, Bunzl has an additional weapon. It has an acquisition pipeline to boost growth further.

I think the stock is well worth considering for investors hunting the next UK growth story. At 12% of my own ISA, it’s only diversification – not conviction – that stays my hand.

What do the analysts say?

The consensus view of Bunzl among analysts is Neutral. And it’s always worth remembering that there are no guarantees when it comes to investing. 

Bunzl’s recent challenges represent ongoing background risks. A recession in the US, a shift in strategy, or a challenging year for acquisitions are all potential issues. 

These are all worth taking seriously. The question for investors is whether the potential opportunity is worth it. 

I can understand the reasons for caution. But it’s worth remembering that Hold was also the consensus view among the analyst community for Rolls-Royce shares five years ago.

The lesson for investors is clear. Following the crowd can work, but the best opportunities often come from doing something different.

Should you invest £5,000 in Bunzl Plc right now?

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There is potentially an interesting lesson in that.

At the start of last year, for example, Rolls-Royce shares had already been on a terrific run, so many investors who may have been tempted to invest likely decided against it. That was certainly my approach at that point. But doing so has meant missing out on some strong performance since then.

Of course, hindsight always arrives when it is least useful. Still, could it be that – even now – the aeronautical engineer might potentially offer me a long-term bargain for my portfolio?

Here’s what non-investors have missed out on

Since the start of last year, the Rolls-Royce share price has risen by 136%.

That means someone who invested £15,000 in the shares at this point last year and held on to them would now be sitting on a holding valued at roughly £35,400.

On top of that, there are dividends. The current yield of 0.7% may seem small, but given the cheaper share price at the start of last year, someone who bought then would be earning a higher yield. They ought to be earning almost £250 a year in dividends.

Buy, sell, hold? When?

I mentioned that the capital gain calculation presumed an investor who bought at the start of last year held those shares until now. That is a period of a year-and-a-half or so.

But not all investors would have done that. When a share does very well, as Rolls has, there is a clear split in thinking between some investors who follow the mantra ‘you don’t lose money taking a profit’ and others who believe in riding their winners.

Both approaches can have pros and cons as I see it.

I try to think of investments with a long-term approach. When buying a share, that can be fairly simple: the question is whether I can purchase a share in a promising business at what I see as an attractive price.

What can be more difficult is deciding what to do when a share still has strong momentum but looks overvalued: take profits by selling, or hang on?

My concern with buying Rolls-Royce now

I sold my shares in Rolls-Royce several back at what I felt then was a handsome profit.

By not hanging on I have missed out on significant subsequent price gains.

I sold because I feared it was overvalued. Rolls benefits from a large installed user base, high barriers to entry in its business areas and strong demand across all three of its main activities: civil aviation, defence and power systems.

But with the stock selling for 46 times earnings, I think exceptionally high expectations for business performance are already built in. I see volatile oil prices and geopolitical uncertainty in the Middle East posing a risk to civil aviation demand.

For now, that has not affected Rolls. But I do not feel the shares offer me a suitable margin of safety at the current price. So I have no plans to invest.

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?

Christopher Ruane does not hold any positions in the companies mentioned.

The post £15,000 invested in Rolls-Royce shares at the start of 2025 is now worth… appeared first on The Twelfth Magpie.

That’s a wake-up call for investors dazzled by how well the shares have done over the last five years, climbing an astonishing 1,328%.

That’s a thrilling return, but it’s history now. Investors buying today can’t expect anything like that kind of return. There’s another issue. Despite the recent dip, Rolls-Royce shares remain expensive, trading on a price-to-earnings ratio of 46. That’s down from 66 at the start of the year, but it’s still a toppy valuation. CEO Tufan Erginbilgic has to keep profits, revenues and free cash flowing to impress investors. Can he do it?

Will this FTSE 100 stock keep climbing?

He’s done it before, smashing guidance in both 2024 and 2025, as this table shows:

Rolls-Royce has enjoyed growth across all three of its divisions. Civil Aerospace has seen a strong recovery in aircraft engine servicing revenues. The surge in demand for energy-hungry AI data centres has lifted its Power Systems division, while Defence has benefited from today’s geopolitical tensions.

The group has now cleared all its post-pandemic debt, restored the dividend and is planning a share buyback worth between £7bn and £9bn between 2026 and 2028.

Erginbilgic is also pursuing two further growth opportunities, both potentially huge. He’s targeting a return to the short-haul, single-aisle narrowbody aircraft engine market and hopes to build 400 small modular reactors, or mini-nukes, worldwide by 2050. It’s good to see a Footsie company with ambition but there are execution risks and the capital investment will be huge too.

Rolls-Royce also remains vulnerable to geopolitical shocks, especially if conflict in the Middle East triggers further airspace closures. Demand from AI data centres could also cool if the technology fails to live up to the hype.

What do the experts say?

Yet of the 19 analysts issuing stock ratings over the past three months, the vast majority remain positive:

• Strong Buy: 15
• Buy: 1
• Hold: 3
• Sell: 0
• Strong Sell: 0

The 17 analysts offering one-year share price forecasts produce a consensus target of 1,526p. If correct, and these are only educated guesses remember, that would represent solid growth of 11.7% from today’s 1,366p. Add the forecast 2026 dividend yield of 0.9% and the total return rises to 12.6% by July 2026.

That would turn a £9,999 investment today into £11,269. A gain of £1,270 is perfectly respectable but a far cry from the glory years.

Rolls-Royce is a brilliant British company, but given the pricey entry point I’d be wary about throwing too much cash at it today. It may be better to consider drip-feeding money in, taking advantage of any dips to bag it at a less daunting valuation. Alternatively, hunt down the next big FTSE 100 or FTSE 250 growth opportunity.

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?

Harvey Jones owns shares in Rolls-Royce Holdings.

The post Prediction: in just 12 months the Rolls-Royce share price could turn £9,999 into… appeared first on The Twelfth Magpie.

Could it hit £20 in 2026? Let’s take a look at the set-up.

H1 earnings will be crucial

I don’t see a lot of room for an increase in the valuation here. Because the earnings multiple’s already pretty high.

With analysts expecting earnings per share of 37.3p for 2026, the forward-looking price-to-earnings (P/E) ratio’s about 36. I’d be very surprised if this valuation metric was to increase significantly beyond that level as it’s more than twice the UK market average.

That doesn’t mean the stock can’t go higher though. Because there’s a chance that we could see an increase to full-year guidance when the aerospace and defence company posts its half-year results on 30 July.

One brokerage firm that expects guidance to be raised is Jefferies, which currently has a £18.70 price target for the stock. If guidance is hiked from £4bn-£4.2bn of underlying operating profit and analysts lift their earnings forecasts, the share price could rise without an increase in the P/E ratio.

Is £20 a possibility?

That said, a move all the way up to £20 could be a stretch. Because that’s about 47% higher than the current share price.

For the stock to surge by that amount, H1 results and guidance would have to be extremely strong. And personally, I think that’s unlikely given the disruption to the civil aerospace market this year due to the Iran war and the spike in oil prices.

What do analysts think?

It’s worth noting that no research firms have a price target of £20 or above for Rolls-Royce at the moment. Most of the recent targets published are around the £15-£16 mark:

• Goldman Sachs: £15.50.
• JP Morgan: £16.25.
• BNP Paribas Exane: £15.00.

The average price target, according to my data provider, is £14.23. That’s only about 5% above the current share price.

£20 in 2027?

I’ll point out that I do think a share price of £20 could be a possibility in the years ahead because the company should see high demand for its aerospace, defence, and nuclear technology.

I reckon we could potentially see this price achieved in late 2027 or 2028. I’m assuming here that the backdrop remains favourable and that earnings continue to rise.

Worth a look today?

Could the shares still be worth considering, even if a share price of £20 probably isn’t on the cards in the near term? Potentially – the trend’s up and there’s plenty of long-term potential.

That said, I reckon it could be worth waiting for a better entry point. With a bit of patience, it may be possible to get in at a more attractive valuation.

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?

Edward Sheldon owns shares in JP Morgan

The post Could the Rolls-Royce share price hit £20 in 2026? appeared first on The Twelfth Magpie.

Looking out over the next six months, however, I’m predicting that the former will trounce the latter in terms of share price performance. Here’s why.

Nvidia’s valuation is near seven-year lows

The main reason I’m more bullish on Nvidia is its valuation. Right now, it’s near seven-year lows.

Taking the earnings forecast for the financial year starting in February 2027, the price-to-earnings (P/E) ratio for the chip stock is only around 16.7. That’s below the US market average and very low considering the company’s growth rate.

This financial year, Nvidia is expected to generate revenue of $393bn and earnings per share of $12.90. These forecasts represent year-on-year growth of 82% and 77% respectively.

To my mind, there’s a major mismatch between growth and the valuation. And I think it’s only a matter of time until investors spot the opportunity and pile into the stock, pushing its share price up.

It’s worth noting that the average analyst price target for Nvidia is $297 at present. That’s almost 50% above the current share price.

Rolls-Royce still looks expensive

Turning to Rolls-Royce, it’s a very different set-up valuation-wise. Here, analysts are expecting earnings per share of 44p for 2027, so the forward-looking P/E ratio is about 31 – almost twice Nvidia’s!

Meanwhile, growth forecasts for the Footsie company are not nearly as impressive as those for the chip company. This year, Rolls-Royce’s top line is only forecast to grow around 7% while earnings per share are expected to rise 26%.

So, while Nvidia looks really cheap today, Rolls-Royce looks quite expensive. Especially when considering growth levels.

Zooming in on analysts’ price targets, the average target here is 1,423p, which is only around 4% higher than the current share price. In other words, the analyst community doesn’t see much scope for gains in the medium term.

I’m backing Nvidia

Now, Rolls-Royce shares could still be worth considering for a portfolio. Because the company has quite a bit of momentum at the moment and while there are some risks around disruption to its civil aerospace division in the short term, there’s plenty of long-term growth potential.

I just think that Nvidia shares have far more potential in the medium term. They’re not a risk-free investment obviously, and concerns over a slowdown in AI spending could hurt the stock, yet with demand for its GPUs remaining high, I believe there’s an attractive opportunity here to consider.

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?

Edward Sheldon owns shares in Nvidia.

The post Prediction: Nvidia stock will crush Rolls-Royce shares between now and 2027 appeared first on The Twelfth Magpie.

The case for further appreciation

Let’s start with the case for a continued rally. The company continues to benefit from several powerful factors that show little sign of fading. For example, the recovery in long-haul air travel has boosted flying hours, which is crucial because the company earns much of its money servicing aircraft engines rather than selling them outright.

As airlines continue to expand international routes, the high-margin aftermarket business should continue to generate strong cash flows. This should filter down to higher profits, which could act to push the stock higher.

On top of that, CEO Tufan Erginbilgiç has transformed the business far quicker than many investors expected. I’m talking about everything from cost savings through to improved operating margins.

There’s nothing to say that things are finished. There’s potential for management to deliver another round of guidance upgrades. For sure, the stock isn’t exactly undervalued, but investors may once again conclude that analysts are underestimating the company’s earnings potential.

A final thought on this goes to defence. With defence spending rising across Europe and growing excitement surrounding Rolls-Royce’s small modular reactor ambitions, there are multiple catalysts that could justify another 50% gain.

Some concerns

In fact, it’s arguably stronger today than it has been for years. The problem is that the share price already reflects a great deal of that optimism.

Rolls-Royce trades on a far richer valuation than at most historical points. The price-to-earnings ratio is currently 47.09, easily double the FTSE 100 average. I don’t think it would take much to spark a fall, be it a modest earnings miss or some update indicating slower growth in engine flying hours.

There are also external risks to consider. A global economic slowdown could reduce international travel demand, while fresh supply-chain disruptions could delay aircraft deliveries and engine maintenance schedules. This is something we’ve seen not that long ago, so it’s not an outlandish risk to cite.

The bottom line

Even with plenty of risks, I just can’t see the stock falling by 50% in the coming year. I think there are plenty of investors (myself included) that would look to buy any dip before the share price moved that much lower. Although I think a 50% gain is also a bit ambitious, my bias is for a £1k investment to be worth more than the initial amount in the coming year, and therefore one to be considered by investors.

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?

Jon Smith does not hold any positions in the companies mentioned.

The post Could a £1k investment in Rolls-Royce shares be worth £500 — or £1.5k — in the next year? appeared first on The Twelfth Magpie.

Let’s discuss this further by looking at the fundamentals of these two popular UK shares using various valuation techniques.

Profit

Based on earnings, Lloyds appears to offer better value. It has a historic (2025) price-to-earnings ratio of 16.1. Rolls-Royce’s is an eye-watering 47.3.

Having said that, Lloyds’ multiple is higher than the FTSE 100’s four other banks.

Balance sheet

It’s a similar story looking at assets and liabilities. The bank has a price-to-book ratio of 1.35 compared to an astonishing 43.8 for Rolls-Royce. This is a reminder of how the pandemic decimated the latter’s balance sheet.

Among its peers, Lloyds is only beaten by HSBC.

But comparing valuations across sectors is misleading. Each industry has a different risk profile and capital expenditure requirements.

However, on paper at least, Rolls-Royce’s shares appear to be more expensive. This probably reflects, in part, its recent rapid growth and an expectation that this will continue. And it’s an engineering-cum-technology business. I suspect most investors think it has better growth potential than a 261 year-old bank.  

On the other hand, should there be any sign of a slowdown, its shares could tank.

Income

When it comes to dividends, Lloyds wins hands down. In 2025, it paid 3.65p a share giving the stock a historic yield of 3.2%. For 2026, analysts are expecting 4.31p. If correct, this implies a forward yield of 3.8%. However, I wonder if the bank will do better than this. Its 2025 payout ratio was 52%. A 4.31p dividend would equate to ‘only’ 43.5% of earnings per share (EPS).

With a 2025 dividend of 9.5p, Rolls-Royce paid around a third of its EPS to shareholders. Disappointingly, the stock has a trailing yield of 0.7%. Based on analysts’ 2026 forecasts, this rises to 0.9%.

Of course, dividends are never guaranteed.

My view

Looking ahead, forecasts for both companies are impressive. By 2028, Lloyds is expected to have increased its EPS by 96%, when compared to 2025. For Rolls-Royce, the anticipated rise is 75%.

But if I had to choose which is most likely to double its earnings before the end of the decade, I’d pick Rolls-Royce.

I acknowledge that Lloyds is a well-run company with a strong brand. But it’s much more UK-centric which, I believe, is a risk. And with 20% of the British mortgage market, it could be vulnerable to a rise in loan defaults should interest rates remain higher for longer. Or worse still, go up as a result of post-Iran inflationary pressure.

Rolls-Royce has more strings to its bow – currently aircraft engines, defence, and power systems. In future, it hopes to add small modular reactors to this list, assuming mini nuclear power stations prove to be commercially viable. This gives it better protection should we encounter some challenging economic headwinds, or if one part of its business struggles. That’s why I believe its shares are worth considering.

I can see why Lloyds might appeal to some income investors but, in my opinion, there are better higher-yielding opportunities to consider elsewhere.

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?

James Beard owns shares in Rolls-Royce Holdings plc.

The post Which offers better value, Rolls-Royce or Lloyds shares? appeared first on The Twelfth Magpie.

But what about the next 18 months? What might £20k invested in Rolls-Royce today be worth by January 2028?

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.

Caveats

The first thing to admit is that this exercise is entirely speculative. Ultimately, Rolls-Royce could carry on delivering the goods at an operational level, while the stock’s valuation multiple contracts due to a stock market meltdown or something else that spooks investors (CEO Tufan Erginbilgiç abruptly leaving, for example).

Alternatively, the engine maker could lower its medium-term (2028) guidance for between £5bn and £5.3bn in free cash flow. Disappointed by this, investors might quickly sell off the stock, sending the £20k investment underwater.

What’s more, £20k is the entire annual Stocks and Shares ISA allowance. It could be a very dicey move putting that much in a single stock, especially one like Rolls-Royce, which is already trading expensively and offering little margin for error.

With these caveats out of the way though, let’s give it a shot.

Price target

As mentioned, Rolls-Royce is targeting around £5.2bn in free cash flow in 2028. Today, it’s trading at around 30 times its next 12 months’ free cash flow.

Putting these together, we get a projected market-cap of about £156bn by the start of 2028. Assuming the firm buys back roughly £5bn worth of shares by then (at an average price of 1,600p), I calculate a share price target of about 1,925p.

Let’s be conservative and call it 1,900p, which is still 35% higher than today’s share price. This would turn £20k into around £27k by then — a very solid return.

So am I buying any more shares?

Again though, this assumes investors are willing to value Rolls-Royce on the same multiple in 2028. This isn’t guaranteed and ultimately out of the company’s hands.

As a shareholder, what’s important is that Rolls-Royce continues hitting the targets it sets. On this front, the firm has done a tremendous job over the past three years, with guidance consistently beaten and raised along the way.

However, with the Middle East conflict flaring back up, and supply chains already challenged, there’s probably less chance of this continuing in the near term. At least on the level seen in previous years.

The conflict in the Middle East has created uncertainty for the industry… we expect to fully mitigate the current financial impact of the disruption to our business. We continue to monitor the situation for any future direct and indirect impacts and will take the necessary actions to mitigate them.

Tufan Erginbilgiç

Having first bought the FTSE 100 stock at a much lower price in 2023, I’m not looking to add to my position at the moment. Rolls-Royce is trading at a pricey 34.5 times forward earnings while the dividend yield is less than 1%.

Investors considering the stock should look out for the engine maker’s half-year earnings report on 30 July. I’ll be reading that before making any decision.

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?

Ben McPoland owns shares in Rolls-Royce.

The post Here’s what a £20,000 ISA investment in Rolls-Royce shares could be worth by 2028 appeared first on The Twelfth Magpie.

Someone who invested £10k in the share five years ago would now be sitting on a holding worth around £148,500.

They would also be earning around £1,000 per year in dividends. The current yield is only 0.7%, but having bought at a far lower price, a long-term investor could accordingly now be earning a much higher yield.

What about now, though? If I was to buy some Rolls-Royce shares today, where might I be in five years?

Same again, please?

It is easy to dream that another 1,385% in the coming five years could produce similar results.

On one hand, past performance is not necessarily a guide to what will happen in future.

On the other hand though, Rolls-Royce shares have been among the FTSE 100’s top performers time after time in recent years. So far in 2026, the share is already up 16%, over three times as strong a performance as the index overall.

But the company’s market capitalisation is now £116bn, the fourth-biggest on the London stock market. Rolls-Royce shares sell for 48 times earnings.

Although the business is doing well, has ambitious growth plans and is benefitting from demand growth in its key markets, I think it is unlikely that the share price will perform in the coming five years anything like as well as it has in the past five.

Still, if momentum remains strong and the business keeps delivering, I do think the share price could potentially move higher from here.

Could things get worse, not better?

That price-to-earnings (P/E) ratio of 48 alarms me. That is well over double the current FTSE 100 P/E ratio of 18.

There is arguably some justification for that premium. Rolls has been benefitting not only from robust demand growth but also from its own cost management and consistent ability to deliver on its targets.

Still, a P/E ratio of 48 looks high to me. It is twice that of fellow UK defence contractor Babcock, for example.

If there is an upset such as Rolls not meeting its goals, or a demand shock pushing down customers’ willingness to spend on new civil aviation engines or servicing of existing ones, I think that risks pushing the Rolls-Royce share price downwards.

As a long-term investor, I see that as a credible possibility. It explains why I am not buying Rolls-Royce shares at the current price.

More modest growth, but still growth

That is because, as an investor, I like to have a margin of safety.

Still, I recognise the possibility that in the coming five years, ongoing business momentum could push Rolls-Royce shares upwards, making them worth a closer look.

But while I see the opportunity for further growth, I also see risks such as an external shock hitting civil aviation demand. To my mind, even the current valuation does not properly reflect such risks.

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?

Christopher Ruane does not hold any positions in the companies mentioned.

The post Up 1,385% in 5 years! Could Rolls-Royce shares still have more to offer? appeared first on The Twelfth Magpie.

On 12 June, SpaceX made its long-awaited Nasdaq debut as the largest IPO in stock market history, raising $75bn. In the space of a few days, the shares surged as high as $225 before tumbling back down. And they’re now hovering near the closing price on IPO day at around $160.

In other words, investors who piled in on IPO day have made almost nothing after weeks of nail-biting volatility.

Rolls-Royce shareholders, meanwhile, have quietly pocketed a 13% gain over the same period, turning a £1,000 investment into roughly £1,130 without losing a wink of sleep.

The question now is: will Rolls-Royce shares continue to outperform?

Why Rolls-Royce keeps defying gravity

The group’s latest trading update confirmed that this isn’t a story built solely on hype. Underlying operating profit guidance of £4bn-£4.2bn and free cash flow of £3.6bn-£3.8bn for 2026 were both maintained in full.

Large engine flying hours grew 5% in the first quarter to 115% of 2019 levels. And crucially, Middle Eastern airline flying hours have already fully recovered to pre-conflict levels, ahead of most analyst expectations.

Defence is accelerating too. Original equipment deliveries grew more than 20% year-on-year in the first quarter, powered by surging demand for the EJ200 Eurofighter engine and a landmark contract to power Australia’s new frigates with the MT30 marine gas turbine.

Furthermore, the Power Systems segment may be the most exciting story of all. Power generation order intake grew 50% year-on-year in the first quarter, driven by data centres and government contracts, with the division’s order backlog now standing at £7.3bn.

Put simply, the business is firing on all cylinders. So should investors hop aboard the gravy train?

Is there anything to worry about?

The Middle East conflict remains the most significant risk to watch. While flying hours have recovered better than expected, management was careful to note it is “monitoring the situation for any future direct and indirect impacts”.

Any renewed escalation could weigh on civil aerospace flying hours and, in turn, the high-margin aftermarket revenue that powers so much of Rolls-Royce’s cash generation.

Such short-term disruptions are unlikely to be disastrous in the grand scheme of things. But they might be sufficient to ensure the company falls short of its targets. And after surging more than 900% in three years, even the slightest disappointment might be all it takes to spark some profit-taking activity.

So what’s the verdict?

SpaceX may represent the future of space exploration in the private sector, but the business continues to trade at a lofty valuation that’s yet to prove itself. In other words, right now investing in SpaceX feels more like speculation than prudent investing.

As for Rolls-Royce, this aerospace stock’s also running a little hot. But unlike SpaceX, that premium valuation has been well-earned. So for investors looking for exposure to the aerospace sector, Rolls-Royce feels like the smarter play right now, in my mind. And that’s why I think it could be worth a closer look.

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?

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

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