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        <title>Sage Group Plc (LSE:SGE) Share Price, History, &amp; News | The Twelfth Magpie</title>
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	<title>Sage Group Plc (LSE:SGE) Share Price, History, &amp; News | The Twelfth Magpie</title>
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            <item>
                                <title>How has Sage become one of the FTSE 100’s best bargain shares?</title>
                <link>https://www.twelfthmagpie.com/2026/06/02/how-has-sage-become-one-of-the-ftse-100s-best-bargain-shares/</link>
                                <pubDate>Tue, 02 Jun 2026 05:01:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1695684</guid>
                                    <description><![CDATA[<p>Sales and profits keep growing at double-digit rates. So why are Sage's share struggling? Royston Wild discusses this FTSE share.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/02/how-has-sage-become-one-of-the-ftse-100s-best-bargain-shares/">How has Sage become one of the FTSE 100’s best bargain shares?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
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<p class="wp-block-paragraph"><strong>FTSE 100</strong> company <strong>Sage</strong>&#8216;s (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE:SGE</a>) shares have crashed 29% over the last year. A slump of that magnitude suggests a major problem or one that&#8217;s coming down the tracks at speed.</p>



<p class="wp-block-paragraph">The thing is, I love buying quality shares on the dip. And especially when recent price action suggests the market has overreacted to something. So what&#8217;s happened here?</p>


<div class="tmf-chart-singleseries" data-title="Sage Group plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">In this case, investors have heavily sold Sage due to AI-related worries, sending its share price lower. My view? The software giant is now one of the London stock market&#8217;s best value shares.</p>



<h2 id="h-why-has-sage-dropped" class="wp-block-heading">Why has Sage dropped?</h2>



<p class="wp-block-paragraph">We&#8217;re at the early stage of the AI era. But it&#8217;s clear this new technology will create significant opportunities for some companies.</p>



<p class="wp-block-paragraph">But for Sage &#8212; which provides software for accounting, HR, and payroll functions &#8212; investors fear AI could have dire long-term consequences. They ask why businesses will pay for its software-as-a-service (SaaS) subscriptions when AI agents can quickly and cheaply automate accounting workflows.</p>



<p class="wp-block-paragraph">These worries haven&#8217;t just hit Sage shares, though. The so-called SaaSpocalypse has caused scores of <a href="https://www.twelfthmagpie.com/investing-basics/market-sectors/investing-in-tech-stocks-in-the-uk/" id="https://www.twelfthmagpie.com/investing-basics/market-sectors/investing-in-tech-stocks-in-the-uk/">technology stocks</a> to plunge in value over the last year.</p>



<p class="wp-block-paragraph">However, in the case of Sage, I think these fears have been massively overstated. News last month provided the greatest indication yet.</p>



<h2 id="h-what-s-happened" class="wp-block-heading">What&#8217;s happened?</h2>



<p class="wp-block-paragraph">Even as broader AI adoption increases, business at Sage continues to boom. Annual recurring <a id="https://www.twelfthmagpie.com/investing-basics/investment-glossary/what-is-revenue/" href="https://www.twelfthmagpie.com/investing-basics/investment-glossary/what-is-revenue/" target="_blank" rel="noreferrer noopener">revenue</a> and underlying sales both rose by double digits (up 11% and 10%, respectively) in October-March. Operating profit leapt 15%.</p>



<p class="wp-block-paragraph">You see, Sage has a couple of major tools in its arsenal. CEO Steve Hare last month highlighted the first, commenting that</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p class="wp-block-paragraph"><em>Small and mid-sized businesses trust Sage to run their mission-critical finance, payroll and HR workflows, where accuracy and compliance are non-negotiable.</em></p>
</blockquote>



<p class="wp-block-paragraph">He&#8217;s right. Though AI may be getting better at dealing with these critical activities, just how far will businesses be willing to farm these straight out to agents? I have severe doubts.</p>



<h2 id="h-seizing-the-ai-boom" class="wp-block-heading">Seizing the AI boom</h2>



<p class="wp-block-paragraph">This brings me onto the second advantage Sage enjoys. It&#8217;s not sitting still and is investing heavily in AI itself. The result? As chief executive Hare says,</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p class="wp-block-paragraph"><em>Eembedding AI directly into our customers&#8217; day-to-day work [is] making our solutions more valuable, reinforcing our competitive advantages, and driving efficient, sustainable growth.</em></p>
</blockquote>



<p class="wp-block-paragraph">Sage has actually cited steps like expanding Sage Copilot and launching &#8216;intelligent agents&#8217; as a reason for its accelerating sales and rising customer retention rates. Renewal rate by value rose to 102% as of March.</p>



<h2 id="h-stunningly-cheap" class="wp-block-heading">Stunningly cheap?</h2>



<p class="wp-block-paragraph">Despite this resilience, Sage&#8217;s shares have failed to spring higher. Even as the company raised sales guidance for the year. More fool the market, I say!</p>



<p class="wp-block-paragraph">Why? Sage&#8217;s share price plunge leaves it on a forward price-to-earnings (P/E) ratio of 19 times. This suggests once-in-a-decade value for money in my view. Since 2015, the ratio has averaged between 30 and 31 times.</p>



<p class="wp-block-paragraph">Like many UK shares, Sage could come under pressure if economic conditions worsen. But at current prices I think it&#8217;s worth serious consideration from savvy investors.</p>



<p class="wp-block-paragraph"><h2>Should you invest £5,000 in Sage Group Plc right now?</h2>
<p>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.</p>
<p>And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Sage Group Plc made the list?</p>
<div class="wp-block-custom-block-collection-cta-button">
	<a href="https://www.twelfthmagpie.com/int-free-best-buy-now/" style="background-color:#5fa85d; width:fit-content; display:inline-flex; cursor:pointer; justify-content:center; align-items:center; transition:all 0.3s ease;border-width:0px; border-style:solid; border-color:#000000; border-top-left-radius:4px; border-top-right-radius:4px; border-bottom-right-radius:4px; border-bottom-left-radius:4px; --hover-background-color:#358832; --pressed-background-color:#0cbf06; padding-top:12px; padding-right:24px; padding-bottom:12px; padding-left:24px; margin-top:0px; margin-right:auto; margin-bottom:0px; margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06" ><p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">See The Six Stocks</p></a>
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<p class="wp-block-paragraph"><em>Royston Wild owns shares in Sage.</em></p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/02/how-has-sage-become-one-of-the-ftse-100s-best-bargain-shares/">How has Sage become one of the FTSE 100’s best bargain shares?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>93 years of dividend growth! 3 FTSE 100 shares to target income</title>
                <link>https://www.twelfthmagpie.com/2026/05/01/87-years-of-dividend-growth-3-ftse-100-shares-to-target-income/</link>
                                <pubDate>Fri, 01 May 2026 07:23:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1679280</guid>
                                    <description><![CDATA[<p>These FTSE 100 shares have collectively grown dividends every year for almost a century! Royston Wild expects them to keep on growing.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/05/01/87-years-of-dividend-growth-3-ftse-100-shares-to-target-income/">93 years of dividend growth! 3 FTSE 100 shares to target income</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">The <strong>FTSE 100</strong> index of UK shares is famed for its strong dividend culture. Muscular balance sheets, competitive advantages, and diverse revenue streams make many of them excellent buys for long-term passive income.</p>



<p class="wp-block-paragraph">Take these three shares: <strong>Sage Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE:SGE</a>), <strong>BAE Systems </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-ba/">LSE:BA.</a>) and <strong>Halma </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-hlma/">LSE:HLMA</a>). Between them, they&#8217;ve an aggregated almost 90 years of consistent dividend growth.</p>



<p class="wp-block-paragraph">Want to know what still makes them five-star <a href="https://www.twelfthmagpie.com/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/" id="https://www.twelfthmagpie.com/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/" target="_blank" rel="noreferrer noopener">dividend</a> shares to consider?</p>



<h2 class="wp-block-heading" id="h-sage-35-years-of-growth">Sage &#8212; 35 years of growth</h2>


<div class="tmf-chart-singleseries" data-title="Sage Group plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Dividends are never guaranteed for any stock. With Sage, its long history of payout growth could falter if the global economy implodes, taking corporate tech spending with it.</p>



<p class="wp-block-paragraph">But what&#8217;s made it resilient to such shocks in the past? Its accounting, human resources and payroll software is essential for any business. This provides high-quality recurring revenues and cash flow, and makes it more resilient than most other tech shares. What&#8217;s more, its software isn&#8217;t especially expensive, which helps support a &#8216;sticky&#8217; customer base even in tough times.</p>



<p class="wp-block-paragraph">I&#8217;m optimistic Sage can keep delivering healthy dividend growth, as businesses increasingly digitalise their operations. I&#8217;m also encouraged by the FTSE company&#8217;s steps to embrace artificial intelligence (AI). The forward <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/" id="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/" target="_blank" rel="noreferrer noopener">dividend yield</a> here is 2.5%.</p>



<h2 class="wp-block-heading" id="h-bae-systems-22-years-of-growth">BAE Systems &#8212; 22 years of growth</h2>


<div class="tmf-chart-singleseries" data-title="BAE Systems plc - Ordinary Shares Price" data-ticker="LSE:BA." data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Defence stocks are among the most reliable dividend payers out there. Their earnings are practically immune to broader economic conditions, given the importance of national security spending.</p>



<p class="wp-block-paragraph">BAE Systems isn&#8217;t totally without risk though. With sovereign debt levels in the West rising, could governments have to cool spending on weapons? It&#8217;s possible, but it&#8217;s unlikely, in my opinion, as geopolitical instability grows. In fact, global defence spending rose at its fastest pace since the Cold War in 2025.</p>



<p class="wp-block-paragraph">With strong government relationships, a diverse client base and market-leading technologies, BAE Systems looks in great shape to keep growing shareholder payouts. One final thing, its customer contracts tend to last for years, giving it excellent cash flow visibility for dividends. For this year, the forward yield is 1.8%.</p>



<h2 class="wp-block-heading" id="h-halma-46-years-of-growth">Halma &#8212; 46 years of growth</h2>


<div class="tmf-chart-singleseries" data-title="Halma plc Price" data-ticker="LSE:HLMA" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Of this selection of FTSE 100 shares, Halma has the longest unbroken record of yearly dividend growth. <strong>Spirax </strong>is the only UK blue-chip stock with a better record (41 years of growth).</p>



<p class="wp-block-paragraph">This is down to decades of consistent earnings progress, provided by a mix of healthy organic growth and contributions from bolt-on acquisitions. This has underpinned 22 straight years of record profit growth. That&#8217;s not all &#8212; with ultra high margins, Halma turns a huge share of these profits into cash it can then distribute to investors.</p>



<p class="wp-block-paragraph">It&#8217;s also important to consider how Halma&#8217;s end markets have contributed to its resilience. The business sells safety, environmental and healthcare equipment which are often mission critical. The demand outlook for these technologies is strong, as safety and environmental regulations tighten across the globe, which bodes well for future dividends.</p>



<p class="wp-block-paragraph">But remember that regulations could change later down the line, hurting sales. Halma&#8217;s forward dividend yield is 0.7%.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/05/01/87-years-of-dividend-growth-3-ftse-100-shares-to-target-income/">93 years of dividend growth! 3 FTSE 100 shares to target income</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>Consider these FTSE 100 bargain shares in a Stocks and Shares ISA!</title>
                <link>https://www.twelfthmagpie.com/2026/04/20/consider-these-ftse-100-bargain-shares-in-a-stocks-and-shares-isa/</link>
                                <pubDate>Mon, 20 Apr 2026 06:20:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1676581</guid>
                                    <description><![CDATA[<p>These FTSE 100 shares are trading on rock-bottom P/E and PEG ratios. Royston Wild explains what makes them stunning value stocks to consider.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/04/20/consider-these-ftse-100-bargain-shares-in-a-stocks-and-shares-isa/">Consider these FTSE 100 bargain shares in a Stocks and Shares ISA!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
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<p class="wp-block-paragraph">Early data indicates this ISA season was a washout for <strong>FTSE 100</strong> shares. But it wasn&#8217;t just Footsie companies that suffered weak investor demand &#8212; UK shares of all colours were neglected before the end of the 2025/26 tax year.</p>



<p class="wp-block-paragraph">Against the backdrop of the Iran War, investors&#8217; appetite for riskier assets like equiries crumbled. ISA users didn&#8217;t even need to buy any shares to utilise some or all of their £20k yearly allowance. Just depositing cash was enough. Yet investor appetite remained muted.</p>



<p class="wp-block-paragraph">Given the huge discounts many stocks now trade on, this is a missed opportunity, in my view. History shows that quality stocks always recover strongly in value when confidence in the stock market improves. Buying these cheaply can supercharge one&#8217;s returns over time.</p>



<p class="wp-block-paragraph">It&#8217;s not too late to go bargain-hunting with a <a href="https://www.twelfthmagpie.com/investing-basics/isas-and-investment-funds/stocks-and-shares-isas/" id="https://www.twelfthmagpie.com/investing-basics/isas-and-investment-funds/stocks-and-shares-isas/" target="_blank" rel="noreferrer noopener">Stocks and Shares ISA</a> though. Here are just twocheap FTSE 100 stocks that I think demand a close look.</p>



<h2 class="wp-block-heading" id="h-fresnillo">Fresnillo</h2>


<div class="tmf-chart-singleseries" data-title="Fresnillo Plc Price" data-ticker="LSE:FRES" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph"><a href="https://www.twelfthmagpie.com/investing-basics/market-sectors/investing-in-gold-stocks-in-the-uk/" id="https://www.twelfthmagpie.com/investing-basics/market-sectors/investing-in-gold-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">Precious metals stocks</a> like <strong>Fresnillo </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-fres/">LSE:FRES</a>) have had a bumpy ride of late. The reason? Dollar-denominated commodities like gold and silver have slumped as the US currency has gained momentum.</p>



<p class="wp-block-paragraph">This leaves some tasty bargains to consider. This particular FTSE 100 miner now trades on a forward price-to-earnings growth (PEG) ratio of 0.4. Any sub-1 reading implies excellent value.</p>



<p class="wp-block-paragraph">Despite their recent blip, gold prices are <span style="text-decoration: underline">up 176%</span> over the last five years. In my view, investors can expect further strong gains over a longer time horizon. Central banks are tipped to keep buying bullion to diversify their currency holdings and guard against risk. I&#8217;m also expecting demand from retail and institutional investors to keep rising as geopolitical and macroeconomic issues linger.</p>



<p class="wp-block-paragraph">Buying Fresnillo shares does expose stock investors to the unpredictable business of mining and that&#8217;s a risk that can&#8217;t be shrugged off. But the Mexican company&#8217;s huge operational footprint means less risk than most other UK mining shares.</p>



<h2 class="wp-block-heading" id="h-sage-group">Sage Group</h2>


<div class="tmf-chart-singleseries" data-title="Sage Group plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Over six months, <strong>Sage </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE:SGE</a>) shares have dropped a painful 25% in value. </p>



<p class="wp-block-paragraph">Like Fresnillo, the software firm&#8217;s dropped sharply since the start of the Iran War. In this case, worries over company tech spending as inflation rises and growth slows has hit the stock.</p>



<p class="wp-block-paragraph">But that&#8217;s not all pushing Sage&#8217;s share price lower. It&#8217;s also been a victim of recent AI-related volatility &#8212; could demand for its accounting and payroll software slump if businesses choose to do these processes with AI?</p>



<p class="wp-block-paragraph">The threats are higher, no doubt, than they were six months ago. However, I feel the scale of the sell-off is overblown. Sage now trades on a forward price-to-earnings (P/E) ratio of 18.7 times. That&#8217;s significantly below the 10-year average of 31–32.</p>



<p class="wp-block-paragraph">I feel the company&#8217;s strong long-term outlook remains intact. More and more businesses are digitalising their operations, and by embracing AI itself Sage is better placed to seize this opportunity. I think considering the FTSE 100 share at today&#8217;s low price is worthwhile.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/04/20/consider-these-ftse-100-bargain-shares-in-a-stocks-and-shares-isa/">Consider these FTSE 100 bargain shares in a Stocks and Shares ISA!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>Down 45% and 33%! Consider these 2 cheap stocks to buy in April</title>
                <link>https://www.twelfthmagpie.com/2026/04/02/down-45-and-33-consider-these-2-bargain-stocks-to-buy-in-april/</link>
                                <pubDate>Thu, 02 Apr 2026 06:04:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1667555</guid>
                                    <description><![CDATA[<p>Looking for top stocks to buy at knockdown prices? Royston Wild reckons these FTSE 100 and FTSE 250 value stars demand a close look.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/04/02/down-45-and-33-consider-these-2-bargain-stocks-to-buy-in-april/">Down 45% and 33%! Consider these 2 cheap stocks to buy in April</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">Even the best companies can experience periods of extreme share price volatility. Take the following two shares: <strong>Unite Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-utg/">LSE:UTG</a>) and <strong>Sage Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE:SGE</a>). They&#8217;ve collapsed in value over the last year, leaving a terrific opportunity for shrewd investors seeking oversold stocks to buy.</p>



<p class="wp-block-paragraph">Want to know what makes them excellent turnaround shares to consider? Read on&#8230;</p>



<h2 class="wp-block-heading" id="h-growing-market">Growing market</h2>


<div class="tmf-chart-singleseries" data-title="Unite Group plc. Price" data-ticker="LSE:UTG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Unite Group is the UK&#8217;s largest provider of student accommodation, operating 142 properties across 22 university towns. It&#8217;s slumped 44% in value over the last year during a tough period for the company.</p>



<p class="wp-block-paragraph">Student numbers are still rising, but rental growth and reservations have cooled, reflecting pupils&#8217; currently fragile finances. In February, the company cut its full-year guidance and warned that rents would grow at the &#8220;<em>lower end</em>&#8221; of a 2%-3% range. To add to its problems, the soaring oil price is raising inflationary pressures and interest rate risks. Borrowing costs can balloon for property stocks when rates increase.</p>



<p class="wp-block-paragraph">Yet the long-term outlook for its market remains robust as ever. Britain&#8217;s centuries-old position as an academic hub isn&#8217;t going to change any time soon. I expect revenues and earnings to pick up sharply when economic conditions improve.</p>



<p class="wp-block-paragraph">This makes Unite shares an attractive recovery share in my book. And right now it offers terrific value, with a forward <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" id="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings (P/E) ratio</a> of 9.3 times. But that&#8217;s not all &#8212; the <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/" id="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/" target="_blank" rel="noreferrer noopener">dividend yield</a> for 2026 is a pumped-up 8.4%.</p>



<p class="wp-block-paragraph">One final thing: as a real estate investment trust (REIT), Unite must pay at least 90% of annual rental profits out in dividends. And dividend cover is robust at 1.2, making it a great share for dividend investors to consider.</p>



<p class="wp-block-paragraph"><em>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.</em></p>



<h2 class="wp-block-heading" id="h-another-bargain-stock-to-buy">Another bargain stock to buy?</h2>


<div class="tmf-chart-singleseries" data-title="Sage Group plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Sage&#8217;s share price has been hit by a double-whammy in recent months. It means the software share&#8217;s down 33% on a 12-month basis.</p>



<p class="wp-block-paragraph">Firstly, it&#8217;s dropped on fears that widescale artificial intelligence (AI) adoption will hit client demand. Broader economic worries have also hit the broader IT sector, worsened by the escalating Middle East conflict.</p>



<p class="wp-block-paragraph">It&#8217;s no surprise that fears of a cyclical downturn have hammered Sage&#8217;s shares. But have AI-related concerns been overblown? I think so. Over the longer term, I&#8217;m confident the <strong>FTSE 100</strong> share will rebound strongly as sales increase.</p>



<p class="wp-block-paragraph">I&#8217;m confident for a few reasons. Accounting, payroll and HR are critical processes in any business, and I&#8217;m not certain millions of them will be willing to entrust this to AI. Particularly when you consider what a low proportion of a company&#8217;s total costs Sage&#8217;s software account for.</p>



<p class="wp-block-paragraph">Furthermore, Sage is actually integrating AI into its products to turn this danger into an opportunity. And it seems to be paying off, driving double-digit revenue growth. </p>



<p class="wp-block-paragraph">There&#8217;s clear risk here, but I think this is more than baked into Sage&#8217;s share price today. The forward P/E is 16.5 times, miles below the 10-year average of 31-32.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/04/02/down-45-and-33-consider-these-2-bargain-stocks-to-buy-in-april/">Down 45% and 33%! Consider these 2 cheap stocks to buy in April</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>Down 20%! I think the market’s got these 2 cheap shares all wrong</title>
                <link>https://www.twelfthmagpie.com/2026/03/16/down-20-i-think-the-markets-got-these-2-cheap-shares-all-wrong/</link>
                                <pubDate>Mon, 16 Mar 2026 07:04:00 +0000</pubDate>
                <dc:creator><![CDATA[Ken Hall]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1661526</guid>
                                    <description><![CDATA[<p>These cheap shares have been hit hard in 2026, but Ken Hall thinks investors are too focused on short-term fear rather than the underlying businesses. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/16/down-20-i-think-the-markets-got-these-2-cheap-shares-all-wrong/">Down 20%! I think the market’s got these 2 cheap shares all wrong</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">It’s hard to find cheap shares. For one thing, it’s often only in hindsight that a company can look ‘cheap’.</p>



<p class="wp-block-paragraph">There’s no doubt 2026 has been a bumpy ride for shareholders. Whether it’s trade tariffs, oil prices, or war, there are plenty of things to keep investors up at night.</p>



<p class="wp-block-paragraph">However, uncertainty also creates opportunity. As Warren Buffett said: <em>“Be greedy when others are fearful, and be fearful when others are greedy”</em>.</p>



<p class="wp-block-paragraph">Two <strong>FTSE 100</strong> names have been smashed lately. Here’s why I think the market could be wrong about both of them.</p>



<h2 class="wp-block-heading" id="h-barclays-bargain"><strong>Barclays bargain?</strong></h2>



<p class="wp-block-paragraph">The first stock on my list is <strong>Barclays</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-barc/">LSE: BARC</a>). I think the current risks are overblown, and the bank’s growth trajectory remains on track.</p>



<p class="wp-block-paragraph">The worry around it is easy to understand. The shares were knocked after reports linked it to potential losses from the collapse of UK mortgage provider Market Financial Solutions.</p>



<p class="wp-block-paragraph">Investors are clearly worried about hidden credit problems. Still, I think the sell-off has gone too far. After all, the <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/price-to-book-ratio/">price-to-book</a> (P/B) ratio of 0.7 is a steep discount to the likes of <strong>HSBC </strong>(1.4) and <strong>NatWest </strong>(1.2).</p>



<p class="wp-block-paragraph">In its full-year 2025 results, Barclays reported an 11.3% return on tangible equity, a 14.3% capital ratio, and said it aims to deliver more than £15bn of capital returns to shareholders between 2026 and 2028.</p>



<p class="wp-block-paragraph">In other words, it remains profitable, well-capitalised, and willing to return cash to investors.</p>



<p class="wp-block-paragraph">That doesn’t make it risk-free. If the economy weakens, bad debts rise, or the private credit story worsens, it could spell trouble. But when a large bank is still producing solid numbers, I think a 20% year-to-date drop looks harsh.</p>



<p class="wp-block-paragraph">Even after the recent wobble, the stock is still up 114% over five years as I write, ahead of the market open on 16 March.</p>


<div class="tmf-chart-singleseries" data-title="Barclays plc Price" data-ticker="LSE:BARC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-is-sage-oversold"><strong>Is Sage oversold?</strong></h2>



<p class="wp-block-paragraph">The other Footsie stock I’ve been watching is <strong>Sage</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE: SGE</a>). The recent weakness looks like a different kind of opportunity.</p>



<p class="wp-block-paragraph">The concern is that advances in artificial intelligence could undercut existing software providers and impact future earnings.</p>



<p class="wp-block-paragraph">The Sage share price has been under pressure, falling 20% year-to-date to 840p as I write on Sunday (15 March). It’s not alone. AI concerns have weighed on software stocks around the world in recent months.</p>



<p class="wp-block-paragraph">However, Sage’s underlying business still looks strong to me. Its full-year 2025 results showed 11% growth in annual recurring revenue, 10% revenue growth, and a 17% rise in underlying operating <a href="https://www.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">profit</a>. Management also reiterated guidance for 9% or more organic growth in FY26. That’s not what I’d expect from a business in imminent trouble.</p>



<p class="wp-block-paragraph">Of course, there are risks. If AI tools put pressure on pricing, or if customers move faster than expected towards newer software options, the shares could still fall further.</p>



<p class="wp-block-paragraph">But with recurring revenue, healthy margins, and steady growth, I think the market may be panicking unnecessarily.</p>



<h2 class="wp-block-heading" id="h-why-the-market-could-be-wrong"><strong>Why the market could be wrong</strong></h2>



<p class="wp-block-paragraph">I think both of these companies are cheap shares right now. The recent repricing, amid wider uncertainty in the market, could be overdone.</p>



<p class="wp-block-paragraph">Both companies are facing genuine risks. But neither business looks fundamentally broken to me and so could be worth considering.</p>



<p class="wp-block-paragraph">That doesn’t mean either stock will bounce back quickly. It just means that when fear causes a sharp 20% decline, it makes me wonder about a potential buying opportunity.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/16/down-20-i-think-the-markets-got-these-2-cheap-shares-all-wrong/">Down 20%! I think the market’s got these 2 cheap shares all wrong</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>The SIPP deadline is looming! Here&#8217;s a last-minute FTSE 100 share to consider</title>
                <link>https://www.twelfthmagpie.com/2026/03/07/the-sipp-deadline-is-looming-2-last-minute-ftse-100-shares-to-consider/</link>
                                <pubDate>Sat, 07 Mar 2026 07:02:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1657977</guid>
                                    <description><![CDATA[<p>Looking for last-minute stocks to buy for a self-invested personal pension (SIPP)? This FTSE 100 faller could be a great dip buy to consider.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/07/the-sipp-deadline-is-looming-2-last-minute-ftse-100-shares-to-consider/">The SIPP deadline is looming! Here&#8217;s a last-minute FTSE 100 share to consider</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">SIPP users have less than a month to use their full investment allowance for this year. The deadline is 5 April, the final day of the tax year. For many of us, any unused portion of this allowance will be lost forever.</p>



<p class="wp-block-paragraph">Users can invest up to £60,000 in a SIPP each year or 100% of their annual earnings, whichever is lower. This includes total contributions from them and their employer, as well as tax relief. Any unused allowances from the prior three years can be moved forwards, though this won&#8217;t help investors who have already maxed out their allocation.</p>



<p class="wp-block-paragraph">SIPP users only need to deposit cash in their account to secure the annual allowance. They don&#8217;t actually need to purchase any shares, funds, or trusts straight off the bat. But with the London stock market being packed with bargains right now, why wait?</p>



<p class="wp-block-paragraph"><strong>Sage Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE:SGE</a>) is one top cheap share to consider from the <strong>FTSE 100</strong>. What makes the software giant a top contender this SIPP season?</p>



<h2 class="wp-block-heading" id="h-a-beaten-down-giant">A beaten-down giant</h2>


<div class="tmf-chart-singleseries" data-title="Sage Group plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Sage Group is one of the FTSE 100&#8217;s worst performing shares over the last year. It&#8217;s slumped 31% in value, reflecting worries over potential artificial intelligence (AI) disruption. Investors are questioning why people would pay for its software-as-a-service (SaaS) offerings when they can do it cheaper and potentially easier with AI.</p>



<p class="wp-block-paragraph">But have these fears been overblown? Possibly, though only time will tell. The rapid pace of AI development means no-one can confidently predict the outcome, and I&#8217;m not about to start!</p>



<p class="wp-block-paragraph">Too cheap to miss?</p>



<p class="wp-block-paragraph">That said, there are reasons to believe the market may have overreacted. And at current prices, I think Sage shares are worth close attention. They trade on a forward <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings (P/E) ratio</a> of 18.8, well below the 10-year average of 31-32.</p>



<p class="wp-block-paragraph">That&#8217;s not the only thing that&#8217;s caught my eye. City analysts expect Sage&#8217;s earnings growth to explode to 122% in 2026, leaving the FTSE firm on a <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/the-peg-ratio/" target="_blank" rel="noreferrer noopener">P/E-to-growth (PEG) ratio</a> of 0.9 as well. Any reading below 1 suggests a share that&#8217;s trading below value.</p>



<h2 class="wp-block-heading" id="h-seizing-the-ai-opportunity">Seizing the AI opportunity</h2>



<p class="wp-block-paragraph">Not having proper accounting, payroll, and HR systems in place can cause enormous operational disruption and potential legal problems. Will companies want to risk this with AI? I&#8217;m not so sure, and especially as the cost benefit of switching from Sage would likely be negligible.</p>



<p class="wp-block-paragraph">Sage is actually investing large sums in its own AI capabilities to capitalise on growing user interest here, and is integrating AI more deeply into its standard software. Last year it introduced its <em>Sage Copilot </em>tool that automates routine tasks and monitors data to identify errors.</p>



<p class="wp-block-paragraph">It&#8217;s also moving more closely to agentic AI that can complete multi-step tasks autonomously. Its AI Developer Solutions will launch in November to allows partners to build custom models directly inside Sage products.</p>



<p class="wp-block-paragraph">So are Sage shares a buy? While they&#8217;re not without risk, I think they&#8217;re worth a close look from SIPP investors at current prices.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/07/the-sipp-deadline-is-looming-2-last-minute-ftse-100-shares-to-consider/">The SIPP deadline is looming! Here&#8217;s a last-minute FTSE 100 share to consider</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>Down 34%, I think this FTSE 100 stock&#8217;s a top share to consider in March!</title>
                <link>https://www.twelfthmagpie.com/2026/03/02/down-34-or-more-2-ftse-100-stocks-i-think-could-rebound-in-2026/</link>
                                <pubDate>Mon, 02 Mar 2026 15:35:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1655272</guid>
                                    <description><![CDATA[<p>This FTSE 100 share's slumped in value as software stocks across the globe have retraced. Royston Wild asks: is this a top dip-buying opportunity?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/02/down-34-or-more-2-ftse-100-stocks-i-think-could-rebound-in-2026/">Down 34%, I think this FTSE 100 stock&#8217;s a top share to consider in March!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">The <strong>FTSE 100</strong> is striking new heights as demand for cheap UK stocks soars. It&#8217;s a whisker away from 11,000, and could well take out this key milestone in March. But not all blue-chip shares are keeping pace.</p>



<p class="wp-block-paragraph">Take <strong>Sage Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE:SGE</a>). This FTSE-listed company plummeted in 2025, and hasn&#8217;t exactly got the current calendar year off to a flyer. But could this mark an attractive dip-buying opportunity for patient investors?</p>



<p class="wp-block-paragraph">I think so, and believe it could rebound strongly in 2026. Here&#8217;s why, along with an explanation as to why it&#8217;s a top stock to consider.</p>



<h2 class="wp-block-heading" id="h-cheap-as-chips">Cheap as chips</h2>



<p class="wp-block-paragraph">Like hundreds of software stocks the world over, Sage shares have toppled amid mounting worries over artificial intelligence (AI) disruption. At 830p per share, they&#8217;re down 20% since 1 January. They&#8217;ve dropped more than a third over a year (34%).</p>


<div class="tmf-chart-singleseries" data-title="Sage Group plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Has the market overreacted though? We&#8217;re still at the early stages of the AI revolution, so it&#8217;s hard to make a definitive conclusion. But investors are certainly spooked, fearing businesses will switch to cheaper alternatives for their accounting, payrolls and HR functions.</p>



<p class="wp-block-paragraph">But here&#8217;s the thing: after Sage&#8217;s price correction, it&#8217;s possible that this danger&#8217;s more than reflected in its rock-bottom valuation. Today, the tech giant trades on a forward <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings (P/E) ratio</a> of 18.5 times. That&#8217;s some way below the long-term average of roughly 31.</p>



<h2 class="wp-block-heading" id="h-is-sage-ai-resistant">Is Sage AI-resistant?</h2>



<p class="wp-block-paragraph">In public at least, the FTSE 100 company&#8217;s putting on a brave face. In fact, it argues that AI has strengthened its business model, not weakened it.</p>



<p class="wp-block-paragraph">You might be thinking &#8220;<em>ah, but of course the company would say that&#8221;!</em> But early evidence suggests it might be onto something. Its organic <a href="https://www.twelfthmagpie.com/investing-basics/investment-glossary/what-is-revenue/" id="www.twelfthmagpie.com/investing-basics/investment-glossary/what-is-revenue/" target="_blank" rel="noreferrer noopener">sales</a> growth accelerated to 10% between October and December, which the company put down to the integration of the <em>Sage Copilot</em> tool in its products.</p>



<p class="wp-block-paragraph">Again, these are early days. But I&#8217;m optimistic Sage can thrive in the AI era for many reasons. Accounting is a complex, highly regulated process and subject to different laws across regions. This creates natural barriers.</p>



<p class="wp-block-paragraph">There&#8217;s also the trust issue &#8212; will businesses want to give control to critical processes like tax compliance to a new AI tool? I&#8217;m not so sure. In this regard Sage holds a trump card, with a track record of providing reliable accounting solutions since the early 80s.</p>



<p class="wp-block-paragraph">The final thing to remember is that Sage&#8217;s products aren&#8217;t that expensive. In the UK, its more advanced AI-assisted Accounting Plus package is just £59 a month, plus VAT. At these prices, I&#8217;m not sure businesses will up and leave in massive numbers, and especially considering the points we&#8217;ve discussed.</p>



<h2 class="wp-block-heading" id="h-a-top-ftse-100-share">A top FTSE 100 share</h2>



<p class="wp-block-paragraph">So will Sage&#8217;s share price rebound in 2026? I can&#8217;t be certain, naturally. None of us can. However, I have a feeling that fears over AI disruption here may have been overblown, leading to a potential price recovery. For more risk-tolerant investors, I think it&#8217;s a top FTSE 100 stock to consider.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/02/down-34-or-more-2-ftse-100-stocks-i-think-could-rebound-in-2026/">Down 34%, I think this FTSE 100 stock&#8217;s a top share to consider in March!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>Attention! these FTSE 100 shares are growing in Stocks and Shares ISA popularity</title>
                <link>https://www.twelfthmagpie.com/2026/02/24/attention-these-ftse-100-shares-are-growing-in-stocks-and-shares-isa-popularity/</link>
                                <pubDate>Tue, 24 Feb 2026 16:15:00 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1651040</guid>
                                    <description><![CDATA[<p>Is AI the friend or enemy of the UK's Stocks and Shares ISA favourites? Here are two that have suffered, but could be temptingly cheap.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/02/24/attention-these-ftse-100-shares-are-growing-in-stocks-and-shares-isa-popularity/">Attention! these FTSE 100 shares are growing in Stocks and Shares ISA popularity</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
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<p class="wp-block-paragraph">February has seen many of the UK&#8217;s favourite Stocks and Shares ISA picks still appearing in the monthly top 10 lists. But investors are turning towards a couple of intriguing options that catch my eye.</p>



<p class="wp-block-paragraph">And don&#8217;t forget, we&#8217;re heading into the last full month before the ISA deadline, so we need to get our choices in order soon if we want to top up our ISAs before time runs out.</p>



<p class="wp-block-paragraph">So which <strong>FTSE 100</strong> shares do UK investors favour now?</p>



<h2 class="wp-block-heading" id="h-february-top-picks">February top picks</h2>



<p class="wp-block-paragraph"><strong>RELX</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-rel/">LSE: REL</a>) has been creeping up the ISA popularity lists, as its share price has been sliding. It&#8217;s down 47% since its 52-week high of May 2025. And the share price dropped sharply as we headed towards full-year results on 12 February &#8212; which turned out solid.</p>



<p class="wp-block-paragraph">Revenue increased 7%, adjusted <a href="https://www.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-profit-and-loss-account/" target="_blank" rel="noreferrer noopener">operating profit </a>perked up 9%, and adjusted earnings per share jumped 10%. The company lifted the dividend 7%, well ahead of inflation. RELX returned £1.5bn to shareholders via <a href="https://www.twelfthmagpie.com/investing-basics/understanding-the-market/share-buybacks/" target="_blank" rel="noreferrer noopener">share buybacks</a> over the year. And we should expect a further £2.25bn in 2026.</p>



<p class="wp-block-paragraph">As with so many share price upsets these days, AI lies behind the drop &#8212; made worse by Anthropic&#8217;s Claude legal chatbot release. Nobody can have missed the software sell-off that&#8217;s hit more traditional tech stocks across the board.</p>



<p class="wp-block-paragraph">The future is likely to see RELX sentiment pulled two ways. In the positive direction we have long-term customers who rely on human-led trust, with a well-proven track record. That can be especially important in RELX&#8217;s legal data offerings. Against that we have the promise of cheap and fast AI services, and the hope that the proportion of misleading slop they churn out will diminish.</p>



<p class="wp-block-paragraph">Optimists see AI as an opportunity for companies to incorporate it and offer the best of both worlds. Investors who feel like that should consider RELX while the shares are down, I reckon.</p>


<div class="tmf-chart-multipleseries" data-title="RELX Plc + Sage Group plc Price" data-tickers="LSE:REL LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value="percent"></div>



<h2 class="wp-block-heading" id="h-suffering-softies">Suffering softies</h2>



<p class="wp-block-paragraph">The <strong>Sage</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE: SGE</a>) share price trajectory closely follows RELX, for the same reason. Sage has for years been a number one pick for business and accounting software. And yes, the AI beast is threatening to take the food from the mouths of human software developers here too.</p>



<p class="wp-block-paragraph">But it hasn&#8217;t held Stocks and Shares ISA investors back. And Sage made a new entry in interactive investor&#8217;s top 10 ISA list in February.</p>



<p class="wp-block-paragraph">We&#8217;ll have to wait until May to see how the first half of Sage&#8217;s current financial year goes. But in January&#8217;s first-quarter update, CFO Jacqui Cartin reported &#8220;<em>a strong start to FY26, with Q1 organic revenue growth accelerating to 10%</em>.&#8221; And she reiterated full-year guidance from November&#8217;s 2025 full-year results.</p>



<p class="wp-block-paragraph">Back then, management spoke of organic revenue growth of 9% or better. Operating margins were &#8220;<em>expected to continue trending upwards in FY26 and beyond.</em>&#8220;</p>



<p class="wp-block-paragraph">Is this another company that could embrace AI and use it for future growth rather than being made redundant by it? I see a good chance of it. And I rate Sage as another that long-term ISA investors should consider. Just beware of the AI threat too.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/02/24/attention-these-ftse-100-shares-are-growing-in-stocks-and-shares-isa-popularity/">Attention! these FTSE 100 shares are growing in Stocks and Shares ISA popularity</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>2 FTSE 100 shares that look dirt-cheap despite record highs!</title>
                <link>https://www.twelfthmagpie.com/2026/02/21/2-ftse-100-shares-that-look-dirt-cheap-despite-record-highs/</link>
                                <pubDate>Sat, 21 Feb 2026 07:05:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1651655</guid>
                                    <description><![CDATA[<p>These FTSE 100 shares are on sale, even as the broader blue-chip index scales fresh peaks. Royston Wild explains why these top stocks demand attention.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/02/21/2-ftse-100-shares-that-look-dirt-cheap-despite-record-highs/">2 FTSE 100 shares that look dirt-cheap despite record highs!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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<p class="wp-block-paragraph">The <strong>FTSE 100</strong> index of elite shares continues to rocket. This week it hit new record peaks above 10,700 points, taking gains over the last year to 23%. In today&#8217;s climate, it&#8217;s extremely challenging for investors to discover cheap quality stocks to buy.</p>



<p class="wp-block-paragraph">Or is it? My research has just thrown up two bona-fide bargains I think are too good to ignore. <strong>Babcock International </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-bab/">LSE:BAB</a>) and <strong>Sage Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE:SGE</a>) both offer exceptional value for money at current prices.</p>



<p class="wp-block-paragraph">But what makes them worthy of your attention today? Read on.</p>



<h2 class="wp-block-heading" id="h-a-ftse-100-momentum-stock">A FTSE 100 momentum stock</h2>


<div class="tmf-chart-singleseries" data-title="Babcock International Group plc Price" data-ticker="LSE:BAB" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Babcock shares have been playing catch-up to the broader defence sector in recent times. Yet despite more than doubling in value over the past year, the <a href="https://www.twelfthmagpie.com/personal-finance/share-dealing/guides/what-is-the-ftse-100/" target="_blank" rel="noreferrer noopener">Footsie</a> firm still offers market-beating value. At £14.14 per share, its forward <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings (P/E) ratio</a> of 22.3 times is one of the lowest in the sector.</p>



<p class="wp-block-paragraph">It&#8217;s true that Babcock is less geographically diversified that many blue-chip defence companies. It sources around 75% of total sales from the UK. That said, with the government taking steps to supercharge defence spending &#8212; it&#8217;s one of NATO&#8217;s frontrunners in terms of hiking spending &#8212; this doesn&#8217;t cause me too much discomfort right now.</p>



<p class="wp-block-paragraph">Rising revenues and improving margins drove operating profit 27% higher in the first half, illustrating Babcock&#8217;s ability to capture business in the current favourable climate. Its contract backlog is also rising and was up £400m year on year as of September, at £9.9bn.</p>



<p class="wp-block-paragraph">I think it could be one of the sector&#8217;s big winners as NATO nations rapidly rebuild their arsenals.</p>



<h2 class="wp-block-heading" id="h-a-top-dip-buy">A top dip buy?</h2>


<div class="tmf-chart-singleseries" data-title="Sage Group plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Sage is possibly one of the most &#8216;at-risk&#8217; FTSE shares when it comes to price volatility. Fears over the potential impact of artificial intelligence (AI) on software stocks like this aren&#8217;t going away any time soon. AI could decimate their revenues if businesses choose more cost-effective options.</p>



<p class="wp-block-paragraph">But at current prices, I think Sage shares are worth a close look from those who don&#8217;t follow the herd. At 823p, the firm trades on a forward P/E ratio of 17.8 times following recent price falls. That&#8217;s far below the 10-year average of roughly 31.</p>



<p class="wp-block-paragraph">The company provides accounting, payroll, and human resources software. And it&#8217;s earned universal trust for handling these critical tasks. Will companies want to risk upsetting the apple cart by trusting these to AI? It&#8217;s possible, but I&#8217;m not sure. Besides, the cost of Sage&#8217;s services are negligible in the broader scheme of companies&#8217; overall outgoings. I don&#8217;t see customers flocking to AI in large enough numbers to materially hurt revenues.</p>



<p class="wp-block-paragraph">It&#8217;s also worth noting the FTSE 100 share has spent heavily on its own AI tools. And it is seeing some success, its <em>Sage Copilot</em> helping drive organic revenues 10% higher during September-December. As dip buys go, I think this is one of the best to consider.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/02/21/2-ftse-100-shares-that-look-dirt-cheap-despite-record-highs/">2 FTSE 100 shares that look dirt-cheap despite record highs!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>Thank goodness I avoided these 2 FTSE 100 stocks a year ago. Should I consider them today?</title>
                <link>https://www.twelfthmagpie.com/2026/02/15/thank-goodness-i-avoided-these-2-ftse-100-stocks-a-year-ago-should-i-consider-them-today/</link>
                                <pubDate>Sun, 15 Feb 2026 07:23:00 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1648172</guid>
                                    <description><![CDATA[<p>Two high-quality but beaten-down FTSE 100 growth shares are on my radar today as potential undervalued plays with recovery potential.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/02/15/thank-goodness-i-avoided-these-2-ftse-100-stocks-a-year-ago-should-i-consider-them-today/">Thank goodness I avoided these 2 FTSE 100 stocks a year ago. Should I consider them today?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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<p class="wp-block-paragraph">After a roller coaster 2025, plenty of <strong>FTSE 100</strong> shares have been left nursing painful losses &#8212; but that’s often where the most compelling opportunities emerge.</p>



<p class="wp-block-paragraph">Some high-quality blue-chip businesses have seen their share prices knocked down far more sharply than their underlying fundamentals. For investors with a long-term outlook, this could provide a chance to grab some undervalued shares before they rebound.</p>



<h2 class="wp-block-heading" id="h-experian">Experian</h2>



<p class="wp-block-paragraph">Despite strong fundamentals, <strong>Experian</strong>&#8216;s (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-expn/">LSE: EXPN</a>) share price has plunged about 40% over the past year. According to reports, the market fears that artificial intelligence (AI) might disrupt the company&#8217;s business model.</p>


<div class="tmf-chart-singleseries" data-title="Experian Plc Price" data-ticker="LSE:EXPN" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">The question now is: will it find new ways to remain relevant in an increasingly AI-dominated world?</p>



<p class="wp-block-paragraph">On paper, things still look good. Most notably, it boasts a stellar <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/return-on-equity-and-return-on-capital-employed/" target="_blank" rel="noreferrer noopener">return on equity</a> (ROE) of 27.6%, reflecting efficient profit generation from shareholder capital &#8212; well above industry averages.</p>



<p class="wp-block-paragraph">The balance sheet and recent results are also impressive. Equity comfortably covers debt, revenue grew 5.8% year on year, and organic growth reached 8% in recent results. A majority of analysts give the stock a Strong Buy rating. Targets like 4,300p from <strong>UBS</strong> highlight optimism about its cloud migration and margin expansion.</p>



<p class="wp-block-paragraph">Earnings per share (EPS) rose 15% even as the share price fell, reiterating the external impact of AI and potentially setting up a rebound if fears subside.</p>



<p class="wp-block-paragraph">One key risk is sensitivity to interest rate shifts and lender caution. This could slow credit checks and fraud screenings (one of its main revenue drivers) if borrowing stays subdued longer than expected.</p>



<p class="wp-block-paragraph">Considering Experian&#8217;s market-leading position, it seems unlikely that these temporary challenges are insurmountable. For patient investors, I think this price slump presents an opportunity worth exploring &#8212; and one I plan to capitalise on.</p>



<h2 class="wp-block-heading" id="h-sage-group">Sage Group</h2>



<p class="wp-block-paragraph">Shares in <strong>Sage</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sge/">LSE:SGE</a>) are down 39% in the past year, hitting new lows around 800p after analyst tweaks. But like Experian, its fundamentals remain solid. An exceptional ROE of 40% suggests excellent capital efficiency, with its net margin at a decent 14.68%.</p>


<div class="tmf-chart-singleseries" data-title="Sage Group plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Revenue climbed 7.76% year on year (averaging 6.9% historically), fueled by recurring SaaS subscriptions and cloud transitions in accounting software. Most analysts view it as a Strong Buy, with a board-approved buyback signaling potential undervaluation. It has a moderately low forward <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> (P/E) ratio of 15.9 and an acceptable P/E growth (PEG) ratio of 1.22.</p>



<p class="wp-block-paragraph">Plus, EPS forecasts of 42p support dividend sustainability.</p>



<p class="wp-block-paragraph">However, an increase in insider sales have raised eyebrows. Total insider ownership remains below 1%, so the impact is minimal, but the sentiment is concerning. But a more pressing risk is elevated debt &#8212; more than double equity. That could strain finances or lead to a default if earnings slip amid economic slowdowns or delayed cloud adoption.</p>



<p class="wp-block-paragraph">To some degree, the company&#8217;s solid cash flow and strong ROE mitigate this risk.&nbsp;Plus, the share price decline appears overstated due to sector rotation away from growth tech.&nbsp;</p>



<p class="wp-block-paragraph">For risk-tolerant buyers eyeing long-term compounding, this could be an opportunity to grab some shares in a growing firm with loyal enterprise customers. The tech rally might be cooling off in the short-term, but Sage remains a compelling stock worth considering.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/02/15/thank-goodness-i-avoided-these-2-ftse-100-stocks-a-year-ago-should-i-consider-them-today/">Thank goodness I avoided these 2 FTSE 100 stocks a year ago. Should I consider them today?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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