BT (LSE:BT.A) shares has been one of the FTSE 100‘s top 10 performers so far this year. It’s up 29% since 1 January, as investors pile in for a slice of the firm and its impressive turnaround strategy.

Can the party continue, though? Analysts are split, as the table below shows:

So what can we expect over the next year?

Strong momentum

First it’s critical to consider what’s propelled BT over the last year. As I say, it’s down to the telecoms firm’s so-far successful transformation strategy. It’s already achieved £1.2bn of its £3bn cost-cutting plan, targeted through measures like switching customers to cheaper-to-run 5G and fibre broadband from traditional copper networks.

Investors are also encouraged that the company will be spending less on its fibre rollout strategy from this point. The result? As Hargreaves Lansdown analysts note, “that’s good news for future cash flows [as] a much leaner operation is needed to drive long-term growth.”

Finally, BT’s high-margin Openreach infrastructure division continues to benefit white-hot demand. It added a further 571k customers between September to December, latest financials showed. This pushed divisional adjusted EBITDA 2% higher. Openreach has considerable long-term potential as the ongoing digital revolution drives fibre broadband uptake.

What’s the catch?

The problem is, there are many threats facing BT that could send its shares lower again. Yet at current prices of 238.3p, it seems the market is giving little heed to these dangers and only reflecting on its recent successes.

Today its price-to-earnings (P/E) ratio has leapt to 15.8, far above the long-term average of 8-9.

So what are these threats to BT and its share price? One is subdued consumer spending as the Iran War fuels inflation and weighs further on economic growth. The firm’s already struggling to turn around its bottom line — a situation made worse by the enormous competitive pressures it faces — with revenues dropping 4% in the December quarter. This dragged adjusted EBITDA 1% lower.

Rising inflationary pressures could be especially problematic for BT. It could bring the strong progress it’s been making on cutting costs to a crunching halt. But that’s not my main worry. The company’s debts are huge — its net debt was £20.8bn in December, and rising — and Bank of England action to curb inflation could drive its repayment costs sky high.

£5,000 could turn into…

So what could BT shares be worth by this time next year? Returning to those price forecasts I described earlier, a £5,000 investment today will be worth:

• £6,950, based on the most bullish City forecast.
• £3,000, according to the lowest price estimate.
• £4,650, based on analyst consensus.

However, accurately predicting near-term price movements is a difficult task, even for seasoned City brokers. Few expected BT’s share price to soar 45% over the last 12 months. These forecasts could similarly miss their target.

All I can do is take a view on the risks and potential rewards of buying BT shares today. And in my view, I think the FTSE firm’s in danger of sinking given its huge valuation and the rising pressures it faces. This is why I’d rather find other stocks to buy right now.

The post Up 45%, how much could £5,000 of BT shares be worth in 12 months appeared first on The Twelfth Magpie.

More reading

• £503 buys 14 shares in this FTSE 250 stock that returned 23.9% annually for the last 15 years
• £1,000 buys 25 shares in this FTSE 100 stock that’s returned 29.2% annually for the last 10 years
• Down 47%, is this growth stock finally worth buying in May?
• 2 REITs yielding 7%+ to consider for passive income in 2026
• Just 97 shares of this UK dividend stock generate £238 in passive income

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Vistry Group (LSE:VTY) is one of the FTSE 250‘s worst-performing shares of 2026. It’s collapsed 55% in value in the year to date, having slumped another 12% today (13 May).

Like those of other housebuilding stocks, the Iran War has pushed Vistry’s share price sharply lower. Valuations have dropped as the conflict drives up inflation and slows homebuyer acvitity. But has the stock market overreacted?

Not if Vistry’s trading update is anything to go by…

So what’s Vistry said?

Markets hate uncertainty. So investors have reacted badly to Vistry’s advice that in the last two months

the level of macro-economic uncertainty has increased, and with it the range of potential outcomes for the current year.

What it did predict is that it expects H1 profit “to be significantly lower than the prior year.” In better news, performance in H2 is tipped to match that of the same period in 2025, thanks to better margins on active sites and rising demand from the firm’s affordable housing partners.

The company now expects adjusted pre-tax profit for the full year to come in around the middle of the range of analysts’ forecasts. These currently sit at £168m to £283m. Profits were £268.8m in 2025.

What about sales rates?

Vistry said its open market sales rate is up 32% since 1 January (at 1.2 versus 0.91 last year). However, it’s also seen “some moderation in recent weeks reflecting uncertainty arising from the Middle East conflict,” it noted, prompting it to introduce more incentives and discounts for buyers, particularly on low-margin sites.

Vistry’s forward order book is £4.5bn, down from £4.6bn at the same point in 2025.

It’s not just sales rates that are under pressure as buyer caution and mortgage products becoming more expensive. Building material and labour costs are also rising, which Vistry has noted recently and expects to continue into H2.

It’s no surprise that the shares have plummeted again. The company now trades on a forward price-to-earnings (P/E) ratio of 7.3 times. But I’m wondering: could now be an attractive dip-buying opportunity?

A FTSE 250 bargain?

I’m not expecting things to get better any time soon. Things could in fact get much worse. Yet I’m optimistic Vistry’s share price will recover strongly over time. And for long-term investors, now might be a good time to consider opening a position.

It’s also important to think about how cheap the share now is. That P/E of 7.3 is miles below the 10-year average of 14–15. What’s more, Vistry’s price-to-book (P/B) value of 0.3 shows the company trading at a massive discount to its balance sheet assets.

It makes me believe that — for patient investors at least — it might be one of the best value shares to consider right now. Long term, the outlook for the housing market remains robust, driven by the UK’s booming population. And the company has a new chief executive, Adam Daniels, to help it seize this opportunity. Just remember there could be some more bumps along the way.

The post Down 55%! Is this one of the FTSE 250’s greatest value shares? appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Vistry Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

International Consolidated Airlines (LSE:IAG) shares are bouncing back. Tensions over the Iran War rumble on, but the FTSE 100 airline group is recovering nicely. At 403.7p per share, it’s up 8% over the last seven days. How has IAG’s share price managed to spring higher, then? And where will the FTSE 100 firm head to next?

What’s happened?

The British Airways owner’s risen largely on the news it plans to repurchase €825m worth of convertible bonds due in 2028. IAG’s announcement on Monday (12 May) has several positives for shareholders when the transaction likely completes in the coming days.

These include:

• Eliminating the threat of these bonds being converted into shares, meaning earnings will be spread across fewer shares.
• Existing shareholders will retain a larger percentage of the business.
• Lowering IAG’s financing costs over time.
• Signalling management’s confidence in its liquidity and future earnings.

This isn’t the only news coming out of IAG in recent days, though. The problem is that other developments are far, far less encouraging…

Turbulence rising

The Footsie firm has also released fresh trading numbers in recent days (8 May). It painted a picture of a company under mounting pressure as the Iran War drags on.

Sales rose 1.9% in the first quarter, IAG said as it reported “strong demand across most of our markets.” Demand was especially strong for its Premium cabins and across its transatlantic routes, of which the latter makes up around half the group’s capacity.

The problem? Soaring fuel prices more recently, which have forced IAG to cut its full-year profit forecasts. The company said it now expects the Middle East conflict to have a more substantial impact throughout the rest of the year as the increase in the fuel cost starts to manifest itself.

IAG is reducing capacity growth to deal with the crisis. It’s also expecting to recover around 60% of higher fuel costs “through our revenue and cost management actions.”

But how effective will these actions prove?

Growing threats

I’m not so hopeful. Just how far will IAG be able to hike fares to offset rising fuel prices as consumers cut back?

‘Not by much’ is my view. Judging from recent data, the business may struggle to shift tickets even if they stay at today’s prices. According to Barclays, household spending in the UK fell at the fastest pace for 16 months in April.

And here’s the thing: travel spending fell 5.7% last month, accelerating from 3.3% in March. Airline spending collapsed 8.3% year on year, with one-in-six consumers saying they’re delaying making holiday-related decisions “until they feel the outlook has stabilised.”

Are IAG shares a possible buy?

When this happens is anyone’s guess, given the situation in the Middle East and uncertainty over its eventual economic impact. Similar caution is being seen in other key IAG markets, too.

I don’t feel these rising revenue and cost threats are baked into IAG’s share price. And this leaves it in danger of a sharp correction in the weeks and months ahead. The price-to-earnings (P/E) ratio is 7.9 times, well above the long-term average of five.

IAG shares might be worth a look for more risk-tolerant investors. But I won’t be buying the FTSE company for my own portfolio.

The post Up 8%, how are International Consolidated Airlines (IAG) shares rising again? appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Searching for the best growth stocks to buy? I’ve found two that I believe deserve serious attention from savvy investors:

• Gold miner Pan African Resources (LSE:PAF).
• IT services provider NCC Group (LSE:NCC).

Each is expected to enjoy explosive earnings growth by City analysts this year. And here’s the kicker: their share prices are tipped to surge during the next 12 months. So what makes these growth shares worth consideration right now?

Going for gold

Pan African Resources’ share price has surged 216% during the last 12 months. One bullish analyst expects it to rise another 15% by next May. The average share price forecast among brokers suggests a 27% uplift from today’s levels of 179.2p.

This chiefly reflects the bright outlook for gold prices. Bullion remains below February’s peaks of $5,600 per ounce, at $4,718. But underlying metal demand remains rock-solid and prices are building momentum again.

Latest World Gold Council (WGC) data showed gold-backed ETFs last month enjoying inflows of $6.6bn, with strength across all regions. Total assets under management (AUMs) in these funds increased 1% to $615bn. Can this continue? I think so, as geopolitical tensions rise and economic growth cools.

This bodes extremely well for gold stocks. When metal prices increase, their earnings tend to rise more rapidly due to their fixed costs. This explains why Pan African Resources’ share price has leapt more rapidly than gold has over the past year.

City analysts are expecting the miner’s earnings to rise 229% in 2026. This stunning projection also reflects Pan African’s long-running expansion programme — full-year production is expected to increase to between 275,000 and 292,000 ounces, up from 197,000 in 2025.

Of course any production setbacks could derail these strong growth forecasts. So might an unexpected end to the gold price rally. But on balance, things are looking bright for the company right now.

How about this tech star?

I’m also excited about NCC’s growth stock credentials. So much so that I’m hoping to invest here myself when I have spare cash to hand.

The cybersecurity specialist hasn’t fared nearly as well as Pan African over the last year. In fact, its shares have sunk 20%. Yet City analysts are confident it’ll bounce back. The average 12-month price forecast is 15%. One particular broker thinks it can rebound 20% from 157.5p today.

The reason? Surging demand for online security products as the frequency and severity of threats grows. Cyber revenues at NCC rose 6% in the six months to March, driving adjusted EBITDA 28% higher. For the full financial year, City analysts expect earnings to increase 168% year on year as operational efficiencies also kick in.

There are threats to these forecasts as the Iran War raises inflation and hits economic growth. NCC also has significant competitive threats it needs to see off.

However, I still think this growth stock’s worth a close look for its excellent long-term potential. Analysts think the global security market will grow by 9% to 10% each year over the next decade.

The post Analysts expect these growth stocks to soar 27% and 20% in value by next May! appeared first on The Twelfth Magpie.

More reading

• £503 buys 14 shares in this FTSE 250 stock that returned 23.9% annually for the last 15 years
• £1,000 buys 25 shares in this FTSE 100 stock that’s returned 29.2% annually for the last 10 years
• Down 47%, is this growth stock finally worth buying in May?
• 2 REITs yielding 7%+ to consider for passive income in 2026
• Just 97 shares of this UK dividend stock generate £238 in passive income

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Real estate investment trusts (or REITs) can be an incredible way to make passive income over time. These property stocks are unique in that they pay 90% or more of rental profits out in dividends each year. That’s in exchange for breaks on corporation tax.

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.

Here I’d like to talk about three top trusts in particular: Tritax Big Box (LSE:BBOX), Social Housing REIT (LSE:SOHO) and Supermarket Income REIT (LSE:SUPR). With forward dividend yields of 5.6% and above, they certainly offer better dividend potential in the near term than most FTSE 100 shares.

Read on to discover why they’re top stocks to consider.

Top trio

Each of these shares enjoys unique advantages that make them ideal for long-term passive income. For Tritax Big Box, these include:

• A diversified portfolio of almost 700 assets.
• Exposure to long-term growth markets like e-commerce.
• A high-quality tenant base like Amazon, Tesco and Iron Mountain.
• Low debts (its loan-to-value sits below 33%).

Social Housing REIT has various qualities of its own, including:

• A focus on the ultra-defensive specialised supported social housing (SSH) market.
• Low property vacancy risks due to housing demand exceeding supply.
• Its tenants are housing associations or councils, meaning rents are underpinned by social care budgets.
• 100% of its contracts are inflation linked.

Food for thought

Meanwhile, Supermarket Income REIT benefits from:

• Its commitment to the largely recession-proof food retail sector.
• A string of blue-chip supermarkets including Tesco, Sainsbury’s, Waitrose and Aldi on its books.
• A portfolio that includes omnichannel stores, reducing the risk from online grocery.
• Exposure to a structural growth market as the UK population rapidly increases.

So how do these qualities translate into dividend forecasts for these REITs’ current financial years? Let’s take a look:

As you can see, yields are least almost double the current FTSE 100 average of 3%. Social Housing has never cut its annual dividends either, while Supermarket Income has raised them every year since it listed on London’s stock market in 2019.

So what next?

However, past performance isn’t a guarantee of future returns. And dividends at each of these REITs could be impacted by rising interest rates that drive up borrowing costs.

These businesses could also run into more specific problems. A recession might cause occupancy to fall at some of Tritax’s logistics sites. Changes to supported housing funding could impact Social Housing REIT’s earnings and dividends. And Supermarket Income could suffer if online grocery shopping accelerates.

However, any passive income share an investor buys comes with risk. And on balance, I think these REITs have the tools to keep delivering market-beating dividends over the long term.

The post How do these REITs keep paying spectacular dividends? appeared first on The Twelfth Magpie.

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• 2 REITs yielding 7%+ to consider for passive income in 2026

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon, J Sainsbury Plc, Tesco Plc, and Tritax Big Box REIT Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The Cash ISA is a terrific product for saving money. All interest is tax-free, helping to boost the compounding process and leading to stronger capital growth compared with non-ISA accounts.

But it’s not all good news, as the Cash ISA can cost users the chance the make life-changing wealth. Want to know why?

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.

Cash crisis

The problem is that the ease and safety of these products leads people to over-rely on them. The result? Cash savers can miss out on making enormous returns by using their money in other ways. There’s even evidence these products could be costing people millions of pounds in lost wealth.

Financial planner Murphy Wealth put in a Freedom of Information request to HMRC last year. The aim was simple: to find out what the 4,850 ISA millionaires were holding as of the most recent datapoint (April 2022).

The request showed a whopping 94% of those millionaires earned their money with the aid of the stock market. Murphy Wealth says that “almost all ISA millionaires have built their wealth by holding stocks and shares… and no one has got to that status holding cash alone.”

The Stocks and Shares ISA offers the same tax benefits of its cash equivalent. But a focus on the stock market means a far superior long-term return averaging 8%–10%.

What’s the catch?

There’s no such thing as a free lunch, as they say. In this case, while the stocks ISA typically offers greater returns, this comes with the risk that an investor’s capital can fall.

Yet prioritising the Cash ISA comes with its own risks. I’m not talking about the remote danger of the bank and building society you’re saving with going bust. As we’ve seen, it can remove the possibility of generating meaningful wealth, and with it one’s chance of retiring in comfort.

Murphy Wealth sum it up perfectly for me. It said that “historically, a balanced portfolio of stocks and shares has delivered far higher returns over most reasonable timeframes, while cash savings have often failed to beat inflation.” A portfolio that fails to at least keep up with inflation essentially loses value over time.

Targeting a million-pound ISA

I hold money in a Cash ISA myself to spread risk. But most of my money goes into a diversified collection of stocks to help me make significant wealth.

Games Workshop (LSE:GAW) is a share that has ‘millionaire-maker’ potential written all over it. It’s one of my largest holdings, and it’s easy to see why: since May 2016, the company’s delivered an average annual return of 43.2%, reflecting both share price gains and dividends.

This FTSE 100 company sells miniatures and tabletop gaming products. Through heavy investment in IP, it enjoys brilliant pricing power and high margins that help supercharge earnings. Latest financials showed operating profit leap 11% during May-September.

Can Games Workshop shares keep outperforming though? I’m optimistic they can, even though growing competition poses a risk that can’t be ignored. Geographic expansion (especially in Asia) has further significant earnings potential, as does increased licensing of the firm’s IP for films and video games.

The post Is your Cash ISA stopping you from becoming a millionaire? appeared first on The Twelfth Magpie.

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Royston Wild has positions in Games Workshop Group Plc. The Motley Fool UK has recommended Games Workshop Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I love buying FTSE 100 dividend shares, their proven business models and strong balance sheets delivering a steady stream of income. I especially enjoy snapping them up when they’re trading on what I see as cheap valuations.

Despite the Iran War, 2026 has (so far) been another solid year for the stock market. The FTSE 100 index is up 3% since 1 January. Yet a lot of quality blue-chips still offer terrific all-around value.

We’re talking about companies with high dividend yields while also trading at heavily discounted valuations, whether measured by:

• Price-to-earnings (P/E) ratio.
• Price-to-earnings growth (PEG) ratio.
• Price-to-book (P/B) ratio.

Here are two that I’ve spotted: Admiral Group (LSE:ADM) and Barratt Redrow (LSE:BTRW). Want to know why I believe they’re hot bargains to consider?

Value to salute

Admiral offers the dual-benefit of a low historical P/E ratio and a FTSE-beating dividend yield. Its earnings multiple for 2026 is just 12.8 times. That may not exactly be rock-bottom but it’s significantly below the 10-year average, which is 16–17.

Meanwhile, the payout yield is a chunky 5.5%.

Admiral does face mounting risk as inflation rises, pushing up claim costs . But I think the insurer is better placed than many other UK shares to weather this storm.

Why? Its focus on the ultra-stable general insurance market, where revenues remain reliable across the economic cycle. This is especially so in the motor segment, where Admiral leverages its enormous brand power to generate most its earnings.

Crucially, Admiral has other qualities it can use to grow profits despite cost pressures. According to Hargreaves Lansdown notes, these include “its data-led underwriting approach and strong reinsurance relationships.”

Another top FTSE bargain?

The risks to Barratt Redrow have risen sharply since late February. Hopes of interest rate cuts to boost the housing market have disappeared. Now the focus is on potential rate hikes, and the danger this poses to FTSE 100 housebuilders.

Yet I can’t help but think Barratt’s valuation remains too low. I’m drawn in by its 5.5% dividend yield for this financial year. Arguably, it’s even more impressive on other value metrics, including:

• A forward P/E ratio of 10.4, below the 10-year average of 15–16.
• A PEG ratio of 0.1
• A P/B ratio of 0.5.

For the final two ratios, a reading below 1 suggests a share is undervalued. So do the potential rewards of buying Barratt shares at the current price outweigh the risks?

I think so. Over the long term, I believe the stock could snap back as the soaring UK population drives demand for new homes and with it property prices. Estate agent Savills expects average home values to rise more than 22% over the next five years as the market picks up momentum.

Barratt’s enormous land bank puts it in a strong position for when conditions rebound too. It expects to have a hefty 7,000–9,000 plots at the end of this fiscal year.

The post These 5%-yielding FTSE 100 dividend shares are on sale today! appeared first on The Twelfth Magpie.

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Royston Wild has positions in Barratt Redrow. The Motley Fool UK has recommended Admiral Group Plc and Barratt Redrow. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Diageo (LSE:DGE) shares got 2026 off to a flyer. They’ve since fallen back as the Iran war rattles investor nerves, reversing 6% since 1 January and taking total losses over 12 months to 31%. Long-term investors like me have had little to cheer over the period.

Is it time I threw in the towel and sold up? If broker forecasts are right, the answer seems to be an emphatic ‘no’. City analysts are largely confident the FTSE 100 share is about to rebound, as the table shows:

But how exactly will Diageo shares spring back to life as brokers predict?

Stronger trading

Diageo’s decision to focus on premium drinks couldn’t have been timed much worse. It’s left the company far more exposed to falling consumer spending, with people switching down to cheaper spirits in recent years. Profits have tanked and debt’s risen. The dividend has even been cut for the first time in decades.

The problem for the drinks giant is the Iran war has raised the prospect of a prolonged downturn. Inflation’s rising again, and economic growth’s weakening as energy prices rise. Yet I’m confident the company could still rise in value over the next year.

Why? First, Diageo’s been more resilient lately, with sales rising 0.3% in the March quarter. A 2%-3% decline had been expected. Helped by its powerhouse drinks portfolio, I’m hopeful of more better-than-forecast trading numbers.

Building back better?

But that’s not the main reason I’m optimistic. Under Sir Dave Lewis, the company’s about to embark on widescale changes after years of underperformance. These range from divesting non-core brands and cutting $625m of costs over three years, to expanding in fast-growth areas (like ready-to-drink cocktails).

Lewis has proven an expert in turning around struggling businesses, such as he did with Tesco. I’m hopeful of similar success here, signs of which could send Diageo’s share price higher.

Diageo has an enviable portfolio of brands across multiple price points and the brand armory to restore the competitiveness of its offer in the mainstream segment, the area where incoming CEO Sir Dave Lewis has spent his career.

RBC Capital Markets

£5,000 could turn into…

What might Diageo shares be worth by next May then? If those broker forecasts we discussed earlier are accurate, a £5,000 investment today will be worth:

• £7,850, based on the most bullish estimate.
• £4,800, according to the lowest price forecast.
• £6,320, based on broker consensus.

Correctly predicting a stock’s performance over the near term is famously difficult however. As investors, all we can do is make an educated prediction based on the facts. So what is the outlook for Diageo’s share price?

Though risks are higher than before the Iran war, I’m confident the Guinness maker could bounce back strongly as its transformation begins. And with the company’s valuation currently so low, I think further good operational news could fuel a stunning rebound. At £15.09 per share, the forward price-to-earnings (P/E) ratio of 13.4 is miles below the 10-year long-term average (20-21).

At these levels, I think Diageo shares are worth serious consideration. There may be bumps along the way, but I’m optimistic this FTSE stock will recover strongly over time.

The post Down 31%, how much could £5,000 of Diageo shares be worth in 12 months? appeared first on The Twelfth Magpie.

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• Down 53% in the past 5 years. Is this the best value stock in the FTSE 100?
• Dear Diageo shareholders, mark your calendars for 6 August
• Here’s what is baffling me about the stock market today
• How to build a £20,000-a-year passive income from a Stocks and Shares ISA
• After years of pain, is the Diageo share price looking up?

Royston Wild has positions in Diageo Plc. The Motley Fool UK has recommended Diageo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

It’s not often you see Greggs (LSE:GRG) shares tearing higher. Investors have got used to the FTSE 250 share falling in value, even plummeting off a cliff at times.

But Greggs’ share price is biting back. Up 5% yesterday (12 May), the battered baker was the FTSE 250‘s biggest riser in Tuesday business. So what’s happened? And is it a top recovery share to consider?

Rising revenues

Consumer spending remains under pressure as the cost-of-living crisis rolls on. Yet trading at Greggs has remained remarkably resilient so far in 2026, as its trading statement yesterday shows.

Analysts at Charles Stanley note that

Greggs’ latest trading update highlights its resilience, with like-for-like sales growth holding up and even accelerating in the most recent 10-week period.

So what did the baker announce? At headline level, revenues were up 7.5% during the first 19 weeks of 2026, at £800m. Like-for-like sales increased 2.5% in the period, with growth speeding up to 3.3% in the last 10 weeks.

Greggs says “partnerships with franchisees and grocery retailers are progressing well and contributing to the growth in overall sales.” What also benefits the business is its strong brand power and packed menu of UK favourites like sausage rolls, doughnuts and cream buns.

But the business isn’t sitting on its hands, and continued menu refreshments are helping it thrive even as many of its rivals struggle. As Hargreaves Lansdown analysts note: “Continued menu tweaks and improvements have drawn existing customers back, and the addition of new salads and iced coffees to the lunchtime menu is helping the group appeal to a new and younger customer base”.

Cost controls

It’s not just sales news that’s impressed investors (like myself) either. Greggs also says it’s made “encouraging profit progress in the year to date, partly reflecting a weak comparator period but also good operational cost control.”

Costs remain a threat to UK businesses as energy prices spike. But Greggs’ work on this front is paying off handsomely, and it’s ‘locked in’ costs for 85% of its energy needs for this year (as well as 50% for next). As a result, headline cost inflation is still expected to run at roughly 3% in 2026.

So what does all this mean? The firm has kept its full-year guidance unchanged for 2026, with profits tipped to match last year’s levels. Having averted releasing a fresh profit warning, it’s perhaps no surprise that Greggs’ share price has taken off.

Are Greggs shares a buy?

Don’t think that Greggs is out of the woods just yet, though. Consumer spending remains under the cosh, as I said. And as analysts at eToro mentions:

Management’s warning over escalating Middle East tensions highlights how quickly fuel, transport and food prices could rise again

The question is, are Greggs shares now a tasty buy? Risks remain, but the firm’s improving resilience bodes well for the near term. Looking further out, I expect profits to rise sharply as store rollout continues and exposure to the lucrative delivery and evening markets ticks up.

What’s more, today the stock has a forward price-to-earnings (P/E) ratio of 12.5. That’s far below the 10-year average of 22–23. For investors seeking attractive recovery stocks, I think Greggs merits serious attention.

The post Greggs shares are the FTSE 250’s biggest risers. How did that happen?! appeared first on The Twelfth Magpie.

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• How to turn a £20k Stocks and Shares ISA into a £1k monthly second income!
• Thank goodness I didn’t buy Greggs shares in 2025
• Are Greggs shares 50.3% undervalued?

Royston Wild has positions in Greggs Plc. The Motley Fool UK has recommended Greggs Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Buying passive income shares in a Stocks and Shares ISA can generate substantial long-term wealth. Investors today have a huge range of top dividend shares to choose from. And here’s the kicker: any withdrawals you make are completely free from tax.

Fancy making a large monthly passive income with a Stocks and Shares ISA? Here’s one strategy for you to consider.

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.

Lump sums vs drip feeding

Investors are often presented with the same question: should I invest a lump sum into the stock market, or drip-feed money over time (also known as dollar- or pound-cost averaging)? There are advantages to both, although making larger one-off cash injections is a proven way to making greater returns.

A study by Morgan Stanley showed that “lump-sum investing generated slightly higher annualized returns than dollar-cost averaging in more than 56% of cases“. Its results were based on more than 1,000 overlapping historical seven-year periods.

The reason is simple. Markets tend to rise over time, so getting more of your cash invested earlier means it benefits more from long-term compounding. That said, there are some significant drawbacks to this approach…

The patient approach

What if, for instance, you put £20,000 in a Stocks and Shares ISA and the market then sinks 10%? You’re already down around £2,000, and your portfolio will have to work harder over time to make this up.

This is where drip-feeding cash has its advantages. As Morgan Stanley notes, “short-term market movements are unpredictable“. Splitting a £20k ISA investment into 12 monthly instalments of roughly £1,666 can significantly cushion the impact of market swings.

And here’s the thing: taking this less risky approach can, like lump sum investing, also lead to incredible wealth creation over time.

A £6,491 passive income

Let’s say you invest that £1,666 every month for 20 years. If you can achieve the average annual return of 9% that stock markets deliver, you’ll have a Stocks and Shares ISA worth £1,112,700.

That could then deliver a monthly passive income of £6,491 if invested in 7%-yielding shares.

What kind of investments might help you build a £1m-plus ISA, though? Diversification is critical, and a fund like the Vanguard FTSE All-World ETF (LSE:VWRP) provides a quick and simple way to achieve this.

This exchange-traded fund (ETF) spreads investors’ cash over thousands of “large and mid-sized company stocks in developed and emerging markets“. The benefit is exposure to different regions and industries, eliminating reliance on one or two sectors to drive returns.

The downside? Like any stocks-based funds, this Vanguard fund is sensitive to broader market falls. This hasn’t stopped it outperforming over the long term, though — during the last decade, this ETF’s delivered a mighty average annual return of 21.6%.

Whether you’re drip feeding money or investing lump sums, a diversified ISA of shares and funds like this could help you retire comfortably.

The post How a £20k ISA could make you £6,491 a month from passive income shares appeared first on The Twelfth Magpie.

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• £503 buys 14 shares in this FTSE 250 stock that returned 23.9% annually for the last 15 years
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• 2 REITs yielding 7%+ to consider for passive income in 2026
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.