2 FTSE 100 and FTSE 250 shares I’d consider buying to hold for 5 years!

I believe these FTSE 350 shares could help supercharge my returns over the next several years. Here’s why I’d buy them for my Stocks and Shares ISA.

| More on:
Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I’m searching for the best FTSE 100 and FTSE 250 shares to buy and hold to the end of the decade. Here are two on my watchlist.

Spire Healthcare Group

The poor state of the National Health Service (NHS) makes Spire Healthcare Group (LSE:SPI) an attractive investment today. Demand for private healthcare is likely to continue rising as patients seek to avoid long waiting lists.

Fresh Office for National Statistics research shows that almost 10m people are either waiting for a hospital appointment or to begin receiving NHS treatment. This backlog will likely take years to cut substantially, a challenge made all the more difficult by the growing healthcare needs of an ageing population.

It’s why I expect demand for Spire’s services from both self-pay patients and those using private medical insurance to keep soaring. Private revenues jumped 9.5% year on year in 2023, to £959.7m which, in turn, pushed operating profit almost a third higher, to £126.2m.

Spire can also expect further business from the NHS to help cut those massive waiting lists. NHS-related revenues leapt 15.5% in 2023, to £341.1m. And Spire has advised that “there could be increased commissioning” further down the line.

Reflecting this bright outlook, City analysts expect annual earnings growth here to average 34% through to 2026. This leaves the FTSE 250 firm trading on a forward price-to-earnings growth (PEG) ratio of 0.8.

Any reading below 1 indicates that a stock is undervalued. Despite the threat of potential staffing shortages, I’m considering adding more Spire shares to my portfolio.

Antofagasta

I also think getting exposure to copper could be a good idea today. Prices of the essential metal just struck 14-month highs of $9,300 a tonne on mounting supply risks. And bets of further rises are growing on hopes of recovering Chinese demand.

Analysts at Citi, for instance, expect copper values to hit $12,000 within the next two years.

Purchasing a copper-backed exchange-traded fund (ETF) could allow me to exploit any further price rises. But I’d rather buy shares in a dividend-paying mining stock. This strategy would also provide me with an income.

Antofagasta (LSE:ANTO) is one such stock to consider buying today. For this year the Chile-focused miner carries a dividend yield of 1.2%, a figure that rises steadily through to 2026.

While some other copper stocks offer larger yields, Antofagasta has one large advantage: a string of world-class assets that could help it deliver sector-beating returns. This includes the Los Pelambres mine where it is steadily ramping up production.

The FTSE 100 firm now trades on a price-to-earnings (P/E) ratio of 35.6 times. A high figure such as this could cause a share price correction if news suddenly worsens. Yet on balance, I still believe it’s a top stock to consider owning for the next several years.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has positions in Spire Healthcare Group Plc. 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.

More on Investing Articles

Grey cat peeking out from inside a cardboard box in a house
Investing Articles

Recently released: May’s small-cap stock recommendation [PREMIUM PICKS]

We believe the UK small-cap market offers a myriad of opportunities across a wide range of different businesses and industries.

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

I’m listening to Warren Buffett and buying bargain shares!

Our writer has been taking lessons from the investing career of Warren Buffett. Here's how he's using it to try…

Read more »

Close-up of British bank notes
Investing Articles

Here’s how I’d spend £6,900 on income shares to try and earn £500 per year

Christopher Ruane outlines some of the investment principles he'd apply when trying to earn £500 of dividends annually by spending…

Read more »

Newspaper and direction sign with investment options
Investing Articles

My 3 picks for the best UK shares to buy in June

Mark David Hartley is bullish about the UK stock market right now. He reckons these are the three best shares…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

23% per annum: is this FTSE 250 stock too good to turn down?

FTSE 250 constituent Games Workshop has posted an impressive return over the last five years. This Fool takes a closer…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

Up 60% in a month, could this UK share keep soaring?

After this UK share surged by almost three-fifths in a matter of weeks, this writer has been re-examining the investment…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

I’m up 25%! The Nvidia share price and other giants power this UK investment trust

I drip-fed some money into this not-so-buoyant UK investment trust and now the Nvidia share price is helping to drive…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

2 explosive stocks I’d buy today for a life-changing passive income in 10 years

For many of us, passive income is the end goal. However, unless we have a big pot of cash, we're…

Read more »