Looking for FTSE shares to buy? Here are 2 to consider for long-term gains

This Fool considers how two low-risk and well-established FTSE shares could offer stability and growth during a period of market volatility.

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Investing in the FTSE shares can be a rewarding strategy for long-term gains. This is particularly true when focusing on well-established companies with strong fundamentals and promising growth prospects. 

With 2025 shaping up to be a volatile year for markets, investors may benefit from taking a cautious approach. Typically, this means avoiding high-risk and speculative assets in nascent industries like artificial intelligence (AI).

While the promise of high rewards is hard to ignore, history has shown that the excitement around such industries can quickly turn sour. With that in mind, I’ve identified two companies worth considering for more stable returns in 2025 and beyond.

BAE Systems

BAE System (LSE: BA.) is a leading UK-based aerospace and security company and the largest defence contractor in Europe. It designs and manufactures advanced technology-led solutions for companies the world over. It was formed 25 years ago as a merger between British Aerospace and an electronics subsidiary of General Electric. In that time, it’s grown to employ almost 100,000 people in more than 40 countries globally.

As a contractor it relies on government budgets, particularly US defence spending. This puts it at risk of short-term losses from policy decisions outside its control. More so, it if fails to innovate at the same rate as competitors, it risks losing contracts to other suppliers.

Revenue dipped slightly in 2018 but has been steadily increasing at a rate of 6.46% since, from £16.82bn to £23bn in 2023. Earnings have almost doubled in the same period, up from £1bn in 2018 to £1.86bn in 2023. Analysts are generally favourable about the stock’s prospects, with the average 12-month price target eyeing a 21.8% increase.

I already hold stock in the company and I think investors aiming for long-term growth could benefit from considering it.

Haleon

Haleon (LSE: HLN) was spun off from GSK in 2022 to allow the drugmaker to focus on pharmaceuticals. It’s now one of the largest consumer healthcare companies in the world, with listings on both the FTSE 100 and on New York Stock Exchange (NYSE).

Most people will know it by its popular brands such as Sensodyne, Panadol and Centrum. Since listing in 2022, its share price has climbed a decent 20%. 

But it faces stiff competition from multinational healthcare leaders including Colgate-Palmolive, Reckitt Benckiser and Unilever. It also risks losses if consumers opt for lower-cost alternatives, evidenced by a drop in demand for Panadol in late 2024.

The business already holds a lot of debt (£9.46bn) so it must remain competitive or risk defaulting on interest payments. It’s already taken steps to address these issues by selling off non-core brands and streamlining its portfolio. This could help it boost its core products and offer more competitive pricing.

Analysts forecast earnings to grow at a rate of 7.85% going forward, rising from 17p per share to 23p in 2027. Revenue’s expected to grow moderately slower, from £11.3bn to £12.68bn.

While Haleon doesn’t offer the same growth potential as BAE, it’s a more defensive stock. That adds stability to a portfolio as the company typically remains in high demand year-round. I’m yet to invest in the stock as I already hold shares in Reckitt and GSK. However, I think it’s a good long-term investment to consider and one I’ll be keeping an eye on this year.

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.

Mark Hartley has positions in BAE Systems, GSK, Reckitt Benckiser Group Plc, and Unilever. The Motley Fool UK has recommended BAE Systems, GSK, Haleon Plc, Reckitt Benckiser Group Plc, and Unilever. 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.

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