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.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Chalkboard representation of risk versus reward on a pair of scales

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.

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.

Should you invest £1,000 in Croda right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Croda made the list?

See the 6 stocks

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.

Created with Highcharts 11.4.3BAE Systems PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

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).

Created with Highcharts 11.4.3Haleon Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

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 £1,000 in Croda right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Croda made the list?

See the 6 stocks

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.

More on Investing Articles

Silhouette of a bull standing on top of a landscape with the sun setting behind it
Investing Articles

With average 10% yields, these mid-cap FTSE shares could supercharge a passive income portfolio

Some of the best passive income gems can be found on the UK's smaller indexes like the FTSE 250 and…

Read more »

A coin being dropped into a piggy bank
Investing Articles

As the Barclays share price tanks 19% in 2 days, is this a great buying opportunity?

As a trade war sends the Barclays share price into a tailspin, Andrew Mackie steps back to look at the…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

Is Fundsmith Equity still a good choice for a Stocks and Shares ISA in 2025?

Many Britons hold the Fundsmith Equity fund in their Stocks and Shares ISAs. Is this still a good move? Edward…

Read more »

Investing Articles

Nvidia stock is down 24% this year. Time to buy the dip?

Christopher Ruane has been eyeing Nvidia stock as a potential addition to his portfolio for a while. Is a recent…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Down 25% since January, this resilient dividend stock’s catching my eye

Maintaining the UK’s rail, water, and energy infrastructure isn’t the most exciting business. But it has made this a solid…

Read more »

Investing Articles

Prediction: Unilever to outperform the FTSE 100 over the next 12 months

The FTSE 100 has made a strong start to 2025, but Stephen Wright thinks a popular dividend stock could be…

Read more »

Investing Articles

I just bought this legendary S&P 500 tech stock for my ISA, 27% off its highs

This S&P 500 stock has tanked over the last month and Edward Sheldon has snapped it up for his portfolio…

Read more »

Young black man looking at phone while on the London Overground
Investing Articles

2 beaten-down stocks to consider for an ISA after the massive market sell-off!

The stock market has had a sudden meltdown! Yet our writer thinks these two growth stocks look attractive candidates for…

Read more »