The FTSE 100 has done pretty well over the past five years. The UK stock index is up 60.1% in half a decade, excluding cash dividends. Even better, the FTSE 100 Total Return Index (TRIUKX) has surged by 92.5% over 60 months.
This works out as a compound average growth rate of 14% a year, easily beating the Footsie’s long-term average return. However, it lies slightly behind the US S&P 500 index’s five-year growth rate of 14.3% a year, expressed in British pounds.
In short, the FTSE 100 has almost exactly matched the S&P 500’s returns since late February 2021. However, some Footsie shares have absolutely blown away these gains. Find out more below…
The terrific trio
Below are FTSE 100’s three biggest gainers over the past five years. (I’ve also included share gains over one, two, and three years to show their outstanding ongoing returns.)
| Company | Industry | One year | Two years | Three years | Five years |
| Rolls-Royce Holdings | Aerospace and defence | 105.5% | 309.7% | 1,077.8% | 1,319.0% |
| Babcock International Group | Aerospace and defence | 112.4% | 190.8% | 330.8% | 502.7% |
| Airtel Africa | Telecoms | 157.6% | 271.3% | 178.3% | 363.8% |
Famed engineering firm Rolls-Royce Holdings takes the gold medal for top FTSE 100 gains over the last five years. An investor buying £1,000 of this stock half a decade ago would now have a holding worth £14,190. Wow.
Second place goes to defence firm Babcock International Group, which operates in similar sectors. Its share price is over six times what it was five years ago. Third place goes to fast-growing mobile telecoms group Airtel Africa, whose stock is up nearly 364% in 60 months.
Where are the next superstars?
One thing all three of these companies have in common is their shares were wildly undervalued in February 2021. However, so were most stocks worldwide, as the Covid-19 crisis didn’t recede until late 2021.
Alas, lacking a crystal ball or clairvoyance, I can’t tell you which stocks will be the superstars of the next five years. However, I do part-own one company whose cheap shares I believe to be a potential recovery play.
That business is Greggs (LSE: GRG), the food-on-the-go bakery chain. Founded in 1939, Newcastle upon Tyne-based Greggs has over 2,600 outlets selling sausage rolls, steak bakes, sandwiches, and hot drinks by the millions weekly. It employs 33,000 people UK-wide and is constantly expanding its estate, menu, and opening hours to win yet more custom.
Unfortunately, Greggs’ sales growth has slowed in the ongoing cost-of-living crisis. Also, higher energy bills, increased employer National Insurance contributions, and rising wages have hit the group’s profitability.
As a result, the shares have dived 24.4% over one year and 24.8% over five years. They now trade on a modest 11.1 times trailing earnings, delivering an earnings yield of 9% a year. This means that the market-beating dividend yield of 4.4% a year is covered twice by historic earnings.
As I write, Greggs shares stand at 1,572p, down 7.4% from the 1,697p my family portfolio paid for our holding in mid-2025. I’m so convinced that Greggs will bounce back that, if I had the funds, I’d buy the entire company today. Let’s see whether my prediction was right or rubbish in 2031!
