I had mixed feelings when I added Scottish Mortgage (LSE: SMT) shares to my SIPP in 2023. The FTSE 100 investment trust rode the boom in US tech stocks such as Amazon and Tesla under inspirational manager James Anderson, then took a massive hit when tech sold off in 2022.

The share price crashed by half that year, a steeper fall than most funds in the sector. Anderson retired after almost 40 years at the firm, leaving successor Tom Slater with a lot to live up to. However, I like buying top stocks after they’ve taken a (hopefully temporary) beating, and took the plunge.

Last week marked a personal milestone, as my total return hit 102%, doubling my initial stake. I’m not the only one having fun. The Scottish Mortgage share price has jumped 67% over 12 months and 120% over three years. Over five years the gain is a more modest 16%, which shows how brutal 2022 was.

FTSE 100 play on US tech

Today, one big story drives the bull case. The trust’s largest holding is SpaceX, the privately owned space and satellite business founded by Elon Musk in 2002. SpaceX pioneers reusable rockets, launches satellites and runs the Starlink internet network. It also has dizzying ambitions, including orbital data centres, a permanent Moon base and ultimately, even a human colony on Mars. It’s not often investors get all that from a FTSE 100 stock.

At the start of this month, SpaceX reportedly filed the paperwork on its long-awaited initial public offering (IPO), targeting a stunning $1.75trn valuation, potentially the largest listing ever. Investors are itching to put their money into it, but why wait? They can gain exposure via Scottish Mortgage today.

The investment trust got in early. After a recent upwards valuation, SpaceX now accounts for close to 20% of its total assets under management. Second-biggest holding Taiwan Semiconductor Manufacturing Company is far behind at just 6.6%.

Scottish Mortgage also has exposure to big US names such as ASML Holding, Amazon, Nvidia and Meta Platforms, alongside smaller quoted and private firms. Thanks to SpaceX, there’s now a lot of concentration risk here. That’s working in its favour today. The shares have jumped 18.8% in the last month, despite wider geopolitical concerns. A £15,000 investment one month ago is now worth around £17,820, a quickfire gain of £2,820.

SpaceX is thrilling

As a rule, I avoid IPOs. They generate huge excitement, but valuations can tumble afterwards. Musk is also spinning a ridiculous number of plates, and X and Tesla have both struggled. I’m still thrilled with my decision to buy Scottish Mortgage, and feel a little smug having exposure to SpaceX. For the record, Scottish Mortgage also has a stake in AI disruptor Anthropic, which is constantly in the headlines these days.

I think they shares are worth considering but anyone buying Scottish Mortgage must accept there could be plenty of volatility either side of the IPO. The trust isn’t cheap either. Today, it trades at a 4.1% premium to net asset value, despite recent share buybacks aimed at reducing that. That’s the price of success, I suppose. This remains a high-risk, high-reward play, but there’s room for one or two of those in a portfolio. Provided there’s balance elsewhere.

The post £15,000 invested in red-hot Scottish Mortgage shares 1 month ago is now worth… appeared first on The Motley Fool UK.

More reading

• Want to invest in SpaceX before the IPO? Take a look at these FTSE stocks
• Should I load up on SpaceX inside my Stocks and Shares ISA?
• How UK investors can get access to the $2trn SpaceX stock IPO TODAY
• A SIPP opened at birth could be worth £10m in 55 years
• Is Elon Musk about to send this FTSE 100 stock into orbit?

Harvey Jones has positions in Nvidia and Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended Amazon, Meta Platforms, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. 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 Group (LSE: IAG) shares are flying again. As the FTSE 100 rebounded on Friday (17 April), following reports that the crucial Strait of Hormuz trade route had reopened, the British Airways owner led the charge.

IAG, as it’s also known, ended the day 6.19% higher, worth £619 for somebody with £10,000 invested. Only gold miner Fresnillo did better. Was I surprised? Not at all. Because that’s what IAG does. It’s right on the front line of market volatility, and I can’t see any sign of that changing.

In the pandemic, it was absolutely hammered by global lockdowns. Its global fleet of aircraft was grounded, wiping out most of its revenues, but it still had to meet high fixed costs, such as aircraft leasing, maintenance, staff salaries and debt servicing. It also had to refund passengers for cancelled flights.

Bumpy FTSE 100 growth play

In 2020, IAG reported at €7.4bn operating loss. It only survived by slashing more than 10,000 jobs and borrowing like crazy, with net debt hitting €12bn. But survive it did, and when air travel took off, the shares flew. Net debt is down to €6bn today, but investors have learned their lesson. The airline sector is exposed to a world of risk.

Airlines are vulnerable to pandemics, extreme weather, volcanoes, air traffic control strikes, fuel prices, recessions and of course, war. They have almost no control over any of them.

IAG has duly been hammered by the Iran war, which has forced British Airways to cancel or reroute flights to major hubs like Dubai, Abu Dhabi and Tel Aviv. Jet fuel costs have soared and if we get shortages this summer many more flights could be cancelled, smashing revenues. Hence the outsized relief rally on Friday.

This may well have been overdone. We can’t say for sure whether Hormuz is open right now. IAG could give up all its recent gains next week, or it could fly to new highs. It’s anybody guess.

Dirt-cheap valuation

Despite all the ups and downs, the share price has done brilliantly. It’s up 62% in the last year, and 108% over five years. Dividends have been restored, and the trailing yield is 2.1%.

I bought the stock during another recent bout of turbulence, when Donald Trump’s ‘liberation day’ tariffs were rattling global stock markets. I’m glad I did, because the moment Trump announced a pause, IAG shares rocketed. 

They look staggeringly cheap today, with a price-to-earnings ratio of just 6.22. Don’t assume that makes them a no-brainer bargain though. They may remain cheap as investors demand a big valuation cushion in return for the added risk of holding them.

This is a stock to buy when the news is bad, in my view, rather than good. With a long-term view, IAG shares are worth considering, for investors who can withstand regular bouts of short-term volatility. If IAG is too hot to handle, don’t worry. I can see more brilliant FTSE 100 bargains out there, and most are nowhere near as volatile as this one.

The post Are IAG shares the ultimate FTSE 100 volatility play?  appeared first on The Motley Fool UK.

More reading

• Up 55% and a P/E of 6.6, is this FTSE 100 share too cheap to miss?
• IAG share price vs budget rivals: which airline share looks better value in 2026?
• The red lights are flashing for this FTSE 100 share! Will it crash?
• After tanking 20% in March, is this a bargain-basement value stock?
• Down 20% in 5 weeks: what’s going on with the IAG share price?

Harvey Jones has positions in International Consolidated Airlines Group. The Motley Fool UK has recommended Fresnillo 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 been a volatile few weeks for the stock market, thanks to the war in Iran. Yet the FTSE 100 hasn’t collapsed. There was a correction, a drop of 10%, but no full-blown crash. It’s even clawed much of that back.

The blue-chip index closed at 10,667 on Friday (17 April). That’s just 2.2% below its all-time high of 10,910, reached on 27 February, the day before the conflict began. That’s a remarkable show of resilience. Can it go ont o break 11,000 from here?

This has been an odd crisis. We’ve had dire warnings of the biggest oil shock in history. Yet investors have been perfectly happy to take Donald Trump at his word that everything’s under control.

The FTSE 100 could fly

On Friday, they got what they wanted. Trump confirmed the Strait of Hormuz is open. The FTSE 100 jumped, while the S&P 500 hit a fresh record of 7,126 after rising 1.2%. We’ve seen this a lot lately. Geopolitical shocks trigger a sell-off, then bargain hunters pile in. The Covid slump in 2020, the Ukraine invasion in 2022 and US tariff threats in 2025 all fit that pattern.

This confirms our firm view at The Motley Fool, that selling in a panic rarely pays. Instead, investors should grit their teeth, and take the opportunity to snap up cut-price shares. It isn’t easy though, when the headlines scream catastrophe. Plenty will have waited for even lower prices and missed the bounce.

So what happens on Monday? The rally could continue. Or it might well reverse, following reports that Iranian gunboats are targeting shipping in the Strait of Hormuz. Either way, investors should find plenty of bargain stocks out there. To my surprise, cigarette maker Imperial Brands (LSE: IMB) is suddenly one of them.

Imperial Brands shares look good value

Tobacco stocks have been among the best FTSE 100 performers of the millennium. That’s extraordinary, given the steady decline in smoking rates across the West. Imperial Brands, like FTSE 100 rival British American Tobacco, has used its branding power to grab a bigger share of a shrinking market, while moving into alternatives such as vapes. And it’s kept investors sweet with a steady stream of rising dividends.

Its shares fell hard after Tuesday’s underwhelming trading update. Imperial Brands reported a decent start to its 2026 financial year and stuck to guidance of 3%–5% growth in underlying operating profit. Yet investors fixated on slippage in its Next Generation Products portfolio, and weaker market share in key regions.

That points to tougher conditions ahead but the reaction still feels harsh. Imperial Brands is the FTSE 100’s biggest faller over the last month, down more than 13.5%. Over 12 months, it’s slipped 6.5%. That leaves it looking good value though.

Imperial Brands now trades on a modest price-to-earnings ratio of 8.86, while the yield has crept up to a juicy 5.77%. Tobacco stocks aren’t for everyone, and they’re under constant regulatory threat. But at this price, and with that income, it still looks worth considering.

There’s plenty more value left in the FTSE 100 and that’s unlikely to change. Whatever happens in the next few volatile days.

The post Will the stock market go off like a rocket on Monday? appeared first on The Motley Fool UK.

More reading

• Down 7%! Why on earth are Imperial Brands shares plummeting today?
• How big does an ISA need to be to aim for a £1,500 monthly second income?
• 1 mighty FTSE dividend stock I’m considering for my ISA
• I’m targeting £7,570 in yearly dividends from £20,000 in this FTSE income heavyweight

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco P.l.c. and Imperial Brands 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.

Investing in Taylor Wimpey (LSE: TW) shares has been a bruising experience lately. Like every other UK housebuilder, they’ve taken a real hammering. And not just during the Iran conflict. They’ve been under the cosh for a decade. Yet on Friday (17 April) we got a happy moment of respite. Can it continue?

Let’s not get carried away. Shares in the FTSE 250 firm trade at roughly half their value of a full decade ago. That’s a rotten performance, although their struggles are one of the reasons I added them to my SIPP in 2023. The shares looked incredibly cheap, while the dividend yield was irresistible. I decided that once the economy picked up, the Taylor Wimpey share price would follow. Unfortunately, things got worse instead.

The housebuilders seem to be the whipping boys in every crisis. Whether it’s Brexit, the pandemic, the Ukraine war or the cost-of-living crisis, the sector takes a beating. Building houses is slow and costly, especially in the UK, and nobody knows what demand will be like at the end of it.

Ups and downs

Taylor Wimpey and the rest benefited from years of low interest rates, and got further support from the government-backed Help to Buy scheme. That was axed in 2023 The cladding fire safety scandal cost the sector a fortune.

Everything looked nicely set for 2026, with inflation and interest rates destined to fall, and the UK economy potentially picking up. Then came Iran. The oil price spike looks destined to drive up interest rates and energy costs, while spooking buyers.

The Taylor Wimpey share price duly plunged. Yet on Friday, US President Donald Trump gave investors the news they were hoping for, by saying the crucial Strait of Hormuz shipping lane was open. Share prices rallied across the board, with one or two exceptions, such as the big oil giants. Taylor Wimpey rallied too, although I had much bigger one-day winners in my portfolio.

Taylor Wimpey shares closed 3.17% higher on the day. If somebody had £15,000 in the stock, they’d have ended Friday £475 better off. But investors who think they’ve missed a bargain buying opportunity shouldn’t fret too much. The shares are still down 22% over 12 months, and almost 55% over five years. And whether the events around the Strait over the weekend will send prices down again on Monday remains to be seen.

At The Motley Fool, we only suggest investing for the long term. One day’s performance, however good, is neither here nor there. Friday’s rally could well unwind on Monday. Taylor Wimpey shares look good value with a long-term view, as the price-to-earnings ratio is a modest 10.6. The trailing dividend yield is stunning at 10.77%, but don’t be misled. The board has cut the dividend a couple of times lately, and the forward yield for 2026 is 8.35%. Still pretty good though.

I think the shares are worth considering at today’s price, but investors must approach with caution. The shares could go anywhere in the short run. Over the years, Taylor Wimpey could prove a brilliant bargain, but patience and strong nerves are required. I can see lower-risk recovery plays out there today, both on the FTSE 100 and FTSE 250.

The post Here’s what £15,000 invested in Taylor Wimpey shares on Thursday is worth today… appeared first on The Motley Fool UK.

More reading

• Trading at a 10-year low and yielding 11%! Is this FTSE 250 stock the ultimate ISA bargain?
• £5,000 invested in Taylor Wimpey shares 5 years ago is now worth…
• An 8.8% forecast dividend yield! 1 FTSE 100 income share to buy today after bullish 2025 numbers?
• Investors are rushing to buy these before the Stocks and Shares ISA deadline. Should we join in?
• 9% yield! But a cut’s coming for 1 of the UK’s most reliable dividend stocks

Harvey Jones has positions in Taylor Wimpey 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.

Most investors can quickly reel off the big FTSE 100 banks. There’s Lloyds, Barclays, HSBC, NatWest, Standard Chartered… and now Lion Finance Group (LSE: BGEO). It only entered the blue-chip index in March, and now it’s rubbing shoulders with the UK’s high street names. Performance wise, it’s knocked them into a cocked hat. Tempted?

Its origins are far from London. Founded in 1994 after post-Soviet privatisations, it began life as the Bank of Georgia. A London listing followed in 2012, opening the door to deeper capital markets and tighter regulatory oversight. It rebranded to Lion Finance in 2025 after acquiring Ameriabank in Armenia, as it pursues a broader regional footprint.

Its services are standard banking fare, from lending and payments to wealth management. The difference lies in geography and ambition.

Growth at a staggering pace

Like its larger peers, Lion has taken advantage of higher interest rates to widen net margins. All the big banking stocks have flown in recent years, but nothing like this. The Lion Finance share price has surged 887% over the last five years. Only one FTSE 100 name has beaten it in that time, high-flying aircraft engine maker Rolls-Royce, up 1,118% over five years. Over 12 months, Lion leads by a neck. It’s up 107%, against 84% for Rolls.

Rolls-Royce is expensive as a result, with a price-to-earnings ratio of 44. Lion still looks dirt-cheap with a P/E of just 8.1. That’s incredible, given the growth. It’s much smaller operation of course, with a market-cap of £4.8bn against £104bn for Rolls.

In February, Lion reported record 2025 net profit, up 20.9% to GEL2.2bn (£600m), driven by a strong showing in both Georgia and Armenia. The full-year return on equity hit 28.4%, which is roughly double the return of the major UK banks. Today’s market-cap is £4.8bn.

It’s an exciting opportunity. But as is so often the case, comes with greater potential volatility. Georgia’s recent history is somewhat turbulent. In 2024, mass protests erupted in Tbilisi amid fears of electoral vote rigging, and plans for EU accession are currently on hold. The country remains split between pro-EU and pro-Russian factions, a tension that continues to unsettle investors. Especially given events in Ukraine.

That’s the single biggest risk but there are others. Earnings come in local currencies, adding a layer of risk, and the business still leans heavily on two fledgling markets. The growth could keep rolling in if it expands into other eastern European countries, but expansion isn’t without risks either.

Dividend income and outlook

The big FTSE 100 banks are prized for their dividend income, but with a yield of 2.6%, Lion Finance is more of a growth play. That said, the 2024 dividend was increased by 12.5%, and the first-half 2025 payout was hiked by a thumping 50%.

Investors might consider buying Lion Finance for diversification and long-term growth potential. Don’t get carried away though. The shares may struggle to continue its breakneck pace. Politics, geography and currency all add uncertainty that we don’t get with UK-focused Lloyds or NatWest. It’s an exciting addition to the FTSE 100, but only for the lion-hearted.

The post Up 887% with a P/E of just 8! Meet the eye-popping FTSE 100 bank that’s smashing Rolls-Royce appeared first on The Motley Fool UK.

More reading

• Looking for FTSE 100 bargain stocks? Check these out!

HSBC Holdings is an advertising partner of Motley Fool Money. Harvey Jones has positions in Lloyds Banking Group Plc and Rolls-Royce Plc. The Motley Fool UK has recommended Barclays Plc, HSBC Holdings, Lloyds Banking Group Plc, Rolls-Royce Plc, and Standard Chartered 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 an exciting time for investors looking to generate a supersized passive income from UK shares. I can see plenty of stocks yielding 7%, 8% or even 9%, and many have delivered lots of growth too lately. These three FTSE 250 stocks jumped out at me. Are they worth considering today?

Ashmore Group shares yield 7.35%

Specialist emerging markets fund manager Ashmore Group (LSE: ASHM) endured a rotten 15 years as it was hammered by the rotation away from emerging markets after the financial crisis. As interest in the BRICs (Brazil, Russia, India and China) cooled, so did Ashmore’s performance. Long-term investors had one consolation. As the shares fell, the yield rocketed.

The income regularly topped 10%, even though Ashmore has only increased shareholder payouts once since 2015. That year, it paid a dividend per share of 16.65p. Ten years later, it’s crept up to just 16.9p.

With investors captured by US tech, there wasn’t much Ashmore could do. But last year, markets tired of the overpriced Magnificent Seven and took a return trip to the Far East. The result was instant, with the Ashmore share price up almost 75% in the last year.

That growth spurt has inevitably shrunk the yield but it’s still 7.66% on a trailing basis. I’m not expecting any dividend increases. In February, the board held the interim 2026 first-half payment at 4.8p, where it’s been since 2020. Given the high yield, it’s hard to complain. The shares are no longer cheap, with a price-to-earnings ratio of 18.1. But not too expensive.

Ashmore posted a solid set of first-half results on 12 February, with assets under management up 10% to $52.5bn, following stronger inflows, subscriptions and investment performance. Pre-tax profits jump 64% year on year to £81.9m.

Ashmore has been hit by its exposure to Venezuelan debt, and remains at the total mercy of emerging markets sentiment. There’s not much it can do if that cycle reverses again. But I think it’s worth considering for income-focused investors looking for a little diversification, and willing to take a long-term view.

More great dividends out there

FTSE 250 investment trust Henderson Far East Income also caught my eye. I actually held this around 20 years ago, then sold in a fit of youthful impatience. Today it has a blockbuster trailing yield of 9.6%, and the shares are up 27% in a year. It’s also been fired up by the cyclical swing back to Asia. The shares still trade at a 10-year low.

The trust faces similar cyclical risks to Ashmore, but has a far better track record of increasing dividends. It’s hiked them every year this millennium. Well worth considering for income seekers wanting diversification. I might take a return trip myself.

FTSE 250 fund manager Aberdeen is also focused on emerging markets, and has been hit by the same broader trend. It’s had even bigger worries, dealing with the fallout from the ill-fated 2017 merger between Standard Life and Aberdeen Asset Management.

It’s also on the mend with the shares up 44% in the last year, yet the trailing dividend yield remains a healthy 7.2%. I wouldn’t suggest buying all three FTSE 250 stocks, as they’re exposed to similar risks, but they’re worth considering individually.

The post A once-in-a-decade chance to earn a sky-high passive income from these red-hot FTSE 250 stocks? appeared first on The Motley Fool UK.

More reading

• £7,000 in savings? Here’s how to aim for £540.40 in passive income overnight!

Harvey Jones 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.

It’s been a long wait, but GSK (LSE: GSK) shares are finally in demand. And when I say long, I mean long. Yesterday (17 April) the shares traded at 2,125p. Incredibly, that’s their highest since November 2000, when the FTSE 100 pharmaceutical giant had just been renamed GlaxoSmithKline and peaked at 2,048p.

Back then, GlaxoSmithKline was seen as one of the most solid and reliable dividend stocks on the blue-chip index. A yield of 5%-6% seemed assured, with steady share price growth too. The shares were then plunged as the dot-com boom unwound and by 2004, they’d roughly halved. Progress since then has been patchy.

Until recently, the stock was bumping along near a 10-year low. Suddenly, that’s changed.

FTSE 100 big seller

GSK’s now the most popular stock among UK investors over the last week, accounting for 5.46% of all purchases on the AJ Bell platform. That’s more than double second-placed Legal & General, with just 2.63%. It’s also streaking ahead of big sellers like Microsoft, Rolls-Royce, BAE Systems, Nvidia and BP. So what’s driving the surge?

It’s not down to fresh news. GSK hasn’t reported since 4 February, when it posted a strong set of results. Full-year sales rose 7% to £32.7bn, while underlying operating profit climbed 11% to £9.8bn, slightly ahead of expectations.

New chief executive Luke Miels maintained the growth targets set by predecessor Emma Walmsley, with sales forecast to reach £40bn by 2031.

For years, GSK struggled as it worked to replenish its drugs pipeline after a string of blockbuster treatments came off patent. To fund that investment, Walmsley froze the dividend at 80p per share for eight long years to 2022. That dreary stretch culminated in a cut to 57.75p, instead of the hoped-for hike.

We’ve seen a couple of respectable dividend increases, lifting the full-year 2025 payout to 60.6p. Further growth seems possible, with free cash flow jumping 41% to £4bn.

Dividends and growth

Income seekers may be underwhelmed by the current yield of around 3.1%, but that’s partly because the share price has done so well. GSK is up an impressive 56% over the last year. I’m personally thrilled with that, having bought in two years ago.

GSK looks built for volatile times like today. I can see why it’s in demand. The valuation remains reasonable, with a price-to-earnings ratio of 12.3 (it looked like a screaming bargain with a P/E of eight when I bought it).

It’s also produced a string of clinical successes, which have further bolstered investor demand. But as with every stock, there are still risks. Like all pharmaceutical companies, GSK faces constant pressure to develop new treatments and vaccines. But the process is lengthy, and late stage failures are always a risk.

The sector’s also under pressure from governments to cut drug prices. US tariff concerns also linger, as do the risk of class action lawsuits.

Even so, GSK’s delivered. For investors with a long-term outlook, it still looks well worth considering. Yet after such a strong run, anyone buying today should be ready for a period of slower progress from here.

The post Suddenly investors can’t get enough of GSK shares! What’s going on? appeared first on The Motley Fool UK.

More reading

• Why is everyone buying GSK shares?
• GSK’s share price is under £22, but with a ‘fair value’ much higher, is it time for me to buy more right now? 
• Waiting for a stock market crash? Don’t make this fatal mistake!
• Here’s how a £20,000 ISA could be the starting point for a £50k annual passive income
• 2 FTSE 100 shares that could outperform this year regardless of geopolitics

Harvey Jones has positions in BAE Systems, Bp P.l.c., GSK, Legal & General Group Plc, Nvidia, and Rolls-Royce Plc. The Motley Fool UK has recommended AJ Bell, BAE Systems, GSK, Microsoft, Nvidia, and Rolls-Royce 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.

Any investor who holds Shell (LSE: SHEL) shares will be pleased they do right now. While rising energy prices have rattled global stock markets, they’ve lifted the FTSE 100 oil and gas giant. The Shell share price is up 23% over the last three months and 40% over the year. There’s a trailing 3.23% dividend on top.

Investors in rival BP (LSE: BP) have even more to shout about. The oil giant has had a wretched time since the Deepwater Horizon catastrophe in 2010. That was followed by a messy U-turn on renewables, constant pressure from activist investors, and the relatively quickfire exit of two CEOs.

When I decided to add an oil stock to my SIPP 18 months ago, I chose BP because of its problems, not despite them. The shares were cheap, the yield topped 6%, and I saw recovery potential if it got its act together. I’m still not convinced the BP strategy is fully there, but the shares are up a mighty 63% over the last year and 33% over the last three, otherwise volatile, months. The dividend yield has slipped, but still pays a solid 4.26%.

Top FTSE 100 growth stocks today

Where both stocks go in the short run largely depends on events in Iran. Lately, investors have chosen to be more optimistic. Brent crude has eased back to $95 a barrel, and BP and Shell have retreated too. But if the Strait of Hormuz supply route remains under threat, shortages could bite quickly and oil and their stock prices could surge again. Over the next few weeks, anything could happen. But in the long term, this conflict could prove to be bad news for BP and Shell.

It’s reminded everyone just how essential oil and gas remain to the global economy. But it’s also revealed how exposed importing nations are to supply shocks. Until now, there was at least an assumption that key shipping lanes would stay open. That no longer feels certain. Hormuz has always been a potential chokepoint, but now it’s being throttled. All it takes is one cheap drone to stop a massive tanker.

The oil giants could slide

As a result, countries could accelerate plans to cut their reliance on imported oil and gas. China is ahead of the game, and major fossil fuel importers such as South Korea, India, South Africa, Turkey and Italy have fresh incentives to follow. Across Africa, micro-solar is expanding rapidly. Nobody wants to be at the mercy of geopolitical shocks.

If Iran tensions ease quickly, that urgency may fade, but a hard lesson has been learned. The world will still need oil and gas for years, not just for energy but for plastics, fertiliser and pharmaceuticals. Yet this could prove a turning point.

I think both BP and Shell are both worth considering today, as part of a balanced portfolio. But a vague long-term risk has suddenly come into sharper focus. There may be better long-term opportunities out there today.

The post Does the Iran war spell long-term disaster for BP and Shell shares? appeared first on The Motley Fool UK.

More reading

• Why are some investors rushing to sell BP shares?
• BP share price forecast: can oil prices and buybacks push the stock higher in 2026?
• Here’s how a £10k ISA could generate £1,845 in monthly passive income
• 5 years ago, £5,000 bought 354 Shell shares. But how many would it buy now?
• At 570p, is it too late to consider buying BP shares?

Harvey Jones has positions in Bp P.l.c. 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.

This morning (16 April) has heaped yet more misery on easyJet (LSE: EZJ) investors, as its shares drop 4.5% following a poor set of first-half results. The easyJet share price is now down 16.5% over the last year, and a brutal 54% over five. So are we looking at the kind of buying opportunity that only comes along once every 10 years or so? 

Actually, make that 14 years. At today’s price of roughly 375p, the budget carrier’s shares are back to 2014 levels. That may well tempt bargain seekers but obviously, there’s a risk. The stock might just keep falling. Frankly, it has become a bit of a habit.

Regular FTSE 250 faller

Yet investors are starting to wake up. Figures from investment platform AJ Bell show easyJet was the eighth most bought UK stock last month. Sadly, anybody who did snap it up in March may wish they’d waited.

This morning’s trading update for the six months to 31 March showed an expected loss before tax of between £540m and £560m in the first half of 2026. That’s potentially up more than 40% from a £394m loss in the first half of 2025.

The good news is that EasyJet typically makes the bulk of its profits in the second half. Full-year 2025 profits ultimately landed at £665m, up 9% on 2024. Unfortunately, the second half of the 2026 financial year looks much less certain, due to the war in Iran.

That’s already starting to bite, with easyJet facing £25m in extra fuel costs in March alone. It’s also facing ongoing “near-term uncertainty around fuel costs and customer demand”, the board said today. Nobody knows how bad the oil price spike and shortages will be. There’s even talk of summer flight cancellations, but we just don’t know yet. It would be a huge blow should the conflict hit the peak summer flying season, where easyJet makes its real money.

Last month, CEO Kenton Jarvis warned prices might have to go up by the end of the summer to cover extra fuel costs. Given the broader squeeze on consumers, that could further hit demand. 

Solid balance sheet

There were some positives today. First-half demand remained solid, with the load factor up two percentage points year on year to 90%. Its successful easyJet holidays venture continues to enjoy strong demand, with customer numbers up 22%.

The board also highlighted the group’s “investment grade balance sheet”, with net cash of £434m and liquidity of £4.7bn. It’s also 70% hedged for jet fuel prices over the summer. It just worries me slightly that the board felt the need to point that out.

easyJet already faced big challenges, and they’ve just intensified. I’ve been watching it for several years but haven’t taken a punt on it yet. Today, it looks more tempting than ever, with a super-low price-to-earnings ratio of 5.89 and trailing yield of 3.5%. At some point, the shares will surely fly, but investors would have to be very brave to consider easyJet today.

The post With a P/E of 5.9 is this a once-in-a-decade opportunity to buy dirt-cheap easyJet shares? appeared first on The Motley Fool UK.

More reading

• £10,000 invested in easyJet shares at the start of 2026 is now worth…
• easyJet shares plummet 30% in 3 months! Is it now a top stock to buy?
• 2 UK ‘value stocks’ to approach with extreme caution
• £10,000 invested in easyJet shares 2 days ago is now worth…
• Why is everyone suddenly buying this dirt-cheap growth stock?

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Aj Bell 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 can’t believe the Tesco (LSE: TSCO) share price. It’s an absolute monster. It’s up 37% in the last year, and 110% over five. Dividends are on top, turbo-charging the total return. How does Britain’s biggest grocer keep delivering?

It wasn’t always like this. In 2014, Tesco was a basket case. Market share, sales, profits, staff morale and customer attitudes were falling as one. Plans for global domination had flopped, with Tesco losing £1.7bn on its ill-fated Fresh and Easy US business. Throw in a £326m accounting shock and a horse meat scandal, and that stands as Tesco’s darkest hour. Then came the dawn.

‘Drastic’ Dave Lewis (now at Diageo) began the turnaround, and from 2020 CEO Ken Murphy has continued the good work. We’ve seen that again this morning (16 April) with yet another set of well-received results.

Top FTSE 100 growth stock

Tesco shares are up around 2.5% this morning after it reported growth across all divisions in the year to 28 February. Initiatives such as its Everyday Low Prices and its Aldi Price Match continue to pull in the punters, while its Clubcard conquers all. Tesco Finest is thriving too.

Group like-for-like sales rose 3.5%, hitting 4.2% in the UK, but wholesale distributor Booker remains sluggish at 0.2%. Group adjusted operating profit climbed 0.6% at constant exchange rates to £3.15bn, beating guidance. Free cash flow rose 11.8% to £1.96bn, boosted by rising sales and disciplined working capital management.

However, the board was cautious about the year ahead, warning of the impact of the conflict with Iran. Guidance suggests underlying operating profits of between £3bn and £3.3bn. Much depends on how long the war lasts and the impact on oil prices, supply chains, inflation, unemployment and the like.

While that’s completely out of the grocery giant’s hands, Tesco is better placed to withstand the downturn, because of its market strength, strong supplier relationships and pricing power. The board has also worked hard to cut costs, helping to offset the impact of higher employer’s National Insurance and two big minimum wage increases.

And there’s income too

As well as growth, Tesco has delivered dividends. The trailing yield has slid to just 2.87%, as a direct consequence of that share price surge. Recent policy has been progressive, with the board hiking shareholder payouts by 11% in 2024, 13.2% in 2025 and 5.84% in 2026. The yield is forecast to hit 3.06% in 2026, then climb again to 3.36% in 2027.

Tesco shares are getting a little expensive, with the price-to-earnings ratio climbing to just over 17. That’s higher than rival Sainsbury’s, which has a P/E of just over 15. Tesco has been the better buy, but there’s a fair chance its shares will slow from here.

So is that share price too good to be true? No, it reflects a really strong and well-run underlying business, one that’s well worth considering. However, today’s toppy P/E makes me think the shares will struggle to maintain their recent velocity. Mind you, I suspect I said that a couple of years ago, and look how well they’ve done since.

The post Think the soaring Tesco share price is too good to be true? Read this… appeared first on The Motley Fool UK.

More reading

• 2 reasons a stock market crash could be a good thing!
• Prediction: by December, £5,000 invested in UK shares will be worth…
• Amid geopolitical and AI risks, here’s how I’m positioning my ISA and SIPP in 2026
• My game plan for the next stock market crash
• Up just 1%: what’s going on with Tesco shares now?

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended J Sainsbury Plc and Tesco 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.