After years of high-octane gains, Nvidia (NASDAQ: NVDA) stock seems to have run out of gas. Had an investor put £5,000 into the chip stock six months ago, that capital would now be worth about £4,800 (factoring in exchange rates).

Is it game-over for this legendary growth stock? Or is it just pausing for breath before its next leg higher?

Taking a breather

My view here is that it’s simply taking a breather. Between the start of 2023 and October 2025, the stock jumped from $20 to $200. At some stage, it was likely to experience a lengthy period of ‘consolidation’. I think that’s what we’re seeing now.

Get ready for the next move higher

I fully expect it to continue its ascent at some stage in the near future. Because the underlying fundamentals look very strong.

At last month’s GTC conference, for example, CEO Jensen Huang unveiled a bunch of powerful new products including the Vera Rubin AI platform (which is far more powerful than its current Blackwell platform), the Groq 3 inference chip, and a software platform for OpenClaw. He also announced the launch of a few partnerships for self-driving cars (which will use Nvidia’s self-driving tech).

Meanwhile, Huang said he now expects a whopping $1trn in revenue from Blackwell and Rubin chips through 2027. Late last year, the company was only expecting $500bn.

So it’s not like the growth story here has come to an end. If anything, growth appears to be accelerating.

Undervalued today

Note that after the recent dip in the share price, the stock’s starting to look very cheap. With analysts expecting earnings per share of $8.26 this financial year (versus $4.92 last financial year), the forward-looking price-to-earnings (P/E) ratio’s only 21 (near a seven-year low).

At that earnings multiple, the stock’s undervalued, in my view. It seems Wall Street analysts share my view here – currently the average price target is about 50% higher at $264.

Worth a closer look

Ill point out that in the current market environment (where investor sentiment’s weak due to economic and geopolitical uncertainty), the growth stock isn’t suddenly going to surge to $264. For the Nvidia share price to resume its long-term upward trend, we’ll need to see market conditions improve.

And of course, there’s no guarantee it will actually get to that price target. If spending on AI infrastructure from hyperscalers such as Microsoft and Amazon drops, or competitors (including the hyperscalers) launch powerful new AI chips, the growth story here could potentially be derailed.

Taking a long-term view however, I’m bullish on Nvidia as I expect the AI buildout to continue. I think it’s worth a closer look today while it’s around 15% below its highs.

The post £5,000 invested in Nvidia stock 6 months ago is now worth… appeared first on The Motley Fool UK.

Edward Sheldon has positions in Nvidia, Amazon, and Microsoft. The Motley Fool UK has recommended Nvidia, Amazon, and Microsoft. 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.

Motley Fool UK 2026

I’m gearing myself up to buy Barclays (LSE: BARC) shares, but one thing is holding me back. I already have another FTSE 100 bank in my SIPP, Lloyds Banking Group (LSE: LLOY). Is there any point holding both?

Right now, the two have astonishing similarities. In fact all the big UK banks do, as their shares have flown across the board in recent years.

Higher interest rates have driven up net interest margins, the difference between what they pay savers and charge borrowers. It’s a key profit metric. Barclays and Lloyds both made a heap of money in 2025, with pre-tax profits of £9.1bn and £6.7bn, respectively. Profits grew at similar speeds too, 13% and 12%.

FTSE 100 rivals compared

Both announced generous share buybacks, of £1bn and £1.75bn. Share price performance has been very similar too. Last week, as investors gather them over Iran, Barclays and Lloyds shares both climbed 6%. Over 12 months, they’re both up around 36%.

However, Barclays has done notably better over three years. It’s up 180% in that time. Lloyds climbed 105%. In a way, I’d expect that, because there’s a key difference between the two. Lloyds is a pure play on the UK economy. It’s focused on domestic retail and commercial banking, with a big exposure to mortgages and UK consumers.

Barclays is far more diversified. Alongside its UK operations, it has a significant international presence and investment banking division. Its shares are therefore more exposed to global markets and deal-making activity. This makes it riskier, but potentially more rewarding too. Despite that, both have surged the same interest rate wave, then slowed as valuations started to look stretched and interest rate expectations stabilised.

But following solid 2025 results, both look reasonably priced again. Barclays is the cheaper today, with a forward price-to-earnings (P/E) ratio of just 7.75. Lloyds is a little pricier at 9.95. That low P/E has me itching to buy Barclays. Then I remember that it’s exposed to the private equity and shadow banking market, which is under pressure right now. Something I don’t have to worry about with Lloyds.

Banking stock lookalikes

So what about income? Lloyds has the more generous and progressive dividend policy, while Barclays prioritises buybacks. As a result, Barclays’ trailing yield of 2.21% is beaten by Lloyds, which yields 3.73%. On a forward basis, they yield 3.5% and 4.3%, respectively. Personally, I prefer dividends hitting my account, although I’m not averse to the odd buyback or two. Lloyds has also been active on that front.

There are so many similarities. Both are sensitive to economic cycles, although I’d say that Barclays is likely to climb faster during the good times, and fall faster when the market turns. We’ve seen that lately. Barclays shares are down 15% over three months, but Lloyds shares are flat. Which may explain that lower Barclays P/E.

If I did buy Barclays, it would introduce a different mix of risks and very new streams. It’s not massive diversification, but spreads my bets within a sector that I like. At today’s low valuation, I think Barclays shares are impossible to resist. It’s at the top of my Buy list.

The post I hold Lloyds. Is it madness to buy Barclays shares too? appeared first on The Motley Fool UK.

Harvey Jones has positions in Lloyds Banking Group Plc. The Motley Fool UK has recommended Barclays Plc and Lloyds Banking Group 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.

Motley Fool UK 2026

Lately, the Lloyds (LSE: LLOY) share price has been running red hot. Despite recent market volatility, it’s more than doubled in the last three years. Plus it’s thrown lots of dividends at investors too. I hold the stock myself, and I love it. But is there a danger of getting carried away by recent performance?

Several contributors to The Motley Fool are sceptical about Lloyds. I’m a huge fan, but this made me think I need to calm down, and take a cold hard look at whether it merits my full-throated backing.

Can this FTSE 100 star continue to shine?

So what’s worrying my fellow Fools? They’re worried about the poor outlook for the UK economy, and understandably so. We’ll be lucky to get any growth this year, and given Lloyds’ pure domestic focus, that will hurt. So I get that.

Another recent concern is that falling interest rates would cut net interest margins, the difference between what banks pay savers and charge borrowers. Higher rates have been a huge profit driver in recent years.

I’m less worried myself, as interest rates now seem more likely to rise than fall, if the Iran war drives up oil prices, inflation and interest rates. My concern today is that mortgage demand will slump as a result, in a huge blow to Lloyds as it’s the biggest lender of all, via subsidiary Halifax.

There are other worries. Lloyds investors breathed a sigh of relief on Monday (30 March) when the Financial Conduct Authority said banks will pay a total of £9.1bn to draw a line under the motor-finance mis-selling saga. That’s £2bn less than previously feared. But there’s a chance this may be challenged in the courts, which means the saga isn’t over yet. I’m sorry, but I can’t bring myself to worry over that. It’s a short-term threat. I invest for the long term.

Another threat is that young and hungry challenger banks are quietly munching into market share of the big high street banks. So has all that cooled my ardour?

I still love this income machine

But as well as those cons, I can see an awful lot of pros. Lloyds is making a heap of money. Full-year 2025 profits jumped 12% to a mighty £6.7bn, which allowed it to hike the dividend by 15% and unleash a £1.75bn share buyback.

CEO Charlie Nunn is diversifying into growth areas like insurance and wealth management, to make the business less reliant on the interest rate cycle.

The popular vote seems to be in favour of Lloyds, as it’s shown resilience during recent turbulence. In fact, Lloyds shares climbed 6% last week, and are up 35% over one year. Yet they still look cheap, with a forward price-to-earnings ratio of just 9.95.

While the fast-rising share price has knocked back the dividend yield to 3.7%, the board is still pursuing a highly progressive policy. Market expect the yield to top 4.3% this year, then 5.1% in 2027.

I’m grateful for those insights from my fellow Fools, but investing is a personal decision, and mine is to stick with Lloyds. I’ll hold through the cycle, accepting there will be downs as well as ups, as with every stock. In cold, hard terms, I still think Lloyds shares are worth considering today.

The post It’s time we all took a long, cold look at the Lloyds share price appeared first on The Motley Fool UK.

Harvey Jones has positions in Lloyds Banking Group Plc. The Motley Fool UK has recommended Lloyds Banking Group 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.

Motley Fool UK 2026

This year has seen legendary investor Warren Buffett step down from day-to-day control of Berkshire Hathaway. He is well into his nineties, so despite earning billions of pounds in the stock market, he has not exactly used that wealth to help fund an early retirement!

Still, that could be exactly what others can do by learning from some of Warren Buffett’s approach to the markets.

Invest early and regularly

Buffett bought his first shares as a schoolboy and has been a regular investor ever since.

Making regular investments, from an early age, can add up. Say someone puts £20 a day into a Stocks and Shares ISA. That will give them over £7,000 per year to invest.

Doing that from the age of 25 and sticking with the habit, by the time they are 55 the investor will have put aside £219,000 to invest.

Use money to make money

Warren Buffett is a big believer in compounding.

By keeping money inside Berkshire on his watch rather than paying it out as dividends, the company could fund further investments that could in turn earn more money to fund further purchases – and so on.

Buffett compares this to pushing a snowball downhill, whereby snow (money) picks up more snow as it gets bigger.

Returning to my example above, say the person putting £20 a day into an ISA from the age of 25 onwards compounds it at 10% annually.

By the time they hit 55, they will have an ISA valued at over £1.2m. Yes, £1.2m!

Not bad for £20 a day – and certainly helpful if they want to retire early!

The Buffett approach to building wealth

10% a year of compound annual gains over a long-term timeframe is a challenging goal.

Buffett achieved around twice that in his decades at the helm of Berkshire, but of course not all of us have his Midas touch. Fortunately, though, we can learn from his techniques.

He likes to focus on great not merely good companies, with competitive advantages that give them pricing power.

Buying cheap is not essential in the Warren Buffett approach, but he does at least like an “attractive” price – and then typically aims to hold for the long term.

Could this share be a long-term winner?

One share I think investors should consider that I think scores well against those criteria is Campbell’s (NASDAQ: CPB).

Consumer packaged goods companies have fallen out of fashion, driven by changing health and diet trends.

The soup maker has already lost 20% of its value this year – and we are less than four months in!

Still, that has pushed the dividend up to a tasty 7%. Campbell’s has powerful brands, not only in soup but in other areas including biscuits (Pepperidge Farm) and drinks (V8). I believe those can be used to help keep its portfolio relevant even as eating habits change.

For now, sales are falling. Cost inflation in packaging and energy are a risk to profit margins given the firm’s extensive manufacturing footprint.

But from the sort of long-term perspective championed by Warren Buffett, I think the share looks like a potential bargain.

The post Warren Buffett didn’t retire early. But could his investing wisdom help you do so? appeared first on The Motley Fool UK.

C Ruane 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.

Motley Fool UK 2026

Stocks and Shares ISAs are brilliant long-term investment vehicles. With these accounts, we can invest up to £20,000 a year and not pay any tax on capital gains or income.

Of course, the challenge with these accounts is choosing investments. So I thought I’d put together some ideas to consider for 2026 and beyond.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The defence theme

I like big investment themes (megatrends), and one of my favourite themes right now is defence. Today, countries are spending heavily on defence equipment in order to ensure they can protect themselves from geopolitical threats. And with NATO recently raising its defence spending target to 5% of GDP by 2035, this trend looks set to continue (although nothing’s guaranteed).

One product that could be worth considering here is the HANetf Future of Defence ETF (I hold). In terms of individual stocks, some names worth checking out include BAE Systems, Costain, and Concurrent Technologies.

Big Tech at a discount

I also like the technology sector. Today, we live in a tech-driven world and, realistically, we’re only going to see more digitalisation. In this space, I think a few of the ‘Magnificent 7’ stocks are worth a closer look at present. Because this cohort of shares has taken a hit recently.

Three that stand out to me are Amazon, Microsoft, and Nvidia (I hold all three). All face risks however, but I like the risk/reward set-up today as they all look cheap (Nvidia’s price-to-earnings (P/E) ratio’s now about 20).

Beaten-up growth stocks

Looking beyond the Magnificent 7, I’m seeing plenty of opportunities in the tech space further down the market-cap spectrum. Examples here include ServiceNow, Snowflake, Palo Alto Networks, and Palantir (I hold all of these except ServiceNow).

All of these stocks have recently taken a huge hit, but I continue to see a lot of growth potential in the long run.

Dividend shares

Of course, dividend shares are always a solid option for an ISA. These offer two potential sources of return – share price gains and dividend income. One stock I like here is M&G. It currently sports a dividend yield of about 7.8% (dividends are never guaranteed though).

UK small-caps

Finally, I think there are some really interesting opportunities in the UK small-cap space right now. An example here is British supplements powerhouse Applied Nutrition (LSE: APN). This company’s been growing at a prolific rate. For the six-month period to the end of January (its H1 FY2026) for example, revenue was up a whopping 57% year on year to £74.5m.

However, like a lot of companies, it’s seen its share price pull back recently. Note that a lot of the hit here came after the company said that the Middle East conflict was likely to cause disruption to shipping routes and potentially hit growth in the second half of its financial year (so there’s some near-term risk).

Taking a five-year view however (our preferred investment horizon here at The Motley Fool), I think this stock could do really well and is therefore worth a closer look. Trading on a P/E ratio of about 18 today, I see a lot of investment potential.

The post 5 compelling investment ideas for a Stocks and Shares ISA in 2026 appeared first on The Motley Fool UK.

Edward Sheldon has positions in Amazon, Microsoft, Nvidia, Palantir, Snowflake, Palo Alto Networks, and HANetf Future of Defence. The Motley Fool UK has recommended Amazon, BAE Systems, Concurrent Technologies Plc, M&g Plc, Microsoft, Nvidia, ServiceNow, and Snowflake. 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.

Motley Fool UK 2026

Billionaire investor Bill Ackman said this week that this is one of the best times to buy shares in a long time. But is that right?

There’s a lot going on in the stock market right now. And I think there are opportunities, but investors should still be careful.

Stock market volatility

There are two major threats facing the stock market right now. One is the conflict in Iran and the other is the rise of artificial intelligence (AI).

The issues are very different, but they have something very important in common. They both have uncertain outcomes.

The situation in the Middle East is much more high-octane. It’s often changing multiple times a day and that makes it hard to keep up. 

AI is much more slow-moving. But it’s also less familiar and that makes it harder for investors to find something to compare it to.

All of this means share prices are much more volatile than usual. And that can indeed create opportunities for investors. 

Buy on the sound of cannons

There’s a popular saying about investing during war. It tells investors to “buy on the sound of cannons, sell on the sound of trumpets”. It’s attributed to Nathan Mayer Rothschild, during the Napoleonic Wars. And it’s still relevant in an age where drones have replaced cannons.

It’s a bit like being greedy when others are fearful, but better. People are sometimes right to be fearful – because things are changing.

That might be the case with AI. It doesn’t look like a passing fad – the technology is real and it seems to be here to stay. 

Wars, however, generally don’t last forever. And while share prices are never the most important thing in conflicts, they do move a lot.

Where to look

One stock that’s been under pressure recently is JD Wetherspoon (LSE:JDW). The conflict in Iran is a dual threat for the FTSE 250 company. 

Higher oil prices threaten to both push up its own energy costs and weigh on consumer spending. And the share price is down 15% in a month. 

Betting on a quick resolution to the conflict is obviously risky. But my thesis for JD Wetherspoon shares isn’t based on this. 

It’s based on the fact that the firm has lower costs than its competitors. And this puts it in a better position to withstand short-term shocks.

That kind of advantage is exactly what I look for in an investment. So I think it could be in a very strong position when trumpets sound.

The best time in a long time?

When Bill Ackman says the best companies in the world are on sale, he’s not thinking of JD Wetherspoon. But the principle is the same.

Uncertain situations can create buying opportunities. And the stock market is facing a unique combination of issues.  That means it might well be the best time in a long time to buy shares. But that doesn’t mean things can’t get even better. 

The most important thing is to be ready at all times. Buying opportunities can present themselves when investors least expect them.

The post Is this the best time to buy shares in a long time? appeared first on The Motley Fool UK.

Stephen Wright has positions in J D Wetherspoon 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.

Motley Fool UK 2026

Croda International‘s (LSE:CRDA) been one of the UK’s most reliable dividend shares for a long time. But the stock’s fallen a long way.

It’s now trading at a 72% discount to its 2021 highs. Yet the company keeps finding ways to return more cash to shareholders each year.

Speciality chemicals

Croda’s a chemicals company. Its products help crops grow and make beauty products and drugs do what they’re supposed to.

Importantly, barriers to entry are very high. The firm’s products are protected by regulations that make competing extremely difficult. In some cases, that takes the form of patents. Not all investors value these, but they do make it illegal for competitors to copy its products.

In others, they’re specified as part of the approval process. And that means customers aren’t allowed to change to an alternative product. That gives Croda a lot of pricing power. But despite all of this, the share price has been a disaster over the last five years or so.

Boom and bust

During the pandemic, demand for Croda’s products surged and both the stock and the underlying business did extremely well. Since then however, things have gone the other way. Part of this is customers working through excess inventories, but that’s not the only issue.

The firm also made some ill-judged strategic moves. It used its Covid-19 windfall to invest in its lipids division, but that’s been a mistake. As a result, the stock’s gone from an almighty boom to a huge bust. It’s fallen not only to its pre-pandemic levels, but well below this.

Despite all of this, the firm’s managed to keep increasing its dividend every year. Given the circumstances, that’s a remarkable achievement.

Dividends

Croda’s lifted its dividend for over 30 consecutive years. That covers recessions, wars, and several changes of leadership. The inherently cyclical nature of the business makes it even more impressive. But there are risks to consider. 

The latest increase was minimal to say the least. And the dividend was barely covered by the company’s free cash flows. That means investors need things to pick up for the business in the near future. But there are signs this is happening. 

Croda’s latest update reported signs of normalising inventory levels and that should mean demand’s set to improve after a long time.

Investing lessons

The best investors never stop learning. And Croda International has been a great source for lessons over the last few years. One is the danger of mistaking a cyclical high for a structural shift. This happened when demand soared during the pandemic.

Another’s the uncertainty that comes with complex industries. The firm’s strategy shift failed because it was wrong about the future of drug development. That’s not to say investors should avoid these entirely. But they should be clear about what the potential dangers are. 

Despite all this, the company’s been a consistent source of growing passive income. And that might also be extremely important.

Risks and rewards

Five years ago, £1,000 was enough to buy 15 shares in Croda International. Now investors get more than twice that many. There’s still risk and there’s still uncertainty, but I think the stock’s worth considering at today’s significantly discounted prices.

The post £1,000 buys 35 shares in an incredibly reliable FTSE 100 dividend stock appeared first on The Motley Fool UK.

Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended Croda International 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.

Motley Fool UK 2026

Warren Buffett once warned, “If you don’t find a way to make money while you sleep, you will work until you die”. One way to do that is by building passive income streams from assets like shares, rather than relying only on a monthly paycheque.

But investing can be daunting, particularly in today’s market. The FTSE 100 recently dropped more than 10% from its high, prompted by the Middle East conflict, higher oil prices, and the risk of stickier inflation and interest rates.

The more domestically focused FTSE 250 has been hit even harder as investors worry about the UK economy. It’s exactly the kind of turbulance that tempts people to sell everything and hide in cash.

The Buffett playbook

Buffett’s playbook is very different. He tells investors to “be fearful when others are greedy and greedy when others are fearful“.

In other words, stay calm, ignore the noise, and use the dip to buy quality companies at a discount. He often noted how bad news can be an investor’s friend, making quality stocks available at bargain prices.

Right now, some UK shares look priced for disaster, despite decent fundamentals. 

High earnings, low prices

The private equity giant 3i Group (LSE: III) has grown roughly 469% over the past decade, yet the shares are down close to 30% since last April. Analysts put its forward price‑to‑earnings (P/E) ratio for 2026 at around four times — extremely cheap for a long‑term growth winner.

Crucially, recent numbers don’t point to a business in trouble. In the year to March 2025, it reported a 25% total return on shareholders’ funds and strong growth in net asset value per share. Its main holding, European discount chain Action, continues to grow sales and profits at double‑digit rates.

In fact, 98% of its holdings grew earnings in the 12 months to mid‑2025. So this price drop seems to be more about sentiment and higher rates than any obvious operational issues.

A tough market

Vistry, the UK housebuilder, is another example. One valuation service puts its forward P/E at about 5.3, implying investors are very cautious on future profits. This is despite a solid order book and plans for revenue and volume growth. 

In the same vein, easyJet trades on a forecast P/E of roughly five. But revenue and earnings are expected to recover if oil prices drop and travel demand rebounds.

Both are exposed to macroeconomic risks like higher energy costs and a weaker consumer, but those low multiples suggest a lot of bad news is already priced in.

Of course, nothing is guaranteed. 3i Group is heavily reliant on Action and a concentrated portfolio, so a serious downturn in European consumer spending or a sharp fall in private‑equity valuations could hurt. 

And if rates stay higher for longer or geopolitics worsen, all three shares could remain volatile for some time.

No risk, no reward

Buffett likes passive income because it buys freedom: dividends, interest, and long‑term growth can keep flowing whether you’re at your desk or fast asleep.

Market dips like the current correction can be a rare opportunitiy to build an income stream with strong businesses at low prices.

But it also requires risk management — spreading money across sectors, keeping some defensive shares and cash, and accepting that volatility is normal rather than something to fear.

The post This is what Warren Buffett has to say about passive income — and I’m listening! appeared first on The Motley Fool UK.

Mark Hartley has positions in 3i Group Plc, Vistry Group Plc, and easyJet Plc. The Motley Fool UK has recommended Vistry Group 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.

Motley Fool UK 2026

Some of the savviest investments I’ve made have been exchange-traded funds (ETFs). Through these it’s possible to quickly invest in a basket of stocks or a particular sector that looks oversold.

For example, let’s say semiconductors sell off heavily. There are ETFs for that. European banks suddenly look cheap? Ditto. Today, there’s usually an ETF to capitalise on every theme imaginable.  

With this in mind, here are two falling ETFs worth checking out in April.

Tech stock correction

The iShares NASDAQ 100 ETF (LSE:CNDX) tracks the performance of the Nasdaq-100 Index, which is the 100 largest non-financial companies listed on the Nasdaq exchange.

So we’re talking the Magnificent Seven tech stocks, as well as blue-chips such as Walmart, Costco, Broadcom, Netflix, Marriott International, and PepsiCo.

After notching up another record high in October, the Nasdaq 100 recently fell 12%, officially entering correction territory. The selling has eased in recent days, but could worsen if the war in Iran lasts longer than expected. Rising interest rates are a risk to the stock market.

Looking ahead to the next decade however, the tech revolution is only going to accelerate. Whether it’s AI agents, robotaxis, quantum computing, cybersecurity, or the booming space economy, this index is bursting at the seams with disruptors and tech innovators.

Plus, the Nasdaq’s changing the rules to allow new mega-cap companies like SpaceX to rapidly enter its main index. So investors also get exposure to potential future growth stars that haven’t yet listed.

Of course, history’s no reliable indicator of the future. But it’s worth pointing out that the Nasdaq 100 has experienced over a dozen corrections and a handful of bear markets in the past two decades. And investors have done very well holding through thick and thin (and buying on noteworthy pullbacks, like today).

For me, there are just too many high-quality companies in this index for it not perform well over the long term. And this makes the ETF, which also reinvests company dividends back into the fund, worth considering on the dip.

High-yield UK dividends

Changing gears, the second fund to look at is iShares UK Dividend ETF (LSE:IUKD). This one holds 50 UK stocks with high dividend yields, excluding investment trusts.

The five largest holdings today are BP, Legal & General (carrying an 8.8% yield!), British American Tobacco, NatWest, and HSBC. From the FTSE 250, the largest are Aberdeen, Investec, ITV, Unite, and Tritax Big Box.

Many of these have also sold off recently due to inflation fears. This adds UK economic risk moving forward, as the ETF is tilted towards financials.

Reflecting this, the ETF’s down 7.5% since the end of February.

However, this means it’s now yielding 4.83%, which is pretty decent and well above a standard FTSE 100 tracker (around 3.14%).

The ETF’s also trading cheaply, with a fund-level price-to-earnings multiple of just 13.8. Add in that almost-5% yield and I think there’s a good case to consider buying this ETF right now.

Finally, it’s worth mentioning that the total expense ratio here is just 0.4%. So the iShares UK Dividend ETF offers a cheap way to invest in a diversified income portfolio.

The post 2 excellent ETFs to consider buying for an ISA in April appeared first on The Motley Fool UK.

HSBC Holdings is an advertising partner of Motley Fool Money. Ben McPoland has positions in HSBC Holdings and Legal & General Group Plc. The Motley Fool UK has recommended British American Tobacco P.l.c., HSBC Holdings, ITV, Tritax Big Box REIT Plc, and Walmart. 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.

Motley Fool UK 2026

Filtration

The company in question is Porvair (LSE:PRV). The firm manufactures filtration equipment for the aerospace and laboratory equipment industries.

There are several reasons I like this business, including:

• Strong repeat business.
• High barriers to entry.
• Resilient revenue streams.
• Impressive cash conversion.

Let’s take a closer look at each of these. 

In the aerospace industry, Porvair’s filters have to be replaced after a certain time. This isn’t optional – it’s a legal requirement. With lab equipment, a lot of the company’s products are designed to be used once. That leads to a steady stream of repeat sales.

Its industries are have high regulatory standards. Whether it’s aircraft, drug development or water purity, competing isn’t straightforward. That makes it difficult (or impossible) for customers to switch to alternative providers. And that generates good pricing power for Porvair.

In terms of cyclicality, it’s important that the firm’s products are typically maintenance expenses. That makes demand fairly stable, even when companies aren’t expanding.

Source: Fiscal.ai

The firm also has excellent cash conversion metrics. Over the last 10 years, it’s consistently turned over 75% of its net income into free cash.

Dead money?

This all sounds positive, but it raises an obvious question. If the business is so good, why has it essentially gone nowhere since 2021?

The reason’s twofold. One’s growth – Covid-19 created a surge in demand for lab equipment that hasn’t been maintained since. As a result, Porvair’s had to contend with higher inventory levels and weaker demand. And this has been a challenge for the business.

The second’s valuation. Five years ago, the stock was trading at a price-to-earnings (P/E) ratio of 27, which is pretty high. As Warren Buffett points out, it’s possible to pay too much even for an outstanding business. And I think this might have been the case in 2021.

Now however, things are different on both fronts. Demand for lab filters started to recover in 2025 after a long period of high inventory levels.

Source: Fiscal.ai

On top of this, the stock’s now trading at a P/E multiple below 18. So I think the business has had enough time to catch up with the share price.

Risks and opportunities

Porvair shares are down 15% since the start of the year. And a big reason for this is the ongoing conflict in the Middle East. The firm’s relatively well-protected from cyclical ups and downs, but it isn’t immune to a global recession and that’s a risk right now.

From a long-term perspective though, there’s a lot to like about the business. And the current share price looks attractive to me. Opportunities like this don’t come around often, so I think investors should give this one serious consideration right now.

The post 1 of the top UK growth stocks to consider buying in April appeared first on The Motley Fool UK.

Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended Porvair 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.

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