BBGI Global Infrastructure

What it does: BBGI is a social infrastructure investment company running 56 projects, including toll bridges, roads, schools and hospital facilities.

By Ben McPoland. BBGI Global Infrastructure (LSE: BBGI) shares were on my buy list for what seemed like an eternity. Finally, I’ve added them to my portfolio!

There are a number of things I like here. For starters, the firm’s projects are spread across the UK, Europe, North America and Australia. They’re entirely availability-based, which means that as long as BBGI ensures the assets are operational, it is paid.

The contracts are long-term and the revenue is government-backed and inflation-linked. This obviously makes the dividend income far more reliable than most.

The forward dividend yield starts at 6.2%, which I find attractive. Even without further acquisitions, BBGI estimates that its current portfolio could increase dividends for the next 15 years. I like the sound of that.

Lastly, at 135p per share, the fund is trading around 8% below the portfolio’s underlying net asset value of 147p (calculated at the end of 2023).

The risk, of course, is that interest rates stay higher for longer than anticipated. That could see the shares pull back. This doesn’t worry me though, as I intend to hold the stock for the long haul.

Ben McPoland owns shares in BBGI Global Infrastructure. 

Fresnillo

What it does: Fresnillo is the largest primary silver producer in the world, and Mexico’s largest gold producer.

By Andrew Mackie. Over the past month, I have only bought shares in one company, Fresnillo (LSE: FRES). I first topped up my holdings in the middle of April, and then doubled down again in the past week.

In the last two months, its share price has risen an astonishing 45%, making it by far the best performing FTSE 100 stock. The reason is simple: sky-rocketing silver prices. Last week the metal closed at over $30. The first time this has happened in over 10 years.

However, despite its meteoric rise, it still remains very much under-the-radar. Investors continue to be sceptical about investing in precious metal miners. I believe this will change very soon.

Gold prices continue to make new highs, but silver has a lot of catching up to do. During the inflationary decade of the 1970s, silver hit $50. It repeated this in the wake of the global financial crisis. I don’t have a target price on the metal today, but I expect it to be way higher than $30.

Mining stocks are undoubtedly the most volatile asset class to hold. And Fresnillo itself has suffered many setbacks recently. This has included the revaluation of the Mexican peso relative to the US dollar, as well as ongoing production challenges.

Despite the undoubted risk, I continue to believe that we are still only in the early innings of a new gold and silver cycle. But the window of opportunity to generate outsized returns could be about to close soon.

Andrew Mackie owns shares in Fresnillo.

Games Workshop

What it does: Games Workshop is a manufacturer of miniature wargames. It’s best-known for its Warhammer franchise.

By Charlie Keough. At the time of writing, the FTSE 250 has rallied 6.4% in 2024. But constituent Games Workshop (LSE:GAW) seems to have missed out on this, rising just 0.4%. As such, I recently added to my position.

There are plenty of reasons I think the stock is one of the best the FTSE 250 has to offer. In the miniature wargames industry, it’s by far and clear the industry leader, providing it with a moat.

On top of that, the business has a healthy balance sheet with zero debt. Moving forward, I’m excited to see the moves it continues to make as it grows its licensing business.

Its 4.2% dividend yield is also enticing. Its payout has experienced major growth in the last decade, which is another positive sign.

At 23.3 times earnings, it could be argued that Games Workshop shares look expensive. A slowdown in sales would also harm the firm.

But as a long-term buy, I’m bullish on Games Workshop. With any spare cash, I’ll keep adding to my position.

Charlie Keough owns shares in Games Workshop.

Greggs

What it does: Greggs is a popular high-street bakery chain in the UK, selling pastries, pies and sandwiches.

By Mark David Hartley. I’ve been eyeing Greggs (LSE: GRG) shares for a while now, impressed by the company’s aggressive expansion and simple yet effective business strategy. Over the past decade, social and dietary changes have threatened Greggs’ business model but the baker has done well to address and overcome these. Shares are up 7% this year but using a discounted cash flow model, analysts estimate them to still be trading at 75% below fair value.

Lately, the baker has been forced to increase its prices as inflation causes higher ingredient costs. This has led to widespread criticism, as the chain is known for its low-cost food. With large supermarket chains able to offer lower priced alternatives, Greggs will need to innovate if it hopes to maintain its loyal customer base. I hope the elusive interest rates we’ve been promised this year materialise because I’m not only invested in Greggs’ shares but in its delicious pasties too.

Mark David Hartley owns shares in Greggs.

Novo Nordisk 

What it does: Novo Nordisk is a Danish pharmaceutical company that specialises in diabetes and weight-loss drugs. 

By Edward Sheldon, CFA. A few months ago, I started a position in pharma company Novo Nordisk (NYSE: NVO). Recently, I added to my holding after the stock pulled back a little. 

Novo Nordisk’s results for Q1 were impressive. Thanks to high demand for its GLP-1 weight-loss drugs, sales were up 22% year on year while operating profit was up 27%. 

Looking ahead, the company raised its full-year guidance. It now expects sales growth of between 19% and 27% at constant exchange rates versus its previous forecast of 18% to 26% growth. 

Overall, I was very encouraged by the Q1 numbers. 

One risk with this stock is new weight-loss drugs from rivals. Amgen is one company that is working on an obesity drug and it sounds like its product has a lot of potential. 

I’m confident in the long-term growth story here though. Given that obesity affects more than a billion people worldwide, I think there’s room in the market for multiple players. 

Edward Sheldon owns shares in Novo Nordisk

Reckitt

What it does: Reckitt is a UK-based multinational consumer goods company that produces products under brand names including Vanish.

By Christopher Ruane. An unfavourable US court judgment against Reckitt (LSE: RKT) knocked the share price for six in February. The share has fallen 17% since the start of the year.

I think that reaction was overdone, however. The judgment was for a single lawsuit and the company plans to keep appealing.

The business has other problems too. Its nutrition formula business continues to be a source of weakness, with first quarter sales falling year-on-year.

But Reckitt has a lot going for it. It owns a host of well-known brands, such as Dettol and Nurofen. Its global distribution network is well-established. The business also has proven profit potential. Last year it earned £1.6bn after tax.

Reckitt is around a quarter cheaper than it was five years ago. I think that price is attractive for what I see as a fundamentally strong business, so bought the company for my Stocks and Shares ISA recently.

Christopher Ruane owns shares in Reckitt.

Shopify

What it does: Shopify is the leading digital storefront provider for small-to-medium-sized businesses.

By Oliver Rodzianko. I recently bought a small position in Shopify (NYSE:SHOP). Previously, I’d been a little deterred because the firm was not yet reliably profitable. However, after reviewing CEO Tobi Lütke’s words about his intentions for the business lasting 100 years, I can see an opportunity here.

I think Shopify is structuring itself with a similar ethos to Amazon. The aim of the game here is to double down on customer satisfaction and market value. By sacrificing short-term profits, the company can develop a stronger brand through research and development.

However, Shopify’s revenue is from smaller businesses. Those companies are less likely to survive in major economic crises, and Shopify’s recurring revenue would be hit potentially quite severely as a result. Some investments are recession-resistant, but this one isn’t.

Nonetheless, I believe in the management and the philosophy of the company enough to allocate some of my hard-earned cash to it.

Oliver Rodzianko owns shares in Shopify and Amazon.

Xtrackers MSCI World Momentum UCITS ETF

What it does: Xtrackers MSCI World Momentum UCITS ETF tracks the share price performance of 345 global companies.

By Royston Wild. I’ve been seeking an effective way to track the performance of global indices as the stock market bull run picks up speed. Xtrackers MSCI World Momentum UCITS ETF (LSE:XDEM) is an exchange-traded fund (ETF) I think fits the bill.

As the name suggests, this UK-listed financial instrument tracks the MSCI World Momentum Index, a collection of hundreds of large- and mid-cap businesses that have high momentum scores.

The ETF gives me exposure to dozens of countries and multiple sectors, which in turn helps me to manage risk. But it also gives me significant access to the booming US tech sector. Its three largest holdings as of late April were Nvidia, Meta and Amazon.

The MSCI World Momentum Index has provided an annualised return of 12.04% over the past decade. While previous performance is not a reliable indicator of future results, and a fresh economic crisis could impact my returns, I still consider the fund to be an attractive buy.

Royston Wild holds the Xtrackers MSCI World Momentum UCITS ETF.

The post 8 stocks that Fools have been buying! appeared first on The Motley Fool UK.

The pandemic triggered a surge in fresh funding from governments and investors alike. And with this capital being allocated across a broad spectrum of research projects, the quality and quantity of healthcare products are forecast to rise rapidly. As a result, analysts predict the market opportunity for healthcare stocks will grow annually by double-digits over the next decade.

This obviously presents a potentially lucrative opportunity for investors. So, let’s explore the risks and rewards of investing in healthcare shares a bit further. 

What Are Healthcare Stocks?

Healthcare stocks are businesses focused on maximising the quality of patient care to let people live longer and healthier.

Typically, healthcare shares can be organised into one of four categories:

1. Healthcare providers – These firms are on the front line, delivering healthcare to patients first-hand. Such businesses include hospitals, physician practises, nursing facilities, and more recently, telehealth providers.
2. Drug developers – Companies engaged in researching and developing new treatments and medicines to tackle diseases, infections, mutations, and disorders.
3. Medical device designers – Groups designing and manufacturing devices to improve the quality of patient care. This can range from something as simple as a stethoscope to as complex as surgical robots.
4. Payers – While less common in the UK, this segment includes all the businesses involved in helping cover medical costs, like health insurance providers and pharmacy benefit managers.

This is by far one of the largest and most complicated industries to operate in. Due to the high degree of importance and expertise needed when handling patients’ lives, regulations are extremely strict. And, in some cases, create prohibitively expensive barriers to entry.

For example, both drug developers and medical device designers need to receive regulatory approval in each country where they wish to offer their products. 

Healthcare Industry Challenges

Here in the UK, that regulatory body is the Medicines & Healthcare Regulatory Agency (MHRA). In the US, it’s the Food & Drug Administration (FDA). And since every regulator has different standards and requirements, the price of checking off all the boxes gets expensive very quickly.

An approval prerequisite for drug developers requires clinical trials that can take over a decade to complete. Medical device designers need to demonstrate the safety and efficiency of their products with field data that’s expensive to gather.

Healthcare providers have to undergo similar approval processes, and payers are subject to significant financial oversight.

To put it simply, life is not easy for healthcare stocks. But for those that can overcome these regulatory hurdles without going bankrupt, an enormous market opportunity lies ahead. The latest reports from the World Health Organisation show that healthcare spending reached $9.8trn in 2022. That’s 9.9% of global GDP! And it’s still rising.

Therefore, it’s not surprising that some of the best-performing shares over the years operate within the healthcare sector.

Top Healthcare Shares In The UK

Let’s explore the top five healthcare providers on the London Stock Exchange in order of market capitalisation as of January 2026:

AstraZeneca

AstraZeneca is one of the largest pharmaceutical companies and healthcare stocks in the world. Given its access to vast resources, the group develops new treatments for a wide range of diseases. The list includes cancer, cardiovascular, renal respiratory diseases, and immunology and other rarer conditions. 

It already has a diverse portfolio of products on the market and, more recently, is known for its Covid vaccine. With hundreds of drug candidates in the development pipeline and management’s focus on oncology and rare disease, this powerhouse doesn’t look like its slowing down. Of course, drug development remains notoriously risky.

GSK

GSK is a global leader in vaccines and pharmaceutical treatments targeted at cancer, HIV, immuno-inflammatory, and respiratory diseases. The healthcare company has established research teams and manufacturing facilities worldwide, providing a global distribution network, particularly across the US, Europe and Asia.

With over 1,500 active partnerships with external pharmaceutical organisations and governments, GSK stands out amongst the crowd of healthcare stocks. Until recently, It also had a consumer healthcare division that has since been spun off into its own company called Haleon. The group is now purely focused on developing new treatments.

Smith & Nephew

Founded in 1856, Smith & Nephew is one of the oldest medical device manufacturers in the world. The group operates in over 100 countries, supplying medical institutions with critical equipment and consumable accessories.

The healthcare stock is renowned for its expertise in wound management with its diverse portfolio of dressings, as well as products tackling other areas. The list includes orthopaedic reconstruction (knee, hip, and shoulder joint replacements), hospital imaging systems, trauma fixation products, and tools performing a variety of medical procedures.

Hikma Pharmaceuticals

Hikma Pharmaceuticals is a global drug developer with a massive portfolio of over 670 generic and in-licensed products on the market today with a further 300 products in the development pipeline. The group’s expertise in replicating off-patent medicines drastically reduces costs for patients while simultaneously improving accessibility.

Beyond the generics, Hikma also has its own drug development pipeline for new and bespoke treatments that target various therapeutic categories such as anti-infectives, cardiovascular, central nervous system, diabetes, cancer, respiratory, and pain management.

Spire Healthcare

Spire Healthcare is the UK’s largest independent hospital stock serving the private healthcare sector. The company has 72 facilities scattered across the country, providing the standard range of services, including diagnostics, inpatient care, and outpatient care.

The group collaborates with almost 8,650 experienced consultants to handle a long list of medical circumstances such as orthopaedics, gynaecology, cardiology, neurology, oncology, and general surgery.

Regulatory Improvements In The UK

Starting from April 2026, the government has given the green light for the MHRA to simplify the drug approval process.

A series of new rules is being introduced, designed to reduce red tape, accelerate clinical trials, and lower development costs for healthcare companies, all without compromising patient safety.

This has been further supported by changes to the NICE budget thresholds, which are now rising from £20,000-£30,000 to £25,000-£35,000 per patient benefit.

In other words, this means more new medicines will be approved for use by the NHS, making it easier for pharmaceutical companies like AstraZeneca and Hikma Pharmaceuticals to get their latest treatments into patients’ hands.

Topping all this off with a further £2bn government-sponsored investment plan to support the wider healthcare sector announced in July 2025, the industry could be a stronger performer over the coming years.

Investing in the US healthcare industry

American healthcare stocks are bound to the same degree of regulatory restrictions. However, US healthcare spending represents almost half ($3.8trn) of the entire market worldwide. So, it’s hardly surprising that there is a far longer list of healthcare shares across the pond for investors to choose from.

Some of the leading names in this sector on the New York Stock Exchange and Nasdaq, in order of market capitalisation as of January 2026, are:

1. Novo Nordisk A/S (NYSE:NVO) – $204.9bn
2. Amgen (NASDAQ:AMGN) – $177.9bn
3. Pfizer (NYSE:PFE) – $145.8bn
4. Bristol-Myers Squibb (NYSE:BMY) – $112.5bn
5. GE Healthcare Technologies (NASDAQ:GEHC) – $37.2bn

Are healthcare stocks right for you?

While healthcare shares are often perceived as a relatively stable and safe place to invest, that’s often not the case. As I’ve already explained, the costs of operating in this sector are exceptionally high, especially for drug developers. 

Consequently, these firms are typically highly leveraged, with enormous credit facilities being used to fund research, development, trials, and eventually manufacturing. That creates quite a bit of risk. After all, if a product fails during development or regulators decide it isn’t safe, a lot of capital can go down the drain.

Needless to say, this can make investing in healthcare stocks a risky endeavour. Even more so when it comes to the smaller players with restricted access to precious external financing. 

That means healthcare shares probably aren’t suitable for everyone. But for those willing to take on the risk, there is a multi-trillion-dollar market opportunity available to profit from. And by taking a diversified approach, investors can potentially reap substantial returns through multiple channels.

The post Investing in Healthcare: Top UK Healthcare Stocks of 2026 appeared first on The Motley Fool UK.

Think of paracetamol, Lipitor (atorvastatin) and Viagra (sildenafil). This led to the first boom in the drugs industry, when patent-protected blockbuster medicines made billions of pounds for these firms. Yet recently we have seen a decline in this industry, with a series of key patent expiries, and declining profits as more as more doctors and patients turned to generic medicines.

The second age of pharmaceuticals has begun

But reports of the demise of the pharmaceutical industry have been greatly exaggerated. That’s because we are now at the beginning of the second age of the healthcare sector — the age of biotechnology.

In research laboratories from Oxford and Harvard, to ETH and Stanford, scientists are coming up with new innovations in the biosciences. Papers and patents are being published, spin-out companies created and new products are being devised and launched.

The innovations are coming in many different areas. Genetics and gene sequencing are yielding a huge amount of information about how our bodies function. Stem cell science will lead to the hope that the paralysed will be able to walk again, and that replacement organs can be grown. The science of vaccines means that we are protected from many common diseases. And the development of antibody-based biological drugs means that cancer is a disease that finally can be defeated.

A great time to invest in biotech

In the UK, I think the leader in these new treatments is AstraZeneca (LSE: AZN), a drugs company that has set out its stall to be a world-leading innovator in healthcare. A recent pull back in the share means that, at a 2016 P/E ratio of 13.61, and with a dividend yield of 5.14%, this firm offers good value.

In Switzerland, another pharma company with a similar outlook to AstraZeneca is Roche (NASDAQOTH:RHHBY). It also has substantial strengths in biotech and produces a range of drugs including anti-cancer treatments Avastin and Herceptin. It is a highly acquisitive firm that has taken over many biotech businesses, including Genentech. It is highly rated, with a P/E ratio of 24.06, and a dividend yield of 3.22%, but, to many investors and analysts, it represents as clear a vision as you can get of the future of pharma.

In the US, the leading biotech firm is Amgen (NASDAQ:AMGN). Headquartered in Thousand Oaks, California, you might be surprised to hear that its $116bn valuation makes it worth more than AstraZeneca. Like Roche, it buys up promising spin-out businesses so that it can remain at the cutting edge of this fast-moving industry.

It produces treatments for arthritis, anaemia and osteoporosis. And it is a firm that is steadily growing revenues and earnings. A P/E ratio of 16.92, with a dividend yield of 2.31%, means you can buy into growth at a reasonable price, and the scale of this business means it is nowhere near as risky as taking a punt on a small cap biotech start-up.

The post Why I’d buy into the biotech revolution with AstraZeneca plc, Roche Holding Ltd. and Amgen, Inc. appeared first on The Motley Fool UK.