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SpaceX inventory continues to dominate headlines, regardless of analysts noting a number of purple flags in regards to the firm. It isn’t but worthwhile, reporting a internet lack of $541m in Q2 2026, after a $4.3bn loss within the first three months of the yr. But traders proceed to obsess over the inventory.
Since its document IPO, SpaceX shares have swung wildly, dropping about 16% from their opening value of $150 per share on June 12. Income jumped 92% to $7.81bn in Q2, forward of expectations, however capital expenditure soared to $18.37bn, largely on account of AI infrastructure.
I get the enchantment, however the house and AI divisions stay lossmaking, with Starlink the group’s solely worthwhile section. Phillip Capital even issued a uncommon Promote score and set a $75 goal value, anticipating a 35% decline.
I additionally perceive the attraction: Mars, orbital knowledge centres and world connectivity. However for retirement investing, an thrilling imaginative and prescient alone doesn’t scream wealth safety.
That’s why I desire choosing far much less glamorous FTSE 100 shares, and right here’s one instance.
Why Halma suits
Halma (LSE: HLMA) is the textbook ‘boring’ compounder. It owns round 50 area of interest know-how companies supplying mission-critical, regulation-driven merchandise, together with security sensors, medical units and environmental monitoring tools.
Its merchandise assist clients meet security, well being and environmental necessities, which may make demand extra resilient than for discretionary purchases.
The most recent outcomes assist the funding case. Halma delivered its twenty third consecutive yr of adjusted revenue progress and its forty seventh consecutive yr of dividend progress of at the least 5%. For the yr ended 31 March, income elevated 15% to a document £2,582.3m. Adjusted EBIT rose 22% to £594.5m and the adjusted EBIT margin improved to 23%.
| FY26 measure | End result |
|---|---|
| Income | £2,582.3m, up 15% |
| Adjusted EBIT | £594.5m, up 22% |
| Adjusted ROTIC | 16% |
| Whole dividend | 24.74p, up 7% |
Halma’s 16.2% adjusted return on whole invested capital sat in direction of the higher finish of its 12%-17% goal vary. The group additionally invested greater than £600m in future progress by means of analysis, capital expenditure and acquisitions.
This isn’t an organization counting on one breakthrough product or one charismatic founder. Its decentralised mannequin lets particular person companies think about their specialist markets whereas the group deploys capital throughout alternatives.
What’s the catch?
Like all shares, Halma nonetheless has challenges to navigate. For inventors, the premium valuation’s a key concern — any earnings miss may harm the shares even when buying and selling stays robust.
It additionally relies on smart acquisition choices. For example, its photonics enterprise represents round 20% of FY26 income – however solely has significant publicity to at least one hyperscaler buyer.
So to scale back danger by means of diversification, traders must also contemplate comparable choices like Diploma, DCC and BAE Programs. Every has totally different traits, not eradicating danger however complementing one another’s strengths and weaknesses.
The underside line
SpaceX might in the end produce distinctive returns, however its present story depends on heavy spending and bold execution throughout a number of unproven tasks. That doesn’t instil confidence.
Halma in the meantime, affords one thing extra helpful for retirement planning: an extended document of revenue progress, excessive returns on capital and rising dividends.
For my part, it’s probably the most compelling UK shares to analysis proper now, and one which’s excessive on my watchlist for 2026.
Must you make investments £5,000 in Halma Plc proper now?
When investing knowledgeable Mark Rogers and his crew have a inventory tip, it will probably pay to pay attention. In spite of everything, the flagship Twelfth Magpie Share Advisor publication he has run for practically a decade has offered 1000’s of paying members with prime inventory suggestions from the UK and US markets.
And proper now, Mark thinks there are 6 standout shares that traders ought to contemplate shopping for. Need to see if Halma Plc made the checklist?
Mark Hartley owns shares in Diploma and BAE Programs.
