Updated: 8 December 2025 – UK market close
The UK stock market has quietly turned into one of 2025’s star performers. The FTSE 100 is trading around 9,660 and has delivered a total return of roughly 20–23% year‑to‑date, one of its best years since the aftermath of the financial crisis. [1]
At the same time, the Bank of England (BoE) has held Bank Rate at 4% since August, with inflation down to about 3.6% and markets heavily betting on a first quarter‑point cut to 3.75% at the 18 December meeting. A Reuters poll in mid‑November found nearly 80% of economists expect that cut, with many forecasting another move to 3.5% in early 2026. [2]
In other words: UK shares are no longer “cheap and hated” – but they still look cheaper than US peers and are heading into a likely easing cycle. That’s a powerful mix for long‑term investors hunting stocks to buy today.
Below we pull together the most important news, forecasts and analysis dated 8 December 2025 and highlight seven FTSE 100 names (plus one small‑cap basket) that many analysts and investors are watching right now.
Important: This article is for information only and is not personal investment advice. Always do your own research and consider speaking to a regulated adviser. Capital is at risk.
1. UK stock market today: calm before the central‑bank storm
On Monday 8 December 2025, UK equities were broadly flat. Reuters reports the FTSE 100 up around 0.03%, with the FTSE 250 slightly lower as investors sit on their hands ahead of this week’s US Federal Reserve decision and next week’s BoE meeting. [3]
Key macro points:
- Rates & mortgages: BoE has kept Bank Rate at 4% since August, but market pricing and press coverage suggest a very high probability of a cut to 3.75% next week. [4]
- UK mortgage rates have already fallen to their lowest since before the September 2022 mini‑budget, with big lenders launching a mini “price war” on two‑ and five‑year fixes. [5]
- Valuations: The FTSE 100’s total return near 22–23% in 2025 puts it ahead of the S&P 500 this year and marks one of its best performances since 2009. [6]
- Global risk backdrop: The BIS (the “central bank for central banks”) warned today that the simultaneous surge in gold (up ~60% this year) and global equities is a rare pattern that could signal a “double bubble” in risk assets. [7]
For UK investors, that combination means:
- The index level looks strong, but
- The macro is fragile, and
- Stock‑picking quality and valuation discipline matter more than ever.
2. How to think about “stocks to buy today” in December 2025
With rates probably heading gently lower from 4%, the opportunity set in UK equities skews towards three broad buckets:
- Quality growth at a fair (not crazy) price – companies with genuine earnings momentum and strong balance sheets.
- Reliable income – especially where dividend yield is backed by solid cash generation and sensible payout policies.
- Select value / turnaround situations – where the bad news is largely in the price, but the business model remains viable.
The list below reflects what analysts and the market are actively talking about on 8 December 2025, not a magic formula. Some of these names look priced for perfection, others are contrarian opportunities.
3. Seven FTSE 100 stocks to research now
3.1 Rolls‑Royce (RR.) – high‑growth industrial, but priced for perfection
If there’s one poster child for the FTSE 100’s renaissance, it’s Rolls‑Royce.
- Over the last five years, the shares have risen more than 1,000%, turning early‑2020s pessimism into one of the most spectacular recoveries on the London market. [8]
- They’re up almost 90% in 2025 alone, and some commentators now worry the stock is “unreasonably expensive”, trading around 38× forward earnings at roughly £11 per share. [9]
Under CEO Tufan Erginbilgiç, the turnaround has been backed by real numbers:
- H1 2025 underlying operating profit jumped to about £1.73bn from £1.15bn a year earlier, with margins improving from 14.0% to 19.1%. [10]
- The company has guided for multi‑billion‑pound profits and free cash flow by 2028 and has restarted dividends plus a £1bn share buyback, signalling confidence in long‑term cash generation. [11]
- Strategically, Rolls‑Royce is also leaning into defence and nuclear, signing new collaboration agreements with partners such as Assystem and AtkinsRéalis to support submarine and small modular reactor ambitions. [12]
Investment case today
- Why investors like it: Scarce UK large‑cap growth; exposure to civil aviation recovery, defence, and energy; clear execution track record since 2023.
- Key risks:
- Valuation is rich after a multi‑year rally.
- Highly cyclical end markets (wide‑body flying hours, defence budgets).
- Any slip in execution could cause a sharp de‑rating.
For new money, Rolls‑Royce looks more like a momentum‑growth stock than a classic value buy. It’s a candidate for investors who can handle volatility and are comfortable paying up for quality – not for those seeking “sleep‑easy” dividends.
3.2 GSK (GSK) – a big pharma name with upgraded guidance
While Rolls‑Royce has provided fireworks, GSK has quietly delivered exactly what many long‑term investors want: steady growth plus dividends.
In its Q3 2025 update, GSK:
- Reported sales of about £8.55bn, ahead of analyst expectations.
- Delivered core EPS of 55p, beating forecasts around 47p. [13]
- Upgraded 2025 guidance to:
- Turnover growth of 6–7% (up from 3–5%),
- Core operating profit growth of 9–11%, and
- Core EPS growth of 10–12%. [14]
This marks 18 consecutive quarters of sales growth, driven by strong performance in specialty medicines (respiratory, HIV, oncology) and a still‑meaningful vaccines franchise. [15]
GSK also:
- Declared a 16p dividend for Q3 2025, reaffirming its progressive payout policy. [16]
- Continues to invest heavily in its pipeline, with late‑stage assets including multiple myeloma drug Blenrep, which has shown statistically significant survival benefits vs standard of care in key studies. [17]
Investment case today
- Why investors like it:
- Global, diversified revenue base.
- Upgraded growth guidance and strong cash generation.
- Resilient demand profile versus more cyclical FTSE names.
- Key risks:
- Patent cliffs and pricing pressure.
- Regulatory risks (especially in the US).
- Currency swings for sterling‑based investors.
For investors wanting defensive growth with an income kicker, GSK is one of the more compelling FTSE 100 options heading into 2026.
3.3 Barclays (BARC) – bank benefiting from capital relief and buybacks
UK banks have had a tricky decade, but 2025 has been kinder – and Barclays is increasingly seen as one of the sector’s stronger stories.
Recent developments:
- The Bank of England cut the Tier 1 capital requirement benchmark from 14% to 13% in early December, explicitly to support lending and growth. All major UK banks, including Barclays, sailed through the latest stress tests. [18]
- In October, Barclays reported Q3 2025 pretax profit of about £2.1bn. Headline profit was down 7% year‑on‑year due to a one‑off motor‑finance provision, but analysts noted that underlying profit was around 13% ahead of expectations. [19]
- At the same time, the bank announced a fresh £500m share buyback after finishing a previous £1bn programme, reflecting strong capital generation. [20]
- On 5 December, Reuters reported that Barclays is exploring a bid for wealth manager Evelyn Partners, potentially valued above £2.5bn – a move that would deepen its presence in the mass‑affluent wealth market. [21]
- In the US, Investor’s Business Daily recently raised the Composite Rating for Barclays ADR to 96, putting it among the top‑ranked global banks by earnings and price performance metrics. [22]
Investment case today
- Why investors like it:
- Benefit from BoE’s easier capital rules and solid stress‑test performance.
- Ongoing buybacks and dividends support total returns.
- Diversified business mix (investment banking, credit cards, UK retail and wealth).
- Key risks:
- Credit cycle and UK macro: a harder landing would hit impairments.
- Regulatory and political risk, especially around consumer lending and bank profits.
- Integration and execution risk if it proceeds with large M&A like Evelyn.
For investors who believe the BoE will cut slowly rather than aggressively, Barclays offers exposure to UK and global recovery with a clear capital‑return story.
3.4 Legal & General (LGEN) – FTSE 100’s income heavyweight
If your priority is dividends, it’s hard to ignore Legal & General.
- A widely cited piece today notes that L&G’s yield is about 8.6%, the highest on the FTSE 100 at present. [23]
- Management plans to return over £5bn to shareholders via dividends and buybacks between 2025 and 2027, equivalent to roughly 40% of the current market cap. [24]
- The group is targeting 6–9% compound core EPS growth over 2024–27, a 20% operating ROE, and £5‑6bn Solvency II capital generation. [25]
- In March 2025 it announced a new £500m buyback, the first in a multi‑year capital‑return plan. [26]
CEO António Simões has been vocal in the press this week, arguing for pension reforms that would:
- Raise minimum auto‑enrolment contributions from 8% to 12% of salary over six years,
- Loosen capital rules to release more insurance balance‑sheet capacity, and
- Channel hundreds of billions into UK housing, infrastructure and green investment.
That public stance reinforces L&G’s positioning as both a high‑yield share and a structural play on UK pension and infrastructure flows.
Investment case today
- Why investors like it:
- Very high yield with explicit capital‑return targets.
- Strong position in bulk annuities, asset management and retail savings.
- Potential upside if pension reforms boost long‑term contribution rates.
- Key risks:
- Sensitive to interest rates, credit spreads and longevity assumptions.
- Regulatory or tax changes around pensions could hit sentiment (CEO has already flagged “budget fears” earlier in the autumn).
For income‑focused portfolios, L&G remains one of the most widely discussed stocks to buy or hold in the UK market today – provided you’re comfortable with the usual insurer risks.
3.5 Vodafone (VOD) – turnaround telecom with a fresh buy signal
Telecoms have been graveyards for capital in the past decade, but Vodafone is back on many watchlists after a sharp rally and a notable broker call today.
- This afternoon, Barclays upgraded Vodafone to “overweight” and raised its price target, triggering a strong share‑price jump.
- According to an updated discounted cashflow analysis, Simply Wall St estimates that Vodafone shares may still trade at roughly a 59% discount to intrinsic value, even after a near‑40% rally in recent months.
- H1 FY26 results show Vodafone consolidating its VodafoneThree UK merger and guiding for progressive dividend growth (+2.5% for FY26) supported by adjusted free cash flow.
- The group has cut its annual dividend to 4.5 eurocents, but intends to grow it over time while using proceeds from asset disposals to reduce net debt and return up to €2bn to shareholders once current buybacks complete.
On the strategic side:
- Vodafone continues to streamline its footprint and has struck asset deals (including tower sales) to simplify the balance sheet.
- Outside the UK, Vodafone Kenya is seeking to increase its stake in Safaricom, underlining a desire to deepen exposure to high‑growth African markets.
Investment case today
- Why investors like it:
- Exposure to essential connectivity with improving free cash flow.
- Potential valuation re‑rating if the turnaround sticks.
- Reasonable dividend yield (around 4–5%) with scope to grow.
- Key risks:
- Capital‑intensive sector with high competition and regulation.
- Execution risk on cost‑cutting and integration (especially VodafoneThree).
- FX and geopolitical risk from its multi‑country footprint.
Vodafone is not a classic bond‑like “defensive telecom” yet, but for investors who believe management can deliver on its simplified, cash‑focused strategy, it offers a blend of income and recovery potential.
3.6 easyJet (EZJ) – cyclical travel play with a fast‑growing holidays arm
Travel has been one of the big post‑pandemic winners, and easyJet is now more than just a low‑cost airline – its holidays business is increasingly central to the story.
Recent results:
- For the year to 30 September 2025, easyJet reported:
- Headline profit before tax of £665m, up 9% year‑on‑year,
- Headline EBIT of £703m, up 18%, and
- Third consecutive year of earnings growth.
- The easyJet holidays division generated £250m in profit, up by about a third and ahead of its medium‑term target, prompting management to raise its 2030 holiday‑profit goal to £450m.
- Earlier in the financial year, Q1 2025 losses were cut by 52% thanks to strong festive demand and lower fuel costs.
And yet, the shares have fallen roughly mid‑teens percent in 2025, as management has warned about tougher winter trading, geopolitics and aircraft delivery delays.
Investment case today
- Why investors like it:
- Solid profit growth, especially from the higher‑margin holidays arm.
- Leverage to any improvement in European consumer confidence and travel demand.
- Structural shift towards packaged holidays sold direct to customers.
- Key risks:
- Highly cyclical; sensitive to fuel prices, currencies and macro shocks.
- Winter trading remains challenging; any new disruption (strikes, geopolitical events) could hurt earnings.
- Capital‑intensive fleet investment and potential over‑capacity in some markets.
easyJet looks like a classic cyclical: attractive for investors comfortable with volatility who see leisure travel as a long‑term growth theme – but less suitable if you want smooth year‑to‑year returns.
3.7 Marks & Spencer (MKS) – a turnaround entering its tricky middle phase
Few UK retailers have staged a comeback as dramatic as Marks & Spencer:
- Since late 2022, the share price has climbed roughly 400%, reflecting a successful early phase of its “Reshape for Growth” plan.
- But in 2025 the stock has lost momentum, trading around 327p, only a few percent above its 52‑week low and well below the 417.8p high reached in April.
Recent half‑year numbers for the 26 weeks to 27 September 2025 were mixed:
- Food continued to shine: sales up 7.8%, with UK volumes up 2.8% and market share rising by 10 basis points.
- Fashion, Home & Beauty struggled, with sales down 16.4% and profitability under pressure.
- Group adjusted profit before tax fell by about 55%, largely due to a one‑off incident and related costs, even after taking into account insurance proceeds.
Analysts note that much of the turnaround success is already in the price, but there are still structural tailwinds if management can continue to improve margins and modernise the store and digital estate.
Investment case today
- Why investors like it:
- Still‑growing and increasingly differentiated food business.
- Improved balance sheet versus pre‑turnaround days.
- Potential upside if fashion and home can stabilise margins.
- Key risks:
- Consumer‑cycle exposure; any UK slowdown will bite.
- Execution risk in fashion & home, where competition is ruthless.
- Lower yield than classic “income shares” – you’re relying more on growth than dividends.
At today’s lower share price, M&S looks more like a hold or selective buy on weakness for investors who believe the turnaround still has legs, rather than a screaming bargain.
4. Fresh demerger story: Unilever and the Magnum Ice Cream Company
A big structural change in UK consumer staples landed today: Unilever has completed the demerger of its global ice‑cream business, now trading as The Magnum Ice Cream Company N.V. (MICC). [27]
Key points:
- TMICC began trading today in Amsterdam, with secondary listings in London and New York, at an initial valuation around €7.9bn (roughly $9.1bn), slightly below some pre‑listing expectations. [28]
- Unilever shares fell around 3–4% intraday, making the stock one of the FTSE 100’s bigger decliners, before paring losses.
- Index provider FTSE Russell has fast‑tracked TMICC into several global indices, which should support demand from passive funds.
For UK investors, this creates two separate listed plays:
- Unilever (ULVR) – now a more focused personal care and nutrition group, likely to trade as a classic defensive compounder if management can deliver margin improvement.
- Magnum Ice Cream (MICC) – a mid‑cap consumer brand champion with a strong global footprint in frozen treats but more seasonal, commodity‑sensitive earnings.
It’s too early to call either a clear “buy” just hours into trading, but post‑demerger volatility could create opportunities for patient investors in the coming weeks.
5. Value hunters’ corner: UK stocks flagged as “undervalued”
Beyond the household names, several quantitative and DCF‑driven screens published today highlight pockets of undervalued UK shares, particularly in the mid‑cap and small‑cap space.
Simply Wall St and other platforms flag that, despite the FTSE 100’s strong run, there are dozens of London‑listed companies trading 40–50% below modelled fair value based on discounted cash flows. [29]
Recent lists include names such as: [30]
- Industrial & consumer mid‑caps:
- Pinewood Technologies Group (PINE)
- Norcros (NXR)
- Nichols (NICL)
- Forterra (FORT)
- Essentra (ESNT)
- Fintel (FNTL)
- Smaller caps and turnarounds:
- Begbies Traynor (BEG)
- Motorpoint Group (MOTR)
- Gaming Realms (GMR)
- C&C Group (CCR)
- Trainline (TRN)
- Dr. Martens (DOCS)
Typical estimated “discounts” in these screens range from ~40% to nearly 50% vs DCF fair value, depending on the stock.
How to use these lists
- Treat them as watchlists, not buy lists. DCF models are extremely sensitive to growth and margin assumptions.
- Many of the names are illiquid, cyclical or exposed to single‑country risk, so position sizes and time horizons matter.
- Several (for example Trainline) are under policy and regulatory pressure, which partly explains why they’re cheap. TechStock²
If you’re prepared to do deeper fundamental work, this corner of the UK market may still offer true “value” opportunities even after the FTSE 100’s big 2025 rally.
6. What retail investors are actually buying today
Real‑money flows provide another clue to sentiment.
Interactive Investor’s data for early trading on 8 December shows that among its top 10 most‑traded UK shares, buy orders dominated in several big blue‑chips, including: [31]
- Unilever – activity spiked around the Magnum demerger, with the vast majority of trades on the buy side as investors bet on a post‑spin re‑rating.
- Lloyds Banking Group – still a go‑to stock for UK retail investors seeking cheap bank exposure and dividends.
- Diageo – global spirits giant purchased heavily after a weak patch in the share price.
- Marks & Spencer and Rolls‑Royce – both saw buy‑heavy flows as traders and long‑term holders bought dips.
- Taylor Wimpey – strong buying interest as falling mortgage rates stoke hope for a 2026 recovery in UK housebuilding.
On the flip side, SDCL Energy Efficiency Income Trust was one of the day’s biggest losers (down more than 15% after breaching its leverage cap), drawing contrarian interest but mostly selling. [32]
This pattern supports a broader narrative: UK investors are rotating into strong brands, high‑yield financials, and beaten‑up cyclicals, while dumping over‑leveraged or structurally challenged names.
7. Key risks to keep in mind this week
Before acting on any “stocks to buy today” list, it’s worth stressing the macro risk:
- Central‑bank decisions are imminent.
- Markets are pricing a 25bp Fed cut this week and a 25bp BoE cut next week. A more cautious tone from either could hit equities, particularly banks and housebuilders that have rallied on dovish hopes. [33]
- BIS “double bubble” warning.
- Today’s BIS report points to “explosive” behaviour in both gold and global equities – a rare co‑movement that raises questions about where investors could hide if both fall at once. [34]
- Domestic UK growth is still fragile.
- The latest OBR and Bank of England commentary suggest unemployment around 5% and subdued potential growth; rate cuts will help, but the UK is not immune to global slowdowns. [35]
In short: this is not 2012‑style “everything is dirt cheap”. Stock selection and risk management matter.
8. Putting it together: ideas by investor profile
Not advice, but as a framework, you might think about today’s UK market like this:
For income‑focused investors
Consider researching:
- Legal & General (LGEN) – high yield, capital‑return programme, pension tailwinds.
- GSK (GSK) – resilient pharma cash flows and growing dividend.
- Vodafone (VOD) – moderate yield, with potential upside if the turnaround delivers.
These are yield plays, so focus on payout sustainability, credit ratings and regulatory risk.
For growth‑oriented investors
Names with earnings momentum and strategic upside include:
- Rolls‑Royce (RR.) – transformation and secular aerospace/defence demand, albeit on a rich multiple.
- easyJet (EZJ) – growing holidays business and leverage to consumer travel.
- Magnum Ice Cream Company (MICC) – brand‑rich new listing that could attract growth capital once the dust settles.
Here the key is valuation discipline – paying any price for growth in a year the BIS is warning about bubbles is asking for trouble.
For value / contrarian investors
If you’re comfortable sifting through more complex stories:
- Marks & Spencer (MKS) – solid food business plus a fashion turnaround with a reset share price.
- Selected mid‑cap “undervalued” names like Norcros, Fintel, Essentra or Begbies Traynor – but only after deep due diligence on balance sheets, cash flows and sector risks. [36]
9. How to use this article (and what to do next)
- Pick a small shortlist.
Choose two or three names that fit your objectives (income, growth, value). - Read the primary documents.
Download the latest annual report and the most recent results presentation or transcript for each company. Numbers and strategy matter more than headlines. - Stress‑test the thesis.
Ask:- What has to go right for this to work?
- What happens if rates don’t fall as fast as markets expect?
- Am I comfortable holding this through a downturn?
- Size positions prudently.
Especially in smaller caps, avoid over‑concentration. The UK market still offers excellent diversification via low‑cost FTSE 100/250 ETFs if you prefer a basket approach. - Remember your time horizon.
“Stocks to buy today” is a catchy phrase, but investment returns are earned over years, not days.
References
1. markets.investorschronicle.co.uk, 2. www.bankofengland.co.uk, 3. www.reuters.com, 4. www.bankofengland.co.uk, 5. www.theguardian.com, 6. www.ajbell.co.uk, 7. www.reuters.com, 8. www.fool.co.uk, 9. www.fool.co.uk, 10. www.lse.co.uk, 11. www.theguardian.com, 12. www.rolls-royce.com, 13. www.reuters.com, 14. www.gsk.com, 15. www.gsk.com, 16. www.gsk.com, 17. www.gsk.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.bankingexchange.com, 21. www.reuters.com, 22. www.investors.com, 23. www.fool.co.uk, 24. group.legalandgeneral.com, 25. ipmiglobal.com, 26. www.investments.halifax.co.uk, 27. somoshermanos.mx, 28. somoshermanos.mx, 29. simplywall.st, 30. www.webull.com, 31. www.ii.co.uk, 32. www.reuters.com, 33. www.reuters.com, 34. www.reuters.com, 35. obr.uk, 36. www.webull.com
