UK Stocks Fail to Deliver on "Ten-Bagger" Promise, IG Analysis Shows

The FTSE 100 has reached new record highs, with Rolls-Royce shares up 78% this year and 1,100% over the past five years. However, IG analysis suggests that finding a "ten-bagger" stock in the UK is unlikely, with only Games Workshop achieving a 3,109% return over the past decade. Investors are 22 times more likely to find a ten-bagger in the US, with stocks like Nvidia Corp. and Advanced Micro Devices leading the way.

The FTSE 100 has reached new record highs, with the index surpassing 9,100 points and Rolls-Royce shares up 78% this year, following a 1,100% increase over the past five years. However, a recent analysis from IG suggests that finding a "ten-bagger" stock—a stock that multiplies its value tenfold over a decade—in the UK is unlikely. Only Games Workshop has achieved a 3,109% return over the past decade, while investors are 22 times more likely to find such a stock in the US [1].

According to IG, the US has a more diverse and robust tech sector, with companies like Nvidia Corp. and Advanced Micro Devices leading the way. Nvidia Corp. has seen a staggering 29,959% increase in share price since 2015, while Advanced Micro Devices has risen 5,524% over the same period. In contrast, the UK's FTSE 100 is dominated by more traditional names that do not always deliver the same level of growth [1].

Chris Beauchamp, chief market analyst at IG, commented, "Every investor dreams of finding the next Apple or Nvidia - stocks that transform portfolios with tenfold returns. But those headline-grabbing success stories are far more common in the US than in the UK." He also noted that the UK needs to attract and retain high-growth companies, particularly in tech and innovation, to improve its standing in the global market [1].

Despite the challenges in the UK market, the FTSE 100 has seen strong performance this year, with the index up more than 10% so far. Rolls-Royce's remarkable surge has been a significant contributor to this growth, with the company's shares up 78% in 2025 and 1,100% over the past five years. The company's civil aerospace division has driven this performance, with a 50% increase in half-year underlying operating profit to £1.7 billion [2].

Shell has also played a significant role in the FTSE 100's recent performance, with the company posting a smaller-than-expected 24% fall in adjusted earnings to $4.3 billion (£3.2 billion) for the first three months of the year. Cost savings offset lower oil prices, and cash flow from operations jumped 29% to $11.9 billion (£9 billion), underpinning another $3.5 billion of share buybacks for the next three months [2].

While the UK market may not be the best place to find a ten-bagger stock, investors should remain vigilant for opportunities in the UK's traditional sectors. The FTSE 100's recent performance suggests that there are still significant opportunities for growth in the market, particularly in sectors like aerospace and energy.

References:
[1] https://www.thisismoney.co.uk/money/diyinvesting/article-14947417/The-shares-rocketed-past-decade-markets-delivered-ten-baggers.html?ito=1490&ns_campaign=1490&ns_mchannel=rss
[2] https://www.standard.co.uk/business/ftse-100-live-31-july-rollsroyce-results-corporate-earnings-shell-trading-next-retail-figures-unilever-ice-cream-us-tech-giants-share-price-performance-stock-market-b1240835.html