. FTSE 100 The leading indicator of the action grows again after a few complex months. Given the cheapness of British Blue-Chip shares and the changing priorities of investors, I think there is a possibility of further significant profits.

Following what he described as “Difficult market conditions in February and March“, Peel hunt He said that the background was more positive than April “,”A number of trade agreements agreed with the Trump administration, including Great Britain, and the interest rates were reduced by Bank of England“.

More precisely, the investment bank said “We see the rotation of American resources to Europe and greater institutional positivity towards Great Britain“.

This may not be a surprise for long -term observers of the London stock market. This is not for me. In Great Britain there is a wealth of high -quality actions that trade below their true value. With fear of erosion of American uniqueness entering and worries about high valuations of state inventory, I think that the transition to British actions can be continued.

FTSE CHANCE

But which shares in Great Britain can enhance strongly from current levels? Babcock International (LSE: BAB) is one that in my opinion remains extremely underestimated despite the enhance in stock price by 108%in 2025.

For $ 10.52 per share, FTSE 100 Business transactions in terms of price to profit (P/E) 20.3 times based on current estimates.

It may not look like something that you can scream at first. It approaches a double higher average foot of about 11 times.

But in the context of a wider defense industry, this is a good value in my book. Put p/e babcock in context, ETF defense of Europe Wisdomtree Europe – which includes 24 different companies with vast and medium Kapp.- has a reading 31.4 times.

Investing in individual shares is more risky than the purchase of a stock exchange fund (ETF), which spreads investors’ rest. A special disadvantage is that the most (about 75%) revenues from Great Britain, which makes him less geographically diverse than ETF, such as Wisdomtree.

However, I think that Babcock’s participation cheaply than the shift of this handicap. What’s more, the prospects for defense of Great Britain concern a clear trajectory up – last week the government has committed to enhance weapons expenditure to 2.6% of GDP by 2027, which makes it one of the most prolific NATO expenses.

Stock for these times

Unfortunately, the world is becoming more and more perilous, as the conflict showed, which broke out between Israel and Iran last week. In this climate, global defensive budgets (which increased at the fastest pace since 1988. According to Stockholm International Peace Research Institute or Sipri), they should still grow rapidly.

Thanks to a wide range of engineering services, Babcock support and training is largely to enhance sales in this landscape. Revenues and operational profit here increased by 11% and 17% respectively in the last budget year (until March 2025).

Defense shares are not for everyone, taking into account obvious ethical considerations. But on the other hand, some investors believe that these companies provide an critical service in protecting the country’s national interests. For the latter group, I think that this FTSE 100 participation is worth considering today.