Investing in individual FTSE 100 stocks can be a lucrative strategy. Whether you’re investing for growth or income, there are always opportunities within the index. 

Below, I’m going to highlight my pick of the best FTSE 100 stocks as we head towards 2027. Here are five names in which I see significant potential. 

Rolls-Royce 

First up, we have Rolls-Royce (RR:LON). It has had an incredible run in recent years, but I still see it as one of the best shares to buy within the FTSE 100, especially after its recent pullback from 1,570p to 1,360p.  

What I like about this Footsie company is that it has multiple growth drivers. Looking beyond its core aerospace engine business, growth is likely to come from data centre power systems, defence engines, and nuclear energy solutions in the years ahead. 

Another major plus is that the company’s transformation programme continues to propel profits. In the medium term, the group is targeting underlying operating profit of £4.7 billion to £4.9 billion versus £3.5 billion in 2025.

A downside to this stock is that it’s expensive, even after its recent pullback. At present, it trades on a P/E ratio of around 30, which adds risk to the investment case. 

I think the company will grow into that valuation over time though. It’s worth noting that recently, several brokers have come out with 2,000p price targets (implying upside of nearly 50% from here).

BAE Systems 

Another industrial stock I like in the Footsie is BAE Systems (BA:LON). It’s the largest pure-play defence company within the index. 

BAE Systems should enjoy a supportive backdrop in the years ahead. With NATO countries looking to up their defence spending to 5% of GDP by 2035, we are going to see a lot more money spent on things like combat vehicles and munitions, naval ships and submarines, and cyber defence and intelligence – all of which BAE specialises in. 

This year, revenue and earnings are projected to rise 18% and 13% respectively. Next year, analysts are forecasting growth of 9% and 14%.  

The P/E ratio here is 22, falling to 19 using next year’s earnings forecast. I think that’s reasonable, however, we could see some valuation compression if geopolitical tensions suddenly ease. 

It’s worth pointing out that there’s a 2% dividend yield on offer here. Add the fact that the shares are about 20% off their highs right now (and analysts see nearly 25% upside) and I think there’s a lot to like about this FTSE 100 name today. 

Computacenter 

In the tech space, a stock that stands out is Computacenter (CCC:LON). A relatively new addition to the Footsie, it’s a global technology provider that helps organisations source, transform, and manage digital technology infrastructure.

I see this business as a picks-and-shovels play on the tech revolution. As the world becomes more digital, and organisations spend more on cloud computing, data analytics, AI, and cybersecurity, Computacenter should benefit.

This FTSE 100 company has a lot of momentum at present. Since April, it has raised its guidance for 2026 three times thanks to strong demand from major cloud businesses and enterprise customers in North America. 

Its share price has a lot of momentum too. Right now, Computacenter shares are in a strong upward trend and this trend could continue.  

The risk here is that we could see some profit taking at some point as the shares have had a great run over the last year. Taking a medium-term view, however, I see scope for further gains as the P/E ratio of 20 isn’t particularly demanding. 

Barclays

For a value play, I like Barclays (BARC:LON). Its share price has fallen from 520p to 430p recently amid the global bond sell-off.

At today’s share price, Barclays is trading on a price-to-earnings (P/E) ratio of 8.3 and a price-to-book (P/B) ratio of 0.7, so it looks very cheap. Note that the average analyst 12-month price target is 574p – about 33% above the current share price. 

One thing I like about Barclays is that it has substantial exposure to the US. Today, the US economy is seeing far more growth than the UK economy. 

I also like the fact that Barclays has operations across retail and commercial banking, investment banking, equity and fixed income trading, and wealth management. This diversification means that performance is not reliant on loan growth. 

On the downside, performance in investment banking and trading can fluctuate depending on what’s happening in the financial markets so there’s a chance that these divisions could deliver soft performances in the near term. Overall though, I like the risk/reward proposition at current levels. 

M&G

Finally, for those who like high dividend yields, I reckon M&G (MNG:LON) is worth a look. It’s a global savings and investment company that manages over £400 billion on behalf of customers. 

Its share price has fallen from around 367p to 310p in recent months as a result of the bond sell-off. This has pushed the company’s dividend yield up to around 6.8% as analysts are expecting a payout of 21.1p per share for 2026. 

Note that earnings for 2026 are expected to be 28.3p per share. So, the dividend coverage ratio (the ratio of earnings per share to dividends per share) is a little low, meaning that there is a chance that dividend payouts could be lower in the future. 

Now, the bond sell-off is a risk for this business. Because lower bond prices could have a negative impact on assets under management and profits. 

However, with the shares down around 15% in the space of a few months and now trading on a P/E ratio of 11, I reckon the risk/reward skew is relatively attractive. It’s worth noting that in the company’s H1 results, CEO Andrea Rossi said that he was confident in the outlook for the second half of 2026. 

Edward Sheldon owns shares in Rolls-Royce.