UK shares continue to thrive despite stubborn inflation, elevated interest rates and a generally shaky economic environment. The FTSE 100‘s hovering near record territory, as is the FTSE 250. Yet several home-grown businesses are doing even better.

So with impressive growth already under their belts and professional analysts still rating them as a Buy, let’s take a look at two top picks that could be worth a £500 punt today.

The king of aerospace

After its spectacular turnaround, Rolls-Royce (LSE:RR.) is still firing on all cylinders. Its shares have climbed roughly 24% in 2026 as profits, cash flow and shareholder returns continue to beat expectations.

Fun fact: underlying operating profits across the first half of the year have surged 46% to £2.5bn, while free cash flow rose 24% to £2bn. That prompted management to upgrade full-year guidance, with operating profit now expected to reach between £4.7bn and £4.9bn by the end of this year.

With defence spending still ramping up, sentiment remains exceptionally bullish. However, it’s worth noting that today’s valuation might be ignoring some key risks.

Ongoing conflicts are already disrupting supply chains and creating headaches across the board. And with the price of jet fuel rising rapidly, higher ticket prices could dampen total flight hours that drive demand for Rolls-Royce’s lucrative aftermarket services segment.

Solving supply chain headaches

The second pick is less famous, but no less impressive. Diploma (LSE:DPLM) supplies specialised components and services to a plethora of industrial customers. And while it does operate in a niche, it’s a mission-critical one that’s granted enviable pricing power over the years.

During the first half of this year, revenue rose 17%, while underlying earnings jumped 36%, all driven by a remarkably consistent combination of organic growth, bolt-on acquisitions, and improving profitability. And as such, management’s already upgraded its full-year expectations multiple times this year.

With that in mind, it’s no surprise that Diploma shares have shot up close to 50% so far this year!

Is it risk-free? Of course not. Diploma’s acquisition strategy carries substantial integration and overpayment risks.

While taking a smaller bolt-on approach does limit some of the exposure, acquired companies that fail to deliver not only harm growth, but also weaken the balance sheet.

Even if management stays disciplined on price, there nonetheless remains the problem of actually finding worthwhile takeover targets. And if the company inadvertently starts compromising on quality, it could lead to greater problems down the road.

The bottom line

Both businesses have already delivered tremendous gains so far this year, even more so over the last half decade. And unlike many other high-performing stocks, this momentum does have some genuine financials backing it rather than just being pure hype.

But if I was forced to choose between the two, Diploma comes out ahead. Its track record of success spans decades rather than just a few years. And while its valuation’s pretty demanding, it’s a premium that has been well earned, in my opinion.

That’s why I’ve already added it to my portfolio. And it’s not the only UK share I’ve been buying this year…

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Zaven Boyrazian owns shares in Diploma.