SpaceX stock continues to dominate headlines, despite analysts noting several red flags about the company. It isn’t yet profitable, reporting a net loss of $541m in Q2 2026, after a $4.3bn loss in the first three months of the year. Yet investors continue to obsess over the stock.

Since its record IPO, SpaceX shares have swung wildly, dropping about 16% from their opening price of $150 per share on June 12. Revenue jumped 92% to $7.81bn in Q2, ahead of expectations, but capital expenditure soared to $18.37bn, largely due to AI infrastructure.

I get the appeal, but the space and AI divisions remain lossmaking, with Starlink the group’s only profitable segment. Phillip Capital even issued a rare Sell rating and set a $75 target price, expecting a 35% decline.

I also understand the attraction: Mars, orbital data centres and global connectivity. But for retirement investing, an exciting vision alone doesn’t scream wealth security.

That’s why I prefer opting for far less glamorous FTSE 100 stocks, and here’s one example.

Why Halma fits

Halma (LSE: HLMA) is the textbook ‘boring’ compounder. It owns around 50 niche technology businesses supplying mission-critical, regulation-driven products, including safety sensors, medical devices and environmental monitoring equipment.

Its products help customers meet safety, health and environmental requirements, which can make demand more resilient than for discretionary purchases.

The latest results support the investment case. Halma delivered its 23rd consecutive year of adjusted profit growth and its 47th consecutive year of dividend growth of at least 5%. For the year ended 31 March, revenue increased 15% to a record £2,582.3m. Adjusted EBIT rose 22% to £594.5m and the adjusted EBIT margin improved to 23%.

Halma’s 16.2% adjusted return on total invested capital sat towards the upper end of its 12%-17% target range. The group also invested more than £600m in future growth through research, capital expenditure and acquisitions.

This isn’t a company relying on one breakthrough product or one charismatic founder. Its decentralised model lets individual businesses concentrate on their specialist markets while the group deploys capital across opportunities.

What’s the catch?

Like all stocks, Halma still has challenges to navigate. For inventors, the premium valuation’s a key concern — any earnings miss could hurt the shares even if trading remains strong.

It also depends on sensible acquisition decisions. For instance, its photonics business represents around 20% of FY26 revenue – but only has meaningful exposure to one hyperscaler customer.

So to reduce risk through diversification, investors should also consider similar options like Diploma, DCC and BAE Systems. Each has different characteristics, not removing risk but complementing each other’s strengths and weaknesses.

The bottom line

SpaceX may ultimately produce exceptional returns, but its current story relies on heavy spending and ambitious execution across several unproven projects. That doesn’t instil confidence.

Halma meanwhile, offers something more useful for retirement planning: a long record of profit growth, high returns on capital and rising dividends.

In my opinion, it’s one of the most compelling UK stocks to research right now, and one that’s high on my watchlist for 2026.

Should you invest £5,000 in Halma Plc right now?

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Mark Hartley owns shares in Diploma and BAE Systems.