Rolls-Royce (LSE: RR.) shares have turned £4,160 — or just £80 saved per week — into more than £48,000 in the past five years. That’s a gain of more than 1,115% and ranks among the best FTSE 100 recovery stories in recent memory.

If you managed to spot the opportunity in June 2021, when the share price was sitting at just 107.3p, you’d be sitting on a tidy little profit right now.

But beyond the extraordinary growth since, what’s actually driving the stock higher? And could there be more to come for investors sitting on the sideline today? 

How does the maths break down?

Five years ago, the shares were trading at 107.3p, during one of the most turbulent periods in the company’s long history. As I write on Wednesday morning, the stock is trading at 1,253.8p and up nearly 5% year to date.

Here’s a quick breakdown of how the maths works out for an investor who bought shares five years ago and still holds those same shares today:

• Starting investment: £4,160

• Starting share price (4 June 2021): 107.3p
• Shares purchased: 3,877
• Current share price (3 June 2026): 1,253.8p
• Current investment value: £48,610
• Total estimated gain: 1,068% or £44,450

If you had put that same £4,160 in a cash savings account at a 4% annual rate, it would be worth just over £5,000 today.

That difference shows the potential of buying high-quality stocks at the right price, and backing them in for the long term. The big question is what really drove such a dramatic turnaround? 

From near-collapse to FTSE 100 giant

The company develops and delivers power and propulsion systems across civil aerospace, defence, and power systems. With a market cap of approximately £107bn, today it’s a true giant of the Footsie.

The transformation has been extraordinary under CEO Tufan Erginbilgiç has been impressive. He launched an aggressive cost reduction programme, boosted margins, and re-focused the company’s strategy. Those initiatives, combined with strong civil flight hours and surging defence and energy spending, have helped boost the stock in recent years.

Is the best already behind it?

I don’t currently hold shares in the company, but I’m actively considering whether now might be the right moment to add them to my portfolio. I personally think that in an increasingly uncertain investment and geopolitcal environment, Rolls-Royce could be just what my portfolio needs.

With a price-to-earnings (P/E) ratio just shy of 19, it doesn’t feel overvalued to me right now. The 0.7% dividend yield is modest, so I think investors really need to believe in the the growth story from here.

That all sounds great, but what about the risks involved?

Risks to consider

There are some real risks to the stock that are worth highlighting for long-term investors. Civil aerospace revenues are still tied to engine flying hours and the ongoing Middle East conflict could be a real swing factor here.

The business has confirmed full-year guidance remains unchanged despite the conflict, but there is still some element of uncertainty there. Supply chain risks are always front of mind in the defence sector, and I think the company’s push into new power markets carries some execution risk as a more recent addition.

The company’s half-year results release is on 30 July, which I’ll be watching closely. Management’s view of the world and latest growth expectations could be the key factor that determines whether I see this is stock as a good buy in 2026.

Should you invest £5,000 in Rolls-Royce Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rolls-Royce Plc made the list?

Ken Hall does not hold any positions in the companies mentioned.