Picture supply: Getty Photographs
The previous yr has been nice for UK shares and the FTSE 100 index specifically. The Footsie is up 22.6% over the previous 12 months, excluding money dividends. That’s its finest acquire since 2021, when share costs roared again because the Covid-19 pandemic receded. Certainly, a lot of my household portfolio’s UK shares are hitting document highs, with the notable exception of the Greggs (LSE: GRG) share worth, which had a really horrible 2025. Nevertheless, I’m hopeful that this well-known FTSE 250 share can have a greater 2026.
Gloomy Greggs
At first, Greggs shares began final yr strongly, peaking at 2,890p on 8 January 2025 after reporting encouraging buying and selling outcomes. Alas, the share worth has been sliding just about ever since. Certainly, by 24 November, the shares had halved in worth. Yikes.
On 25 November, I urged that shares within the high-street bakery chain had fallen too far and appeared a discount to me. And since their November low of 1,407.2p, they’ve soared.
As I write, the Greggs share worth stands at 1,733p, valuing this Newcastle-based agency at £1.8bn. That’s up nearly 1 / 4 (23.2%) since they bottomed out. This provides me hope that I can nonetheless spot a discount enterprise once I see one.
For the document, my household portfolio purchased Greggs shares final July, paying 1,683p a share for our stake. To this point, we’re sitting on a tiny paper acquire of 50p a share — up 3% — however I’ve excessive hopes for our future returns.
Discount baker?
At present worth ranges, Greggs inventory nonetheless appears undervalued to me. The shares commerce on a modest a number of of 12.3 trailing earnings, delivering an earnings yield above 8.1% a yr. Additionally, their dividend yield of 4% beats the FTSE 100 and most different shares listed in London. Even higher, this payout seems to be stable, being lined greater than twice by historic earnings.
That stated, Greggs endured robust buying and selling situations in 2025. In addition to decrease gross sales progress, margins had been hit by increased prices — together with elevated employer Nationwide Insurance coverage contributions. And regardless of worth rises, revenues, earnings, and money move all suffered.
Regardless of its heightened volatility in 2025, the Greggs share is definitely up 2.1% over the past six months. Nonetheless, the shares may see sharp worth swings on Thursday, 8 January. That’s the day the group releases the buying and selling replace for the ultimate quarter of 2025.
In fact, if these numbers look good and beat market expectations, then I’d anticipate the share worth to leap. But when they show to be a humid squib, then the shares may stoop. Proper now, solely insiders have this data — the remainder of us have to take a seat tight till 7am on Thursday.
Lastly, it stays to be seen whether or not Greggs shares are a fallen angel (a very good firm briefly struggling) or a falling knife (a share that continues to fall). Nevertheless, it doesn’t matter what occurs on 8 January, I think we’ll maintain onto our shares till this fog clears!
What different shares are making large strikes out there proper now?
