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The previous yr has been an awesome yr for UK shares. FTSE100 Particularly the index. Excluding money dividends, The Fussy has gained 22.6% over the previous 12 months. This was the perfect progress since 2021, when shares soared because the coronavirus pandemic receded. In actual fact, most of the UK shares in my household’s portfolio are at file highs, with some notable exceptions. gregs (LSE: GRG) share value has had a very unhealthy 2025. Nonetheless, we hope that this acquainted scenario will enhance. FTSE250 The share in 2026 will probably be even higher.
gloomy gregs
Initially, Greggs shares began nicely final yr, hitting an all-time excessive of two,890p on 8 January 2025 after reporting encouraging buying and selling outcomes. Sadly, the inventory value has fallen considerably since then. In actual fact, by November twenty fourth, the inventory value had halved. oh yeah.
On November twenty fifth, I advised that the inventory costs of main bakery chains had fallen so low that they regarded like a discount to me. And it has soared since November’s low of 1,407.2p.
As I write this, the Greggs share value is 1,733p, valuing the Newcastle-based firm at £1.8bn. That is up nearly 1 / 4 (23.2%) for the reason that backside. This provides you hope that after you discover a discount enterprise, you would possibly nonetheless discover it.
For the file, my household’s portfolio purchased Greggs shares in July final yr, paying 1,683pa for the shares. Up to now the corporate has solely made a modest revenue of 50p per share (up 3%), however I’ve excessive expectations for future income.
A discount bakery?
At present value ranges, Greggs shares nonetheless appear undervalued to me. The inventory trades at a modest a number of of 12.3 occasions earnings, delivering an annualized earnings yield of over 8.1%. It additionally has a dividend yield of 4%, which is increased than the FTSE 100 and most different London-listed shares. Even higher, this dividend is roofed greater than twice by previous earnings, so it appears to be like stable.
That mentioned, Greggs endured robust buying and selling situations in 2025. Along with slower gross sales progress, income have been additionally hit by rising prices, together with increased nationwide insurance coverage contributions for employers. And regardless of the value improve, earnings, income, and money circulate all suffered.
Regardless of the elevated volatility in 2025, Greggs shares are literally up 2.1% prior to now six months. However, the inventory is prone to see sharp value actions on Thursday, January eighth. That is the day the group releases its buying and selling replace for the ultimate quarter of 2025.
In fact, if these numbers are good and exceed market expectations, I’d count on the inventory value to rise. But when they become moist squibs, the inventory value may fall. At this level, solely insiders know this. The remainder of us have to take a seat tight till 7am on Thursday.
Lastly, it stays to be seen whether or not Greggs’ inventory is a fallen angel ( firm briefly in bother) or a knife that retains falling (its share value retains falling). However it doesn’t matter what occurs on January eighth, I feel we’ll proceed to carry onto the inventory till this fog clears.
What different shares are making massive strikes out there proper now?