The previous 12 months 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 very horrible 2025. Nonetheless, I’m hopeful that this well-known FTSE 250 share could have a greater 2026.
Gloomy Greggs
At first, Greggs shares began final 12 months 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 prompt that shares within the high-street bakery chain had fallen too far and appeared a cut price 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 cut price 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 12 months. 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 coated greater than twice by historic earnings.
That stated, Greggs endured powerful buying and selling situations in 2025. In addition to decrease gross sales development, margins have been hit by larger prices — together with elevated employer Nationwide Insurance coverage contributions. And regardless of worth rises, revenues, earnings, and money circulation all suffered.
Regardless of its heightened volatility in 2025, the Greggs share is definitely up 2.1% during the last six months. Nonetheless, the shares would possibly 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.
After all, 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 moist squib, then the shares may stoop. Proper now, solely insiders have this data — the remainder of us have to sit down tight till 7am on Thursday.
Lastly, it stays to be seen whether or not Greggs shares are a fallen angel (a superb firm quickly struggling) or a falling knife (a share that continues to fall). Nonetheless, 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 available in the market proper now?
The submit Will the Greggs share worth leap or stoop on 8 January? appeared first on The Motley Idiot UK.
Do you have to make investments £1,000 in Greggs plc proper now?
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Extra studying
- Why is Greggs essentially the most shorted UK inventory?
- May 2026 be the 12 months the Greggs share worth recovers?
- Is Greggs’ share worth about to shock us all in 2026?
- £5,000 invested in Greggs shares in the beginning of 2023 is price this nowâ¦
- Why Greggs shares crashed 40% in 2025
The Motley Idiot UK has beneficial Greggs. Cliff DâArcy has an financial curiosity in Greggs shares. Views expressed on the businesses talked about on this article are these of the author and subsequently could differ from the official suggestions we make in our subscription companies, similar to Share Advisor, Hidden Winners and Professional. Right here at The Motley Idiot, we imagine that contemplating a various vary of insights makes us higher traders.
