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The past year has been a good one for UK stocks and the FTSE 100 index in particular. Footsie is up 22.6% over the past 12 months, excluding cash dividends. That is its best profit since 2021, when prices fell as the Covid-19 pandemic subsided. Indeed, most of the stocks in my family’s UK portfolio are outperforming, with notable exceptions Greggs (LSE: GRG) price, had a really bad 2025. However, I hope this is well known. FTSE 250 sharing will have a better 2026.
Gloomy Greggs
Initially, Greggs shares started last year strongly, reaching a peak of 2,890p on 8 January 2025 after reporting encouraging trading results. Alas, the share price has been sliding sharply ever since. Indeed, by November 24, the shares had halved in value. Yes.
On the 25th of November, I suggested that the shares of the high street bakery chain had fallen too far and seemed profitable to me. And since November its decline of 1,407.2p, has increased.
As I write, the price of Greggs stands at 1,733p, valuing the Newcastle company at £1.8bn. That’s up nearly a quarter (23.2%) since they left. This gives me hope that I can still recognize a retail business when I see one.
For the record, my family portfolio bought Greggs shares last July, paying 1,683pa a share for our stake. So far, we’re sitting on a small paper profit of 50p per share – up 3% – but I’m very optimistic about our future returns.
Do you sell bread?
At current price levels, Gregs stock still seems undervalued to me. The shares trade at an estimated multiple of trailing earnings of 12.3, yielding a cash yield of more than 8.1% annually. Also, their dividend yield of 4% beats the FTSE 100 and many other London-listed stocks. Even better, this payout looks solid, covering more than double historical earnings.
That said, Gregs endured tough trading conditions in 2025. As well as lower sales growth, margins have been hit by higher costs – including employer National Insurance contributions. And despite rising prices, revenue, earnings, and cash flow all suffered.
Despite its growing volatility in 2025, Greggs’ share is actually up 2.1% over the past six months. However, stocks may see sharp price volatility on Thursday, January 8. That’s the day the group releases its trading update for the last quarter of 2025.
Of course, if these numbers look good and exceed market expectations, I would expect the share price to jump. But if they turn out to be a wet squib, then the shares may pull back. Right now, only insiders have this information – the rest of us have to sit tight until 7am on Thursday.
Ultimately, it remains to be seen whether Greggs shares are a fallen angel (a good company that suffers temporarily) or a falling knife (a share that continues to fall). However, no matter what happens on January 8th, I suspect we will be holding on to our stocks until this fog clears!
What other stocks are making big moves in the market right now?
