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In 2025, UK stocks delivered their strongest gains since the 2008 financial crisis, with indices such as FTSE 100 increases by more than 20%.
However, not all British businesses are able to join in the fun. And in 2026, institutional investors have been busy placing big bets against several FTSE stocks that they think could crash further…
3 stocks to sell?
Here are three companies that have been shortened the most London Stock Exchange right now:
- Wizz Air Holdings share price (LSE:WIZZ) – 16.2% short interest.
- Greggs – 14.6% short interest.
- The future – 11.7% short interest.
When institutional investors start shorting stocks, it’s usually a big red flag that something is wrong with the underlying business. And indeed, all three companies have been struggling lately.
The future has been hovering around a persistently weak digital advertising market, with organic growth failing to materialize.
Meanwhile, Greggs is similarly struggling to deliver organic growth with profit margins coming under constant pressure from inflation and rising labor costs. And until recently, it was the most shorted stock in the UK. But earlier this month, Wizz Air took the top spot.
What’s going on?
Catastrophic disruption?
Wizz Air shares have been struggling for a long time. In fact, over the past five years, the low-cost carrier has seen the elimination of 80% of its market, largely because a large portion of its fleet was grounded at once due to Pratt & Whitney GTF engine failure.
While its planes are slowly returning to the skies, Iran’s war has just thrown another big spanner in the works.
The company’s Middle East routes have been completely grounded, while jet fuel prices have skyrocketed due to disruptions in oil and gas production in the region.
As such, on 4 March, management issued a €50m profit warning. And with its overstretched balance sheet already making the business more vulnerable to earnings shocks, the stock price has continued to fall, with institutional investors betting that the entire business is at risk of bankruptcy.
Is there hope?
Wizz Air is in a bad shape. But the company is not lost.
Its suspension of operations in the Middle East is ultimately temporary. And when the painful conflict is over, the business should be able to start to recover.
As for the ongoing engine problem, Pratt & Whitney is compensating Wizz Air for the disruption, providing a useful financial cushion to cover costs. And with more flights returning to the skies by 2026, the firm’s operational capabilities are improving, paving the way for a resurgence.
In fact, CEO Jozsef Varadi made it clear that 2027 “It’s going to be a big transformative year” in business, suggesting the possibility of change.
An important point
Like Wizz Air, both Greggs and Future have bright spots.
The UK’s favorite bakery chain is seeing some early success with brand innovation, while cost restructuring is helping to boost the margins of Future’s media empire. But whether this improvement can come quickly enough is a question that shareholders need to consider carefully.
As someone who doesn’t own shares in any of these businesses, I’m in no rush to buy today, especially since there are so many exciting opportunities to explore elsewhere…
