Greggs Share Price: Will It Surge or Decline on January 8?
In recent years, the UK stock market, particularly the FTSE 100 index, has shown remarkable resilience. The index rose by 22.6% in the past 12 months, marking its most substantial gain since 2021. However, not all stocks have followed this upward trajectory; one notable example is Greggs (LSE: GRG).
Greggs Share Price: Overview
The Greggs share price began 2025 on a strong note. On January 8, the stock peaked at 2,890p following positive trading results. Unfortunately, this momentum was short-lived. By November 24, the share price had plummeted, losing nearly half its value.
Recent Performance and Insights
In November, the stock reached a low of 1,407.2p. Since then, it has rebounded, currently priced at 1,733p, giving the Newcastle-based company a market valuation of approximately £1.8 billion. This represents a recovery of about 23.2% from its lowest point.
- Peak price on January 8, 2025: 2,890p
- Low price on November 24, 2025: 1,407.2p
- Current price: 1,733p
- Market capitalization: £1.8 billion
- 12-month price increase: 23.2%
Investors, including a family portfolio that acquired shares in July at 1,683p, report a modest gain of 3%. Despite the challenges faced in 2025, the outlook for future returns remains optimistic.
Valuation and Market Position
At the current price of 1,733p, many analysts argue that Greggs stock remains undervalued. The shares trade at a multiple of 12.3 times trailing earnings, translating to an earnings yield exceeding 8.1%. Additionally, the company offers a dividend yield of 4%, which surpasses that of the FTSE 100 and most London-listed stocks.
Challenges and Market Expectations
Despite positive indicators, Greggs experienced significant challenges last year. Sales growth slowed, and profit margins suffered due to increased operating costs, including heightened employer National Insurance contributions. Even price hikes could not shield revenues, earnings, and cash flow from declining.
In the last six months, Greggs shares showed a 2.1% increase. However, January 8, 2026, will be crucial. The company is set to release its trading update for the fourth quarter of 2025. This announcement could trigger sharp price movements.
- Potential outcomes on January 8:
- If results exceed expectations, share prices may surge.
- If results disappoint, there could be a further price decline.
Analysts speculate on whether Greggs shares are a “fallen angel”—a solid company undergoing temporary setbacks—or a “falling knife”—a stock that continues to struggle.
Investors will need to exercise patience until the trading update arrives. Regardless of the outcome, holding onto Greggs shares appears to be a prudent decision for the time being.
