Last year was a great year for British shares and the stock market FTSE100 in particular the index. Over the last 12 months, the Footsie index is up 22.6%, excluding cash dividends. This is the best performance since 2021, when share prices surged as the Covid-19 pandemic receded. Indeed, many UK shares in my family portfolio are hitting record highs, with a notable exception Greggs (LSE: GRG), which had a truly terrible year in 2025. But I hope it’s a well-known one FTSE250 the action will have a better year in 2026.

Grim Greggs

Initially, Greggs shares started last year strongly, reaching a high of 2,890p on January 8, 2025 after reporting encouraging trading results. Unfortunately, the share price has practically fallen since then. Indeed, by November 24, the stock had halved in value. Yes.

On November 25, I suggested that shares of the high street bakery chain had fallen too far and it seemed like a bargain. And since the November low of 1407.2p, they have increased.

At the time of writing, Greggs’ share price is 1,733p, valuing the Newcastle company at £1.8 billion. This is an escalate of almost a quarter (23.2%) from the lowest level. This gives me hope that I will still be able to spot a bargain when I see one.

For the record, my family portfolio bought Greggs shares in July last year, paying £1,683 a year for our shares. To date, we maintain a modest paper profit of 50p per share – up 3% – but I have high hopes for future returns.

Occasional baker?

At current price levels, Greggs shares still seem undervalued to me. The stock trades at a modest multiple of 12.3 trailing earnings, giving it a yield of over 8.1% per year. Additionally, their 4% dividend yield outperforms the FTSE 100 and most other London-listed stocks. What’s more, this payout looks solid because it’s more than double its historical earnings.

That said, Greggs has weathered challenging trading conditions in 2025. In addition to lower sales growth, margins have been hit by higher costs, including increased employer national insurance contributions. Despite price increases, revenues, profits and cash flow suffered.

Despite increased volatility in 2025, Greggs’ share has actually increased by 2.1% over the last six months. However, the stock could see wild price swings on Thursday, January 8. On this day, the group publishes a trading update for the last quarter of 2025.

Of course, if these numbers look good and exceed market expectations, then I would expect the share price to rise. However, if they turn out to be a damp squib, the stock could fall. Right now, only those in the know have this knowledge – the rest of us have to wait until 7 a.m. on Thursday.

Ultimately, it remains to be seen whether Greggs stock is a fallen angel (a good company suffering temporarily) or a falling knife (a stock that continues to fall). But no matter what happens on January 8, I suspect we’ll hold our shares until this fog clears!

What other stocks are making huge moves in the market right now?