With UK shares now coming back into fashion, it is tempting to think that the best opportunities have been missed. However, city experts believe there are two companies that have huge growth potential over the next year or so.

Unlikely? Let’s try to find out.

Gift?

Card Factory (LSE:CARD) is a common sight on the UK’s high streets. However, in December 2025, the card and gift retailer issued a profit warning. Even given that the group holds a value position in the market, it does not appear to have escaped the impact of reduced disposable income. Higher employment costs, persistent inflation and intense competition also did not lend a hand.

However, analysts believe that the group’s shares are currently (February 11) 57% undervalued. And with a forward price-to-earnings (P/E) ratio of just 5.7, I can see why they might hold on to that view. The shares also offer an attractive dividend. Based on amounts paid over the last 12 months, this works out to 6.7%. Of course, given the profit warning, there is a possibility that this amount will be reduced. And the group has a relatively miniature history of paying dividends, so the past is not a good guide here.

To try to make more profit, the group designs, produces, distributes and sells its cards. He also claims that it helps him respond more quickly to changing tastes.

But this business seems a bit old-fashioned to me. It recently purchased Funky Pigeon to improve its online offerings, but sending cards seems to be a thing of the past.

The stock is also one of the most volatile on the market. With a five-year beta of 3.1, this means that if the stock market goes up (or down) by 10%, Card Factory’s share price will move by an average of 31%.

Despite the attractive valuation and impressive 12-month share price targets, I believe there are better opportunities to consider elsewhere, in markets with healthier long-term growth prospects.

Such as?

One example is Gamma Communication (LSE:GAMA).

As the world moves away from copper phone lines to cloud-based communications, the telephone group is likely to be one of the biggest beneficiaries. Unified Communications as a Service (UCaaS) is currently available in the UK, the Netherlands, Spain and Germany.

Analysts believe its shares are 67% undervalued. With a P/E ratio of just 9.6, there is mighty evidence to support this view. As an added bonus, the group also pays a modest dividend. The company’s shares are currently gaining 2.3%.

However, the group’s profit is affected by the lack of economic growth and loss of trust among its target customer base, i.e. tiny and medium-sized enterprises. Plus, there’s a lot of competition there.

The UK’s plans to shut down the public telephone network (PSTN) in early 2027 are a double-edged sword. Some customers are moving to fiber-optic solutions as a lower-cost alternative to UCaaS. Although Gamma provides this service, it earns a lower margin than its cloud offering.

However, it operates in an industry where the direction of action is clear. Of course, there may be a delay in the PSTN shutdown (it has happened before), but eventually everything will be in the cloud.

I think the recent decline in the group’s share price – down 33% since February 2025 – could be an excellent buying opportunity. I believe that Gamma Communications is a company worth considering.