Investing in the FTSE 250 can unearth some hidden gems. One of them is shining in my portfolio right now.

I bought insurer Just Group in November 2023 and added to my holdings last May. And last week, my trading account showed share price growth had hit the magical 100% mark.

Just has kindly doubled my money in less than 15 months. So what should I do now? Let my money run, or cash in and look for the next FTSE 250 recovery play?

One thing’s certain. I don’t expect my shares to double in value again over the next year, as growth trajectory has slowed. While the Just Group share price is up 104% over the last 12 months, it’s only climbed 12% in the last six. No stock keeps smashing the market forever.

The shares have smashed it

It still looks incredibly cheap though, with a trailing price-to-earnings (P/E) ratio of 5.8. That’s well below the index average of 10.7 times.

Recent performance has been impressive too. Its update for the year to 31 December, published on 15 January, showed a 36% jump in retirement income sales to £5.3bn.

It’s making hay in the bulk annuity market, where insurers assume the risk of managing company-defined benefit pension schemes. It recently completed its largest transaction to date, a £1.8bn full buy-in with the trustee of the G4S pension.

New business strain, which reflects the initial loss incurred by a life company in the first year of a policy, is expected to remain low at 2%.

The disappointing news is that Just anticipates full-year 2024 new business margins will be lower than the first half of the year. It said this is principally down to business mix, as it maintains pricing discipline and limits risk.

For income-focused investors, Just might not be the most attractive option. Its trailing dividend yield’s a modest 1.27%. That pales in comparison to FTSE 100 insurers Aviva and Legal & General, which yield 6.7% and 8.6% respectively.

High growth, low income

Analysts’ sentiment is positive but not ravingly optimistic. The seven brokers offering one-year share price forecasts have produced a median target of around 186p. If correct, that’s an increase of 14% from today. 

Five out of seven analysts rate it as a Strong Buy, and two as a Buy.

There are risks. While the bulk annuity market offers a huge growth opportunity, it’s very competitive. Also, sales of individual lifetime annuities may fall once interest rates start dropping from today’s relative highs. If that happens, profit growth will slow.

I won’t add to my stake in Just. It’s reasonably large after its blistering run. Also, I already have more than enough exposure to the UK financials sector. It’s proving to be a happy hunting ground for both dividend income and share price growth. 

I’m expecting solid returns ahead, but won’t push my luck. There are other FTSE 250 stocks I’d like to buy. Maybe they’ll double my money too. No guarantees though.

The post My favourite FTSE 250 stock doubled my money in 15 months and still looks cheap to me! appeared first on The Twelfth Magpie.

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• With dividend yields averaging above 7%, are these 2 UK shares worth considering?
• How much do you need to invest in dividend stocks to be able to retire?
• FTSE 250 stock CMC’s shares have rocketed 51%! What’s going on?

Harvey Jones has positions in Just Group Plc and Legal & General Group Plc. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

We’ve had our fun with the Greggs (LSE: GRG) share price. Is it time to grow up and move on?

Greggs defied sceptics to become a national treasure, establishing itself as a fixture on every high street. It’s now popping up at railway stations and airports too, as the FTSE 250 group’s ambitious board looks to increase store numbers from 2,500 to 3,500.

The high street bakery chain has come a long way from its humble beginnings in 1951. The Greggs share price has come a long way too.

Investors took notice and sank their teeth into it. There’s a huge appetite for Greggs on the Fool website. It attracts more readers than articles on much bigger companies. That made me a little suspicious. Were investors getting carried away? Were they distracted by its brand rather than examining its investment prospects?

Can this FTSE 250 treasure still shine?

Greggs shares continued their upwards trajectory despite my doubts, but then I had a second worry. They were starting to look expensive. Trading at more 22 times earnings last year, I feared they were overvalued.

The first blow landed on 1 October. Q3 total sales rose 10.6% but that marked a drop from 13.8% in the first half.

This trend continued in the group’s latest trading update, published on 9 January. While full-year 2024 total sales jumped 11.3%, through £2bn for the first time, Q4 like-for-like sales growth slipped to a wafer-thin 2.5%. Greggs said this reflected “more subdued high street footfall”.

The board’s still pushing on, opening a record 226 new shops, while closing underperformers with an impressive lack of sentimentality. The net addition was 145 shops.

Greggs is now bracing for a double blow in April, when Budget hikes to employer’s National Insurance and the Minimum Wage will drive up workforce costs. Plenty of other retailers will share its pain. Greggs may be better placed to absorb it. The margin squeeze is priced in now. It’s a known risk.

However, as its recent update showed, consumers are feeling the pinch. They may even have to cut back on affordable treats like a trip to Greggs. With the Bank of England forecasting consumer price inflation will rebound to 3.7% in the summer, the cost-of-living crisis isn’t over yet.

Lower valuation, higher yield

Given these concerns, it’s reasonable to question whether the enthusiasm surrounding Greggs’ stock was overblown. 

The shares have declined by 20% over the past 12 months. However, they now appear more attractively valued, trading at about 17 times earnings and offering a trailing dividend yield of 2.9%. This improved valuation may entice bargain hunters.

Greggs is showing resilience, innovation and adaptability by expanding its menu and trying out new snacks to compete with fast-food chains. 

While Greggs faces significant challenges, its current valuation and bullish initiatives may present an opportunity. I understand why investors might consider buying them but personally, I won’t. For me, the fun’s gone.

The post Is it game over for the Greggs share price? appeared first on The Twelfth Magpie.

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• The latest broker outlooks on Greggs shares look wacky, so what’s happening?
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• Up 12.8% in May! But is the recovery in Greggs shares about to be short lived?

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Greggs Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I’m keen to add a few FTSE 250 shares to my portfolio of mostly FTSE 100 stocks, but I’m wondering where to start. So I decided to ask ChatGPT.

Artificial intelligence (AI) is going to be running our lives soon enough, I’m told. So why not let it run my portfolio today?

Actually, there are reasons. ChatGPT’s first pick was Warhammer-maker Games Workshop. It exited the FTSE 250 on 5 December, and now resides in the FTSE 100. Oh well. Even robots aren’t perfect.

So I asked ChatGPT to give it another shot. I must have annoyed my AI chum because it plumped for online fashion retailer ASOS (LSE: ASC). Now that was a brave call!

By brave I mean mad. ASOS? Really? Of all the stocks on the FTSE 250, I didn’t expect that.

If AI does own the future, it’s going to be volatile.

ASOS is a high-risk play

ASOS could be the ultimate falling knife. Online fashion retail hope turned fashion victim. And AI would buy it in a heartbeat? Just be grateful it doesn’t have a heart. Yet.

The ASOS share price is down 88% over the last five years. Trading at 385p, it’s back down to 2009 levels. 

This is a perfect storm of a stock, hammered by everything from the cost-of-living crisis to tough competition from Chinese-owned fast fashion rival Shein, which forced it to offload piles of unsold stock at a discount.

In full-year 2023, losses hit £296.7m. That increased to £379.3m in 2024, while group revenues slumped 16% to £2.9bn. CEO José Antonio Ramos Calamonte still claimed to have hit his key priorities by reducing inventories and “generating positive adjusted EBITDA and free cash flow”.

Sales were up too and ASOS still boasts 20m customers, he added. But forget Calamonte. He’s only the boss. What does AI think?

ChatGPT admires the group’s “strong online presence” while praising its “robust e-commerce platform that appeals to a global customer base”. That line could have been written by a computer. Oh, it was.

As was the bit about how ASOS’s international expansion plans could “diversify revenue streams beyond the UK”. Where is it nicking this stuff from? And why didn’t it mention the mothballed £110m fulfilment centre in Lichfield?

The worst may be over

In its defence, ASOS shares have stopped falling. In fact, they’re actually up 2.62% in the last year. Is this the long-awaited recovery?

The shares got a small boost on 2 February when two credit insurers reinstated cover for its clothing suppliers, withdrawn in 2023 due to concerns over profits. This suggests ASOS has greater financial stability.

ASOS has also made some progress in addressing its inventory challenges. It’s halved unsold stock and transitioned to a more agile ‘Test and React’ model. This should help it respond swiftly to new trends, driving full-price sales and boosting margins.

Selling its 75% stake in the Topshop and Topman brands for £135m will boost liquidity and allow management to focus on the core business. So maybe ChatGPT hasn’t gone haywire.

After its terrible run, ASOS is back on my radar. But with consumers still strapped for cash and inflation sticky, there’s no way I’m going to buy it today.

I’m mad enough to request stock tips from a computer. Not mad enough to act on them.

The post I asked ChatGPT to name the FTSE 250 share it would buy in a heartbeat – and it went mad! appeared first on The Twelfth Magpie.

More reading

• How to buy growth stocks at below-market prices
• Are Meta shares at the start of a comeback?
• With dividend yields averaging above 7%, are these 2 UK shares worth considering?
• How much do you need to invest in dividend stocks to be able to retire?
• FTSE 250 stock CMC’s shares have rocketed 51%! What’s going on?

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Games Workshop Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Retirement’s edging a little closer by the day and, in preparation, I’m nudging my portfolio away from growth and towards passive income.

I plan to generate that income by investing in a spread high-quality dividend-paying blue-chip stocks. These are companies with strong balance sheets, reliable earnings and a history of rewarding shareholders. 

By carefully selecting shares with sustainable and growing dividends, I’m hoping to build a portfolio that should provide a steady stream of income for the rest of my life. It’s not without challenges though.

Can these FTSE 100 shares secure my retirement?

I’m not sure I’ve got the balance quite right. I’ve a spread of FTSE 100 dividend stocks, including Lloyds Banking Group, Legal & General Group, Unilever, M&G, BP, Taylor Wimpey and GSK. In my view, these companies offer solid yields and potential long-term share price growth as well. 

Yet I’m over-exposed to the financial sector, with Lloyds, Legal & General, and M&G all falling into this category. Oh, I also hold insurer Phoenix Group Holdings. 

I’ve found FTSE 100 financials difficult to resist, given their ultra-high yields and low valuations, but I might have overdone it. To reduce risk and enhance stability, I need a bit more diversification across different industries.

With that in mind, I recently bought oil and gas giant BP (LSE: BP). Its shares looked brilliant value, trading at less than six times earnings. Its dividend yield of 5.36%’s also highly attractive. Better still, the board has been serving up a heap of share buybacks.

But I have worries. The BP share price has struggled as energy prices retreat. It’s down 8% over one year and 7% over five.

While long-term investors will still be comfortably ahead, thanks to those dividends, it’s a disappointing showing.

BP shares have jumped 7% in the last month as energy prices pick up, but it faces a world of uncertainty right now. What impact will Donald Trump’s tariffs have? How will UK windfall taxes and Labour energy secretary Ed Miliband’s stance towards fossil fuels affect the sector?

The BP share price isn’t my only concern

We’re also waiting to see what Trump will do about war in Ukraine. If there’s a peace deal and gas starts flowing back into Europe, energy prices could retreat again. So could BP earnings.

My biggest worry is that BP can’t seem to decide how to tackle the renewables transition. Can it afford those share buyback and dividends while it pumps money into green energy?

While I’m not selling, these uncertainties mean I’ll be keeping a close eye on its performance before increasing my exposure.

BP isn’t the only FTSE 100 stock with risks. Every single company I’ve mentioned in this piece comes with risks and rewards. That’s why diversification’s important.

Some of those risks may come through, others may not. But by investing in a spread of high-yielding dividend shares, and allowing compounding to work its magic, I’m hopefully setting myself up for financial security and a growing second income for life.

The post I’ve bought these dividend-paying blue-chips for lifelong passive income appeared first on The Twelfth Magpie.

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• Down 9.82% in a week! Here’s why BP shares are the Spurs of the FTSE 100
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• BP share price outlook: why investors may be underestimating a shift in strategy

Harvey Jones has positions in Bp P.l.c., GSK, Legal & General Group Plc, Lloyds Banking Group Plc, M&g Plc, Phoenix Group Plc, Taylor Wimpey Plc, and Unilever. The Motley Fool UK has recommended GSK, Lloyds Banking Group Plc, M&g Plc, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I have my own ideas about which UK shares will take off in the next bull run, but I fancied giving artificial intelligence (AI) a shot. So I asked ChatGPT to name three growth stocks it thought would benefit when the outlook brightens and investors get their mojo back. 

Its first suggestion didn’t surprise me. It’s the number-one FTSE 100 performer over the last year, and at the very top of my own shopping list. The other two did surprise.

I’m hungry to buy IAG

ChatGPT’s first pick was British Airways owner International Consolidated Airlines Group (LSE: IAG). It praised IAG’s “resilience amid past economic downturns” but I’m not sure I totally agree. IAG was on the brink during the pandemic, although that was an extreme case, to be fair.

The IAG share price has soared 110% in the last year, with people hungry to travel post-lockdown, while it’s whittled down debt to €6bn. That’s still high, but far from lethal.

Running an airline isn’t cheap, and IAG’s had to pour money into fleet modernisation to stay ahead of the competition. It’s exposed to volatile fuel prices, consumer downturns and geopolitical events, and always will be.

But with transatlantic routes – its niche – particularly buoyant, it looks good value trading at 7.7 times earnings.

I didn’t expect Bellway

Now for the first AI surprise: FTSE 250 housebuilder Bellway (LSE: BWY). My own play on the housebuilding sector’s Taylor Wimpey, so I haven’t paid much attention to the others. ChatGPT has a wider outlook.

My ‘bot buddy says builders will benefit from lower interest rates which “typically make mortgages more affordable and stimulate housing demand”. 

It added that Labour’s “commitment to addressing housing shortages, coupled with potential planning reforms, could further bolster the sector”.

ChatGPT highlighted Bellway’s strong balance sheet and strategic land acquisitions, while warning that it remains “exposed to fluctuations in the housing market and economic cycles”.

The Bellway share price has struggled lately, falling 4% over the last year, and 36% over five years. It looks a little pricey trading at 19 times earnings. The dividend yield‘s a modest 2%. With Taylor Wimpey at just under 12 times earnings and yielding almost 8%, I’ll stick with that.

Thanks ChatGPT, but no thanks.

AJ Bell shares are tempting but pricey

Finally, my chatbot chum picked out investment platform AJ Bell (LSE: AJB), saying that “as savings rates fall, individuals may seek higher returns through investments, driving growth”.

ChatGPT also praised its “user-friendly interface and diverse product offerings”, while warning it operates in a highly competitive industry with pressure on fees and margins. Stock mark volatility can also hit assets under management and associated revenues.

I’m wary. The AJ Bell share price has been going great guns, up 40% in the last year. It looks expensive though, trading at almost 22 times earnings.

Also, falling interest rates will cut margins on customer cash balances, a strong source of revenue lately. Of the three, IAG’s the one I want. It’s leading the charge right now, even without a bull market.

The post 3 UK shares ChatGPT thinks will lead the next bull market charge appeared first on The Twelfth Magpie.

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• £10,000 invested in IAG shares 5 years ago has now climbed this high…
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• Up 8%, how are International Consolidated Airlines (IAG) shares rising again?

Harvey Jones has positions in Taylor Wimpey Plc. The Motley Fool UK has recommended Aj Bell Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

January 2025 is almost over and the year’s first FTSE 250 winner is clear – global animal genetics specialist Genus (LSE: GNS).

Its shares surged nearly 24% last month, a remarkable turnaround after three tough years that saw them halve in value. Even after this rally, they remain down 18% over 12 months.

I’ve never analysed this stock before, so I’m coming at it fresh. What’s driving Genus, and is it too late to jump on board?

Can the Genus share price thrive in February too?

The catalyst for Genus’s revival was its half-year trading update on 15 January. The board reported strong performance in the first half of its financial year, with adjusted profit before tax expected to hit at least £35m, ahead of market expectations. Full-year profits should now be at the top end of analyst forecasts.

The group’s PIC division, which focuses on pig genetics, exceeded expectations in both the Americas and Asia. That’s particularly encouraging given weak Chinese sales in recent years. Meanwhile, its cattle-focused ABS division met expectations, helped by efficiency improvements from the company’s Value Acceleration Programme.

Genus’s PRRS-resistant pig programme also looks promising. This gene-editing technology, designed to combat a costly virus in the pork industry, is progressing through regulatory approvals. If commercialised, it could be a game-changer for Genus and the global livestock industry.

One issue is that Genus shares aren’t cheap, trading on a price-to-earnings ratio of 29 times. That’s roughly double the FTSE 250 average. 

Investors clearly pay a premium for growth potential, and many are happy to do so. Another downside is the modest 1.7% dividend yield, which won’t attract income seekers.

Paying a high valuation for a company with such potential can make sense. Genus has a competitive edge in a niche industry with strong global demand. 

While recent results are encouraging, risks remain. The Chinese market is still uncertain. Although PIC’s performance in Asia has improved, past struggles due to weak pork prices highlight potential volatility.

I’ll leave this little piggy for now

I already have exposure to China through miners like Glencore and luxury brands Aston Martin and Burberry. These stocks have all been hugely volatile, to put it mildly, and I’m unsure that I need more China-related risk.

Currency exchange rates are another challenge. The board expects an £8m to £9m impact on earnings from exchange rate movements this year, which could limit profitability.

Lastly, while PRRS-resistant pigs are exciting, regulatory approvals in key markets like the US, Canada, and Japan are still pending. Any delays or denials could hit the share price.

Genus is a fascinating company with a unique position in animal genetics. Its technology has huge potential, and the recent surge suggests growing investor confidence. However, after this rapid rise, I’m reluctant to go the whole hog and buy it.

If the stock dips or interim results on 27 February deliver further positive surprises, I might reconsider. For now, I’ll keep Genus on my watchlist and wait for a tastier entry point.

The post Up 24% in January! Is this year’s best FTSE 250 stock the ideal buy in February? appeared first on The Twelfth Magpie.

More reading

• How to buy growth stocks at below-market prices
• Are Meta shares at the start of a comeback?
• With dividend yields averaging above 7%, are these 2 UK shares worth considering?
• How much do you need to invest in dividend stocks to be able to retire?
• FTSE 250 stock CMC’s shares have rocketed 51%! What’s going on?

Harvey Jones has positions in Aston Martin Lagonda Global Plc, Burberry Group Plc, and Glencore Plc. The Motley Fool UK has recommended Burberry Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I decided to have a bit of fun with ChatGPT and asked what it thought of the worst-performing UK stock in my portfolio.

The company is FTSE 250-listed luxury car maker Aston Martin (LSE: AML). Yes, yes, I know, only an idiot would buy that. But last September, I decided its shares had fallen so far there was surely a chance of making money.

Instead, I’m staring at a 35% paper loss — but I suppose it could be worse. Over 12 months, the Aston Martin share price has plunged 45%. Over five years, it’s collapsed 96%.

So I asked my AI chatbot buddy for its view on what is thankfully my worst share purchase (although Ocado Group might have something to say about that).

The Aston Martin share price is a car crash

My question was: Exactly how stupid was I? Happily, my boon robot companion was programmed to be polite and replied: “You weren’t necessarily stupid to invest in Aston Martin, but you did take on significant risk in a company with a volatile history“.

Personally, I think stupidity does come into it. At least I only invested the scrapings of my cash account, rather than a larger sum.

My assumption that Aston Martin was through the worst wasn’t entirely unreasonable, I was happy to hear. “The problem is that a falling stock doesn’t necessarily mean it’s undervalued. Sometimes, it’s a warning sign of deeper, ongoing issues”, ChatGPT said.

It noted that the stock was floated in 2018 at a wildly optimistic valuation of £19 per share. The reality has been brutal, with the shares down to £1.05.

ChatGPT noted that Aston Martin has a history of high debt and poor cash flow, forcing multiple equity raises that diluted shareholders and made recovery harder. “Even after securing backing from investors like Mercedes-Benz and executive chairman Lawrence Stroll, the company still struggles to turn a consistent profit”, it added.

Aston Martin may have an iconic brand but competes against Ferrari, “which operates with higher margins and a more stable financial model“.

Happily, there are reasons for optimism. “Aston Martin has been refreshing its lineup, and the brand’s Formula 1 presence helps keep it relevant. If its new models sell well, revenue could improve.”

This FTSE 250 stock is driving me to drink

If Aston Martin can drive efficiencies and profitability, it could turn a corner (I see what you did there, ChatGPT). Or it could be acquired by a larger automaker or investor looking for a turnaround project.

But ChatGPT had concerns too, warning the group’s £1.3bn net debt limits growth opportunities, especially with interest rates high. The luxury market also continues to struggle.

Overall, ChatGPT isn’t convinced, concluding: “The stock remains highly speculative, and its future depends on execution and external conditions”.

Personally, I would have been harder on myself. I was dazzled by the brand and, worse, by the shallow notion that the shares could snap back and hand me a quick profit.

Most of my portfolio is in solid FTSE 100 blue chips, so maybe I was due a bit of rash fun. I’ll hold onto the shares but won’t take this kind of punt again. It’s making my portfolio look messy and me feel like a chump. Even if ChatGPT is too polite to say.

The post I asked ChatGPT to rate my worst-performing UK stock – here’s what it told me appeared first on The Twelfth Magpie.

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Harvey Jones has positions in Aston Martin Lagonda Global Plc and Ocado Group Plc. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The Burberry (LSE: BRBY) share price has been through hell in recent years. Now it’s back with a vengeance.

I pored over this morning’s (24 January) Q3 results, which include the crucial Christmas trading period, wondering how investors would respond. 

Would they take flight at the 7% year-on-year drop in retail revenues to £659m? Or view that as progress following a 22% sales first-half slump?

Comparable store sales fell by just 4% in Q3, compared with a 20% drop in the first half. That’s progress of sorts but they’re still falling.

Can the FTSE 250 stock carry on with its recovery?

I also wondered whether markets would swallow CEO Joshua Schulman’s claim today that his strategic plan “will improve our performance and drive long-term value creation”.

In the group’s last set of results, published on 14 November, investors swung behind the new broom. Burberry shares jumped 17% as Schulman unveiled his ‘Burberry forward’ plan by targeting £40m in savings and “reconnecting our brand with its original purpose”.

The more I looked at today’s report, the more optimistic I felt. Especially with Schulman stating that “it is now more likely our second-half results will broadly offset the first-half adjusted operating loss”.

In November, Burberry said it was too early to tell whether the second half would fully offset the first half on a bottom-line basis. So that’s progress too. I anticipated another jump in the stock and boy, did we get it.

As I write, it’s up 15% and I’m a happy chap because Burberry was my biggest loser last year, leaving me with a 40% paper loss at one point. That’s despite buying the shares after the first of several profit warnings, and averaging down with each subsequent slice of bad news.

The rally began in November and the shares are now up 50% in the last three months. Although they’re still down around 14% over one year (and 55% over two).

As well as celebrating the recovery, I’m kicking myself for not buying even more when Burberry was down. Although I’ve learned that it’s almost impossible to call the very bottom of the market, or an individual stock.

This growth stock is back in play

So today, I’ll take the win and look forward to a brighter 2025. I already have a big stake in Burberry, so won’t buy more. I can see why other investors would consider doing so. But I’d take my time, personally, and beware profit takers. Stocks have a habit of retreating after a big early morning jump like this one. Also, the stock isn’t as cheap as it was, trading at 14.5 times earnings.

Also with the global economy still struggling, we can’t assume the consumers have got their taste for luxury back. China is a particular worry as its economy resists attempts to get it moving again.

The US is in a more optimistic mood, but then we have Donald Trump’s trade tariffs to worry about. Burberry would be right in the firing line, should we get them.

Also, markets are putting a lot of faith in Shulman’s words, but as he admits himself, “it is still very early in our transformation and there remains much to do”. Enough of that. Let’s enjoy today. Burberry is back on track and these things can be infectious. Bring it on!

The post The Burberry share price soars 15% after today’s results – is there more to come? appeared first on The Twelfth Magpie.

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Harvey Jones has positions in Burberry Group Plc. The Motley Fool UK has recommended Burberry Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

FTSE 250 grocery and tech specialist Ocado Group (LSE: OCDO) has been the bane of my portfolio since I bought it last year hoping I was getting a bargain. As of last night, I was down 38% on my trade. But today brought a welcome surprise. Ocado shares jumped 12% in early trading after posting bumper Christmas results.

Long-term investors will still be suffering from indigestion though. The Ocado share price is down 58% over one year and 79% over five.

This morning we learned that Ocado Retail, its joint venture with Marks and Spencer Group, ended the financial year on a high.

Can Ocado shares grow from here?

Q4 retail revenues surged 17.5% year-on-year to £715.8m, building on the 15.5% growth seen in Q3. Average weekly orders increased 16.9% to 476,000, hitting a milestone of 500,000 in late November. Active customers rose 12.1% to 1.12m, with modest gains in average basket value and order volumes.

Demand’s robust as wages rise continue to faster than inflation. So what’s fuelling this growth? CEO Hannah Gibson attributes the success to Ocado Retail’s “unbeatable choice, unrivalled service and reassuringly good value.“

There’s an early whiff of spring in the air, with Ocado Retail expecting to sustain its market-leading sales growth and improve efficiency during 2025. It’s targeting a high mid-single-digit adjusted EBITDA margin in the medium term. That’s a critical goal given its long-term struggles with profitability. Scaling operations while enhancing margins could finally address one of the company’s key weaknesses.

I’m not getting too excited though. Last September, Ocado Retail upgraded revenue guidance after a 15.5% Q3 revenue jump, prompting a share price spike that quickly fizzled. Similar patterns emerged over the summer, as a handful of new CFC openings for overseas partners failed to sustain investor enthusiasm.

Ocado still faces major hurdles. While its robot warehouse technology is groundbreaking, international partners have been slow to adopt it. That’s delayed the global roll-out needed to justify the massive investment. Until the group achieves consistent profitability, the share price is likely to remain volatile.

Another bumpy year in store

Rising interest rates add another hurdle. Higher rates drive up financing costs for growth-focused companies and diminish the value of potential future earnings. The fiercely competitive grocery sector and rising operational costs threaten to squeeze margins further.

Today’s results, buoyed by record-breaking Christmas trading, have handed me a glimmer of much-needed hope. Yet the road ahead is challenging. Ocado must expand its customer base, improve efficiency and fully leverage its innovative technology to achieve sustained success. None of that will be easy, especially given today’s economic uncertainties.

So will Ocado finally make me rich? While its trajectory shows promise, the path’s far from certain. The company’s blend of technological innovation and retail expertise is great, in theory. The reality has been tough. External pressures like inflation and interest rate concerns remain daunting obstacles.

I’ve made my bet on Ocado and plan to stick with it, but I expect today’s spike to fade just like the last few did. Its day could come, but only when inflation and interest rates are finally heading in the right direction.

The post This FTSE 250 stock’s jumped 12% after today’s results! Will it finally make me rich? appeared first on The Twelfth Magpie.

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Harvey Jones has positions in Ocado Group Plc. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Greggs‘ (LSE: GRG) shares have had a rough start to the year. Markets have punished the UK’s favourite high street bakery chain after it posted a sharp slowdown in sales. It’s a blow for investors who sunk their teeth into the FTSE 250 stock expecting a tasty treat.

Greggs has transformed itself into a national treasure through clever marketing and a carefully executed expansion strategy.

It seemed unstoppable, with plans to expand its 2,500-strong store estate towards 3,500, while targeting new locations including railway stations, airports, supermarkets, and retail parks. Greggs is also testing evening openings and enhancing delivery services, which could boost revenue per store and overall profitability.

This FTSE 250 star’s struggled in 2025

The sausage roll and sandwich maker enjoys strong brand recognition, customer loyalty and consistent sales. In 2021, revenues stood at £1.23bn. Last year, they topped £2bn and the board’s targeting £2.44bn by 2026.

Greggs has another advantage. It owns its production and distribution channels. This helps ease supply chain issues, ensure quality control and enhance margins. Investors fell for the growth story, perhaps a little too hard. Eventually, Greggs shares became pricey.

Last year, the stock traded at around 23 times earnings, well above the FTSE 250 average of 15 times. And that’s the main reason why I didn’t buy them.

Lucky me. Last October’s trading update (1 October) highlighted a slowdown in Q3 sales. An update on 9 January bought more bad news. Like-for-like Q4 sales growth in company-managed shops slowed to 2.5%, down from 5% in the previous quarter. The board cited “subdued high street footfall”.

The autumn Budget, which lifted both employer National Insurance contributions and the Minimum Wage, could add £45m to Greggs’ costs this year. That will rise to £50m in 2026.

The stock’s beginning to look decent value again

Worse, the economy’s slowing and inflation’s rising. This will squeeze disposable incomes, drive up costs and test Greggs’ reputation as an affordable treat.

These pressures have battered the Greggs share price, which has now crashed 27% since the start of the year. An investor who put £10,000 into Greggs on 2 January would have just £7,300 today. That’s a loss of £2,700. Over 12 months, the stock’s down 20%.

For those (like me) who avoided Greggs due to its high valuation, today’s price offers a more attractive entry point. The shares now trade at 16.66 times earnings, while the dividend yield‘s crept above 3%.

This could be a good time to consider investing, but patience is required. While Greggs’ long-term prospects remain solid, the recovery may take a while. So even though the shares are cheaper, I’m not going to buy them.

Call me glum, but I suspect the UK economy could get worse before it gets better.

The post Here’s what £10,000 invested in Greggs shares on 2 January is worth now… appeared first on The Twelfth Magpie.

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• Are Greggs shares about to go gangbusters all over again?
• Here’s why Greggs shares have been struggling – and may be undervalued!
• Here are the latest dividend forecasts for Domino’s Pizza and Greggs shares
• Up 12.8% in May! But is the recovery in Greggs shares about to be short lived?

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Greggs Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.