URGENT UPDATE: Three major UK shares have plummeted over 30% this year, raising questions about their potential recovery in 2026. Investors are keenly watching these stocks as the UK market shows mixed performance.
Food-to-go giant Greggs (LSE: GRG) has faced a challenging 2025, with its share price dropping by a staggering 38%. This decline has pushed Greggs’ dividend yield up to 4%, making the stock more appealing at just 12 times earnings. Despite a recent 22% surge in share price since late last month, the overall drop reflects weak like-for-like sales and poor demand planning during an unexpectedly warm summer. Investors are now left wondering if this beloved sausage roll purveyor can bounce back.
Similarly, drinks titan Diageo (LSE: DGE) is grappling with a 34% drop in its stock value, raising concerns about its future profitability. With iconic brands like Guinness and Johnnie Walker under its umbrella, the company is facing short-term risks from tariff disputes and declining demand for premium spirits. However, long-term prospects remain hopeful as younger consumers may shift their preferences. Investors who believe in Diageo’s strong global distribution network are holding on tight, hoping for a turnaround.
Another name on the list is Judges Scientific (LSE: JDG), which has also seen a 34% decrease in share price. While some investors view this decline as a potential bargain, the stock currently sells for 35 times earnings, indicating a premium valuation. Challenges such as weak demand from the Chinese market and reduced spending by US academic institutions are notable risks. However, Judges Scientific’s strategy of acquiring smaller companies and centralizing management could prove beneficial if market conditions improve.
As these stocks face significant challenges, analysts and investors are keeping a close eye on their potential recovery. The question on everyone’s mind: Will these UK shares bounce back in 2026?
Investors are urged to stay informed as these developments unfold, particularly with the holiday season approaching. With stocks like Greggs, Diageo, and Judges Scientific struggling, this may be a crucial moment for investors to reassess their portfolios.
Keep watching as we continue to track these pivotal market movements.
