The FTSE 100 and FTSE 250 are still soaring, but the UK is still a great place to buy cheap shares. Some quality names have actually fallen in price, providing scope for a potential share price rebound in 2026.
I’ve done some research to dig out stocks with the best chances of a recovery this year. My work shows that City analysts think their share prices will double in value or more during the next 12 months.
I too am optimistic these cheap stocks could rebound. Want to know why I think they’re worth considering right now?
Gamma Communications
Gamma Communications (LSE:GAMA) helps companies switch to cloud-based systems, allowing them to modernise how they handle voice, video and messaging communications. It’s a hot growth area, but one that’s currently underperforming amid tough economic conditions.
Yet analysts remain overwhelmingly positive on the stock. Of the eight studying the FTSE 250 firm, seven consider it a Strong Buy, with the remaining one rating it a Buy.
Even the least optimistic of this grouping’s predicting a sharp price rebound over the next 12 months. They’re tipping a 21% rise, to £10.80. The most bullish number cruncher, meanwhile, is expecting Gamma shares to reach £18.20, a whopping 104% uplift.
Helped by falling interest rates, demand for its services might rebound strongly as businesses boost IT-related investment. Gamma will also benefit approaching the shutdown of all copper-based phone services in the UK next January.
Card Factory
Card Factory‘s (LSE:CARD) another FTSE 250 company trending lower over the last year. Not even its focus on the value end of the greetings market has protected its share price. But could it be about to turn higher?
Seven brokers currently have ratings on the retailer. And their views on the company are largely positive — five class it as a Strong Buy, with two giving it a Hold rating.
This is reflected in their price forecasts for Card Factory shares. One analyst thinks the price will reach 170p during the next year, up 153% from today. Even the least bullish forecasts predicts a healthy 12% increase, to 75p.
A prolonged downturn in the UK economy could hinder any such price recovery. But aided by recent international expansion, I think Card Factory could bounce back strongly this year.
JD Sports Fashion
JD Sport Fashion (LSE:JD.) is another casualty of tough market conditions. In particular, it’s struggled to tackle weak consumer spending in its major US region. Fierce competition on main street and online haven’t helped it either.
City analysts aren’t overwhelmingly positive in their view of the FTSE 100 share. But opinions are undeniably more positive than negative. Out of 17 rating the stock, seven consider it a Strong Buy or Buy. The remainder have a Hold rating, with not a single one giving it a Sell.
The most optimistic JD share price target is 200p, up 146% from today. The most pessimistic is 85p, suggesting a 5% increase.
I think there’s a good chance of a robust rebound as analysts expect. Conditions are improving in North America — this week it reported “improved” like-for-like sales there. And the broader athleisure fashion segment is tipped for further broad growth.
