Despite the UK stock market delivering more strong gains since the start of 2026, not every Stocks and Shares ISA is in the black.
Portfolios concentrated around the ‘Magnificent Seven’ and other tech stocks have suffered some sharp pullbacks. And a long list of FTSE stocks have also proved to be lacklustre investments so far this year, with double-digit drops for Autotrader, WPP, Sage Group, and Hikma Pharmaceuticals, among others.
Navigating volatility is a normal part of any investing journey. But there’s no denying how unpleasant it can be to watch a steep drop. Luckily, there are always lucrative opportunities to explore. And one FTSE stock I’ve got my eye on right now is Games Workshop (LSE:GAW). Here’s why.
An incoming growth spurt?
Like the other FTSE stocks, Games Workshop has also seen its share price dip in 2026, albeit by only around 5%. However, when zooming out a little further, it’s actually down over 12% since its December highs. And that may have set the stage for a more attractive entry point, particularly with big growth catalysts seemingly on the horizon.
The group’s Warhammer miniatures continue to be enormously popular with its established cult-like customer base, who keep coming back for more. And with the 11th edition of Warhammer: 40,000 rumoured to be released later this year, new starter kits, launch boxes, books, and miniatures could keep the growth engine chugging.
But crucially, come 2027, growth could be primed to accelerate. The expansion of the firm’s manufacturing capacity following the completion of its new factory opens the door to higher sales volumes worldwide.
At the same time, a series of new video game projects that have licensed the Warhammer IP are set to be released towards the end of 2026 including Warhammer 40,000: Dawn of War IV.
In other words, the group’s exceptionally profitable royalty revenue stream could be getting ready for a pleasant surge over the next 12-18 months, reaching a far broader audience and luring new players into the core tabletop hobby.
With all these catalysts converging at a similar time, the recent weakness in Games Workshop shares could soon start to reverse. That’s why investors looking for growth may want to consider this business for their Stocks and Shares ISA.
Of course, no investment’s ever without risk. So what do investors need to keep an eye on?
Risks to watch
While licensing revenue in 2027 appears to be heading in a strong direction, the same can’t be said for the group’s 2026 fiscal year (ending in June). In fact, management’s explicitly warned that licensing revenues in the near-term are expected to take a big hit due to a lack of blockbuster releases during the period.
This perfectly demonstrates the lumpy nature of these cash flows, which are almost entirely dependent on third-party game developers shipping projects on time that also meet player expectations – two notoriously unreliable variables.
Something else to keep an eye on is the group’s core miniature business. While still growing at a steady pace, there are some emerging signs of potential deceleration, which could undermine Games Workshop’s premium valuation.
Nevertheless, with a stellar track record and a wide competitive moat, I’ve already added Games Workshop to my portfolio, and other growth-seeking investors may want to consider doing the same.
