After rising nearly 500% in a decade, Greggs‘ (LSE:GRG) shares started crashing towards the end of 2024. This coincided with new government plans to increase business tax.

Since October 2024, when Chancellor Rachel Reeves announced a hike in Employers’ National Insurance and lowered the threshold, Greggs’ shares have crashed 42%. This would have turned a £5,000 investment into £2,900, excluding dividends.

Not only did the Budget increase Greggs’ staffing costs, it arguably had a chilling effect on the UK economy. Many businesses paused hiring, pushing up unemployment, which now stands at a five-year high.

In 2023, Greggs’ total and like-for-like (LFL) sales jumped 19.6% and 13.7% respectively. In 2025, those figures were 6.8% and 2.4%, with underlying operating profit falling 4% to £188m.

Greggs under pressure

In the first nine weeks of 2026, LFL growth slowed even further, to 1.6%. And Greggs can’t seem to catch a break, with the Iran war now expected to send energy, food and fuel costs higher.

And despite the FTSE 250 company opening 121 net new stores last year, and planning a similar amount this year, investors fear we’ve reached ‘peak Greggs’. Can the brand really hit 3,000+ locations without cannibalising existing store sales? The market clearly isn’t convinced.

On top of this, the rise of GLP-1 drugs such as Mounjaro is forcing the company to adapt its menu. As a result, there are as many egg pots in the fridge in Greggs nowadays as there are sausage rolls behind the glass counter.

The growing use of GLP-1 drugs for weight loss is reshaping eating habits and reducing demand for calorie-dense foods. We research these trends and innovate with products that support satiety and balanced nutrition, including items that are high in fibre, plant-based and protein-rich.

Greggs 2025 annual report.

Is the baker at risk of losing its identity with this push towards healthier food? It’s possible.

To summarise then, there are a multitude of things weighing on the share price today:

• Slowing growth.
• Profits under pressure.
• Rising UK unemployment.
• Ongoing cost of living pressures.
• Peak Greggs concerns.
• Declining high street footfall.
• Potential GLP-1 impact.

Due to some of these factors, Greggs is currently the UK’s third most-shorted stock behind Ibstock and Wizz Air. So sophisticated investors are betting there’s more pain to come.

Not all doom and gloom

Despite the obvious challenges, Greggs still has many attractive qualities. It possesses a unique brand, strong balance sheet, and industry-leading profit margins (even after recent pressure).

Plus, there’s a well-covered forward dividend yield of 4.2%. That’s above the FTSE 250 average.

It’s also worth mentioning that capital expenditure peaked last year, which should result in significantly improved cash flow moving forward. And robotic order picking in one of its two new state-of-the-art distribution centres opening soon should improve efficiency.

Another thing I like is that around 20% of shops are now franchised (managed by third-party partners). These tend to outperform company-managed shops, as they’re primarily focused on roadside locations. And they also pick up the day-to-day running costs (rent, electricity, and so on).

Finally, the shares look cheap now. Based on forecasts for 2027, the forward-looking price-to-earnings ratio’s 12.5.

For patient investors with a multi-year investing horizon, I think the stock’s now a buying opportunity worth thinking about.

The post £5,000 invested in Greggs shares in October 2024 is now worth… appeared first on The Motley Fool UK.

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Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has recommended Greggs Plc and Ibstock 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.

SpaceX is an investment I’ve wanted in my Stock and Shares ISA for almost eight years. I know this because that’s how long ago a certain book — The Space Barons: Elon Musk, Jeff Bezos, and the Quest to Colonize the Cosmos by Christian Davenport — was published.

This details how visionary entrepreneurs such as Musk were bringing a Silicon Valley start-up mentality to the space industry to dramatically reduce the cost of accessing ‘the final frontier’.

After reading this (and other material), I was convinced that space would become a massive market. But disruptor-in-chief SpaceX unfortunately remained a private firm.

This summer though, the rocket pioneer is expected to go public with a blockbuster IPO. So is this finally the chance to invest inside my Stocks and Shares ISA?

Rapid iteration

SpaceX has totally transformed the rocket launch market in a few ways. For a start, it builds almost everything in-house to avoid the middleman mark-up common in the aerospace supply chain. This has dramatically lowered costs and broke the decades-long monopoly held by government agencies and legacy defence contractors.

SpaceX also has a culture of ‘fail fast, learn faster’, allowing for rapid iteration. Game-changing innovations including self-landing rockets and Musk’s vision to colonise Mars attract top talent to the company. 

In 2025, the firm launched its Falcon 9 rocket 165 times, roughly one mission every 2.2 days on average! For context, emerging rival Rocket Lab carried out 21, while China succeeded with 90 orbital launches.

SpaceX reportedly generated $16bn in revenue last year, with EBITDA of $8bn. And most of its growth is being driven by Starlink, its broadband-from-space service powered by more than 10,000 active satellites.

Who’s using Starlink? Well, you name it. Airlines, cruise ships, trainlines, telecoms, military vessels, people in camper vans, remote villages, scientists in Antarctica.

A heap of hype

Now, while I’m still very bullish, I do have valuation concerns. Because SpaceX is reportedly looking to attract a $1.75trn valuation (or potentially higher).

The price-to-earnings (P/E) ratio probably isn’t the best metric to use to value this enterprise yet. But this IPO could potentially put the price-to-sales (P/S) multiple above 100.

Beyond the extreme valuation, another thing I’m not sure about is SpaceX’s recent merger with xAI. The Grok chatbot maker is losing a ton of money and I’m yet to be convinced the two are a good fit. Perhaps the IPO prospectus will change my mind.

Been benefitting SMT

Thankfully, I’ve benefitted indirectly from the rocketing SpaceX valuation through Scottish Mortgage Investment Trust (LSE:SMT). The FTSE 100 fund has a massive SpaceX stake, which has helped its stock jump 64% in the past year.

SpaceX has become a massive 19.3% holding in the Scottish Mortgage portfolio. This adds concentration risk, especially if the IPO flops.

However, for now, I’m content to get my SpaceX exposure through this UK investment trust. It also holds other private disruptive firms such as Databricks, Revolut and Anthropic. Listed holdings include Nvidia, ASML, and Amazon.

It’s worth noting that the trust has been buying back a ton of its own shares, which has helped close the previous wide discount to underlying value. While not the obvious bargain it was two years ago, I still think the stock’s worth considering today.

The post Should I load up on SpaceX inside my Stocks and Shares ISA? appeared first on The Motley Fool UK.

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Ben McPoland has positions in Scottish Mortgage Investment Trust 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.

I’ve added two new shares to my ISA portfolio in April — one from the FTSE 100 and the other a FTSE 250 stock. They’re quite different companies, but both look attractive to me as a long-term investor.

Read on and I’ll tell you why I’m bullish on this pair. 

Buying the dip

First, I added 3i Group (LSE:III) to my portfolio. The FTSE 100 stock is down 35% in six months, even after a mini-revival recently.

3i is a private equity firm that invests in other companies. Over the past 10 years, the group’s annualised total return is a very impressive 22%, despite the crash.

A major driver has been Dutch discount store chain Action. In 2011 when 3i first invested, it had 250 stores across three countries and around €80m in EBITDA. At the end of 2025, it had 3,302 stores in 14 countries and generated more than €2.3bn in underlying profit.

In fact, the investment has been so successful that it now accounts for approximately 73% of 3i’s portfolio. So any growth hiccups at Action are bad news. And that’s what we’ve had in recent months, with weaker-than-expected growth in France, its largest market.  

However, I think the selling has gone too far. It means 3i has swung from trading at a massive premium to its underlying assets to a near-10% discount. It also now carries a 3.3% forward dividend yield. 

Taking advantage of this, long-time CEO Simon Borrows recently bought £8.95m worth of shares, which is obviously noteworthy because he knows the company (and its prospects) inside out.

Finally, it’s worth pointing out that Action sees scope for 4,650 stores. So it’s hardly struggling.  

Fitness boom

The second stock I bought is Applied Nutrition (LSE:APN), the leading sports nutrition and supplements brand. The stock’s up 97% in the past year.

However, it dipped 5% earlier this week after shareholder JD Sports unloaded its entire 9.1% stake. Does JD see trouble brewing? Maybe it’s worried about the inflationary Iran conflict hurting Applied Nutrition’s growth or margins. This is a near-term risk.

Alternatively, perhaps JD just crystallised returns after the stock’s strong run. Either way, I’m not worried because I’m investing for the long term. And the global sports nutrition, health and wellness market is projected to grow to £279bn by 2029, at a compound rate of about 8.1%.

What I like is that Applied Nutrition’s growing globally, with its products selling well in Europe, the Middle East, Latin America, and the US (it has shelf space in Walmart). It’s very innovative, bringing out unique flavours and quickly capitalising on new trends in the fitness and wellness markets. 

Crucially, the brand is very trusted. Customers know what they’re getting is the real deal, which is not always the case when it comes to protein and supplements. 

I buy Applied Nutrition’s protein, creatine, and daily greens supplement (because I don’t eat anywhere near enough vegetables!) But nearly half of customers are female, boosted by Coleen Rooney-branded collagen beauty supplements.  

This year, revenue is expected to surge 31% to £140m. The profitable company is trading at 17.7 times forward earnings, which isn’t very expensive for a quality business with a ton of international growth potential.

I’ll look to build out my position on share price dips over the next year or two. 

The post 2 excellent FTSE 350 stocks I just added to my ISA appeared first on The Motley Fool UK.

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Ben McPoland has positions in 3i Group Plc and Applied Nutrition Plc. The Motley Fool UK has recommended Walmart. 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.

Owning the right penny stock can really turbocharge a portfolio’s performance. For evidence, look no further than Filtronic, which was trading for 7p per share just over five years ago. Today, you’d have to pay more than 220p for the very same share!

The flip side, of course, is that penny stocks are notoriously high-risk. For every Filtronic, there are many dozens that completely bomb. Therefore, while exciting, I would only ever invest a very small part of my portfolio in an ultra-small-cap stock.

But that might be all that’s needed. Returning to Filtronic, for example, £150 invested in this stock five-and-a-half years ago would now be worth nearly £5,000!

With this in mind, here’s an interesting 7p penny stock. It might not generate Filtronic-style returns, but I still think it’s worth attention today.

Aiming to top the market

DP Poland (LSE:DPP) is the operator of Domino’s Pizza stores and restaurants across Poland and Croatia. In the first quarter, group system sales jumped 18.9% to £17.2m at constant currency (up 22.7% on a reported basis). Orders rose 13.7% to 1.3m and like-for-like sales were up 8.9%.

The firm added six new stores to the network during the period, bringing the total Domino’s stores to 141 (135 in Poland and 6 in Croatia). And after acquiring local Polish rival Pizzeria 105 last year, it also has 71 of these locations. It has so far converted 17 to the Domino’s brand.

While DP Poland is still loss-making, it’s moving towards a franchise-led, capital-light operating model. Some 35% of the estate is now franchised, and as more locations head that way, management expects margins to improve significantly.

With 141 Domino’s stores now operating across the group and strong sales momentum in both markets, we see significant opportunity ahead. Our priorities remain clear: accelerating the franchise transition and conversion of Pizzeria 105 stores to Domino’s, expanding towards our 200‑store target by the end of 2027, and delivering sustainable margin improvement and long‑term shareholder value.
CEO Nils Gornall

A few potential risks

Of course, DP Poland is a penny stock for a reason. It has a long history of losses, and there’s no guarantee its franchise-led strategy will pay dividends (metaphorically and literally!)

Moreover, I see two specific risks worth highlighting. The first is pressure on consumer spending — and DP Poland’s input costs — from the inflationary Iran war (higher fuel, food and energy bills).

The second is the rise of GLP-1 weight-loss drugs, which tend to suppress cravings for calorie-rich food like pizza. While DP Poland could always adapt its menu in response, it’s still a potential future threat to sales growth.

However, as a speculative high-risk, high-reward penny stock, I think DP Poland at 7p is worth considering. Analysts expect the company to start posting profits in the next couple of years, driven by the capital-light franchising pivot and Poland’s strong economy (the fastest-growing among large EU nations).

I see no reason why Domino’s can’t continue expanding over time in Poland and Croatia. Just six stores in Croatia sounds quite low to me.

That said, I don’t think investors should go daft with the position sizing. The stock’s only a small part of my own portfolio today and I’m happy to keep holding at that level.

The post £150 to spare? Consider buying this 7p penny stock appeared first on The Motley Fool UK.

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Ben McPoland has positions in Dp Poland Plc. The Motley Fool UK has recommended Filtronic 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.

It’s been a sobering few years for holders of Diageo (LSE:DGE) shares. Since revellers saw in the 2022 New Year — probably with a Diageo drink in hand — the stock has crashed 64%!

If some soothsayer had shown me a forward-looking share price chart back then, I would have assumed something ugly had happened. Perhaps some sort of accounting blunder. Or maybe that they were holding it upside down!

Then again, there has been no massive elevator-style drop over this time. The sort you would associate with an accounting scandal. It has just been a relentless drift lower, quarter after quarter, leaving the stock at a 14-year nadir.

The original catalyst for the sell-off was rising inflation and interest rates, which quickly put pressure on disposable incomes. This made it difficult for Diageo to match the impressive growth rates seen during the Covid spirits boom. US tariffs have recently added to its woes.

Looking forward though, there’s one key thing could help drive a big turnaround in the share price over the next five years.

The key US market

The US is the world’s largest spirits market, so it’s a crucial one for Diageo. In the first half of its 2026 fiscal year, net sales in North America fell 6.8%, driven by weak consumer confidence and brands like Don Julio, Casamigos and Crown Royal losing market share.

The tequila drop-off is quite worrying, with sales slumping 23% in the first half. Diageo paid a pretty penny for premium brands Don Julio and Casamigos, and they were growing strongly, with big ambitions to take them worldwide.

In recent months, however, a wave of lawsuits and independent lab tests targeted well-known tequilas, including Casamigos and Don Julio. The accusation is that these brands contain non-Agave sugars despite being labelled ‘100% Agave’ (the key ingredient in tequila).

While Diageo firmly denies this, it has damaged the brands’ reputation among tequila aficionados (there are YouTube videos on this controversy, if anyone’s interested).

At the very least, it suggests Diageo might have to lower prices to compete in what has become an ultra-competitive tequila market. 

Timeless brands

For the stock to really recover then, Diageo will have to return to growth in North America. How likely is that?

Well, lower interest rates would help, as this could loosen consumers’ purse strings. Unfortunately, the war in Iran isn’t helping things here.

However, one area that could boost sales in the meantime is Diageo’s new focus on ready-to-drink (RTD) canned cocktails. If this successfully captures a younger Gen Z demographic, it could support a return to growth. The firm is significantly underrepresented in RTDs today. 

Looking ahead this year, things look tough. But the trajectory for US interest rates is likely downwards over the next five years (barring another geopolitical disruption). And there’s a significant untapped opportunity with Guinness 0.0, as well as in RTDs.

Right now, Diageo is being held back by some weaker brands, tequila, and a product mix in transition. But I consider the core brands like Smirnoff, Johnnie Walker, Tanqueray, Baileys, and particularly Guinness to be timeless.

Under new management, I’m convinced a return to US growth is just a matter of time. And with the stock trading very cheaply and offering a decent dividend yield, I reckon it’s worth considering as a turnaround candidate.

The post Prediction: Diageo shares could soar in the next 5 years if this happens… appeared first on The Motley Fool UK.

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Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo 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.

Hollywood Bowl (LSE:BOWL) is a dividend stock with decent momentum. After rising 5% to 278p today (15 April), it has now gained about 12.4% in the past month, easily outperforming the FTSE 250 over this period.

Even so, this still leaves Hollywood Bowl some way lower than a high of 350p reached back in May 2024. Is the stock worth considering right now?

Decent H1

The reason for the share’s jump today was a solid trading update from the UK’s and Canada’s largest ten-pin bowling centre operator.

In the six months to 31 March, revenue grew 9.5% to £141.5m, with 1.9% like-for-like (LFL) growth. Encouragingly, the UK saw 2.6% LFL growth, showing how Hollywood Bowl is doing well despite the tough consumer backdrop.

During the period, it opened a new prime location in Edmonton, Canada, where it says trading has started well. This brought the estate to 93, with 77 locations in the UK and 16 in Canada. And a further three, including two in the UK, are due to open in the second half.

CEO Stephen Burns said: “Demand for high-quality, family leisure activities that offer great value for money also remains resilient in both territories, and our cash generative business model allows us to invest where we see opportunities and deliver profitable growth.”

Resilience

Of course, the biggest risk here is the potential for even more pressure on consumer spending due to the Middle East conflict. High government debt and a reliance on energy imports has left the UK economy more vulnerable than most, according to the IMF.

However, one thing I like about Hollywood Bowl is the balance sheet. It ended March with a net cash position of £26m, and no bank debt. This puts it in a strong position, even if the UK economy enters a downturn as energy costs soar.

Additionally, 76% of the company’s total electricity needs are hedged until September 2029, including 12% provided from on-site solar energy. And the firm says its high gross margin makes it “well-insulated against inflationary pressures“.

Bowling should remain popular

We’ll learn about profits and the dividend when the interim results are published on 27 May. But forecasts put the forward dividend yield at around 5%, a fair way above the FTSE 250 average.

The stock is pretty cheap as well, trading at 11.5 times forward earnings. I don’t consider that expensive for a market-leading company with a strong balance sheet that’s still growing in a difficult consumer environment.

On top of its core bowling and amusement arcade offerings, the company has been testing mini-golf, e-darts and go-karting in some locations. And average spend per visit has been trending up, with people buying more food and drink as they enjoy a bowl.

Finally, after seeing success in Canada, the firm is actively evaluating other international opportunities. I see no reason why the format couldn’t work in multiple countries, given that fun family activities like this are pretty universal. Hollywood Bowl is already targeting 130 centres by 2035.

Weighing things up, I reckon there’s a lot to like about this well-run company. The sensible valuation, 5% dividend yield, and long-term overseas growth potential make it a UK stock worth considering.

The post Up 12% in a month, Hollywood Bowl is a UK dividend stock on a roll appeared first on The Motley Fool UK.

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Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has recommended Hollywood Bowl 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.

The FTSE 250 is a very diverse index containing a multitude of global businesses. We can see this just by looking at the three best-performing mid-cap stocks over the past five years.

Pan African Resources (LSE:PAF) leads the pack, with a market-crushing return of 797%. Next comes a huge 348% gain from TBC Bank Group (LSE:TBCG), while Goodwin (LSE:GDWN) narrowly gets bronze with 313%. Note, none of these returns include dividends!

So, here we have an African-focused gold miner, an emerging markets bank (Georgia’s TBC), and family-run engineer Goodwin. An honourable mention should go to construction group Galliford Try, which has also returned around 312% over five years.

What has driven these extraordinary gains?

Benefiting from big investing trends

Pan African’s eye-popping gain can be summed up with one word: gold.

As a gold miner, its profits are highly leveraged to the price of the yellow metal. And even after the recent pullback, gold is still up by roughly 175% in five years.

When gold prices soar, a miner’s profits will often grow much faster than the price of the metal itself because extraction costs stay relatively fixed. As such, Pan African’s net profit has exploded from $44m in 2020 to an expected $470m this fiscal year (ending June). Wow!

Meanwhile, Goodwin’s benefitting from the defence and nuclear renaissance. It makes high-integrity castings, particularly those that don’t melt under extremely high temperatures. Not many companies in the world specialise in these.  

Bottom-line profits have grown at an annualised rate of 25% since 2020. And Goodwin investors have enjoyed lots of dividends along the way. 

Is either still worth considering?

The last time I wrote about Goodwin (in October), I concluded that the stock looked too pricey. Back then, the price-to-earnings (P/E) ratio was 60 while the dividend yield was just 1.4%.

Since then though, the Goodwin share price has crashed almost 40%. And now we have a P/E ratio of 24 and a 2.2% yield that may be worth considering.

Much of this loss came in a single day in March when Goodwin revealed it had lost two major tenders in its Mechanical Engineering division (worth about £60m). And it has delayed the dispatch of valves to some customers due to the Iran war.

Taking a longer-term view, however, it should have plenty of growth options across the European nuclear, aerospace and defence sectors. After all, it has finally dawned on Europe that these things are actually rather important in a fragmenting international order.

Pan African’s fate will, of course, be dictated by the gold price. Personally, I prefer Fresnillo from the FTSE 100 as it mines silver too. But both stocks could tank if gold does.

Ultra-cheap stock

Turning to TBC, I’m more bullish on this bank stock. It’s trading at just 5.7 times forward earnings, while offering a 6.2% forecast dividend yield.

Granted, any economic downturn in Georgia is a risk, while the political scene there is still on edge. But this economy is tipped to grow strongly for years, as is Uzbekistan’s (TBC’s second market).

The lender is extremely profitable, benefitting from its duopolistic position in Georgia and an increasingly digital-first approach. Given the extremely low valuation, strong growth potential, and generous starting dividend yield, I think TBC stock is still worth looking at today.

The post Meet the skyrocketing FTSE 250 stocks up by more than 300% in five years! appeared first on The Motley Fool UK.

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Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has recommended Fresnillo Plc and Goodwin 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.

City analysts see a lot of value in Hostelworld (LSE:HSW) stock right now. In fact, just yesterday (13 April), Berenberg Bank gave it a Buy rating and a 171p price target.

This is actually slightly lower than the average broker 12-month target of 181p. Comparing this to the current price of 101p, we see a 79% difference.

Interestingly, all eight analysts covering the stock are overwhelmingly bullish.

Of course, brokers are not always right about a stock, let alone accurate at foreseeing its near-term price trajectory. But the disconnect is striking. So what do they see in Hostelworld?

From one to three

As a reminder, Hostelworld is a small-cap stock with a market cap of £125m. It operates a platform where travellers can book to stay at over 14,700 hostels across more than 3,100 cities worldwide.

Last year, net revenue rose 2% year on year to €93.8m, with bookings growing 1% to 7m. However, adjusted profit after tax fell 14% to €15m.

Admittedly, on the surface, these numbers don’t seem particularly impressive. But whereas Hostelworld spent almost all of 2025 with just one revenue generator (hostels, obviously), this year it has three.

It now offers 18,000+ budget locations (including hotels and guesthouses) through a third-party inventory supplier. While the commission rate is lower on these, it should still drive more bookings and revenue.

And there’s Social Passes, which the company launched in November. Through these, people who haven’t booked on Hostelworld can access its social network, allowing them to message, plan trips and join events with other travellers staying in the same location.

One-time payments to access the social network range from €4.99 a week to €59.99 for the year (for digital nomads or long-term travellers). The Social Pass adds a new subscription-type revenue stream.

Additionally, Hostelworld has acquired OccasionGenius for $12m. This is a business-to-business event discovery platform that has a ton of reliable local events worldwide. Ideally, this data should inspire travellers to book trips.

Network effects

It’s this burgeoning social element where I think a lot of future shareholder value could lie. Because it’s creating a network effect, where the platform becomes more valuable as more people use it. Additional users also expand the platform’s proprietary data set.

At the end of 2025, Hostelworld’s social community reached 3.4m members. Messaging between them grew 81% year on year, with members booking approximately twice as frequently as non-members. And Social Pass members are also subsequently booking through Hostelworld. 

Management said that Q1 trading had been strong, with a 3% rise in bookings expected alongside a 12% increase in revenue. So growth seems to be picking up, driven by the social travel network.

If more people book straight through the app, this should lower marketing costs and improve long-term margins.

Very cheap valuation

The biggest risk to near-term growth is the Middle East conflict, particularly inflation that might further damage discretionary spending. It could also result in higher fuel costs and therefore impact flight pricing.

However, with the stock trading at just 6.9 times next year’s forecast earnings, I think a lot of risk is already priced in. There’s also a 3.4% forward dividend yield.

Putting all this together, I reckon Hostelworld deserves further research as a deep value/recovery play.

The post With a P/E under 7, this value stock looks far too cheap at 101p appeared first on The Motley Fool UK.

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Ben McPoland has no position in any of the shares mentioned. 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 UK stock market isn’t known for having loads of disruptive growth companies. Those are generally listed on the Nasdaq across the pond.

However, a handful of the brightest UK growth firms did list in London back in 2021. One of them was Wise (LSE:WISE), the cross-border payments specialist.

And after posting another set of strong results yesterday (13 April), there’s a strong argument that this fintech is the UK’s top growth stock. Let’s take a closer look.

On a mission

For those unfamiliar, Wise’s founding mission is to “build money without borders“. Specifically to replace the hidden charges, marked-up exchange rates and slow transfers that still happen when money crosses borders.

Instead, the company’s global infrastructure moves money faster, more transparently, and at far lower cost. Over the long term, it aims to transfer trillions worldwide for consumers, businesses and banks.

In Q4 of its 2026 financial year (FY26), Wise made progress towards its ultimate aim. Quarterly cross-border volumes increased 27% on a constant currency basis to £49.4bn, while active customers grew 22% to 11.3m.

Wise was granted membership to Payments Canada in the period, opening up the potential for growth there. In Q3, it secured a conditional licence approval in South Africa and went live with a direct integration to Japan’s Zengin system.

Last year, Wise launched in Mexico, allowing Mexicans to send money abroad cheaply (and vice versa). And Itaú Unibanco, one of Latin America’s largest banks, is using Wise Platform (built for banks, fintechs, and large companies).

Quarterly underlying income jumped 24% on both a reported and constant currency basis to £435.3m. 75% of money was transferred instantly, up from 65% the year before.

For the full year, active customers were up 21% to 18.9m, driving cross-border volume 25% higher to £181.7bn. Reported underlying income rose 18% to £1.6bn, and the company expects its underlying pre-tax profit margin to be towards the top of its 13%–16% target range.

Moving stateside

Arguably, Wise doesn’t get the attention it deserves because it’s not in the FTSE 100, despite having a £10.5bn market cap. This is mainly due to its dual-class share structure, which gives the founders more control than regular shareholders (this helps prevent hostile takeovers).

In 2024, the UK overhauled the listing regime to attract growth firms and prevent others from leaving London. However, instead of joining the FTSE 100, Wise has chosen to move its primary listing to the Nasdaq.

It will keep a secondary listing on the London Stock Exchange. But the firm says this move stateside — where its largest market opportunity lies — will accelerate its “path to become ‘the’ network for the worldʼs money“.

Management is confident this will create long-term value for shareholders. As one myself, I’m optimistic the move could help Wise achieve a higher valuation.

Reasonably priced

Looking ahead, the company does face stiff competition from fintechs like Revolut (Wise has just launched a UK current account). Also, an economic slowdown could result in fewer money transfers.

Overall though, FY26 was another cracking year. With its growing global platform and massive long-term market opportunity, I do think Wise is the UK’s top growth stock today.

Currently, it’s trading at around 25 times forward earnings. At this reasonable valuation, I think it’s worth considering at around £10 per share.

The post Is Wise now the UK stock market’s top growth share? appeared first on The Motley Fool UK.

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Ben McPoland has positions in Wise Plc. The Motley Fool UK has recommended Wise 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.

The best stocks to buy are often high-quality ones that have fallen and are therefore cheaper than they were. Recently, many tech shares have seen significant drawdowns due to uncertainty about the direction of interest rates and AI disruption.

Therefore, this area could be fertile waters for long-term investors to fish in. Here are two high-quality S&P 500 stocks to consider.

Nvidia

After skyrocketing in 2023 and 2024 following the release of ChatGPT, Nvidia (NASDAQ:NVDA) stock has produced more muted returns lately. In fact, its flat since August 2025 and 11% off an all-time high.

That dip might not seem much. But the AI GPU and chip king continues to grow at a torrid pace, with Wall Street analysts expecting revenue to surge 71% to $369bn this year. This should see net profit top $200bn.

As such, the valuation now looks cheap. We have a forward price-to-earnings (P/E) ratio of 23, which isn’t much more than the estimate for the S&P 500. It’s rare to find a world-class company trading at an average valuation while still growing tremendously.

Turning to next year, the forward-looking P/E multiple drops to 17. Then just 14.5 times the year after.

So, what’s the catch? Well, rising competition appears to be one key concern. Many of Nvidia’s giant tech customers are designing their own chips to reduce reliance and try to cut costs. This risk is worth monitoring.

However, Nvidia’s products remain best-in-class, with CEO Jensen Huang seeing $1trn worth of orders for its Blackwell and Vera Rubin chips through 2027. The Vera Rubin processor will offer a 10x reduction in cost per token compared to Blackwell, supercharging the AI agentic age.

Looking further out, Nvidia’s also perfectly placed to underpin the physical AI revolution (self-driving vehicles, humanoid robots, and more).

CrowdStrike

Former FBI Director Robert Mueller once said: “There are only two types of companies: those that have been hacked and those that will be hacked.” Unfortunately, I think he was right, especially as AI capabilities advance rapidly.

Enter CrowdStrike (NASDAQ:CRWD). The pureplay cybersecurity company’s Falcon platform uses AI and machine learning to detect, prevent, and respond to threats in real-time.

CrowdStrike estimates its total addressable market could surge to as much as $300bn by 2030, up from roughly $145bn this year. In fiscal 2026, which ended 31 January, the company’s annual recurring revenue (ARR) jumped 24% to $5.25bn.

Meanwhile, 50% of its customers are now using six or more of its cybersecurity modules, up from 39% three years ago. This shows how it’s successfully upselling products as cyber threats multiply.

So, why has the stock crashed 32% in five months?

One recent catalyst was the development of Claude Mythos by AI firm Anthropic. It claims this powerful model demonstrated an unprecedented ability to autonomously exploit software vulnerabilities. A cyber breach is always a risk for CrowdStrike.

Also, even after the pullback, the forward price-to-sales ratio is a lofty 16. While I wouldn’t load up on CrowdStrike due to the rich valuation, I still think it’s worth considering as a best-in-class cybersecurity stock for a diversified portfolio.

CEO George Kurtz is clear on the opportunity: “As enterprises rapidly adopt AI, CrowdStrike is mission-critical infrastructure — securing AI across every layer from GPU to agent to prompt. The AI revolution is creating a massive growth opportunity for CrowdStrike.”

The post 2 world-class S&P 500 stocks down 11% and 32% to consider buying appeared first on The Motley Fool UK.

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Ben McPoland has positions in CrowdStrike and Nvidia. The Motley Fool UK has recommended CrowdStrike and Nvidia. 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.