Here are three UK growth shares to check out in April.

Moonpig

Moonpig (LSE:MOON) is the UK and Netherlands’ leading online greeting card firm, with over 12m active customers.

I’m one of these customers, and I use it all the time to send personalised cards. And I’m not alone because Moonpig enjoys tremndous loyalty, with roughly 91% of revenue coming from existing customers.

Looking ahead, this should create a solid base for continued expansion. For fiscal year 2026, ending 30 April, the firm expects adjusted earnings per share growth to be as much as 12%.

The stock’s trading at 11.5 times forward earnings, which is attractive considering the board just announced a new £65m share buyback programme for FY27. There’s also a near-2% forward dividend yield, which could grow nicely over time (no guarantees, of course).

One potential risk I see is further pressure on consumer budgets (sadly, a common theme today). However, UK online card penetration is still only 6% by value, suggesting there’s a strong secular growth story unfolding here.

Hollywood Bowl

Next, we have Hollywood Bowl (LSE:BOWL), the UK’s largest ten-pin bowling operator. The stock’s also trading at around 11.5 times forward earnings, but offering a much larger 5.1% forecast yield.

Beyond the income potential, I like the company’s growth prospects. By 2035, it expects to have 130 centres, up from 93 today. And a growing number are expected to be in Canada, where it’s successfully applying its UK expansion playbook.

Again, consumer spending pressure is the biggest risk, exacerbated by rising inflation. But in the six months to 31 March, revenue rose 9.5% to £141.5m, with 2.6% like-for-like sales growth in the UK.

Therefore, the company’s showing resilience in a tough market. It makes me wonder how well this business could do in future if and when the cost-of-living crisis eases.

Genus

The third stock is animal genetics specialist Genus (LSE:GNS). The stock’s up 62% in one year but down 50% over five.

Now, this one isn’t conventionally cheap because it’s trading at 25 forward earnings. However, the long-term growth could be substantial due to the company’s PRRS-resistant pig programme (PRP).

What on earth is that? Well, PRRS (porcine reproductive and respiratory syndrome) is a devastating viral disease that causes reproductive failure in sows and respiratory illness in piglets. It has long been the bane of the global swine industry (losing around $1.2bn per year in the US alone). 

Genus has used gene-editing (CRISPR) technology to produce PRRS-resistant pigs. Canada has approved use of the PRP gene edit, while Genus is making progress with other key international regulators, including China, Mexico, and Japan.

Of course, the big risk here is Chinese or US regulators rejecting these gene-edited pigs. But brokers are getting excited about the potential for high-margin royalties from this programme.

For example, house broker Panmure Liberum recently told clients: “We remain of the view that Genus is a multi-year growth story and that it stands a reasonable chance of being a FTSE 100 stock by 2030.”

That’s an exciting prospect, considering Genus’ current £1.7bn market cap.

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Credit checker Experian from the FTSE 100 has notched a 52-week — and all-time — high above 4,000p. However, animal genetics firm Genus from the FTSE 250 remains 60% below a 2021 peak, despite rising 55% year to date.

Clearly, investors liked what they saw from this pair today. Let’s explore why these stocks are spiking.

FTSE 100

After today’s rise, Experian’s market cap now sits above £37bn. That’s more than well-known Footsie firms like Tesco (£27bn) and BT (£19bn).

The company is one of the world’s biggest consumer credit reporting agencies. It tracks the borrowing history of both individuals and businesses, including loans, credit cards, mortgage payments, defaults, and more. Experian then uses this data to generate credit reports used by lenders and other financial institutions. 

Today’s trading update covered the three months to the end of June. Overall, global revenue growth at constant currency was up an impressive 12% (8% organic growth). 

The progress was broad-based across all regions. North America is the firm’s biggest market, accounting for 67% of sales, so it was encouraging to see revenue jump 10% there. In the UK and Ireland, revenue was 8% higher, as it was in Latin America. 

However, at constant exchange rates, Latin America surged 17%, and now accounts for more revenue than the UK and Ireland. I’m really bullish on the region, as hundreds of millions of consumers there are beginning to access financial services through their smartphones. 

Consequently, Experian looks to have a sizeable long-term opportunity in Latin America. It also highlighted strong quarterly growth in Australia, New Zealand, India and Southern Europe. 

For the full year ending March 2026, management continues to expect total revenue growth of 9% to 11%. Solid stuff. 

FTSE 250

Turning to Genus, the firm has released an unaudited trading update for its fiscal year that ended 30 June.

As mentioned, it specialises in animal genetics, helping farmers breed pigs and cattle that grow faster, resist disease, and deliver better yields (milk, for example). 

Genus operates through two main divisions: PIC (pig genetics) and ABS (dairy and beef cattle). Both of these performed well, with PIC delivering double-digit underlying growth in adjusted operating profit, while ABS came in ahead of expectations in the second half. 

Together, they’re expected to drive adjusted pre-tax profit of at least £68m, in line with expectations. 

However, in April, the US health regulator (FDA) gave the green light for Genus’s gene-edited pig — one that’s resistant to a major disease — to be used in the American food supply. This triggered a £3.7m net milestone receipt, boosting adjusted pre-tax profit to at least £72m.

Foolish takeaway

I think both stocks are worth considering. But investors should know that Experian now trades at 31 times forecast earnings. If growth comes in light in future quarters, which could happen in recessionary times, the stock might sell off.

As for Genus, it needs to get the disease-resistant pig gene edit past other regulators (failure to do so is a risk). Nevertheless, I wrote in May that I thought the stock was “set for a roaring recovery“.

I still think this, and have since bought some shares.

The post These 2 FTSE growth stocks jumped 8% and 4.5% today! appeared first on The Motley Fool UK.

Here, I’ll look at a mid-cap stock that I reckon has the potential to outperform the FTSE 250 in future. As such, I think it’s worth investigating as a potential portfolio addition for investors.

Animal genetics specialist

Genus (LSE: GNS) is up 30% in 2025, so has already started a comeback. Yet shares of the animal genetics firm remain 66% lower than in September 2021.

The company helps farmers breed pigs and cows with superior genetic traits. These animals then grow faster, stay healthier, and produce more meat or milk. 

Genus operates through two main divisions: one focused on pig genetics (PIC), and the other improving cattle herds (ABS).

Much of the firm’s troubles in recent years can be traced to China, which was once a promising growth market for PIC. However, the Chinese pork market has been volatile, with weak pig prices causing persistent underperformance.

In its interim results for the six months to 31 December, Genus said it had enjoyed a “more stable trading environment” in China. It notched up seven new royalty customer wins there, bringing the total to 20 signed over the preceding 18 months. There was also strong growth in the Americas and wider Asia region. 

Consequently, pre-tax profit came in above expectations at £35.4m, a 21% increase (or 38% increase in constant currency). Adjusted earnings per share jumped 20%.

Gene-edited pigs

The most important catalyst for long-term growth comes from a recent US regulatory approval for its gene-edited pig programme. These pigs are resistant to PRRS (Porcine Reproductive and Respiratory Syndrome), a nasty viral disease that puts significant financial strain on pig farmers worldwide.

For Genus, this opens up a major new commercial opportunity. It could license this PRRS-resistant trait worldwide, improving the global pork industry while generating a lucrative new revenue stream.

However, to fully unlock the growth potential, regulatory approval will be needed in China. This is the world’s largest pork consumer and producer by far, so commercialising gene-edited pigs there would be a major breakthrough.

Genus is working with Chinese authorities to get approval, but the regulatory process is understandably cautious when it relates to the food chain. If China doesn’t give the nod, that would be a big blow.

Another potential risk would be an escalation in the global trade war. Ideally, US pork producers need frictionless trade between America and key export markets like Mexico, Canada and Japan. So high reciprocal tariffs would be a major challenge.  

Still, this gene-edited pig programme could be a huge growth opportunity, starting in 2026/27. Genus has already secured approval in Brazil, Colombia, and the Dominican Republic, and the key US approval should fast-track more green lights worldwide.

Valuation

Based on current forecasts for its fiscal 2026 year, which starts in July, the stock is trading on a forward price-to-earnings (P/E) ratio of 22.8.

This is a premium to the FTSE 250, but I think it may turn out to be cheap, assuming the gene-edited pig programme is successfully commercialised worldwide.

Longer term, Genus is well-positioned for growth thanks to the rising demand for animal protein, driven by global population growth.   

The post 1 stock from the FTSE 250 that could be set for a big turnaround appeared first on The Motley Fool UK.

Here are two potential turnaround stocks that have piqued my interest. I think both are worth considering.

FTSE 100

First up, we have Smith & Nephew (LSE: SN.) from the FTSE 100. This healthcare stock has been on a bit of a run recently — up around 15% in six months — but at 1,062p is still well off its 2019 price of 1,900p.

Smith & Nephew specialises in joint replacement technology and surgical devices. In recent years, it has struggled with inflationary pressures, supply chain disruptions, and changes in China’s procurement policies that led to lower prices for its medical devices.

In response to falling profits, CEO Deepak Nath introduced a plan in mid-2022 aimed at transforming the company’s operations. This focused on improving efficiency and launching new products to accelerate growth.

We’re slowly starting to see this bear fruit. For the full year, the firm expects to post 5% underlying revenue growth, equivalent to a total of roughly $6.1bn, with a 19%-20% trading profit margin. 

Earnings per share are expected to grow at a compound annual growth rate (CAGR) of approximately 10.6% through to 2028. That would see the price-to-earnings (P/E) ratio fall to around 10 by then. Throw in the 3% forward dividend yield, and there appears to be a lot of value on offer here.

As for things that could go wrong, the company expects to take a $15m-$20m hit this year due to tariffs. The global trade situation creates a fair bit of uncertainty here. But management is confident that it can navigate these risks and still deliver its full-year guidance.

A rapidly ageing global population should lead to higher demand for hip and knee replacements, a core part of Smith & Nephew’s orthopaedics division.

FTSE 250

The second stock that I think could be set for a big turnaround is Genus (LSE: GNS). Shares of the FTSE 250 animal genetics company jumped 25% last week, but they still remain 67% lower than a peak reached in August 2021.

The reason I’m bullish here is because the US Food and Drug Administration (FDA) has just approved its PRRS Resistant Pig (PRS) programme for use in the food chain. PRRS is a disease affecting swine, costing the global pork industry billions. 

Genus has edited a gene to make pigs resistant to most strains of the disease. And this FDA approval marks the first time genetically edited livestock has been cleared for commercial sale in America.

Now, it should be noted that PRS isn’t expected to make much difference to Genus finances till 2027. A lot can go wrong in the meantime, including further global trade disruptions and an economic slowdown.

Meanwhile, the stock is hardly cheap, trading on a premium P/E multiple of 24. That’s significantly higher than the FTSE 250 average.

Nevertheless, this FDA approval could be transformational for the company’s growth over the next few years, especially if the world’s largest pork producer (China) also approves the programme.

With the stock still down 67% since mid-2021, this recovery might be just getting started.

The post 2 UK stocks that could be set for a roaring recovery appeared first on The Motley Fool UK.

Back in September, I wrote: “I’ve put it on my watchlist to keep an eye on the gene-edited pig. It could be a game-changer for the global pork industry and the firm’s growth.”

Gene-edited pig? As strange as that sounds, that is indeed the reason for today’s massive share price jump. Let’s dig into some details.

What is Genus?

Firstly, a little background info on Genus. This is an animal genetics company that helps farmers breed pigs and cattle that grow faster, stay healthier, and produce better meat. It operates a mainly royalty-based model.

Genus’ porcine division, known as PIC (Pig Improvement Company), provides pig farmers with superior breeding stock and semen. And its bovine unit, called ABS (Animal Breeding Services), offers dairy and beef cattle breeders access to elite bull semen and embryos. 

The firm’s competitive edge comes from the ownership and control of proprietary lines of breeding animals, and the biotechnology used to improve them. This last bit underpins today’s share price jump.

Major breakthrough

To many, gene-editing still sounds like pig’s-might-fly technology, but it’s starting to have a real-world impact. By altering the CD163 gene, Genus has made pigs resistant to porcine reproductive and respiratory syndrome (PRRS).

This is a highly contagious viral disease that causes widespread losses for pig farmers worldwide. Recent research indicates that PRRS increases the need for antibiotics by more than 200%. Therefore, any gene-edited pig line that resists this disease should enjoy significant demand.

Today, the firm announced that the US Food and Drug Administration (FDA) has approved its PRRS Resistant Pig (PRP) programme for use in the American food supply chain. PRP meat is identical to that from non-edited pigs. So this is a significant development.

Brazil, Colombia, and the Dominican Republic have already issued positive determinations for PRP. More regulatory approvals should follow now that the FDA has given the nod, including key US export markets for pork like Mexico, Canada, and Japan.

Matt Culbertson, Genus PIC’s Chief Operating Officer, said: “We have spent years conducting extensive research, validating our findings and working with the FDA to gain approval. Today marks a major milestone for the pork industry.”

Should I invest?

Now, as exciting as this sounds, analysts don’t expect this programme to be bringing home the bacon until FY27 (beginning July 2026).

After that, though, profits could skyrocket, with a China approval expected at some point. At its 2023 investor day, Genus said PRP could be “financially transformative“.

If so, the stock’s seemingly high forward price-to-earnings ratio of 24 today could end up looking cheap in a couple of years.

In the meantime, there are some risks to consider. One is sluggish top-line growth, with full-year revenue expected to tick up just 1%. Another is reciprocal tariffs, which could impact US pork exporters.

On balance though, this stock looks undervalued to me, given the potential here. Assuming Genus doesn’t keep surging over the coming days, I may buy a few shares. But I won’t go the whole hog and bet the farm.

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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 Motley Fool UK.

After months of buying high-yield FTSE 100 shares, I’m open to injecting a bit of mid-cap growth into my portfolio. But does Genus stock fit the bill? Let’s find out.

Breeding ‘elite’ cows and pigs

Speaking of stock, the company is a global leader in animal genetics. It analyses DNA to find the strongest genetic profiles, helping farmers breed cows and pigs with superior traits. This results in higher milk production in dairy cows and better meat quality.

Genus operates two main segments. First, there’s PIC, which stands for Pig Improvement Company (I like the simple reflection of its mission). It was formed in the early 1960s in a village pub in Oxford. Then there’s ABS, which focuses on cattle genetics.

Genus’ competitive edge comes from the ownership of proprietary lines of breeding animals and the biotechnology used to improve them. For example, PIC owns the Camborough sow line, which produces large litters and piglets with strong growth rates. It’s the most used sow in pig production worldwide.

Why is the stock down?

Recently, the firm’s sales have been very weak in China, the world’s largest porcine market. Low prices there have seen producers suffer losses, while challenging conditions persist in other markets.

Today (5 September), the firm reported a continuation of these trends. In the year to 30 June, revenue in actual currency dipped 3% year on year to £669m. Adjusted operating profit fell 9% to £78m as PIC China’s profit slumped by 60%.

Outside of China though, PIC trading was resilient and market conditions are “stable to slowly improving“. Profits are expected to rise this year due to efficiency savings.

However, management remains cautious on China and there’s a risk of currency challanges if current exchange rates persist. So the near-term outlook here remains murky.

Gene-edited pigs

Notably, the company has used CRISPR gene-editing technology to develop a new generation of piglets that are resistant to PRRS (porcine reproductive and respiratory syndrome). This is a highly contagious virus that causes significant economic losses in the global pork industry.

Genus has received favourable regulatory decisions in Brazil and Colombia for the PRRS-resistant pig, while the US Food and Drug Administration (FDA) is expected to approve it by 2025.

It’s also submitted applications to regulators in Canada and Japan, and testing is starting in China.

This programme could one day help eliminate a major infectious disease in swine. It would be a major advancement.

Should I invest in Genus?

Longer term, a rising global population should only increase the need for animal protein, and with it demand for the firm’s products.

However, the shares are trading on a forward price-to-earnings ratio of 26.5. That’s a pretty steep valuation considering the company’s growth has stalled lately.

Meanwhile, the dividend yield is a measly 1.8%. So there’s not much from an income perspective.

On reflection, I’d prefer to buy other stocks today. But I’ve put it on my watchlist to keep an eye on the gene-edited pig. It could be a game-changer for the global pork industry and the firm’s growth.

The post Is it time I bought the huge 71% dip on this FTSE 250 growth stock? appeared first on The Motley Fool UK.

Struggling with the war impact

I’m going to filter for the worst-performing names over the past month. The wooden spoon goes to Ferrexpo (LSE:FXPO), with the share price down 38% in the past four weeks. Over the last year this loss increases to 59%, showing that it has been moving lower for some time.

The business has been heavily impacted by the war in Ukraine. At the latest count, 754 employees are serving in the Ukrainian armed forces. The disruption to the iron ore pellet facilities means that of the four sites, only up to two are operational.

Naturally this is weighing on the firm. Q3 2023 total commercial production was down 50% versus the same quarter the year before. With production and revenue down, it doesn’t surprise me that the share price is also falling.

It’s a sad situation for the company. The underperformance is due to external factors outside of the management team’s control. However, I don’t see things changing at least until there is some resolution to the war. On that basis, I simply can’t justify buying at the moment.

Weak China demand hurting

The second worst performer is Genus (LSE:GNS). The biotech company focuses on improving animal genetics. Over the past month the stock is down 16% and down 39% over the past year.

The company had been guiding towards weak 2023 results throughout the year. It flagged up the weaker performance from the Chinese economy as hurting the business. This proved correct with the release of the full-year results last month. Profit before tax was down 31% year on year, with poor demand from China to blame.

Yet when I take a step back, I do think this could be a smart purchase now. North America, Latin America and Europe all delivered strong growth in operating profit for the firm. So it’s clear that Genus has the right business model. With various economists expecting the Chinese economy to recover in 2024, this area too could bounce back.

Genus is also fairly unique in what it does. Therefore, I don’t see competition as being a large threat going forward. I’m not saying the firm is a monopoly, but it has strength from its position in the marketplace.

Therefore, of the two FTSE 250 dogs right now, I’d steer clear of Ferrexpo but would consider buying some shares in Genus when I have free funds.

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Following the outbreak of Covid-19, medical institutions, pharmaceutical companies, and even governments are realising the importance and applications of genomics, both from a diagnostic and treatment perspective.

Consequently, analyst forecasts of the already $21.8bn genomics market predict immense double-digit 18.2% annual compounded growth over the next decade. After all, it could have a transformative impact on both medicine and diagnostics.

Needless to say, that could be a very lucrative opportunity. So, let’s dive into the details about investing in genetics shares.

What are genetics stocks?

Genetics stocks occupy a small section of the biotech industry. As the name suggests, these businesses focus on developing treatments for genetic diseases by repairing or replacing the faulty genes causing the problem.

The genomics industry isn’t particularly new and has been around for decades. But due to the high costs, commercialisation has been challenging and still remains that way today. However, thanks to recent technological advancements, development costs are falling drastically while simultaneously boosting accuracy. 

Therefore, it’s no surprise that research into gene therapy has accelerated, with potentially game-changing treatments entering clinical trials both in the UK and abroad.

Genetics shares can be categorised into three segments:

• Sequencing & analysis – Companies analysing genetic data to detect defects in patients
• Testing & diagnostics – Firms using sequencing data to diagnose genetic diseases
• Gene editing – Biotech groups developing gene therapies that eliminate defects in the genome sequence

While there is some overlap in each category, firms within their respective segments often have different target markets and don’t necessarily compete with each other. However, the level of competition within each category is rising as more businesses seek to capitalise on the massive growth opportunity.

Unsurprisingly, this level of growth comes with a high volume of risk. The medical industry is highly regulated, with each test, device, and drug required to meet rigorous standards. 

Drug development is particularly notorious for its difficulty. In fact, a study by the Biotechnology Innovation Organisation showed that only 9.6% of treatments that make it to phase one clinical trials actually reach the market.

So, it’s hardly surprising that most pure-play genetics stocks are exceptionally volatile. And in some cases, the failure of a clinical trial can be a death sentence for these businesses. But all it takes is one successful treatment to potentially unlock multi-billion-dollar annual revenues.

Top genetics shares in the UK

Let’s explore the top three UK genetics shares in order of market capitalisation as of January 2026.

Genus

Genus is a niche but world-leading genetics sequencing business that focuses on the animal agriculture industry. The company owns directly (and indirectly through partnerships) various herds of pigs and cattle.

Using its sequencing technology, the group tests and identifies key desirable traits among the herd, such as feed efficiency, disease immunity, protein and fat content, and fertility.

Management then generates revenue by selecting the animals with the strongest genetic profile for breeding with farmers’ herds. The end result is healthier offspring, lowering costs for farmers while simultaneously increasing the quality of the end product for consumers.

Oxford Nanopore Technologies

Oxford Nanopore was spun out of the University of Oxford in 2005. Since then, the business has become one of the UK’s largest genetics stocks, developing a proprietary DNA and RNA sequencing technology. It’s the first one of its kind to provide real-time data analysis and rapid testing.

This technology has been embedded into a variety of devices, which the group primarily sells to scientific researchers involved with clinical trials. However, management has also been broadening its horizon, targeting several applied markets. 

The list includes consumer healthcare with its Covid-19 rapid testing solution, agriculture by identifying superior plant genomes, and even the environment by analysing the microbial composition of glaciers.

More recently, with its Covid-testing segment unsurprisingly shrinking, the business primarily sells life-science research tools like DNA and RNA sequencing solutions (MinION, GridION, and PromethION platforms,) driving more consistent revenues and cash flows.

OXB

OXB (formerly known as Oxford Biomedica) is a rising global gene and cell therapy Contract Development and Manufacturing Organisation (CDMO).

The business outsources its capabilities to other drug developers via its LentiVector platform. This drastically reduces the cost of developing gene and cell therapies. So, it’s not surprising that pharmaceutical titans like Bristol Myers Squibb, AstraZeneca, and Novartis are all active customers.

These big pharma clients pay ongoing milestone fees throughout development, as well as a royalty on sales for any drug that makes it to market. Most of the current drug pipeline using LentiVector remains relatively early-stage. However, continued innovation and expansion have given the company a stronger manufacturing presence within the US market as part of its wider expansion strategy.

Investing in the US genetics industry

American genetics stocks have to navigate an equally complex regulatory environment. In the UK, all medical treatments and tests need to be approved by the Medicines & Healthcare Regulatory Agency (MHRA). In the US, approval is required by the Food & Drug Administration (FDA).

The US stock market has plenty of genetics shares listed. Here are some of the leading businesses in this space in order of market capitalisation as of January 2026:

1. Illumina (NASDAQ:ILMN) – $21.6bn market cap
2. CRISPR Therapeutics (NASDAQ:CRSP) – $5.1bn market cap
3. Fulgent Genetics (NASDAQ:FLGT) – $868.0m market cap
4. Pacific Biosciences of California (NASDAQ:PACB) – $667.2m market cap
5. Editas Medicine (NASDAQ:EDIT) – $198.2m market cap

Are genetics stocks right for you?

In 2026, genetics stocks continue to show tremendous long-term growth potential. But they remain highly volatile stocks making them a risky endeavour. Just looking at these eight UK and US genetics shares demonstrates that perfectly. 

Needless to say, individuals thinking about investing in genetics stocks need to have a high risk tolerance. While genetic research may have been around for decades, the same can’t be said for most of the stocks listed today.

Even the multi-billion-pound market cap stocks on this list are still executing fundraising efforts to fuel growth. And with a generally high failure rate within this industry, there’s a high chance most will fail in their quest to capture the multi-billion-dollar market opportunity.

Needless to say, prudent due diligence, careful research, and a diversified investing approach are critical when investing in such high-risk, high-reward sectors. By owning a basket of companies in this area, the odds of finding the future industry leader climb higher.

The post Investing in Genetics: Top UK Genetics Stocks of 2026 appeared first on The Motley Fool UK.

Cakes solve many problems

Cake Box Holdings is a small-cap growth stock that’s had an outstanding 2020 despite the pandemic headwinds. The Cake Box share price has risen 21% year-to-date.

The company is Vegetarian Society Approved and free from eggs. They offer a gluten-free range of teatime cakes and have all cake ingredients listed on the company website. It’s a popular business that’s really taken off. While cakes are readily available in supermarkets and bakeries across the UK, people love a treat and Cake Box makes catering to special diets simple. Vegetarianism is on the rise and I think its vegetarian and eggless appeal will help keep it relevant.

It’s staying power will largely depend on its range of products and customer service. So far, so good, as it appears to be keeping customers happy with 30% revenue growth year-on-year for the 20-week period to September 30. However, it did lose out on six weeks of sales during lockdown.

Boundless growth for this small-cap stock

Nevertheless, Cake Box wasn’t deterred by the lockdown. The company paid back furlough money it received and paid shareholders a special dividend to replace the previously cancelled one. It’s been recruiting, and management is confident it can weather any storm.

Listed on the FTSE AIM All-Share index, Cake Box is following a similar model to Domino’s Pizza. But unlike Domino’s, Cake Box still has vast room for growth. Illustrating this point, it added six new franchise stores to its group of holdings during the six months to 30 September, plus another five since then. It now has 144 stores, mainly throughout England, with one in Scotland. It’s also been using Uber Eats, Just Eat, and Deliveroo to help boost online sales.

The £84m company’s price-to-earnings ratio (P/E) is 26 and earnings per share are 7.8p. Its forward dividend yield is approximately 2.8%, based on an annual payment of 5.9p per share. I like the look of this company, but the high P/E is off-putting.

A biotech growth stock shaking up agriculture

Genus is another small-cap growth stock, and it’s a biotech company dealing in livestock. The animal genetics specialists carries out gene editing to create genetically elite breeding animals and embryos. It sells these internationally to pork, beef, and milk producers, competing with national and regional farmer-owned cooperatives. The point of this is to improve the efficiency and sustainability of meat and milk production and reduce the spread of disease.

Genus has a £2.7bn market cap. Its P/E is 66 and earnings per share are 62p. The company doesn’t yet offer a dividend. I think the Pfizer/BioNTech coronavirus vaccine approval will speed up acceptance of other gene editing processes, paving the way for progress in this area. This bodes well for Genus in the future.

The Genus share price is up nearly 28% year-to-date and its high P/E reflects this. Yet, I do think this company may well continue to thrive in 2021, as China is recovering well and demand for Genus’ offerings is accelerating.

All-in-all, I think both Genus and Cake Box are small-cap growth stocks that will continue to thrive in 2021. I’d consider buying on a dip.

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