But like it or not, there’s a good reason, and it shouldn’t be ignored. No matter your financial situation, saving for retirement is a good idea — and an ISA can make a huge difference.

Why? Let’s crunch some numbers.

Compounding cash

Imagine you dump £15,000 into a portfolio of high-yielding dividend stocks that achieve a 10% annual return. That’s a meaty £1,500 gain – but you could lose £300 (or more) of that to tax!

If you put it into an ISA and avoid tax? It compounds. And after 10 years you’re up to £40,000. Without the ISA? You’d have likely lost at least £7,000 of that to tax.

That’s not pennies, that’s real money. And the longer it compounds, the bigger it gets — exponentially.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

So what’s the catch?

Well, we ARE talking about the stock market. It’s unpredictable and for novice investors, all the numbers and graphs can be intimidating. But in reality, it’s little more than eBay for trading shares.

Still, money can be lost. That 10% return one year can just as easily be a 10% loss the next. So how can we trust a company to keep turning a profit?

For the same reasons we trust a dentist in a town where everyone has healthy teeth. A much needed service, consistent demand, repeat customers, and a reputation for quality.

So which shares match that criteria?

Identifying quality

Becoming truly familiar with the ins-and-outs of a business can take years. Fortunately, fundamental analysis gives us a nice snapshot of what’s going on behind the scenes.

For example, few people are familiar with the biopharma outfit Oxford BioMedica (LSE: OXB). Yet the stock is up 113% in the past year — more than almost any other healthcare stock on the FTSE 100 or FTSE 250.

The company isn’t even profitable yet, posting a £30m loss in latest results. Yet revenue is up 31% year on year and the average broker expects a 47% price gain in the coming year. Case in point: analysts at Jefferies recently raised its price target to £8.27, reiterating a Buy rating.

So why would anyone be that optimistic about a £680m experimental gene therapy company?

On Monday (13 April, 2026), Oxford Biomedia launched a fast-track offering for its adeno-associated viral (AAV) and lentiviral vector platforms. This wasn’t just a promo stunt — it was a response to growing client demand and will help cut manufacturing timelines in half.

And that’s just one development as part of a wider and aggressive expansion into the US, one that promises to fuel momentum well into 2028.

But that doesn’t guarantee anything. If its US expansion doesn’t go as planned and financing runs dry, it could run into trouble — and lose investor confidence.

The bottom line

Investing in shares can deliver greater returns than a standard savings account, and using an ISA can maximise that growth.

But whether investing in FTSE 100 blue chips or emerging small-caps, there’s always risk. And when it comes to unprofitable companies like Oxford BioMedica, that risk is amplified. Still, with impressive developments and strong demand, it’s one worth considering, in my book.

The post Is a Stocks and Shares ISA really worth the effort? Here’s what the numbers say… appeared first on The Motley Fool UK.

I’ve got a few ideas, but I’m worried I might be missing something. So just for fun, I asked ChatGPT to pick three UK shares with serious, if not epic, growth potential.

I’d never actually use AI to pick stocks, that’s not what it’s designed for, but I hoped it would point me towards something interesting. To my surprise, given my focus on income, I already own the first stock it highlighted.

I shouldn’t really be surprised, given that the stock is Rolls‑Royce Holdings (LSE: RR.). It’s rocketed 1,150% in three years, and 99% over the last 12 months. Which is pretty epic.

Rolls‑Royce Holdings is risky now

ChatGPT says the engineering giant has benefitted from the rebound in aviation, combined with optimism around future nuclear and aerospace contracts. It listed risks as “execution and cash flow”, which is very generic.

Personally, I’d be wary about Rolls-Royce. Expectations are sky-high, with a price-to-earnings ratio of 55. If profits, revenues or margins disappoint, it could smash the shares at these levels. I’m seriously thinking of taking profits rather than buying more. It’s a good example of why investors should never take ChatGPT as written, but do their own research.

Kainos Group shares

By contrast, the next pick came out of the blue. FTSE 250-listed Kainos Group (LSE: KNOS), a digital technology services firm I hadn’t considered before. ChatGPT says it’s riding a wave of enterprise tech spending, with revenue growth expected to outpace the broader market. The Kainos shares price jumped 30% in 2025, though the five-year trend has been patchy.

The board reported a 16% drop in first-half profits to £32m, but that was mostly due to investing in the business and taking on new staff. Six-month revenues actually rose 7% to £196.1m. Kainos further cheered investors by hiking the interim dividend and announcing a £30m share buyback.

ChatGPT warned that “growth may stall if budgets tighten or competitors nibble at market share”, which is so generic as to be meaningless. I’ll dig deeper, but I think this one deserves a longer look.

Oxford Biomedica has momentum

Finally, ChatGPT tossed out FTSE 250 cell and gene therapy specialist Oxford Biomedica (LSE: OXB). It’s clearly chasing momentum here, as the company’s shares are up 40% this year and 200% over two.

In September, Oxford Biomedica posted a 44% rise in first-half revenues to £73.2m, and the order book more than doubled year-on-year. Consensus forecasts are optimistic, suggesting the shares may rise another 24% over the next year, to 748p.

Biotech’s a little too volatile for my liking. Regulatory approvals and long development cycles can make share prices swing dramatically if anything goes wrong. This one’s not for me.

Investors might consider both Kainos and Oxford Biomedica but, like me, they should do their own due diligence. And then tread very carefully around Rolls-Royce. Investing is a personal thing. It’s fun to play with AI, as it’s brought two exciting stocks to my attention, but the rest is down to me.

The post I asked ChatGPT to name 3 epic growth stocks to buy in 2026 and it said… appeared first on The Motley Fool UK.

But what if I were limited to buying a single UK growth stock? With so many choices available for investors, it’s hard to choose one company above all others. I was curious to see if ChatGPT had a spectacular suggestion I might have missed.

Genetics for growth

The AI chatbot started with boilerplate wording cautioning against going all-in on one growth stock, describing it as “extremely risky“. I agree. But it played along with my crazy idea, selecting Oxford Biomedica (LSE:OXB) as the stand-out share to consider.

I must admit, I’d only come across this FTSE 250 gene and cell therapy business before in passing during the pandemic. Back in 2020, the firm signed a prominent manufacturing agreement with AstraZeneca to produce Covid-19 vaccines. Naturally, ChatGPT’s answer encouraged me to look deeper.

The company, which now trades as OXB, started life as a spin-out from the University of Oxford in 1995. Today, it’s a pure contract development and manufacturing organisation (CDMO).

This means OXB’s boffins handle complex lab work and large-scale production so its customers don’t have to. The firm serves major pharma companies, such as Novartis and Bristol Myers Squibb, by manufacturing viral vectors and gene therapy components.

Risk and reward

The biotech sector suffered in a post-pandemic world, and OXB was no exception. Its share price is still down nearly 40% over five years. But this year has been more promising with the shares rising from 420p in January to over 600p today.

Recent results show a positive trajectory. In the first half of FY25, revenue surged 44% to £73.2m, and the group’s order book skyrocketed 166% to £149m.

It’s still a loss-making company, which brings risks for investors considering the £728m valuation rests on the firm’s future potential. However, pre-tax losses have narrowed to £26m from £35.7m, so the direction of travel looks good.

Expanding production capacity is a major priority for OXB. Those ambitions were given a huge boost from a successful £60m fundraising earlier this year. In October, the company used some of those funds to acquire a commercial-scale, FDA-approved viral vector manufacturing site in North Carolina, which is expected to be fully operational in early 2026.

The investment opportunity in OXB shares needs to be weighed against a price-to-sales (P/S) ratio above 4 and a price-to-book (P/B) ratio above 22. While growth stocks in the biotech sector often have higher valuation multiples, I think these figures leave little room for error. Any clinical trial setbacks or the loss of a key customer could send the share price tumbling.

My view

ChatGPT’s growth stock champion was an interesting choice, but it wouldn’t be my number one pick. In any event, I already invest in AstraZeneca, so I won’t be buying OXB shares today. Diversification matters and I don’t want too much biotech exposure in my portfolio. But I’ll keep a close eye on this company to see if it can realise its potential.

The post I asked ChatGPT to pick 1 growth stock to put 100% of my money into, and it chose… appeared first on The Motley Fool UK.

The company operates on a contract development and manufacturing organisation (CDMO) strategy. It partners with pharmaceutical and biotech firms to provide end-to-end services for drug development and manufacturing.

Increased industry recognition coupled with significant US expansion helped it achieve 100% share price growth over the past six months.

So let’s take a look at why I believe it’s one of the most exciting companies in the UK right now.

US expansion

Earlier this year, Oxford BioMedica completed the acquisition of an FDA-approved viral vector manufacturing facility in North Carolina for $4.5m. The move drastically increases its US commercial-scale manufacturing capacity. It also improves service delivery for its North American client base, particularly in the high-growth adeno-associated virus (AAV) field.

The site contains multiple drug substance suites, a fill-finish suite and space ready for further expansion. Key functions are expected to be operational in Q1 2026. It also complements the businesses already well-established US network, with an existing Massachusetts site focused on early-stage development.

The acquisition helps cement the company’s commitment to above-market growth and EBITDA profitability from fiscal 2025 onwards. It expects a single-digit gain from the purchase in 2025, broadly offsetting any associated costs for the new facility. Notably, funding for the expansion was secured via a £60m share placement and a new $125m loan facility raised this year.

Groundbreaking technology

Despite being a relatively small and so-far unprofitable company, I believe Oxford BioMedica’s at the forefront of innovation in the UK. And don’t just take my word for it — it’s been officially recognised as a ‘Champion’ at the 2025 CDMO Leadership Awards Europe in the Cell & Gene Therapy category.

Winners of the prestigious awards are selected based on direct feedback from biopharma professionals evaluating quality, capabilities, expertise, and reliability. It validates the company’s vision to become a pure-play, innovation-led CDMO operating multiple sites across the UK, US and France.

What this means for investors

When it comes to new, developmental technology, the risks can’t be ignored. Oxford BioMedica posted a £43m loss in fiscal 2024 and has a trailing 12-month loss of £37m as of late 2025. To meet expectations, it would need to achieve an aggressive 68% average annual growth rate in the coming two years.

Any deviation below this growth trajectory could delay profitability significantly and hurt the share price. And with currently more debt than equity, the financial impact could be challenging.

Still, considering its wide moat, impressive £222m order book and successful acquisitions, I think it’s in a strong position to meet those targets. In H1 2025, it delivered a 44% year-on-year revenue increase to £73.2m, outpacing analyst expectations and reducing operating losses by 59%.

As such, I think its future holds significant promise, making it one of the most compelling growth stocks to consider on the FTSE 250.

The post The FTSE 250 stock that doubled my money in just 6 months! appeared first on The Motley Fool UK.

During the height of the Covid crisis, it was this firm that manufactured over 100m doses of AstraZeneca’s adenovirus-based vaccine. It did so at a record pace for such a vaccine and without a hitch in the process.

Aside from providing such manufacturing services to top-flight pharmaceutical firms, it also works on its own therapies. These include experimental treatments for Parkinson’s, cancer, central nervous system disorders, and eye diseases.

Since the firm’s one-year traded low of £2.32 on 9 April, the share price has gone up 163%.

So, I took a deep dive into the business to find out why. I also ran the key numbers to see if there is any value left in the stock.

Why’s the share price soared?

The the firm’s full-year 2024 results were released on 9 April.

These showed revenue jumping 44% year on year to £128.8m, while gross profit rose 34% to £53m. The previous year’s operating loss of £184.2m shrank to a deficit of £39.4m.

The contracted value of client orders signed in the year was around £186m – a 35% increase over 2023.

At that point, the firm forecast fiscal year 2025 revenue of £160m-£170m, which would be a 24%-32% rise over 2024.

Over the medium-term, it expects to be the global leader in the viral vector supply market. This centres on engineered viruses that are manufactured to deliver therapeutic genes into human cells. According to industry data, this market is forecast to increase in size from $6.3bn (£4.7bn) now to $18.8bn by 2030.

A risk to the firm is a failure in any of its key products. This could damage its reputation and be extremely costly to fix.

That said, consensus analysts’ estimates are that its earnings will grow by a whopping 68% a year to the end of 2027. And it is these that ultimately drive any firm’s share price over the long term.

How were the latest numbers?

Its H1 2025 results released on 23 September also looked very positive to me. These showed revenue jump 44% year on year to £73.2m.

Over the same time, there was a 166% increase in the contracted value of client orders signed over the period – to £149m.

Oxford Biomedica also provided a revenue forecast for full-year 2026 – of £220m-£240m. It added that it expects revenue growth of 25%-30% in both 2027 and 2028.  

Is the stock undervalued?

The best way I have found of ascertaining a share’s ‘fair value’ is to use the discounted cash flow (DCF) method. This identifies the price at which a stock should trade, based on cash flow forecasts for the underlying business.

In Oxford Biomedica’s case, the DCF shows its shares are a stunning 63% undervalued at their current £6.09 price.

Therefore, their fair value is £16.46.

As I’m over 50, I focus on high-dividend-paying shares as I want to use the income to reduce my working commitments. As this firm pays no dividend at present, it is not for me.

However, if I were even 10 years I would buy it today. I think its strong earnings growth prospects should push its share price up, and it has a long way to go to meet its fair value.

The post Up 163%, what’s going on with this FTSE 250 biotech innovator’s share price? appeared first on The Motley Fool UK.

A rising star in gene therapy?

OXB (LSE:OXB) isn’t a commonly discussed company in the world of pharmaceuticals. Yet it lists many of today’s industry titans as its customers, including AstraZeneca, Bristol Myers Squibb, Novartis and Sanofi, among others.

The business has undergone a bit of restructuring in recent years, refocusing its operation on becoming a contract development and manufacturing organisation (CDMO). And looking at its latest results, this shift in strategy’s seemingly yielding terrific results.

Revenue in 2024 surged by 44% to £128.8m, with operations even becoming profitable in the second half of last year (on an EBITDA basis) for the first time since the post-pandemic boom in 2021. Demand for its services remains strong, with contracted client orders reaching £186m, and management expects the bottom line to reach the black later this year with 20% EBITDA margins.

Of course, this isn’t a risk-free enterprise. OXB’s highly dependent on a few key customers (Novartis, AstraZeneca, and Boehringer Ingelheim), which could compromise cash flows if one of these decides to cut ties. Similarly, operating in the biotech sector comes with its own set of regulatory threats and hurdles that can jeopardise long-term growth.

Nevertheless, with the progress made so far, OXB’s a UK share investors may want to mull.

Opportunities in electronics

Two other businesses with promising potential, in my opinion, are Filtronic (LSE:FTC) and Solid State (LSE:SOLI). Both specialise in electronic components used in a variety of applications.

Filtronic specialises in RF telecommunications, which is essential to the aerospace, defence, and space exploration industry. Solid State also has a portfolio of electronic telecommunications components that serve the defence sector. However, it also has more diversified offerings for the industrial sector through numerous industry-recognised brands such as Custom Power, Solsta, Active Silicon and Durakool, among others.

There’s some overlap between these businesses. Yet the electronics sector’s sufficiently large enough for multiple winners. And with European defence spending on the rise, both companies have enjoyed a sudden uptick in customer orders.

Of course, there are always risks to consider. Just like OXB, Filtronic’s revenue is largely dependent on SpaceX as a key customer. Meanwhile, with notable defence contracts driving its sales, Solid State’s somewhat at the mercy of political cycles as well as industrial and defence budgets.

Having said that, both firms still have promising long-term potential, which makes them worthy of further research, in my opinion.

The post 3 under-the-radar UK shares that could make investors richer appeared first on The Motley Fool UK.

Central Asia Metals

What it does: Central Asia Metals is a base metals producer with copper operations in Kazakhstan and a zinc and lead mine in North Macedonia.

By Paul Summers. Holders of shares in Central Asia Metals (LSE: CAML) endured a volatile 2024. Starting the year at just over 150p a pop, the stock soared as high as 235p by May as the company benefited from strong prices and solid operational performance. However, this gain had all been lost by the end of December. As far as I can tell, this is due to general geopolitical concerns and lacklustre demand for lead. 

The shares now yield a monster 10% for FY25. Assuming analysts aren’t wrong, that would represent a good return on its own. On an optimistic note, profit is expected to cover this cash distribution and the balance sheet looks robust.

Although rising costs could prove problematic, a price-to-earnings (P/E) ratio of seven suggests quite a bit of negativity is already priced in. When sentiment for base metals improves, the stock could do very well.

Paul Summers has no position in Central Asia Metals.

Filtronic

What it does: Filtronic makes power amplifiers and transceivers that are used in the telecommunications, aerospace, and defence sectors.

By Ben McPoland. With a market cap of £232m as I write, Filtronic (LSE: FTC) is still a relatively under-the-radar UK stock. That said, it’s been a popular one recently, surging 172% over the past year.

This can be almost entirely put down to one word: SpaceX. That’s because Elon Musk’s reusable rocket company has been ordering components from Filtronic for ground stations that form part of its fast-growing Starlink satellite network.

In future, SpaceX intends to add tens of thousands more satellites to its mega-constellation. This could support years of rising sales at Filtronic, given its small size (less than £50m in revenue).

What could go wrong? Well, losing the SpaceX contract it signed last year would be extremely negative, as this key customer is now contributing around 50% of sales.

Also, the stock isn’t cheap, trading at a forward price-to-earnings multiple of 38.

Finally, the company doesn’t have a history of sustained revenue and earnings growth. That might be about to change, but there could be lumpiness as SpaceX orders ebb and flow in future.

Ben McPoland does not own shares in Filtronic.

OXB

What it does: OXB is a contractor that develops and manufactures gene cell therapies for biotech and pharmaceutical firms.

By Mark Hartley. OXB (LSE: OXB), previously Oxford Biomedica, is a UK-based contract development and manufacturing organisation (CDMO) specialising in cell and gene therapies. It was founded in 1995 as a spin-out from the University of Oxford and has evolved into a global leader in viral vector production, including lentivirus, adeno-associated virus (AAV) and adenovirus.

As a contractor, OXB relies on securing partnerships with biotech and pharmaceutical firms. If it loses out on contracts to competitors, its performance could be impacted. Although its net margin has improved recently, the company is not yet profitable. If full-year results for 2024 miss expectations, it could hurt the share price. 

But a recent trading update outlined expectations of 78% organic revenue growth for FY2024, based on increasing demand for their CDMO services. Plus, its order book nearly doubled since August 2024, indicating strong commercial demand. 

I expect it will become a global leader in its field.

Mark David Hartley owns shares in Oxford Biomedica.

TBC Bank

What it does: TBC Bank is listed on the FTSE 250 and provides financial services in Georgia and Uzbekistan.

By Royston Wild. TBC Bank (LSE:TBCG) doesn’t attract anywhere near the same degree of attention as FTSE 100 firms like Lloyds, Barclays and NatWest.

Yet this is a bank which — thanks to its focus on fast-growing Georgian and Uzbekistani markets — could provide far better shareholder gains.

Past performance isn’t a reliable guide to future returns. But TBC Bank’s 208% share price explosion over the last five years underlines its incredible investment potential.

By comparison, Lloyds’ share price has risen just 21% over the same period.

Given the  varying economic outlook for the UK and Georgia, I expect this outperformance to keep rolling on. While the IMF thinks Britain’s economy will grow 1.1% in 2025, Georgian GDP is tipped to expand a whopping 6%, continuing the trend of recent decades.

If accurate, earnings at TBC could soar as financial services demand rises. Pre-tax profit here leapt 15.8% over the course of 2024.

A deterioration in Georgia’s fragile political landscape could impact future growth. However, I believe this potential hazard is baked into the bank’s low price-to-earnings (P/E) ratio of 5.2 times.

Royston Wild does not own shares in any of the shares mentioned above.

Yu Group

What it does: Yu supplies gas and electricity to UK business customers and installs and operates smart meters.

By Roland Head. Yu Group (LSE: YU.) has delivered strong growth through a volatile period for energy markets.

Revenue has risen fivefold to £578m since 2019. Profitability has also improved, with operating profit rising from £3.5m in 2021 to £47m over the 12 months to 30 June 2024.

Yu is still run by its founder and 51% shareholder Bobby Kalar. I believe Kalar’s twin role as CEO and major shareholder means he’s likely to maintain tight financial discipline.

This is a key risk for energy suppliers. Yu is exposed to big swings in commodity prices, customer bad debt and the financial hazards of fixed price contracts.

Growing usage of smart meters, a new energy trading deal with Shell and falling bad debt levels suggest to me that Mr Kalar is managing this £252m business well.

If he can continue to do so, the reward for shareholders could be higher profits and generous dividends.

Roland Head owns shares in Yu Group.

The post 5 under-the-radar UK shares that deserve more attention appeared first on The Motley Fool UK.

Between November 2021 and October 2022, the share price crashed 78%, falling from a high of £16.78 to almost £3 per share. The price continued to fall through 2023 but has now recovered to £4.18 — the highest it’s been in over a year.

So what’s next for the stock?

Cutting-edge biotechnology

Previously known as Oxford Biomedica, OXB is a relatively small £442m stock listed on the FTSE All-Share index. The Oxford-based biopharmaceutical company focuses on cell and gene therapy, specialising in viral vector manufacturing. It has over 25 years of experience working with some of the leading pharmaceutical and biotech firms globally. 

Recently it shifted to a pure-play contract development and manufacturing organisation (CDMO), aiming to position itself as a leader in viral vector services, helping other firms develop and commercialise gene therapies.

Over the past year, its portfolio grew to include 37 clients and 48 programmes, focusing on viral vector types like lentivirus and adeno-associated virus (AAV). The value of these contracts is approximately £94m as of 31 August.

Shaky financials

Last year was not kind to OXB, with the share price falling 50%. In the first half of 2023, it reported a 33% drop in revenues compared to the same period in 2022. The decline was primarily due to the non-recurrence of AstraZeneca Covid vaccine manufacturing. It also posted an operating EBITDA loss of £33.7m, higher than the £5.8m loss in the previous year. This was attributed to inflation combined with higher expenses related to its new Oxford Biomedica Solutions division.

Things seem to be improving in 2024, although first-half earnings were still somewhat disappointing. Both revenue and earnings per share (EPS) missed analyst expectations, by 4.7% and 110%, respectively. Although it posted a net loss of £32.5m, this was a 32% improvement on H1 2023.

The balance sheet looks okay for now, with a debt-to-equity ratio of 55.8%. However, it’s burning through cash and piling on debt, possibly due to increased operational expenses and rising bioprocessing costs.

Cash and liquidity are key areas to watch as the company expects to break even in EBITDA by the end of 2024. In an announcement made in September during the rebranding to OXB, new CEO Dr. Frank Mathias said it aims to improve its financial standing by focusing on its role as a CDMO.

It’s unclear how well the change to a CDMO will pay off, but the price is already reacting positively. However, the loss of a large client like Novartis could easily turn things around. It already faces tough competition in the CDMO market — any drop in performance could result in lost contracts.

If things go well, the transition should provide more stable, long-term revenue as opposed to the volatile revenues from internal R&D. I expect it will continue to do well so if I weren’t already a shareholder, I’d happily buy the stock today.

The post This skyrocketing growth stock is up 100% this year! Is it too late to buy? appeared first on The Motley Fool UK.

AstraZeneca

What it does: AstraZeneca is a global biopharmaceutical company specialising in oncology, rare diseases, cardiovascular, and other areas.

By Ben McPoland. AstraZeneca (LSE: AZN) is the largest company on the London Stock Exchange with a massive £191bn market cap. Whenever a new bull market gets going, I reckon the pharma firm’s size could help drive a fair bit of it.

The company is aiming to grow its revenue to $80bn between now and 2030. That would represent 75% growth, which would be impressive for an already giant business. It’s also investing in “disruptive innovation that will shape the future of medicine and drive long-term growth”.

As part of this, it recently acquired biotech Fusion Pharmaceuticals for up to $2.4bn, as well as Gracell Biotechnologies, a pioneer in CAR-T cell therapies. It’s also licensed an experimental pill from China’s Eccogene to try and break into the booming anti-obesity drug market.

Investors tend to get more bullish about innovative growth stories like this during bull markets.

Having said that, litigation is an ever-present risk in the industry, as are patent expirations, regulatory changes, and inevitable clinical trial disappointments. Still, I reckon AstraZeneca has what it takes to continue outperforming the UK market over time.  

Ben McPoland owns shares in AstraZeneca.

Burberry

What is does: Burberry is a British luxury brand with 229 retail stores across the globe.

By Andrew Mackie. One sector I fully expect to be at the forefront of outsized gains in the next bull market, is luxury retail. But for now, the industry is very much being buffeted from multiple angles. Burberry (LSE:BRBY) has been by far its worst performer. Its share price has collapsed by over 70% in just 15 months.

Its strategy of positioning itself as the Modern British Luxury brand has not delivered. Despite stating in its recent trading update that its strategy won’t change, I fully expect that the new CEO will quickly depart from decisions made by his predecessor.

The extent of its share price decline has taken me by surprise. But a company that has been around for as long as Burberry has, is not always going to get everything right.

The luxury market customer base continues to expand across generations and geographies. I fully expect it to provide growth and durability well into the future. I view its share price weakness as a wonderful opportunity. Indeed, the more it falls, the more shares I intend to buy.

Andrew Mackie owns shares in Burberry.

ITV

What it does: ITV is a television network owner and TV content creator

By Alan Oscroft. Investors have been pivoting away from big tech stocks, inflation is falling, and central banks are looking likelier to cut interest rates by the day.

To me, that says one thing. Investors should, with a bit of luck, come flocking back to some of the stocks they’ve shunned in the past few years. And I think ITV (LSE: ITV) might be one of them.

The ITV share price has been picking up this year, but it’s still way down since before the 2020 crash. And I just don’t think its valuation reflects its potential.

Competition has to be the biggest risk, and I fear that investor caution could weigh on the share price for a while. And priced at 14 times earnings, the shares don’t look super cheap.

But that could drop to under 10 on 2026 forecasts. And strongly rising cash flow should keep the dividend growing, from the 6% on the cards for 2024.

Alan Oscroft has no position in ITV.

Oxford Biomedica

What it does: A gene and cell therapy company specialising in the development of gene-based medicines. 

By Mark David Hartley. Oxford Biomedica (LSE: OXB) is a world-class pioneer in cell and gene therapy, providing services to the pharmaceutical and biotechnology industries. It specialises in developing therapies and treatments for chronic and deadly viruses like HIV.

Despite its groundbreaking developments, it’s not yet profitable. Its FY 2023 results revealed a loss of £1.63 per share, with a net loss of £157m and revenue down 36%. Like many young tech companies, it’s been spending a lot on R&D, resulting in losses. Whether that gamble pays off remains to be seen.

While the share price is down 22% over 12 months, it’s improved lately, rising 51% in Q2 this year. 

Based on future cash flow estimates, some analysts consider it undervalued by 70% and believe the company will become profitable in 2026. With an increasing demand for biomedical advancements, I agree and think it’ll take off in the next few years. 

Mark Hartley owns shares in Oxford Biomedica

Scottish Mortgage Investment Trust 

What it does: Scottish Mortgage is a Baillie Gifford fund that aims to “own the world’s most exceptional public and private growth companies”.

[fool_chart_ticker =LSE:SMT]

By Charlie Keough. One stock I see leading the next bull market charge is Scottish Mortgage Investment Trust (LSE: SMT). 

It owns some of the most exciting growth companies in the world, such as Elon Musk’s SpaceX. These companies suffer in high interest rate environments, so the trust has struggled over the last few years. 

But with cuts just around the corner, investor sentiment should turn more bullish on these sorts of companies. Falling rates are ideal for the disruptive businesses Scottish Mortgage owns because it means lower borrowing costs. 

The risk with investing in the trust is that its share price can be volatile, giving its large weighting to growth stocks. What’s more, around a quarter of its holdings are private companies. Pinpointing the value of these businesses can be difficult. 

However, we saw just what the stock could do when it rose by over 100% during 2020. And it’s 41.9% off the all-time high it hit in 2021. As such, it’s currently trading at a 9% discount to its net asset value. 

Of course, past performance is no indication of future returns. But I’m still optimistic, despite climbing 10.6% year to date, we could see Scottish Mortgage rise further in the months and years ahead. 

Charlie Keough owns shares in Scottish Mortgage. 

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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.

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