According to Research Tree, the stock has the second-largest short interest in the UK. So are things set to get worse for the FTSE 250 firm?

Short interest

According to the latest data, the short interest in Greggs is 13.8%. In other words, there’s around £219m betting against the share price.

Only one firm has a higher percentage of its shares being sold short. That’s Wizz Air – an airline that operates flights to the Middle East.

That’s about as wrong-place-wrong-time as it’s possible to be right now. But beyond that, the next consensus choice is the bakery chain.

A high short interest can be worth noting. It can create dramatic results if the share price suddenly starts moving up. In that happens, investors who were betting against the stock have to buy it to cover their losses. And that buying can force the price even higher.

That’s partly why Wizz shares were up 16% on Wednesday (8 April). But what could get the Greggs share price moving in the right direction?

Challenges

Greggs has been facing a number of challenges recently. And the problem is, there’s not much it can do about a lot of them.

In the UK, the firm is getting close to its saturation point. In other words, it’s not going to be able to open that many more stores. That means further growth is going to have to come from higher like-for-like sales. And that metric has been very weak recently. 

A big reason for this is weak consumer spending in the UK. But that’s not something Greggs has any control over. 

On top of this, higher energy and staff costs have been weighing on margins. And without revenue growth to offset this, profits are falling.

That’s an extremely unhelpful combination of factors. The big question, though, is how long it’s going to continue.

Value

The Greggs share price has been falling due to slowing growth. As a result, the stock is trading at a much lower price-to-earnings (P/E) multiple.

The underlying business, however, hasn’t really gone backwards. And that might make it interesting for long-term investors. 

I think there’s actually a lot to like about the company. It offers outstanding customer value, which should have durable appeal. Not only this, but its scale means it has relatively low costs. So it’s able to make good money while charging low prices. 

That’s clearly a good thing, but the question for investors is what that’s worth. And a P/E ratio of 13.5 is an odd middle ground.

It’s not high, by any means. But there’s still scope for this to compress further in the short term if results don’t improve. 

What happens next?

The next update from Greggs is due in May. And investors clearly think there’s more disappointment on the way. 

This could be true. But accepting that there are short-term challenges is consistent with thinking the company has long-term strengths.

On that basis, investors might well think the stock is one to keep an eye on right now. Especially those looking past the next few months.

The post Why are investors betting against Greggs shares? appeared first on The Motley Fool UK.

But with the good news rolling in, it got a few investors wondering whether this was a golden chance to buy one of the UK’s cheapest shares. The price-to-earnings (P/E) ratio is sitting at a hard-to-believe 3.38. Let’s take a look at whether that tiny P/E is a no-brainer bargain or too good to be true.

Proximity

Let’s begin with that P/E ratio. Three is almost ridiculous. The FTSE 100 average is 18, so in comparison to an average Footsie stock, you’re getting nearly six times as much profit for every £1 in share price you buy. What’s going on here?

The basic answer is that Wizz Air is not a company with a long history of reliable earnings. The firm made a loss in financial years 2022 and 2023, then made a profit in 2024 and 2025.

We can see further evidence for a lack of stability here in the analyst ratings. At the top end, one analyst is predicting a £25 share price target for the next 12 months – a 162% increase. At the bottom end, one analyst is forecasting £5 – a 45% decrease.

Another factor is that Wizz Air is more affected by issues in the Middle East than most. It’s an ultra-low-cost airline from Hungary – think the easyJet of Eastern Europe – and its proximity to the conflict means there are more routes that will get cancelled while the airspace is closed.

Big question

So here’s the big question: is this a good stock to buy? Should investors be snapping up dirt cheap Wizz Air shares or are these to be avoided at all costs?

The first thing to point out is to expect no miracles in the short term. The Iran war has already administered a £50m hit to the firm’s finances and the latest forecasts suggest it will be loss-making for the next two years. In other words, there might not be a P/E ratio to look at in 12 months time because there’s no ‘E’ (earnings) part of that equation.

On the other hand, it’s times like these when all seems disastrous that can end up being the best times to buy. Airlines were in crisis too in 2022 after the pandemic struggles combined with rising inflation and fuel costs. Someone buying British Airways owner IAG in the middle of that mess would have seen the shares quadruple in value since.

My decision? I won’t be buying. I have a little exposure to the airline industry already. And I’m not interested in adding more given all the risks. I’ll say that it will come as no shock if Wizzair goes on a tear in the years to come however.

The post £5,000 invested in Wizz Air shares 2 days ago is now worth… appeared first on The Motley Fool UK.

Yet that focus on the booming budget travel in European emerging markets also comes with problems. Right now, it leaves the airline extremely vulnerable as oil prices — and by extension its fuel costs — soar.

At 890p per share, Wizz Air’s share price is down 27% over the last month. It touched record lows of 870p earlier in the month.

Though it faces obvious risk, the question is: should dip buyers consider having a nibble at current prices?

FTSE 250 faller

It’s no surprise to see Wizz Air and its peers collapse in March. Fuel costs are a significant cost burden for all airlines, and right now the’re surging as the Middle East conflict hits oil supplies. Here, they made up roughly a third of total costs in the six months to September.

But it’s not just greater expenses that are troubling the airlines. Some are stopping flights to destinations impacted by the war, and are experiencing knock-on disruption on other routes. Wizz itself has cancelled flights to and from Israel, Dubai, Abu Dhabu, and Amman.

On 4 March, the firm warned of a €50m hit to full-year net profits on both these issues. For the 12 months to March, profits are now “expected to be in the range of +€25m to -€25m“.

In the event of a prolonged conflict, further downgrades are obviously likely. But this isn’t the only worry I personally have over buying the FTSE 250 airline…

Long-running problems

You see, Wizz Air was already under strain before the Middle East war began. Early March’s profit warning was in fact the third it’s issued in just over 18 months, driving the shares down by around 60% to current levels.

So what else has been weighing on the airline? Long story short, huge swathes of its fleet have been forcibly grounded due to power unit problems. Manufacturer Pratt & Whitney’s been paying compensation, but the problem is rolling on, and Wizz is still out of pocket despite those financial remedies.

This would be bad for any airline, naturally. It’s especially critical here given Wizz Air’s stretched balance sheet. Net debt was €4.8bn as of September.

Bottom line

Could Wizz Air shares be a top buy following its fresh plunge this month? For long-term investors, perhaps. Its Central and Eastern European focus could still deliver excellent returns over time as wealth levels there balloon, driving holidays demand.

That said, I won’t be buying the airline for my portfolio. In my view, the Middle East crisis — which is driving up fuel costs and hitting already stretched consumers in the pocket — adds too much risk for my liking. I’d rather buy other FTSE 250 shares today.

The post Down 27% in a month, is this FTSE 250 share too cheap to ignore? appeared first on The Motley Fool UK.

However, not all British businesses were able to join in on the fun. And in 2026, institutional investors have been busy placing big bets against several FTSE shares they think could crash even further…

3 stocks to sell?

Here are the three most heavily shorted companies on the London Stock Exchange right now:

1. Wizz Air Holdings (LSE:WIZZ) – 16.2% short interest.
2. Greggs – 14.6% short interest.
3. Future – 11.7% short interest.

When institutional investors start heavily shorting stocks, it’s usually a major red flag that something is terribly wrong with the underlying business. And indeed, all three companies have been struggling lately.

Future has been navigating through a persistently weak digital advertising market, with organic growth failing to meaningfully materialise.

Meanwhile, Greggs is similarly struggling to deliver organic growth with profit margins coming under persistent pressure from inflation and rising labour costs. And until recently, it was the most heavily shorted stock in the UK. But earlier this month, Wizz Air took the top spot.

What happened?

A catastrophic disruption?

The shares of Wizz Air have been struggling for a while. In fact, over the last five years, the low-cost carrier has seen over 80% of its market cap wiped out, largely due to a huge part of its fleet being grounded simultaneously due to the Pratt & Whitney GTF engine defect.

While its planes are steadily getting back in the sky, the Iran war just threw another massive spanner into the works.

The firm’s Middle Eastern travel routes have been completely suspended, while jet fuel prices are skyrocketing courtesy of oil & gas production disruptions in the region.

As such, on 4 March, management issued a €50m profit warning. And with its overleveraged balance sheet already making the business extremely vulnerable to an earnings shock, the stock price has continued to plummet, with institutional investors betting the entire business is at risk of imploding.

Is there any hope?

Wizz Air is in a pretty dire situation. But the company isn’t doomed yet.

Its Middle Eastern operational suspension is ultimately temporary. And once the tragic conflict ends, the business should be able to start recovering.

As for the ongoing engine crisis, Pratt & Whitney is compensating Wizz Air for the disruption, providing a handy cash cushion to absorb costs. And with more aircrafts returning to the sky in 2026, the firm’s operating leverage improves, paving the way to margin recovery.

In fact, CEO Jozsef Varadi has explicitly stated that 2027 “will be the big turning year” for the business, suggesting a turnaround could be coming.

The bottom line

Like Wizz Air, both Greggs and Future have some bright spots.

The UK’s favourite bakery chain is seeing some early success through product innovation, while cost restructuring is helping expand the margins of Future’s media empire. But whether these improvements can come fast enough is the question that shareholders need to consider carefully.

As someone who doesn’t own shares in any of these businesses, I’m not in a rush to buy today, especially since there are far more exciting opportunities to explore elsewhere…

The post 3 UK stocks experts believe will crash and burn in 2026! appeared first on The Motley Fool UK.

Several red flags

Wizz Air (LSE:WIZZ) is down 33% in the past month alone. It’s down 41% in the last year, showing how the bulk of this move has come in just the past few weeks.

This is understandable, as the Middle East conflict is disrupting routes and profits. In fact, last week the company warned it could cut full-year 2026 profit by about €50m. This is due to a mix of suspending some routes in the region and rising oil prices linked to the conflict, which are pushing jet-fuel costs higher and hitting operating margins hard.

Even though this is impacting the airline sector as a whole, Wizz is more exposed because it has been expanding aggressively in the Middle East.

I see two scenarios from here. Either the conflict in the region continues for some time, in which case it will compound Wizz Air’s existing problems. Or the tensions ease. However, I doubt many will be keen to jump on a plane to the impacted areas anytime soon. Therefore, neither situation represents a strong buying case in my view.

Some may disagree, and flag up that the stock could be undervalued, with a price-to-earnings ratio of 5.05. It’s true that in the long run it could represent good value, but I think there’s too much uncertainty right now to give me any confidence to justify buying the stock.

Dealing with volatile markets

On the flipside, I do think that Plus500 (LSE:PLUS) looks attractive. The stock is down 13.5% in the past month. Some of this move can be put down to general investor concern. However, the company isn’t really negatively impacted by the geopolitical tensions. In fact, the volatility we’re seeing in the stock and energy markets right now is likely to boost the company’s performance.

Plus500 makes a small commission when investors trade on the platform. With people trading oil, gold, and other commodities more actively, I believe revenue in the coming quarter should increase. The company could also experience an increase in account applications, as more people discover financial markets and take a view on the direction of stocks and other assets.

Over the past year, the stock is up 55%. Last month, preliminary 2025 annual results beat market expectations on both revenue and profit. I think the dip right now is just a short-term move that could quickly see people step in. Therefore, I think it’s a share to consider buying.

One risk was the news that the CEO, CFO, and CMO all sold some of their equity holdings in February. If more insider share sales happen, it’s not a great look for the company.

The post 1 UK share I’d consider buying and 1 I’d run away from on this market dip appeared first on The Motley Fool UK.

With its attractive tax advantages, I reckon a Stocks and Shares ISA is the best investment vehicle available on the market today. That doesn’t mean it’s immune from the effects of a financial meltdown, but with some sensible precautions, we can one to reduce the potential damage from turbulent times. Here are three tips.

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.

When I last wrote about a market crash, I thought it would come from a loss of confidence in the tech sector rather than war in the Middle East. Technically speaking, we haven’t experienced a crash yet – typically defined as a fall of 20% from a recent peak — but if the conflict persists for much longer, this could become a real possibility.

1. Be ready

For all concerned, I’m hoping the war will end soon. And when it does, there will be many beaten-down stocks available with attractive valuations.

One of those suffering at the moment is Wizz Air (LSE:WIZZ). The budget airline’s share price is now (9 March) 40% lower than at the start of the month. And it’s fallen two-thirds since March 2022. Higher fuel costs following Russia’s invasion of Ukraine and, more significantly, aircraft being grounded because of engine problems have hit earnings.

And if flight cancellations persist and the oil prices continue to rise, the group estimates that the current trouble in the Middle East could cost up to €50m.

This is unfortunate given that the group’s trading update for the quarter ended 31 December 2025 disclosed that revenue was up 10% and passenger numbers grew 12.5% compared to a year earlier. Net losses fell from €241m to €139m. Encouragingly, the engine issue is being gradually resolved with fewer aircraft grounded. All are expected to be repaired by the end of 2027.

However, I’m not suggesting that the airline’s stock is one to consider now. There’s too much uncertainty around at the moment, which makes me think its share price has further to fall. But I think it will be worth revisiting the investment case when the conflict is over. That’s what I’m going to do, anyway. Then, with fuel costs easing, our skies fully open, and more engines returning into service, growth could resume once more.

2. Keep spreading risk

Irrespective of what happens to Wizz Air, I think it’s important to maintain a diversified portfolio. During market downturns, some stocks do better than others. For example, with their reliable earnings, utilities tend to cope better. Holding positions in a wide variety of companies and sectors is always a good idea.

3. Don’t panic

Most importantly of all, I think it’s vital to take a long-term view. Even if the war ends soon as we all hope, a future stock market crash is inevitable.

That’s not me being negative. It’s simply a statement of fact based on history. But another lesson from the past is that markets do pick up again. It might take a while but things will – more than likely – get better.

By taking a pragmatic approach, I think it’s possible to guard against the worst of the current fallout and any future crashes. And by identifying a few bargains, I believe it’s possible to benefit massively from a recovery.

The post A stock market crash may be coming! 3 tips for ISA holders appeared first on The Motley Fool UK.

Its valuation looks disconnected from its long‑term earnings potential, and that gap could offer patient investors a compelling opportunity.

So, how high could budget airline Wizz Air’s (LSE: WIZZ) shares go in the coming years?

A valuation puzzle

Despite the rebound in European travel since the end of Covid, the market still seems reluctant to re‑rate the company. The stock is down more than 60% from where it traded just before the widespread onset of the pandemic in early 2020.

This comes even as sector‑wide passenger numbers, revenue, and load factors have all recovered strongly. As part of this in recent months, Wizz Air’s balance sheet has stabilised, and its operational performance has improved.

This makes the current valuation look more like a hangover from past turbulence than a reflection of today’s fundamentals.

The current fundamentals

Its H1 fiscal year 2026 results saw passenger numbers climb 9.8% year on year to 36.5m, with revenue increasing 9% to €3.3bn (£2.9bn).

These volume gains fed through into higher earnings, with EBITDA jumping 18.8% to €981.2m. Operating profit soared 25.8% to €439.2m, far outstripping analyst projections for €367m.

The airline announced the closure of its Abu Dhabi and Vienna bases to be completed by March this year. This reflects a pivot away from high-cost locations to the opening of new bases at lower‑cost airports.

Its preceding Q1 numbers saw a 10.6% increase in passengers to 17m, and a 13.4% jump in revenue to €1.43bn. EBITDA rose 9.3% to €300m. Net profit jumped from just €1.2m in the same period of 2025 to €38.4m.

One risk to this growth is the ongoing Pratt & Whitney engine inspections that continue to see some aircraft grounded. This could weigh on performance for longer than expected. Others include any significant rise in fuel and/or labour costs.

Nevertheless, consensus analysts’ forecasts are that its earnings will grow by a very robust 29% a year to end‑2028.

What’s its true worth?

If these forecasts are right — although they are not guaranteed — Wizz Air’s long‑term earnings power could look very different from what today’s depressed share price implies.

A discounted cash flow (DCF) analysis identifies where a stock should trade by ‘discounting’ future cash flows back to today. Some analysts’ DCF modelling is more cautious than mine, depending on the variables used.

Nevertheless, my DCF analysis — reflecting consensus analysts’ earnings growth projections and a 7.5% discount rate — estimates Wizz Air’s fair value at £28.83 a share. That is more than double where the stock trades now.

And because asset prices can gravitate towards their fair value over time, it suggests a potentially terrific buying opportunity to consider if this modelling proves accurate.

My investment view

Now in the later stages of my investing cycle, Wizz Air feels too risky for the balance of my portfolio. I prefer steadier, income‑generating holdings at this point.

However, for investors earlier in their investing journey, with a greater tolerance for short‑term price swings, the shares look worth considering.

If the company delivers the earnings growth analysts expect, the potential long‑term price rises could be big.

The post This cheap share looks wildly mispriced to me — and the market hasn’t caught on yet appeared first on The Motley Fool UK.

All depends on how its current price lines up compared to its ‘fair value’. This represents the true worth of a share based on the underlying business fundamentals. Price is just whatever the market will pay, derived from stock demand and supply dynamics at any given point.

So, how does the underlying business look and the stock’s fair value with it?

Solid business fundamentals?

The key driver of any firm’s long-term future is growth. And the key growth measure is earnings. This is because it generates a pile of cash which the business can use to fund major expansion initiatives.

A risk for Wizz Air’s earnings growth is the ongoing grounding of some of its aircraft due to engine trouble. As of its 12 November-released H1 2025/26 results, 35 planes remain non-operational. But the firm expects this to gradually reduce in the coming year to zero by end-2027.

As a long-term investor, I regard 30 years as a standard investment cycle. So, waiting another year or so for the full fleet to return is just a blip in that time horizon.

Moreover, analysts’ forecasts are that Wizz Air’s earnings growth will be a robust 28.9% a year to end-2027/28.

How were the latest results?

The recently released H1 fiscal year 2025/26 numbers looked strong to me.

Passenger numbers jumped 9.8% year on year to 36.5m, pushing revenue up 9% to €3.3bn (£2.9bn).

Greater volumes fed through into higher earnings, with EBITDA jumping 18.8% to €981.2m. Operating profit soared 25.8% to 439.2m, far outstripping analyst projections for €367m.

Q1’s revenue per available seat kilometres rose 2.1% but was followed by a 0.9% decline in Q2. This was due to the suspension of flights during the Israel-Iran hostilities over the period.

Wizz Air subsequently announced the closure of its joint venture operations with Abu Dhabi to de-risk its business. It is going to divert all the resources previously used there to its highest-profit margin routes in central and eastern Europe. This seems like an extremely good idea to me.

What about the share price valuation?

A discounted cash flow analysis identifies where any stock should trade, based on cash flow forecasts for the underlying business.

In Wizz Air’s case, it shows the shares are 76% undervalued at their current £11.46 price.

Therefore, their fair value is £47.75.

This is important, as in my experience assets tend to trade to their fair value over time.

My investment view

Given its strong earnings growth forecasts, and deeply undervalued share price, a younger me would have bought the stock.

The only reason I will not do so now is that I am aged over 50, and towards the latter part of my investment cycle.

My focus at this point is on shares that have these two qualities, but which also pay high dividends. I will use these to keep reducing my working commitments.

However, for those at an earlier point in their investment cycle, I think the stock is well worth considering.

But I have my eye on several similar high-growth, deeply-discounted shares that also deliver a high dividend yield. 

The post 29% growth forecast, but down 37% — does Wizz Air’s share price look a steal after strong H1 results? appeared first on The Motley Fool UK.

The very basic question I always ask as a long-term investor in such a situation is: will it recover in the next 30 years?

This is the period I regard as the standard investment cycle. It begins around the age of 20 with the first investments and potentially ends around 50 in a comfortable retirement.

If the answer to my question is yes, then I will look at how much value the stock has in it.

This is essentially the difference between its current price and the true worth of the underlying business. It is in the gap between the two that huge long-term profits can be made, in my experience.

This is because asset prices tend to converge to their ‘fair value’ over time.

Finding fair value

I have found the discounted cash flow (DCF) method to be the most useful way to establish fair value. This dates back to my early days as a senior investment bank trader and then 35 years as a private investor.

What it does is to clearly identify where any stock price should trade, based on cash flow forecasts for the underlying business.

This, in turn, factors in the key driver of any stock’s price, which is earnings growth.

A key long-term risk to Wizz Air’s earnings is failure to compete with the high degree of competition in its business space.

However, the consensus of analysts is that its earnings will grow by a very robust 18.7% a year to end-fiscal year 2027/28.

The DCF for the budget airline shows its shares are currently 75% undervalued at their £10.88 price.

Therefore, their fair value is £43.52.

So how does the business look?

The spark for the big drop on 5 June was the full-fiscal-year 2024/25 results. These showed a 61.7% year-on-year decline in operating profit to €167.5m (£141.1m).

The reason was that 42 of the 46 aircraft grounded a year before due to engine problems were still non-operational.

By the time of its Q1 fiscal year 2025/26 numbers, 41 were still grounded. At that point the firm said that they would not return to service until end-2027.

That said, the firm is still managing to generate strong earnings growth. Specifically, Q1 saw a 9.3% year-on-year increase in EBITDA to €300.2m. Revenue also rose significantly – by 13.4% year on year to €1.428bn.

Around the same time, Barclays highlighted a “far brighter future” for the airline. This is based on its strong position in the Central and Eastern European market.

As a result, the bank upgraded the stock to Overweight from Equal Weight. This reflects its expectations that Wizz Air will now outperform its sector.

My investment view

Aged over 50 now, I focus on shares that pay a high dividend yield so I can increasingly live off the income. Wizz Air pays no dividend, so it is not for me.

However, its projected strong earnings growth should push the stock much higher, given where its fair value is.

Consequently, I think the stock is well worth the consideration of other investors less focused on dividend income alone.

The post Here’s why Wizz Air’s £11+ share price now looks 75% undervalued after a 35% fall since June appeared first on The Motley Fool UK.

There are risks here, as with all firms, of course. The main one is any further delay in returning to its full complement of aircraft following groundings due to engine troubles. As at the time of its Q1 2025/26 results release (24 July), 41 were still non-operational. The firm at that point said that they would not return to service until 2027.

However, it announced on 1 September that it is working on a deal with engine-maker Pratt & Whitney to expedite that timeframe.  

That said, even with the original 2027 return date in place, analysts forecast the airline’s earnings will grow by a very strong 17.3% annually to end-fiscal year 2027/28.

Upgraded after results

This optimism was reflected by an upgrade for Wizz Air stock by Barclays the day after the Q1 results. The banking giant cited a “far brighter future” for the airline based on its strong position in the Central and Eastern European market. Indeed, the new rating of Overweight underlines that it expects the stock to outperform its sector.

Aside from the news on the still-grounded aircraft, there were several positive factors in those Q1 numbers. Most notable for me was the 9.3% year-on-year increase in earnings before interest, taxes, depreciation, and amortisation to €300.2m (£259.75m). Revenue also rose significantly – by 13.4% year on year to €1.428bn.

Drilling further down into the headline numbers, revenue per available seat kilometre (RASK) edged up 2.1% — to €4.41. RASK indicates how much revenue an airline makes for each seat it offers, per kilometre flown. 

Over the same period, net debt dropped by 5.1% to €4.705bn, while total cash rose 13.2% to €1.965bn.

Share price specifics

Price is whatever the market will pay for a share while value reflects the true worth of the underlying business.

Correctly identifying and quantifying this price-valuation gap is the key to big long-term profits, in my experience.

And the best way I have found to do this is through the discounted cash flow (DCF) model. This pinpoints where any stock should be priced, derived from cash flow forecasts for the underlying business.

In Wizz Air’s case, the DCF shows its shares are a whopping 74% undervalued at their current £12.69 price.

Therefore, their fair value is £48.81.

Will I buy the shares?

I think airline stocks are at the riskier end of stock investments. The sector is subject to the impact of diseases, wars, and energy prices more than many others.

Aged over 50 now, I am at the later stage of the investment cycle. This means I cannot afford to take the same risks as I did when I was younger. That is because I have less time available to wait for stocks to recover from price shocks.

Therefore, Wizz Air is not for me.

However, I think it is well worth considering by investors who have a greater risk appetite than I.

The post Is now just the right time to consider Wizz Air that’s 74% below fair value with its share price down 30% from March? appeared first on The Motley Fool UK.