2 UK stocks tipped to grow 50%+ over the next 12 months

With UK stocks coming again into trend at the second, it’s tempting to suppose that the finest alternatives have been missed. However metropolis specialists reckon there are two stocks which have large progress potential over the next 12 months or so.

Unlikely? Let’s attempt to discover out.

A present?

(*12*)Card Manufacturing facility (LSE:CARD) is a typical sight on the UK excessive avenue. However in December 2025, the card and present retailer issued a revenue warning. Even with the group positioning itself at the worth finish of the market, it doesn’t appear to have escaped the influence of decreased disposable incomes. Larger employment prices, cussed inflation and intense competitors haven’t helped both.

However analysts reckon the group’s shares are at present (11 February) 57% undervalued. And with a ahead price-to-earnings (P/E) ratio of simply 5.7, I can see why they may maintain this view. The inventory additionally presents a sexy dividend. Based mostly on quantities paid over the previous 12 months, it’s yielding 6.7%. After all, given the revenue warning, there’s a risk this is perhaps minimize. And the group has a comparatively brief historical past of paying dividends, so the previous isn’t a great information right here.

To attempt to seize extra revenue, the group designs, manufactures, distributes, and sells its playing cards. It additionally claims this helps it react extra rapidly to altering tastes.

However the enterprise feels a bit old school to me. It not too long ago purchased Funky Pigeon to enhance its on-line providing however sending playing cards does really feel like a factor of the previous.

The inventory’s additionally one in every of the most risky round. With a five-year beta of three.1, it means if the inventory market strikes up (or down) by 10%, Card Manufacturing facility’s share worth will change, on common, by 31%.

Regardless of its enticing valuation and the spectacular 12-month share worth targets, I believe there are higher alternatives to take into account elsewhere, in markets with more healthy long-term progress prospects.

Resembling?

One instance is (*12*)Gamma Communications (LSE:GAMA).

With the world shifting away from copper cellphone traces to cloud-based communications, the phone group’s probably to be one in every of the greatest beneficiaries. Its Unified Communications as a Service (UCaaS) providing is at present obtainable in the UK, Netherlands, Spain, and Germany.

Analysts reckon its shares are 67% undervalued. With a P/E ratio of solely 9.6, there’s robust proof to help this view. And as an added bonus, the group additionally pays a modest dividend. The inventory’s at present yielding 2.3%.

However the group’s revenue has been impacted by an absence of financial progress and a lack of confidence amongst its goal buyer base of small and medium-sized companies. Additionally, there’s loads of competitors on the market.

And the UK’s plans to shut down its Public Change Phone Community (PSTN) in early 2027, is a double-edged sword. Some prospects are shifting to fibre options as a less expensive various to UCaaS. Though Gamma does present this service, it earns a decrease margin than on its cloud providing.

Nevertheless, it operates in an trade the place the route of journey is evident. After all, the PSTN switch-off is perhaps delayed (it has been earlier than) however, finally, every little thing will likely be in the cloud.

I believe the latest pullback in the group’s share worth – it’s fallen 33% since February 2025 – may very well be a wonderful shopping for alternative. I reckon Gamma Communications is a inventory to take into account.