With the Premier League season kicking off today, the investment and trading platform IG has put together a list of British stocks likely to struggle over the next nine months (FTSE relegation contenders), and stocks with a chance of success (Champions League contenders).
Relegation Zone – 3 Stocks Likely to Struggle
M&S faces struggle amid soaring wage bill and tough competition
Marks & Spencer faces an uphill battle despite modernisation efforts across food and digital channels. Rising wage costs and supply chain pressures continue to squeeze margins, while the general merchandise division remains sluggish. The high street environment stays fiercely competitive, with inventory issues and subdued consumer spending adding to the challenges. M&S needs to demonstrate stronger growth momentum to climb out of the relegation zone.
B&M’s run of poor performance forces manager out
B&M European Value Retail has endured a brutal year, with shares plunging over 50% after weak holiday trading and profit warnings culminated in the CEO’s departure. Discounter competition and margin pressure have intensified, while the push to revamp online operations adds complexity. Cost control and promotional strategies may help stabilise the business, but the market remains unconvinced about any quick turnaround given the tough consumer backdrop.
British Land can’t tempt fans back to the stadium
British Land continues to struggle as weak office demand and elevated borrowing costs squeeze the commercial property giant. London vacancy rates remain stubbornly high, with hybrid working patterns suggesting the office recovery could prove longer and more painful than anticipated. Refinancing risks and sluggish property valuations add further pressure, leaving BLND exposed if economic uncertainty drags on.
Champions League spots: 3 Stocks Positioned for Outperformance
Alphawave can ride AI-tsunami to challenge for the title this season
Alphawave IP Group sits at the centre of the semiconductor intellectual property boom, providing crucial technology for high-speed data connectivity. The company benefits from megatrends driving global tech infrastructure, with AI, advanced chips, and 5G creating surging demand. A growing international client base, strong order pipeline, and profitable business model position Alphawave for potential “Champions League” status.
SSE has strong options off the bench to help it weather inflationary pressures
SSE occupies prime position in the UK’s green energy transition as a major wind, hydro, and grid operator. The utility combines defensive regulated earnings with long-term growth from decarbonisation investments. Strong policy backing for net zero and proven ability to weather inflationary pressure make SSE one of the most dependable performers for the season ahead.
Fan-favourite Greggs set to keep performing
Greggs continues to outmanoeuvre consumer sector peers through market share gains and operational innovation. The bakery chain has maintained its expansion drive with hundreds of new store openings, while delivery partnerships and menu diversification drive growth. Brand loyalty and adaptability help Greggs maintain momentum despite cost-of-living headwinds, marking it as a “top four” contender.
By Chris Beauchamp, Chief Market Analyst at IG
