This UK share has already increased by 27% by 2025! I think it could go even higher

One UK share I own is down 27% in value so far this year. yes, this year. Not the last 12 months, but the last 12 days!

As a long-term investor, such stock price jumps grab my attention​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ and but my focus​​​​​​​​​​​​​​​​​​ and and​​ and​​ and​​ and​​​​​​​​​​​​​​​​​​​​​​​​​​​​and​​​​ and​​ and​​ and​​ and​​ and​​​​​​​​

Over the past five years, this stock – although still trading for pennies today (13 January) – has declined. 799%.

It’s an exciting time for an important industry

The stock in question is radio waves based on frequencies Filtronic (LSE: FTC).

I have bought the share several times in the last few months. Why? I feel good about its prospects – even after that incredible price hike.

Here is what I wrote about the company in November: “One of the things I like about this is that I see a number of factors that could contribute to significant growth in its business (and hopefully therefore its valuation) in the coming year and beyond..”

That seems to be already less than two weeks into the New Year. Filtronic told the market in the middle of last month that it expected to beat market expectations at the full-year level.

Then today, the company issued another trading update less than a month after the latest, saying “it now expects to deliver stronger full-year results than the recently developed market expected“.

With SpaceX as an important client right now, my interpretation is that the SpaceX relationship brings good or – perhaps more than that – the reputation of that client helps to attract new clients for a professional engineering company.

That’s why I think it could still be a bargain

Still, despite those positive reviews, is this share worth jumping on like it did?

My feeling is that, in fact, you should have skipped it even more – and hopefully it will happen later in 2025.

SpaceX’s ambitious plans to expand its ability to provide internet via satellite may be the sale of Filtronic as it has been helping to supply parts for the space company.

Meanwhile, with the expansion of its operations on both sides of the pond in recent months, I think Filtronic is now in a good position to combine sales and production. That can be good for revenue and especially profit if the business can exploit economies of scale.

Meanwhile, I think its technology gives it pricing power, something that could help improve its long-term profitability.

So, while a price-to-earnings (P/E) ratio of 69 would normally make me fall off my chair, in this case I think the potential for earnings growth means that the P/E ratio could be much lower.

There is a risk here – with so many rides per customer, if for any reason SpaceX’s plans change, that would be bad news for Filtronic’s share price.

But I’m optimistic that it’s going to be a great year for the UK tech company and I think its shares are still a potential investment. That’s why I’ve been buying more of my portfolio.