One UK share I personal has jumped by 27% in worth to date this 12 months. Sure, this 12 months. Not the previous 12 months, however reasonably the previous 12 days!

As a long-term investor, such a share price bounce grabs my consideration however my focus is on the image over a extra prolonged time interval.

Over the previous 5 years, this inventory – though it nonetheless sells for pennies right this moment(13 January) – has jumped 799%.

Thrilling second for a key trade

The inventory in query is radio frequency-based part maker Filtronic (LSE: FTC).

I’ve purchased the share on a number of events over the previous few months. Why? I really feel enthusiastic about its prospects – even after that gorgeous price rise.

Here’s what I wrote concerning the medium-sized firm in November: “One of the things I like about this is that I see a number of possible drivers for substantial growth in its business (and hopefully therefore its valuation too) next year and beyond.”

That appears to be borne out already lower than a fortnight into the New 12 months. Filtronic informed the market in the course of final month that it anticipated to outperform market expectations on the full-year degree.

Then right this moment, the corporate issued one other buying and selling replace lower than a month after the latest one, saying that it “now expects to deliver stronger results for the full year than the recently upgraded market expectations”.

With SpaceX as a key buyer proper now, my interpretation is that both the SpaceX relationship is delivering handsomely or – maybe as well as – that shopper’s popularity helps entice new clients for the specialist engineering agency.

Right here’s why I feel it may nonetheless be a discount

Nonetheless, regardless of these optimistic updates, does this share should have jumped as a lot because it has?

My feeling is that, the truth is, it should have jumped much more – and hopefully will in a while in 2025.

SpaceX’s bold plans for increasing its satellite tv for pc Web provision functionality may very well be a gross sales bonanza for Filtronic because it has been serving to provide elements for the area firm.

In the meantime, with enlargement of its actions on either side of the pond in current months, I feel Filtronic is now well-positioned to ramp up gross sales and manufacturing. That may very well be good for revenues and particularly earnings if the enterprise can exploit economies of scale.

In the meantime, I feel its experience offers it pricing energy, one thing that might assist enhance its long-term profitability.

So, whereas a price-to-earnings (P/E) ratio of 69 would ordinarily make me fall out of my chair, on this case I feel the potential for earnings progress means the possible P/E ratio may very well be a lot decrease.

There are dangers right here – with lots driving on a single buyer, if for any motive SpaceX’s plans change, that may very well be unhealthy information for the Filtronic share price.

However I’m hopeful of a bumper 12 months for the UK tech agency and suppose its shares are nonetheless a possible discount. That’s the reason I’ve been shopping for extra for my portfolio.