Best Stock Options this January 2026 in the UK

JPMorgan UK Small Cap Growth & Income is an appealing investment trust that combines a focus on UK small-cap stocks with an emphasis on both growth and income. With a solid dividend yield of 4.81% and a 1-year return of 11.55%, it stands out as a viable option for investors seeking reliable income and capital appreciation. However, it has experienced a slight decline over the past five years, returning -1.17%, and holds a C rating from analysts.

Wise stands out as a leading international money transfer company, offering substantial growth potential for investors. Analysts have given it a median 12-month price target of $12.00, reflecting a strong outlook despite recent returns of 3.61% over the past year and a slight decline of 0.44% over five years. This makes it an appealing option for those looking to tap into the expanding digital remittance market.

Analysts project an average 12-month price target for Wise (WISE) at 1158.79, with estimates ranging from a low of 750 to a high of 1500.

BAE Systems is poised for significant growth, with projections suggesting a potential 50% increase in stock value by 2025 and a price target that exceeds the current share price by 20%. The company holds a strong overall rating of 3.9 out of 5 from over 4,585 employee reviews, indicating a stable work environment where 77% of employees would recommend it. However, investors should note that the stock is trading at a higher-than-expected P/E ratio, aligning its forecasted growth with market averages, which may present some valuation concerns.

BAE Systems has a higher than expected P/E ratio, which may indicate a risk of declining share prices since its forecasted growth aligns with the broader market.

BAE Systems has a stable employee rating of 3.9 out of 5, with 77% of employees recommending the company and 74% having a positive outlook for its future.

Kier Group stands out as a top growth stock for 2026, making it an attractive choice for investors. With a solid dividend yield of 3.45% and impressive returns of 48.65% over the past year and 102.21% over five years, the company demonstrates strong performance. Although it holds a C rating from analysts, Kier has delivered a total shareholder return of 46% in the last year, indicating its potential for long-term investment growth.

Kier Group has delivered a total shareholder return of 46% over the past year, outperforming its annualized return of 30% over the last five years, indicating improved performance recently.

Analysts project an average 12-month price target of 266.5 for Kier Group, with estimates ranging from a low of 220 to a high of 322.

Kier Group has a consensus rating of 'Buy' from analysts, with an average score of 3.00 based on three buy ratings and no sell ratings.

Finsbury Growth & Income Trust adopts a dual strategy that combines growth and income, focusing on dividend-growth stocks from financially healthy companies. Currently, it offers a dividend yield of 2.38% but has faced challenges, reflected in its 1-year return of -12.43% and a 5-year return of -5.44%. Despite these setbacks, the trust remains a noteworthy option for investors looking for a balance between capital appreciation and reliable income, albeit with a cautious analyst rating of C.

Rightmove is positioned as a promising property portal with significant growth potential anticipated for 2026. Despite a challenging past year with a return of -14.24% and a five-year decline of -21.99%, it offers a modest dividend yield of 1.30%. Analysts have issued a neutral rating, with a 12-month price target averaging 625.20p, reflecting cautious optimism in its trajectory.

The average 12-month price target for Rightmove is 625.20p, based on forecasts from 10 analysts. The highest target is 885.00p, while the lowest is 465.00p.

With a robust dividend yield of 7.98%, M&G stands out as a solid choice for investors seeking reliable income from a consistent dividend payer since 2020. The company has achieved impressive returns of 49.36% over the past year and 56.41% over five years, reinforcing its position as a financially healthy option in the FTSE 100. However, it's important to note that it currently holds a D+ analyst rating, suggesting that investors should exercise caution.

Magna (MGA) has a Zacks Rank of #2 (Buy) and a strong value rating with a P/E ratio of 8.47, significantly lower than the industry average of 18.18.

M&G's annual dividend has increased from 18.2p in 2020 to 20.1p per share in 2024, providing a trailing yield of 9.1% and making it an attractive income stock.

NextEnergy Solar Fund, recognized as a top pick for 2026, offers a noteworthy dividend yield of 15.16%. However, it has faced challenges, reflected in a 1-year return of -24.35% and a 5-year return of -52.42%, influenced by declining power price forecasts and broader macroeconomic factors. With a consensus rating of "Neutral" from analysts, investors should weigh the potential for recovery against current valuation concerns.

The consensus rating for NextEnergy Solar Fund (NESF) is 'Neutral', with 1 analyst recommending a buy, 1 suggesting a sell, and 1 advising to hold.

NESF's net asset value dropped from GBP 547.4 million to GBP 510.9 million due to declining power price forecasts and macroeconomic challenges like persistent inflation and slower interest rate cuts.

As of January 17, 2026, the fair value of NESF is -0.46 GBP, indicating a potential downside of 100.9% from the current market price of 49.4 GBP.

NESF pays quarterly interim dividends, with declarations in August, November, February, and May, and payments made in September, December, March, and June.

AO World presents an intriguing opportunity for investors, with a notable upside potential of 25% driven by its expansion prospects in the domestic appliance sector. Despite its current 1-year and 5-year returns sitting at 0.00%, the company’s growth strategy focuses on widening its market footprint, making it a candidate for those seeking future growth in a stable industry.

Palantir's shares have increased over 2,400% in the last three years, highlighting its status as a leading technology company.

APi has a Zacks Rank of #2 (Buy), indicating improved analyst sentiment and a stronger earnings outlook.

Analysts have mixed opinions on Alcoa: 33% recommend a Strong Buy, while 22% advise Selling.

Aberdeen Equity Income Trust stands out for its strong dividend yield of 5.84% and impressive one-year return of 26.86%. Recognized as the 'Best Equity Income Trust' at the UK Investor Magazine Awards 2025, this trust focuses on undervalued UK mid- and small-cap companies, making it an attractive option for investors looking for reliable income as market sentiment improves. With a five-year return of 31.65%, it presents a compelling case for those seeking solid performance alongside consistent payouts.

AEI is considered a strong buy due to its high yield and focus on undervalued UK mid- and small-cap companies as market conditions improve.

Abrdn has a consensus rating of Hold, with an average score of 2.33 based on 3 buy ratings, 2 hold ratings, and 1 sell rating.

Apple has historically provided strong returns, but its current valuation is high, posing downside risks; better-than-expected iPhone sales could improve market sentiment.

MITIE Group, a support services company, is positioned for significant growth potential by 2026. With a remarkable 5-year return of 296.70% and a current dividend yield of 2.58%, it showcases the value creation that can be achieved by financially healthy companies. The stock carries a B+ analyst rating, underscoring its attractiveness for long-term investors.

MTO stock has increased by 308% over the past five years, indicating strong long-term value creation, with a recent 25% gain in the last three months.

MITT stock has a consensus rating of 'Strong Buy' from five analysts, with an average price target of $9.00, suggesting a potential 1.12% increase over the next year.

Domino's Pizza presents an attractive option for income-focused investors, offering a modest dividend yield of 1.59%. While the stock has experienced a -8.32% return over the past year, analysts maintain a consensus Buy rating, with a median price target of $460. The company faces challenges from inflation and competition, but its solid fundamentals could provide a sustainable income opportunity in the long run.

Domino's Pizza (DPZ) has a consensus rating of Buy from 24 analysts, with 25% recommending a Strong Buy, 25% a Buy, 42% a Hold, and 8% suggesting Sell.

As of September 30, 2025, Berkshire Hathaway holds 2.98 million shares of Domino's Pizza (DPZ), valued at $1.29 billion, representing 0.48% of their portfolio.

Key risks for DPZ include ongoing inflation pressures and intense competition in the delivery market, which may impact stock performance.

Domino's Pizza has reported consistent same-store sales growth and has opened over 200 new restaurants while generating significant free cash flow.

Renishaw stands out as a top growth stock for 2026, demonstrating a robust outlook with earnings expected to grow by 16.1% annually. With a current dividend yield of 2.09% and a one-year return of 13.97%, this technology company has received a favorable B+ analyst rating, reflecting strong growth potential. Investors may find it an attractive option given its solid performance and the potential for increasing revenue and earnings.

The average twelve-month price target for Renishaw (RSW) is GBX 3,920, with a forecasted upside of 1.16% from the current price of GBX 3,875.

Renishaw is expected to grow earnings by 16.1% and revenue by 5.1% per annum, with a projected EPS growth of 16% and a return on equity of 12.8% in three years.

Renishaw is considered a good investment due to its robust outlook, with earnings expected to increase by 62% over the next few years.

The dividend yield for RSW shares is currently 2.66%.

Essentra stands out as a specialist manufacturer of plastic and metal components, receiving unanimous Strong Buy ratings from analysts. Despite a challenging year with a 1-year return of -23.03% and a 5-year return of -70.87%, the stock is projected to offer a minimum gain of 61%, making it a compelling choice for investors looking for significant upside potential.

Forian Inc. has an average brokerage recommendation of 2.00, indicating a generally favorable outlook.

Palantir's shares have surged over 2,400% in the last three years, highlighting its status as a valuable technology company.

Ford stock currently shows mixed signals, with a short-term sell signal and a long-term buy signal, suggesting a generally positive outlook.