3 potentially explosive penny stocks to consider buying for 2026

Edward Sheldon has scanned the market for penny stocks with significant investment potential as we start 2026. Here are three that have caught his eye.

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Penny stocks are high-risk investments. But they can be worth including in an ISA or SIPP as they can generate explosive gains at times.

Looking for penny stocks to buy for 2026? Here are three shares that have caught my eye recently and could be worth considering.

Skillcast

First up, we have Skillcast (LSE: SKL). It’s a software company that specialises in compliance solutions and counts the likes of Tesco, Barclays, and Schroders as customers.

There’s a lot to like about this stock as we kick off 2026. For a start, recent results have been strong.

In September, for example, the company reported 18% revenue growth for the first half of 2025. Subscription revenue for the period was up 23%.

Second, profits are rising rapidly. This year, analysts expect net profit to rise about 40%.

Third, the share price is in a strong uptrend. Note that as I write this, it’s near all-time highs meaning that there are going to be no disgruntled long-term holders waiting to break even and sell shares.

I’ll point out that artificial intelligence is possibly a risk here. This technology could help customers develop their own compliance solutions.

All things considered, however, I see a lot of potential.

Made Tech

Another penny stock in the technology space I like the look of right now is Made Tech (LSE: MTEC). This company helps the UK government and regulated industries with digital transformation.

It has also released some good trading updates recently. In December, it told investors that trading for FY26 (the financial year ending 31 May 2026) would be significantly ahead of expectations.

Note that like Skillcast, the company is seeing good results in terms of profitability. This financial year, analysts expect net profit to soar 85%.

A key risk is a cut in tech spending by the UK government. This scenario is a possibility and could lead to less growth for the company.

I think the stock is worth a look though. Note that the company’s valuation is quite low at present.

Ilika

The third stock I want to highlight, Ilika (LSE: IKA), is far more speculative than the first two. Because it doesn’t have any profits.

It could be worthy of further research though. That’s because the company specialises in solid state battery technology – a huge growth market – and it’s aiming to produce batteries for some high-growth markets including miniature medical implants, industrial wireless sensors, and electric vehicles (EVs) in the years ahead.

One thing that interests me is the fact that Ilika says it has very little competition in the miniature battery sector for active implantable medical devices. This could be a big opportunity for the company.

Now, this is the kind of penny stock that could either soar or crash in 2026. For example, if the company signs some major deals for its battery technology, it could do really well. But if it has to raise a ton of money to stay afloat, its share price could sink.

So, it’s not going to be suitable for those who are averse to risk. If an investor has a high risk tolerance, however, I reckon it’s worth a closer look.

Edward Sheldon has no positions in any shares mentioned. The Motley Fool UK has recommended Barclays, Tesco, and Schroders Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Will the S&P 500 crash in 2026?

The S&P 500 delivered impressive gains in 2025, but valuations are now running high. Are US stocks stretched to breaking…

Read more »

Teenage boy is walking back from the shop with his grandparent. He is carrying the shopping bag and they are linking arms.
Investing Articles

How much do you need in a SIPP to generate a brilliant second income of £2,000 a month?

Harvey Jones crunches the numbers to show how investors can generate a high and rising passive income from a portfolio…

Read more »

Investing Articles

Will Lloyds shares rise 76% again in 2026?

What needs to go right for Lloyds shares to post another 76% rise? Our Foolish author dives into what might…

Read more »

Investing Articles

How much passive income will I get from investing £10,000 in an ISA for 10 years?

Harvey Jones shows how he plans to boost the amount of passive income he gets when he retires, from FTSE…

Read more »

Investing Articles

Down 34% in 2025 — but could this be one of the UK’s top growth stocks for 2026?

With clarity over research funding on the horizon, could Judges Scientific be one of the UK’s best growth stocks to…

Read more »

piggy bank, searching with binoculars
Investing Articles

Can the rampant Barclays share price beat Lloyds in 2026?

Harvey Jones says the Barclays share price was neck and neck with Lloyds over the last year, and checks out…

Read more »

Investing Articles

Here’s how Rolls-Royce shares could hit £25 in 2026

If Rolls-Royce shares continue their recent performance, then £25 might be on the cards for 2026. Let's take a look…

Read more »

Departure & Arrival sign, representing selling and buying in a portfolio
Investing Articles

Prediction: in 2026 the red-hot Rolls-Royce share price could turn £10,000 into…

Harvey Jones can't believe how rapidlly the Rolls-Royce share price has climbed. Now he looks at the FTSE 100 growth…

Read more »