Investing success is rarely about chasing the most fashionable shares or predicting short-term market moves. More often, it comes from patiently identifying solid businesses that are temporarily undervalued by the market. In short, that’s how I’ve been successful, turning my Stocks and Shares ISA into something that grows faster every year.
As 2026 approaches, there are several things that continue to create pricing anomalies. For those willing to look beyond the headlines, these conditions can offer fertile ground for a Stocks and Shares ISA to blossom over the years ahead.
Stocks to consider
With that framework in mind, several companies stand out to me as credible candidates for market-beating growth in 2026 and beyond.
Sanmina Corporation (NASDAQ:SANM) is an attractive one. The US-listed electronics manufacturing specialist sits at the intersection of multiple long-term growth trends. These include cloud computing, AI infrastructure, and advanced industrial systems.
However, its pending acquisition of ZT Systems’ data-centre infrastructure manufacturing business materially reshapes the investment case.
Historically a high-quality electronics manufacturing services provider, Sanmina will now be able to manufacture fully integrated data-centre racks, positioning it more like a peer of Celestica.
This moves the group decisively up the value chain. Importantly, the deal embeds Sanmina more deeply into hyperscaler supply chains, notably with AMD, from whom it’s buying ZT.
Despite this step-change, the shares trade with a forward price-to-earnings (P/E) ratio of 15.9, around 35% below the sector median.
With medium-term earnings growth estimated near 25%, the implied P/E-to-growth (PEG) ratio of roughly 0.63 suggests that growth is not fully reflected.
The principal risk is balance-sheet strain: net debt is expected to rise to around $2bn following the acquisition, leaving the group more exposed if global AI spending slows.
What else?
Fresh Del Monte Produce is another that appears undervalued to me. This one is in a very different category: fresh fruit and vegetables. It’s got a strong balance sheet and plenty of agricultural assets. This includes over 45,000 acres in Costa Rica and nearly 9,000 acres in Guatemala.
It trades at roughly 12.6 times forward earnings, with a PEG ratio around 0.75 based on relative short-term forecasts. A 3.4% dividend yield and modest net debt reinforce the investment case. Climate and weather risks are unavoidable.
M-tron Industries is a more niche opportunity. Trading at 18.9 times forward earnings with expected medium-term growth of 28%, its PEG ratio of 0.66 represents a steep discount to sector averages. Exposure to defence, aviation, and space industries provides diversification, though tariffs and supply-chain disruption pose risks.
Among banks, TBC Bank stands out. Despite operating in two fast-growing eurasian economies, it trades at just 5.1 times forward earnings, offers a 6% dividend yield, and is forecast to grow revenue by 17.5% annually over the next two years. Regulatory uncertainty in Uzbekistan remains a key concern.
Jet2 also looks deeply undervalued at around five times net income adjusted for cash. While earnings growth is muted in the near term, fleet renewal and Gatwick expansion could drive meaningful margin improvement from 2027.
In addition to the above, Seagate Technology and Sezzle also look worthy of consideration on growth-adjusted metrics.
