Investing in individual UK stocks can be very lucrative. Last year, for example, several Footsie shares rose more than 100%.
Now, I just asked ChatGPT to list five top UK stocks to buy for 2026 and it gave me some interesting ideas. But I reckon I can outperform these with my own stock picks.
ChatGPT’s stocks for 2026
The stocks ChatGPT came up with are:
- Rolls-Royce (2026’s expected to be a “milestone” year for its nuclear division).
- GSK (a lean valuation and a robust pipeline are draw cards here).
- NatWest (banks should benefit from high interest rates and a resilient economy).
- Bellway (housebuilders are tipped for an ‘adventurous’ 2026).
- RELX (an AI stock without the hype).
Overall, it’s an interesting list. There are some decent companies on it, without doubt. As for the return potential in 2026 however, I’m not so convinced.
For starters, Rolls-Royce had a huge 2025, even after massive gains in 2023 and 2024. Given the stock’s gains, I wouldn’t be surprised to see it take a breather in 2026.
I also wouldn’t be surprised to see NatWest trading sideways in 2026. Last year, it jumped about 60% – a huge rise for a bank stock.
Turning to GSK, it’s traded between £13 and £18 for many years now. And currently, it trades near the latter, so I’m not confident of further gains in the near term.
Bellway shares could rise if interest rates come down. However, this scenario’s far from guaranteed. RELX I’m more positive on. Currently, this tech company’s trading at an attractive valuation.
My picks
As for my picks, my first is Prudential. This insurance stock’s flying right now but remains cheap (and well below its highs).
Next, we have Wise. This FinTech stock looks undervalued and it may get a boost when the company lists in the US in 2026. Another tech company that looks undervalued is London Stock Exchange Group. I see potential for gains in 2026 as the financial data company rolls out new AI features.
Marks & Spencer‘s a turnaround play. It had a dreadful year in 2025 due to a cyber attack, but 2026 should be better. Finally, I like the look of Ashtead (LSE: AHT), the leading construction equipment rental company.
There are a few reasons I’m bullish on the latter stock. One is that 2026 could be a big year for data centre and semiconductor plant manufacturing in the US. Ashtead’s well placed to capitalise on this activity. Today, it generates the bulk of its revenues in the US.
Another is that interest rates are likely to come down in the US. This could lead to a pick up in general construction activity while simultaneously lowering the amount of interest Ashtead pays out on its debt.
Moving the company’s primary listing to the New York Stock Exchange and a broadening out of the stock market are two other factors that could boost the share price.
Of course, there are no guarantees that this stock (or my other picks) will do well in 2026. All need economic conditions to remain healthy. They could all be worth a look however. All are solid companies trading at attractive valuations.
