While the FTSE 100 has delivered solid gains in 2026, lots of UK-listed growth stocks have generated significantly higher returns. One such stock is MTI Wireless Edge (LSE: MWE), which currently trades for just 67p.
Year to date, it’s up over 40%, making the FTSE 100’s gain of around 6% look quite underwhelming. So what’s going on here? And is there an opportunity?
An under-the-radar defence company
MTI Wireless Edge is a small Israel-based company that designs and manufactures state-of-the-art antennas and has exposure to the defence industry. And right now, it has a lot of momentum from an operational perspective.
For example, just last week, the company told investors that it had recently won around $6m worth of defence contracts. That’s significant – we’re talking about a company with a market-cap of just £56m here.
Meanwhile, today (13 April) the company’s put out another announcement highlighting that it’s just won an additional defence contract. This is worth $2m and will involve supplying military antennas to a local defence company.
“In the first two weeks of April, we have secured a series of significant defence-related orders with a combined value of approximately US$8m,” said CEO Moni Borovitz. “This strong level of order intake is encouraging and reflects our internal forecasts of a step-up in demand for our range of defence related products,” he added.
Worth a look?
Is this stock worth considering as a growth investment? I think so – I see a nice combination of growth, value, income, and momentum here. The business seems to be on fire at present. That’s always a plus from an investment perspective.
Meanwhile, despite a 40%+ share price gain in 2026, the valuation’s still quite reasonable. With the consensus earnings forecast for FY2026 sitting at $5.80, the forward-looking price-to-earnings (P/E) ratio’s only about 15.
As for income, the dividend forecast for this year is 3.6p per share. That translates to a yield of about 4%, which is decent.
Of course, there are plenty of risks here. One is a slowdown in orders. Given the geopolitical backdrop, this company’s in the right place at the right time. But things could change and orders could dry up.
Another risk is in relation to trading liquidity. This is a very small company and liquidity can be thin with these types of stocks (meaning it may not be possible to sell shares at a good price). I should also point out that the share price is up almost 20% this month. After that kind of jump, we could see some profit taking.
Overall though, I see quite a bit of potential in this name. It’s higher up on the risk spectrum given that it’s a penny stock, but I think it’s worth a look.
But it’s not the only opportunity I see in the market today…
