Admittedly, that sounds like a fish gasping for air. But GARP stocks can turn out to be savvy investments.

Here’s one I think is worth checking out today.

Applied Nutrition

Applied Nutrition (LSE:APN) sells over 120 nutrition supplements worldwide. At the rate I’m going, half of them will be on my kitchen worktop before too long!

That’s because I now buy the company’s creatine, protein, ‘Critical Greens’ (vegetable powder), and Test X (natural testosterone booster).

Oh, and after the firm sent me a free tester of its best-selling pre-workout drink, I’ll be buying that too. The Slush Puppie flavour makes it tolerable, while it certainly elevates a gym session, to put it midly.

Good job I’m a shareholder then! What made me invest? Trust and quality are key factors. In my experience, there’s a lot of rubbish supplements knocking about online, especially the cheaper stuff.

But Applied Nutrition aims to become “the world’s most trusted and innovative sports nutrition, health, and wellness brand“. So most of its products are formulated and manufactured at its state-of-the-art facility in Knowsley to keep a focus on quality.

Hence why it has secured shelf space in Tesco, Asda, Morrisons, Walmart, Holland & Barrett, and more, as well as selling on Amazon and its own app. New products such as creatine gummies and Sparkling Collagen Protein Water are selling well.

Everything we do is to resonate trust with the end consumer.
Applied Nutrition

Strong financial performance

In fiscal 25, which ended in July, the firm’s revenue jumped 24% to £107.1m. In the first half of fiscal 26, top-line growth accelerated 56.5% to £74.5m, setting the company up for strong 31% sales growth this year.

Alongside this, we have solid profits. In the first half, adjusted pre-tax profit surged 53.7% to £20.9m. The quality metrics are strong, with a 27.8% operating margin and high 51.7% return on capital.

Looking ahead, the company expects robust growth to continue as it enters new categories and international markets. For example, it’s moving deeper into the health and wellness space with brand ambassador (and major shareholder) Coleen Rooney.

Together, they offer products to boost collagen, sleep, immunity, and to debloat. And this helps explain why 45% of Applied Nutrition’s customers are female.

This company is far from simply a protein maker for weight-lifting meatheads!

Valuation

Turning to valuation, this is very much in GARP territory, in my opinion. We’re looking at a forward price-to-earnings (P/E) multiple of 17.7 and a price/earnings-to-growth (PEG) ratio of 1.3.

Normally, when a company is growing revenue and earnings this quickly, I would expect those figures to be higher. That’s why I’ve been buying this stock for my own portfolio recently.

Final thoughts

The stock isn’t perfect, of course. While health and fitness is a growing global market, there’s also a lot of competition. And rising inflation could put pressure on margins (extra freight costs, whey protein, etc).

On balance, though, this looks like an excellent growth stock to me. I think it’s well worth considering long term.

The post 1 top UK growth stock to consider buying in May appeared first on The Motley Fool UK.

Now, Diageo shares could rebound in time, enabling investors to make up their losses. However, it’s worth remembering that when it comes to making up losses in the stock market, we don’t have to do it with the same stocks we lost the money on.

Growing while Diageo’s shrinking

This brings me to FTSE 250 stock Applied Nutrition (LSE: APN). It’s a leading supplier of nutritional supplements.

I think this stock could be a good way to try and make up losses from Diageo. Because the way I see it, this company’s pretty much the direct opposite.

Whereas Diageo sells booze, which is seeing a decline in sales as younger generations and those on weight-loss drugs drink less, Applied Nutrition sells protein powders and hydration solutions, which are booming as consumers spend their money on products designed to make them feel healthy and look good (social media’s helping to drive this theme).

So unlike Diageo, it’s positioned in a consumer goods industry that’s expanding rapidly (the company expects its markets to grow by around 8% a year between now and 2028).

“As health and wellness becomes increasingly embedded in everyday consumer behaviour, we continue to benefit from a larger pool of individuals embarking on, or continuing, their wellness journey.”

Applied Nutrition Founder and CEO Thomas Ryder

We can see this in its sales and share price. For the six-month period ended 31 January, Applied Nutrition’s sales rose 57% year on year (Diageo reported net sales growth of -4% for the six-month period ended 31 December), while over a year, its share price is up about 90% (versus -30% for Diageo, as noted above).

Strong financials and a low valuation

Looking beyond the favourable thematic backdrop and the incredible level of revenue growth, there are a number of things to like about Applied Nutrition from an investment perspective. One is the valuation.

With analysts expecting earnings per share of 12.5p for the year starting 1 August, the forward-looking price-to-earnings (P/E) ratio’s only 17.5. That’s low considering the level of top-line growth.

Another thing to like is the financials. Not only does the company have a very strong balance sheet (at the end of January it had a net cash position of £25.4m) but it also has a very high return on capital – last year it was 49%.

The company’s also trusted, which is important, because it operates in a competitive industry in which there are many different brands (and competition from rivals is a risk).

Finally, it has a very effective business-to-business (B2B) model, selling its goods through established retailers such as Tesco, Asda, and Amazon. This is a cost effective way to gain access to a broad range of customers and expand into new geographic markets and it should help the company scale up over time.

Overall, there’s a lot to like. While competition and consumer spending weakness are risks, I think this stock has all the right ingredients to be an excellent long-term investment and is worth considering for an ISA or Self-Invested Personal Pension (SIPP).

The post Lost money on Diageo shares? Consider buying this £2.19 FTSE stock to try and make it up appeared first on The Motley Fool UK.

Interested to know which two I bought for my ISA and feel are worth considering? Read on.

Swiss engineering

On Holding (NYSE:ONON) is the Swiss company behind the premium running shoe brand. I was sceptical about this stock because I’ve seen other athleisure brands go from market darlings to serial underperformers.

Think Under Armour and Lululemon. They’re down 74% and 57%, respectively, in five years as they succumbed to competitive pressures and growth evaporated.

Competition is a key risk for On too. New challengers could emerge and grow fast, threatening the brand’s staying power. Fashion can be very fickle.

So, why this one? Well, after digging in, it became clear that On is like an engineering firm that happens to make trainers. It goes to incredible lengths with its performance-focused design, and its patented CloudTec cushioning system sets it apart in a crowded market.

Plus, its LightSpray technology involves robots making/adding a new upper for a super-trainer in just three minutes. No stitching nor massive assembly lines. On just opened its second automated shoe facility, in South Korea, adding another 32 robots.

The founder-led company plans to bring robot-spraying factories to other continents too. This could slash shipping times, reduce logistics costs, and navigate tariffs.

LightSpray is a pinnacle example of how On continues to innovate through Swiss Engineering, dramatically changing the way we can create high-performance shoes with unmatched efficiency, sustainability, and performance results.
Co-founder Caspar Coppetti.

In 2026, the company expects net sales to increase at least 23% on a constant currency basis. Considering the consumer backdrop, that would be impressive.

Meanwhile, profit margins are strong, boosted by premium prices. Its new LightSpray Cloudmonster 3 Hyper trainers, which are made for serious runners, cost £270 a pair!

Finally, the valuation looks very reasonable, with a forward price-to-earnings (P/E) ratio of 24. That’s not expensive for a high-margin disruptive growth company.

UK stock

Now for the FTSE 250 with Applied Nutrition (LSE:APN). The UK sports nutrition brand sells over 120 different products, including protein powder, high-performance hydration drinks, and various supplements.

In the six months to 31 January, revenue soared 56.5% to £74.5m and adjusted EBITDA jumped 55.8% to £21.5m. There was solid growth across Europe, Latin America and Asia, while a factory extension will increase revenue capability to £300m (up from £107m last year).

Rising inflation is a risk to near-term growth, both in terms of sales to consumers and costs for raw ingredients. Meanwhile, the Iran war is disrupting supplies to Middle East customers.

However, the long-term growth story looks attractive. It’s expanding shelf space with existing retailers, winning new customers, entering different markets (GLP-1-friendly ready meals with Morrisons, for example) and expanding overseas.

With a fairly modest forward P/E of 18, I reckon this growth stock deserves attention.

The post Got an ISA? Here are 2 stocks to consider buying as the global fitness trend takes off appeared first on The Motley Fool UK.

Interested to know which company I invested in? Read on and I’ll tell you.

My new stock

The stock I snapped up for my portfolio was Applied Nutrition (LSE: APN). It’s a leading player in the supplements market (whey protein, protein bars, hydration solutions, etc) that operates in over 80 countries worldwide.

A member of the FTSE 250 index, it has a market cap of around £560m meaning that it’s a fairly small company. Its share price is about £2.25 at present versus around £1.15 a year ago.

Why I bought

As for why I bought it, there are several reasons. One is that the company stands to benefit from the health and wellness trend.

We keep hearing that younger generations are spending less money on alcohol and more on exercise and health. I see this stock as a good way to capitalise on this trend (I wrote recently that it’s basically the opposite of alcoholic beverages stock Diageo).

Another reason I invested is that the company is growing at a phenomenal rate. Back in March, it told investors that its revenue grew 57% year on year in the six months to 31 January.

There are not many UK companies growing at that pace. It suggests that the company is benefiting from the trend I mentioned above.

We also have a business that is very profitable. Over the last three years, for example, return on capital employed (ROCE) has averaged 52%.

This tells us that the group is very effective at generating profits from its capital. It’s worth noting that companies with high ROCEs often turn out to be excellent long-term investments because they’re able to reinvest a lot of money for growth and take advantage of the power of compounding.

An additional attraction for me was the fact that founder Thomas Ryder is the CEO of the company. History shows that founder-led companies are often good investments in the long run because founders tend to take a long-term, strategic view.

One other thing worth mentioning is that the share price fell 5% on 17 April after JD Sports offloaded its stake in the company. I decided to take advantage of the share price weakness and buy as the forward-looking price-to-earnings (P/E) ratio was only around 17.

Worth a look near £2?

In terms of risks, there are a few I’ll be monitoring. In the near term, the Middle East conflict could present some challenges (higher transportation costs etc).

Looking further out, a consumer slowdown (related to white collar job losses) is a bigger threat, in my view. This could see demand for discretionary goods plummet.

Taking a three-to-five-year view, however, I like the risk/reward set-up. I believe this stock is worth a closer look at current levels.

The post I just bought this magnificent £2 UK growth stock for my Stocks and Shares ISA appeared first on The Motley Fool UK.

However, I want to spotlight two established companies here. While they’re both in the FTSE 250, they probably still fly under the radar of most investors today.

Growing global business

The first stock is Applied Nutrition (LSE:APN). This sports nutrition company only listed in late 2024 and currently has a £544m market-cap.

However, the firm is quickly making a name for itself, with shelf space secured for its products in Tesco, Asda, Morrisons, Sainsbury’s, and Holland & Barrett. Its Vimto-flavoured hydration tablets and isotonic gels are very popular.

Around 90% of revenue comes from business-to-business channels, including large retailers, gym groups, and international distributors it sells in bulk to. Indeed, over half of sales now come from overseas.

Globally, the sports nutrition and wellness market is booming, with younger generations seeing health and fitness as a core part of their lifestyle. As such, vitamins and supplements are increasingly part of their daily routine, as normal as brushing their teeth.

Therefore, I consider this sector to be moving more towards consumer staples. And many people are willing to pay a little more for quality, which is creating a big opportunity for Applied Nutrition’s trusted products.

For the current fiscal year ending July, the company’s revenue is expected to jump 31% to £140m. City analysts reckon it could reach almost £200m by 2029, with healthy profitability alongside.

Arguably the biggest threat to near-term growth is the Middle East conflict, which is still causing shipping disruption. Rising inflation (particularly for whey protein) could also pressurise margins.

On the other hand, I think the valuation’s reasonable, with a forward price-to-earnings (P/E) ratio of 17.8.

A final thing I like is that the company’s founder-led by CEO Thomas Ryder, who’s very ambitious to grow the brand’s trustworthiness globally.

Green economy shift

With its £1.3bn market-cap, Volution (LSE:FAN) is a larger FTSE 250 company. Its share price is up around 350% since listing in 2014.

The company designs and manufactures indoor air quality solutions. Revenue has more than doubled over the past five years, driven by the ventilation specialist’s acquisition-led growth strategy.

In the six months to 31 January, revenue rose 21.7% to £228.7m, with a solid 22.6% operating margin. And 72.1% of sales came from low-carbon products (like heat recovery systems), up from 68% the year before.

Now, the risk to growth is the struggling UK construction market, which is being held back by high interest rates and inflation. Any deterioration here, which can’t be ruled out, could present challenges.

Given this risk, I’m encouraged to see the firm diversifying its revenue base further with the acquisition of AC Industries in Australia. This move gives Volution exposure to the gold and copper mining ventilation sector.  

The stock also pays a dividend. While the forward yield of 1.9% isn’t much to write home about, the annual payout’s been growing between 9% and 20% in recent years.

Volution has strong long-term growth potential, with building regulations mandating better energy-efficient ventilation. Pair this with a reasonable forward P/E ratio of 17, and I think the stock’s worth considering as a green energy play.

The post 2 potential hidden gems in the UK stock market appeared first on The Motley Fool UK.

Best features to note

To start, a key feature is selecting stocks from sectors with strong momentum. Even if an individual company’s doing well, if it operates in a declining sector, it’s unlikely to deliver outsized gains for several years.

In terms of specific areas, obviously AI and tech are sectors that stand out with good potential right now. Yet apart from that, FinTech and renewable energy are other parts of the market that I think have very good chances of outperforming in the coming decade.

From there, the next step is to own a portfolio of growth shares, not just one. Sure, I’d like to think that I could pick one stock and have it double in value. But no one can predict the future. If a stock underperforms, it’s game over.

Instead, owning half a dozen or more companies means that the chances of one doing well increase. Then, even if another firm doesn’t do that well, the overall performance of the portfolio will be smoothed out.

Finally, the company’s size matters. For example, Nvidia has a market-cap of £3.62trn. It’s going to be hard for the stock to double in value, given that it’s already a very large firm. However, picking companies that are smaller can make it easier to enjoy large price growth. This should be caveated, as if an investor targets penny stocks they can carry higher levels of risk.

Beefing up

One particular company I believe fits the bill is Applied Nutrition (LSE:APN). The stock’s up 94% in the past year. With a market-cap of £541m, it’s well positioned as a decent-sized company with scope for significant growth.

It formulates and sells sports nutrition products such as protein powders and energy drinks. The global shift toward health and fitness is no longer a niche trend and it’s quickly becoming mainstream, with Applied Nutrition having a large market.

It’s not just bodybuilders who care about supplements but also everyday gym-goers. The company has positioned itself right in the middle of that demand, with over 120 products spanning performance through to wellness.

Why could it double? For a start, it has almost doubled in the past year, so it has a good track record. But from here, it has so many things going for it.

Continued sector growth, international expansion, operating leverage from scale as it gets bigger, along with a host of other factors. If revenues keep compounding at double digits and margins hold, the share price should mirror the move from the past year in the coming years.

One risk is that some might see the business operating in a competitive, sometimes faddish industry. Further, raw material costs (like whey protein) can be volatile and squeeze margins. Even with this concern, I think it’s a stock that could be considered by investors.

The post What are the best growth shares to try and double your money? appeared first on The Motley Fool UK.

Read on and I’ll tell you why I’m bullish on this pair. 

Buying the dip

First, I added 3i Group (LSE:III) to my portfolio. The FTSE 100 stock is down 35% in six months, even after a mini-revival recently.

3i is a private equity firm that invests in other companies. Over the past 10 years, the group’s annualised total return is a very impressive 22%, despite the crash.

A major driver has been Dutch discount store chain Action. In 2011 when 3i first invested, it had 250 stores across three countries and around €80m in EBITDA. At the end of 2025, it had 3,302 stores in 14 countries and generated more than €2.3bn in underlying profit.

In fact, the investment has been so successful that it now accounts for approximately 73% of 3i’s portfolio. So any growth hiccups at Action are bad news. And that’s what we’ve had in recent months, with weaker-than-expected growth in France, its largest market.  

However, I think the selling has gone too far. It means 3i has swung from trading at a massive premium to its underlying assets to a near-10% discount. It also now carries a 3.3% forward dividend yield. 

Taking advantage of this, long-time CEO Simon Borrows recently bought £8.95m worth of shares, which is obviously noteworthy because he knows the company (and its prospects) inside out.

Finally, it’s worth pointing out that Action sees scope for 4,650 stores. So it’s hardly struggling.  

Fitness boom

The second stock I bought is Applied Nutrition (LSE:APN), the leading sports nutrition and supplements brand. The stock’s up 97% in the past year.

However, it dipped 5% earlier this week after shareholder JD Sports unloaded its entire 9.1% stake. Does JD see trouble brewing? Maybe it’s worried about the inflationary Iran conflict hurting Applied Nutrition’s growth or margins. This is a near-term risk.

Alternatively, perhaps JD just crystallised returns after the stock’s strong run. Either way, I’m not worried because I’m investing for the long term. And the global sports nutrition, health and wellness market is projected to grow to £279bn by 2029, at a compound rate of about 8.1%.

What I like is that Applied Nutrition’s growing globally, with its products selling well in Europe, the Middle East, Latin America, and the US (it has shelf space in Walmart). It’s very innovative, bringing out unique flavours and quickly capitalising on new trends in the fitness and wellness markets. 

Crucially, the brand is very trusted. Customers know what they’re getting is the real deal, which is not always the case when it comes to protein and supplements. 

I buy Applied Nutrition’s protein, creatine, and daily greens supplement (because I don’t eat anywhere near enough vegetables!) But nearly half of customers are female, boosted by Coleen Rooney-branded collagen beauty supplements.  

This year, revenue is expected to surge 31% to £140m. The profitable company is trading at 17.7 times forward earnings, which isn’t very expensive for a quality business with a ton of international growth potential.

I’ll look to build out my position on share price dips over the next year or two. 

The post 2 excellent FTSE 350 stocks I just added to my ISA appeared first on The Motley Fool UK.

Let’s take a look at why I like this growth stock.

Times they are a-changin’

Back in the day, many young people socialised in bars, pubs and nightclubs. And underaged youths would often gather around shops on a weekend, drinking cheap bottles of booze.

However, as the Bob Dylan track says, the times they are a-changin’. On Good Friday night, my local gym was absolutely packed with youngsters. And judging by how long they were taking on the machines, they were spending as much time talking/socialising as working out!

Meanwhile, in the bustling fitness studio next door, dance tunes pumped out as people of all ages jumped, skipped, pushed, squatted, lunged and sweated (a lot). It sounded like a nightclub, but with PBs (personal bests) instead of G&Ts.

According to a recent McKinsey study, 84% and 79% of consumers in the US and UK respectively see wellness as a top or important priority. And many Gen Zers now view supplements as a necessity rather than a luxury.

Enter Applied Nutrition, a company that’s directly benefitting from this powerful fitness and wellness trend.

A high-growth brand

As health and wellness becomes increasingly embedded in everyday consumer behaviour, we continue to benefit from a larger pool of individuals embarking on, or continuing, their wellness journey. Our ranges are designed to cater to the needs of everyone on that journey.

Applied Nutrition.

The founder-led company sells protein, pre-workout drinks, vitamins, collagen, and various other supplements. It’s a trusted and innovative brand, which is why its products are sold globally, from Tesco and Walmart to Holland & Barrett and sports clubs.

In the six months to 31 January (H1), the firm’s revenue soared 56.5% to £74.5m, while adjusted pre-tax profit jumped 54% to £20.9m. And for the full year, revenue of £140m is expected, which would represent solid 31% growth.

Doing a lot of the heavy lifting was its whey protein products (Critical Whey). Sales in H1 were 128% ahead of the same period the year before. This proves that consumers really trust the Applied Nutrition brand, especially as there’s reportedly a lot of watered-down rubbish online.

Speaking personally, I would rather pay a few quid more to get proper creatine and protein. Its Critical Whey products are independently tested to assure customers of the protein content.

Another thing I like is that JD Sports Fashion is a significant shareholder. So inside 100+ JD Gyms, the vending machines have Applied Nutrition products, including its best-selling ABE (All Black Everything) energy drinks. This helps consumers find the latest products and flavours. 

Iran war risk

Now, one risk here is the Middle East conflict flaring up, which could see shipping routes blocked again. Management’s already expecting lower purchasing activity in the region, while surging whey protein prices aren’t welcome.

Despite these near-term risks, I’m bullish enough to start a position in April. The stock’s trading at a reasonable 18 times next year’s forecast earnings.

The global sports nutrition and wellness market’s projected to reach £279bn by 2028, growing at an annual compound rate of 8%. For good measure, Applied Nutrition is seeing strong growth in Spain, Germany and Latin America. 

The post I can’t wait to buy this excellent FTSE 250 stock for my ISA in April appeared first on The Motley Fool UK.

What’s interesting is that over the same time frame, another UK consumer stock has soared. Perhaps this name is akin to a reverse-Diageo play?

Diageo’s main problem

From US tariffs to weight-loss drugs, Diageo is facing a lot of challenges at the moment. The greatest challenge, however, is probably just the fact that a lot of people are drinking less.

This is especially true among younger generations. These days, these generations are more focused on health, wellness, and feeling good.

I see it all the time. For example, in London, I often see big groups of youngsters out running or training together at the gym on a Saturday or Sunday morning.

This is their social activity. And there’s not a hangover in sight.

This company is benefitting

This brings me to my reverse-Diageo play. It’s British supplements powerhouse Applied Nutrition (LSE: APN).

It sells protein powders, hydration solutions, pre-workout products, and tons of other health and wellness goodies. Whereas Diageo is selling everything you need for a big night out, Applied Nutrition has everything you want if you’re looking to get fit and healthy.

So it’s very much the opposite of an alcoholic beverages company. It appears to be a consumer stock for the modern age.

Its share price is certainly moving in the opposite direction. Over the last year, it has jumped about 95%.

An investment opportunity?

Are Applied Nutrition shares worth a look today? I think so.

Underlying growth here is really strong. For the six-month period to 31 January, for example, revenue was up 57% year on year to £74.5m. Meanwhile, the valuation looks very reasonable. At present, the shares trade on a price-to-earnings (P/E) of just 19.

One other thing to like is that the share price has pulled back a little recently due to Middle East uncertainty. This has created an attractive (in my view) entry point.

Of course, there are plenty of risks. Middle East instability is one – this could increase shipping costs and/or hit demand in this area of the world.

Longer term, I think a bigger threat is a major consumer slowdown as a result of job losses. If AI continues to take jobs, more younger people may find themselves out of work and strapped for cash and this could impact demand for discretionary products.

Overall though, I like the risk/reward proposition today.

How about Diageo?

What about Diageo shares though? Are they worth considering/holding on to?

Well, I’m a long-term holder here and I’m not writing them off just yet. I’m hoping new CEO Dave Lewis can turn the company – and the stock – around.

There are plenty of moves he can make. One smart strategy could be to focus more on lower alcohol beverages to appeal to the health-focused generation mentioned above.

Note that the valuation here is super low – currently, the P/E ratio is only 11.5. In light of this valuation, I do think they are worth considering as a recovery play.

The post As Diageo shares sink, this ‘opposite’ stock in the FTSE 250 is soaring  appeared first on The Motley Fool UK.

Of course, the challenge with these accounts is choosing investments. So I thought I’d put together some ideas to consider for 2026 and beyond.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The defence theme

I like big investment themes (megatrends), and one of my favourite themes right now is defence. Today, countries are spending heavily on defence equipment in order to ensure they can protect themselves from geopolitical threats. And with NATO recently raising its defence spending target to 5% of GDP by 2035, this trend looks set to continue (although nothing’s guaranteed).

One product that could be worth considering here is the HANetf Future of Defence ETF (I hold). In terms of individual stocks, some names worth checking out include BAE Systems, Costain, and Concurrent Technologies.

Big Tech at a discount

I also like the technology sector. Today, we live in a tech-driven world and, realistically, we’re only going to see more digitalisation. In this space, I think a few of the ‘Magnificent 7’ stocks are worth a closer look at present. Because this cohort of shares has taken a hit recently.

Three that stand out to me are Amazon, Microsoft, and Nvidia (I hold all three). All face risks however, but I like the risk/reward set-up today as they all look cheap (Nvidia’s price-to-earnings (P/E) ratio’s now about 20).

Beaten-up growth stocks

Looking beyond the Magnificent 7, I’m seeing plenty of opportunities in the tech space further down the market-cap spectrum. Examples here include ServiceNow, Snowflake, Palo Alto Networks, and Palantir (I hold all of these except ServiceNow).

All of these stocks have recently taken a huge hit, but I continue to see a lot of growth potential in the long run.

Dividend shares

Of course, dividend shares are always a solid option for an ISA. These offer two potential sources of return – share price gains and dividend income. One stock I like here is M&G. It currently sports a dividend yield of about 7.8% (dividends are never guaranteed though).

UK small-caps

Finally, I think there are some really interesting opportunities in the UK small-cap space right now. An example here is British supplements powerhouse Applied Nutrition (LSE: APN). This company’s been growing at a prolific rate. For the six-month period to the end of January (its H1 FY2026) for example, revenue was up a whopping 57% year on year to £74.5m.

However, like a lot of companies, it’s seen its share price pull back recently. Note that a lot of the hit here came after the company said that the Middle East conflict was likely to cause disruption to shipping routes and potentially hit growth in the second half of its financial year (so there’s some near-term risk).

Taking a five-year view however (our preferred investment horizon here at The Motley Fool), I think this stock could do really well and is therefore worth a closer look. Trading on a P/E ratio of about 18 today, I see a lot of investment potential.

The post 5 compelling investment ideas for a Stocks and Shares ISA in 2026 appeared first on The Motley Fool UK.