Here, I’m going to highlight two world-class stocks that are currently trading about 20% below their highs. In my view, these shares are very much worth considering for a portfolio today.

This legendary growth stock looks cheap

First up, we have a blue-chip growth stock, Amazon (NASDAQ: AMZN). It’s currently trading for around $200, down from near $250 earlier in the year.

At that price, I see a real opportunity here. Because looking at analysts’ earnings projections, the price-to-earnings (P/E) ratio is only 21 using next year’s forecast.

That strikes me as low given the long-term growth potential. This is a company that’s a global leader in e-commerce, cloud computing, artificial intelligence, robotics, self-driving cars, and space satellites, so it has a long growth runway ahead of it.

Note that the average analyst price target is $280. So, analysts seem to share my bullish view.

Personally, I don’t think the company is getting enough credit for its AI potential. Not only has Amazon developed its own AI chips but it also offers access to a broad range of AI solutions and is developing its own agentic AI software to automate functions (according to a recent report from Bloomberg).

Now, there are a few risks to be aware of. The biggest is probably a consumer spending slowdown caused by AI job losses.

This scenario might not affect Amazon as much as some other retailers as it sells a lot of cheap goods and has millions of customers locked in with Prime memberships. But it’s something to keep in mind.

Analysts see the potential for 50% gains

The other stock I want to highlight is international payments powerhouse Wise (LSE: WISE). It’s currently trading for around 915p, down from above 1,150p in September last year.

Again, I see a lot of value here. If we take the earnings forecast for the financial year starting today (1 April), the forward-looking P/E ratio is only 24.

Considering the rate at which this company is growing its revenues and earnings, that seems very reasonable to me. For the quarter ended 31 December 2025, underlying income was up 21% year on year to £424.2m, fuelled by a 26% increase in cross-border payments volume.

It’s worth noting that Wise’s earnings don’t always rise in a straight line. This company likes to continually make its services better for customers and this can temporarily impact its profitability.

This can spook short-term investors and lead to share price weakness (it’s one of the reasons the share price is down at the moment). A lot of investors get frustrated when they don’t see linear earnings growth.

I believe that this stock has all the right ingredients to be a great long-term investment, however. It’s worth noting that analysts at JP Morgan recently raised its target price to 1,385p – that’s about 50% above today’s share price.

The post 2 world-class stocks to consider buying while they’re down 20% and ‘on sale’ appeared first on The Motley Fool UK.

Right now, shares in some outstanding businesses are trading at unusually low prices. And when that happens, investors should be thinking about piling in. 

Long-term quality

When it comes to investing, I tend to think that the quality of the underlying business is what matters most over the long term. But even the best companies have their ups and downs. 

One thing that can cause this to happen is when a firm invests heavily to boost its competitive position. That causes profit margins to contract and the stock starts to look expensive. 

A lot of the time, though, this is just the company investing in its own growth. And the results show up in the cash flow statement sooner or later. 

In the short term, though, it can cause share price volatility. But this is something investors who think in years or decades – rather than weeks or months – can take advantage of.

Wise

UK-listed Wise (LSE:WISE) is a good example of this. It feels like every time the payment processor reports earnings, its take rate (the amount it charges) is lower than it was before.

Almost every time, the stock market interprets this as a sign of weakness – why would the firm charge less unless it’s facing competitive pressure? In reality, though, it’s the opposite. 

Driving down prices widens the gap between the business and its nearest competitor. And it means that anyone looking to send money has an even stronger reason to use the UK company. 

The risk is that banks start bringing down their own charges for cross-border transactions. But while that threat can’t be eliminated, bringing down its own take rate does help Wise to limit it.

MercadoLibre

MercadoLibre (NASDAQ:MELI) is in a similar situation. In its most recent update, it reported 45% revenue growth and an 11% decline in earnings per share – the stock fell 14% as a result. 

The main reason margins fell is that the e-commerce company made some big investments. It lowered its threshold for next-day delivery and invested heavily in new fulfilment centres.

Those might weigh on short-term profits, but they significantly strengthen the firm’s long-term position. Competitors now have to offer something similar or risk being left behind.

Without MercadoLibre’s scale, that’s extremely hard to do without losing money. And that’s why I think the stock market’s reaction is the wrong one from a long-term perspective.

Be greedy

Most of the time, the stock market knows that Wise and MercadoLibre are outstanding businesses with terrific growth prospects. And it prices them accordingly. 

Right now, though, I think investors are focusing on the risks. In Wise’s case, that’s the possibility of geopolitical tensions making it harder to facilitate transactions across borders. 

With MercadoLibre, there’s a threat of higher oil prices reigniting hyperinflation in Argentina. The situation is just starting to come under control, so that could be a real setback.

A lot of the time, investors ignore these risks – and that’s a mistake. But it’s also a mistake to focus on them too much, which is what I think is going on right now. 

As a result, I think these are two growth stocks that investors should consider buying in March. They’re extremely high-quality businesses trading at unusually low multiples.

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Here are two that I think long-term investors should consider snapping up in March (or before) for an ISA.

Down 25%

Let’s start with Wise (LSE:WISE), which surged 17% a month ago but has since lost almost all those gains.

The reason for the rise was strong trading in the money transfer firm’s Q3 2026 (ended 31 December). It said cross-border volume jumped 26% year on year at constant currency to £47.4bn, helping underlying income rise 21% to £424.4m.

By offering a cheaper and faster service, Wise is aiming to become the world’s major network for moving money around. And it’s making strides towards this, with 74% of transfers made instantly during the quarter, up from 65% the year before.

A deal was signed to deliver Google Pay for customers in the Philippines, while the Wise travel card was introduced in India. The firm ended the quarter with nearly 11m active customers, including a growing number of businesses.

Of course, as Wise moves deeper into complex markets like India and South Africa, regulatory and compliance risks multiply. Revolut also poses a potential competitive threat, with its significantly larger customer base.

However, on balance, I think the stock’s worth considering after falling 25% since September. It’s trading at 22.5 times forward earnings, which I don’t see as expensive for a solidly profitable firm with plenty of growth left in the tank.

Finally, it’s worth noting that Wise will list its shares in New York by June. This should raise the company’s profile in a major growth market while opening up its shares to a much larger pool of US investors.

Down 44%

The second UK share I want to highlight is Autotrader (LSE:AUTO). This FTSE 100 member has nosedived 44% in just six months!

There appears to be two main reasons. First, the company has upset some car dealers with its Deal Builder product, resulting in some of them cancelling and downgrading their subscription packages.

However, management’s working hard to resolve these gripes. And while most car buyers continue to browse Autotrader’s platform, sellers will need to be there too. I don’t see this issue breaking the firm’s powerful network effect.

Second, the stock’s been caught up in the whole data/software sell-off. For Autotrader, the fear appears related to disintermediation.

In other words, if a buyer can just ask an AI app, “find me a white Mercedes A45 within 50 miles of Luton with full service history”, the AI may pull data directly from dealer websites. Autotrader could start losing its gatekeeper status.

While a potential risk, it’s worth noting that Autotrader previously survived the competitive threat from Facebook Marketplace. The brand is highly trusted, with 82% of users habitually going directly to its site. For the other 18%, Autotrader’s increasing its visibility inside AI apps like ChatGPT. 

Looking ahead, the government’s new electric vehicle grant’s expected to support further volume growth.

And with Autotrader trading at just 12.5 times forward earnings, while buying back loads of its own shares, I think this stock dip looks attractive and worth thinking about.

The post 2 excellent UK shares to consider for a Stocks and Shares ISA in March appeared first on The Motley Fool UK.

Let’s take a look at what caused the sudden jump and whether this growth stock still looks good value.

A strong quarter

The reason for today’s rise relates to a strong Q3 FY26 trading update from the money transfer company.

Cross-border volume surged 26% on a constant currency basis to £47.4bn, helping drive underlying income 21% higher to £424.4m. For context, analysts were expecting £46.8bn in cross-border volume and £412.2m in underlying income. So the firm beat expectations.   

Active customers grew 20% to 10.9m, up from 7.5m two years before, with customer holdings rising 34% to £27.5bn. Wise Business customers increased 25% to 542,000 as volumes grew strongly (+37%). Again, these figures were ahead of expectations. 

Wise delivered 74% of payments instantly, up from 65% the year before, while keeping its take rate steady at 0.52%.

And it was another productive quarter, as it launched a Wise travel card in India, introduced Google Pay for customers in the Philippines (the first non-bank to do so), and secured a conditional licence approval in South Africa.

The firm is now directly integrated into the domestic payment systems of eight countries, including Japan, the Philippines, and Brazil.

Looking ahead, management now expects the full-year underlying pre-tax profit margin to be towards the top end of its medium-term range of 13%-16%. This includes costs related to Wise’s dual listing, which is expected to happen in the first half of 2026. 

Our financial performance in Q3 and throughout FY26 has been strong and we remain on track to meet our guidance.
CEO Kristo Käärmann

Risks and valuation

Unsurprisingly, I’m happy with what I read here as a shareholder. The scalable firm is making progress towards its mission of becoming ‘the’ network for the world’s money. Volumes and customers are both trending in the right direction.

The stronger-than-expected uptick in business customers is encouraging, as they obviously move bigger sums of money around than individuals. The long-term opportunity here is huge.

Meanwhile, the listing in the US should increase Wise’s profile further. And it could also see Wise’s valuation rise further.

Currently, the forward earnings multiple is around 26, which some might think is pricey. However, it’s less than Nasdaq-listed rival Remitly Global, which trades at 38 times forward earnings, according to MarketScreener.

Risks worth noting here include rising competition from the likes of Revolut and big foreign exchange swings. Additionally, low-cost stablecoins are set to play a bigger role in transfers, creating a level of uncertainty.

That said, while stablecoins can make moving money faster, messy global regulation makes widespread adoption unlikely for the foreseeable future. 

Also, Wise said it could one day reduce its own internal costs by using stablecoins, allowing it to lower fees even further for customers. So, I’m not particularly worried about this, as things stand. 

Foolish takeaway

Is Wise stock still worth considering after today’s big rise? I think so, as the firm’s growth engine is humming along nicely and the stock isn’t obviously overvalued.

Sending money across borders is only going to grow in future, while Wise continues to take market share from traditional banks.

The post Up 17% today! Is Wise still worth considering for a Stocks and Shares ISA? appeared first on The Motley Fool UK.

Here are a pair of top fintech firms that I think deserve closer attention right now. 

Cross-border payments 

First up is Wise (LSE:WISE), formerly TransferWise. The company helps individuals, businesses, and financial institutions move money quickly and cheaply across borders.  

In the six months to the end of September, Wise’s cross-border volume increased 24% to £84.9bn, while customer holdings jumped 37% to £25.3bn. Revenue rose 11% to £658m, up from £397m three years earlier.  

If the difference between cross-border volume (24%) and revenue growth (11%) stands out like a sore thumb, that’s to do with Wise’s disruptive business model. Its mission is to drive prices as low as possible to capture market share.

Wise’s average cross-border take rate is at 0.52%, down from 0.64% three years earlier. But this is allowing Wise to capture share in a truly massive global market estimated at roughly £32trn per year. 

Of course, such a large opportunity attracts a fair amount of competition, which adds risk. Wise will have to keep innovating to stay nimble and fend off rivals. 

Meanwhile, with the stock trading at a premium 22.5 times earnings, any growth hiccups could cause problems.  

However, with the share price down 28% since September, I reckon this is a potential buying opportunity worth taking seriously.

Today, Wise has just 1% share of the global small and mid-sized business market, and significantly less in the large enterprise segment of the market. This shows the potential growth opportunity ahead.

Latin American juggernaut

Let’s head to Latin America now with Nu Holdings (NYSE:NU). This is the firm behind Brazilian digital lender Nubank, which continues to grow at a torrid pace.

In Q3, it added another 4.3m new customers, bringing its total to an astonishing 127m. That would be impressive if Nu was a globetrotting lender like HSBC, operating in 57 countries. However, it’s currently in just three (Brazil, Mexico, and Colombia)!

Founded in 2013, Nu is now the third-largest financial institution in Brazil by number of customers, where more than 60% of the adult population use its app. The penetration rate in Mexico (14%) and Colombia (10%) is lower but growing strongly.

This expansion reinforces Nu’s position as the leading digital bank in Latin America and one of the leading fintech platforms globally. 
Nu, Q3 2025

In Q3, revenue surged 39% at constant currency to $4.2bn, with net income rising by the same amount to reach a record $783m.

Meanwhile, the company’s annualised return on equity (ROE), a key profitability metric, reached a record 31%. This signals high profitability alongside the rapid growth. 

The market has rewarded this top-notch performance with a 47% share price rise over the past year. On paper, this makes the stock look pricey at 32 times earnings. If political instability or inflation hits one of its markets, it might pull back sharply.

However, given the high rate of earnings growth here (above 35% between 2025 and 2027), I feel this premium valuation is justified. The forward earnings multiple actually falls to 15 by 2027, making this another top fintech stock to consider for an ISA.

The post 2 top fintech stocks to consider buying for an ISA appeared first on The Motley Fool UK.

However, looking at the latest report and projections from expert institutional investors, there are three UK growth stocks that might be worth a closer look.

1. Cloud software & AI growth

Sage Group’s (LSE:SGE) one of the UK’s leading providers of business management tools for small- and medium-sized enterprises (SMEs). Its cloud platform handles critical tasks like accounting, payroll, and human resources that millions of businesses rely upon around the world.

Lately, its share price has stumbled a bit, falling by around 17% over the last 12 months. But when looking at the underlying fundamentals, the opposite seems to be happening. In its 2025 fiscal year (ending in September), the group’s annual recurring revenue jumped by 11%, with underlying operating profits climbing an even faster 17%.

What’s more, with the launch of new AI tools like Sage Copilot, the team of analysts at Jefferies believes it could unlock further incremental pricing power, driving more long-term growth.

There’s some uncertainty regarding the macroeconomic landscape that could pressure software spending by SMEs. Nevertheless, even with this risk factor, these experts have issued a 1,350p share price target. And with a 26% potential capital gain on offer, that warrants a closer look.

2. Fintech money transfers

Another UK growth stock that’s found itself getting sold off lately is Wise (LSE:WISE). The fintech platform enables over 15.5 million individuals and businesses to transfer money across the globe almost instantly.

With such a vast technological advantage, banking giants such as Morgan Stanley and Standard Chartered have decided to adopt rather than compete against the platform. And with more financial institutions opting to piggyback Wise’s infrastructure, the company appears uniquely positioned to disrupt the cross-border payments sector.

Wise isn’t the only fintech attempting to reinvent international payments. And with other technologies like stablecoins offering alternative cross-border transfer solutions, there are some significant competitive threats.

But with analysts at Rothschild upgrading the shares to a Buy recommendation with a 60% growth forecast, Wise looks like a strong contender as a stock worth considering to buy now. That’s why I’ve actually already added it to my growth portfolio.

3. Data analytics

The third growth stock flagged by experts is RELX (LSE:REL). It’s another industry leader this time in the data analytics space, offering a suite of products that generate recurring subscription revenues for the business.

Unlike software players like Sage, RELX provides the insights rather than the tools that enable companies to make strategic decisions. And with management aggressively investing in AI and automation, the business has been undergoing an impressive transformation.

Margins are steadily expanding, organic growth continues to bolster cash flows, and over £1.5bn is being deployed via a share buyback scheme to capitalise on recent share price weakness.

There are, of course, other AI analytic vendors looking to encroach on its market share. And with regulations surrounding data practices only rising, compliance becomes increasingly more challenging.

But with RELX already sitting at the heart of the decision-making process for Fortune 500 companies, the group undoubtedly has an edge over its rivals, making it a stock worth investigating further, in my opinion.

The post 3 top growth-focused stocks to buy in January 2026, according to experts appeared first on The Motley Fool UK.

Here are three companies to consider investing in.

Massive dividends

UK investors love high-yield dividend stocks so let’s start with one of these, M&G (LSE: MNG). It’s a FTSE 100 savings and investment company that has been around for a long time.

This isn’t the most exciting company in the world. But it’s a reliable dividend payer, having rewarded investors with income every year since 2020, shortly after it was split off from Prudential.

Currently, the yield here is very attractive. With analysts expecting a payout of 21.4p per share for the 2026 financial year, it’s around 7.5%.

Forecasts can be off the mark, of course. But I think there’s a decent chance the payout will be close to that prediction as the company is performing well at the moment and the payout for 2024 was 20.1p per share.

It’s worth noting that a meltdown in the financial markets is a risk here – this could impact asset values and profits. With the shares trading on a price-to-earnings (P/E) ratio of around 10 and having recently broken out of a five-year sideways trading pattern, however, I reckon they’re worth a look.

Huge growth potential

Of course, some investors (like myself) are looking for growth instead of income. So, let’s zoom in on this area of the market.

One UK-listed stock I like here and believe is worth considering is Wise (LSE: WISE). It’s a leading international money transfer company.

This company is growing at an impressive rate right now. For the year ending 31 March 2026, revenue is expected to be approximately £1.8bn, up about 26% year on year.

It doesn’t look like this growth is fully reflected in the valuation though. Currently, the P/E ratio is only 25, which isn’t that high for such a stock.

In the long run, I see a ton of potential in this stock. Because this company is really scalable and so far it has really only scratched the surface in terms of capturing the global payments market.

That said, new payment technologies like stablecoins are a risk.

Growth and income

If an investor is seeking both growth and income, that’s an option too. One stock worth highlighting here is defence giant BAE Systems (LSE: BA.).

On the growth side, this company looks well placed to benefit from increased spending on defence from NATO members. In the years ahead, these countries are expected to spend significantly more on things like ammunition, combat vehicles, and cybersecurity solutions.

Meanwhile, on the income side, there’s a dividend yield of nearly 2.5%. I wouldn’t be surprised if that’s higher than the interest rates most high-interest UK savings accounts are paying by the end of 2026.

Now, a longed-for sudden end to the geopolitical conflict taking place in the world today is a risk tot he stock. This could hit sentiment towards it and mean a slowdown in orders.

I like defence as a long-term theme, however, so I reckon BAE is worth a look, especially as the average price target is about 20% higher than the current share price.

The post 3 brilliant British shares to consider buying for 2026 appeared first on The Motley Fool UK.

On an annual basis, that roughly translates into a retirement income of £12,548. But sadly, it’s not actually enough to live comfortably.

The good news is, by making smart investment decisions today, investors can get much closer to this goal. In fact, with a well-constructed ISA portfolio, it’s possible (if not guaranteed) to earn another £25,096 a year – double the 2025/26 State Pension – entirely tax-free.

Here’s how.

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 power of compounding

Following the 4% withdrawal rule, a portfolio needs to be worth approximately £627,400 to double next year’s State Pension.

Luckily, even with no savings at the age of 40, there’s still plenty of time to build up a chunky nest egg.

By making intelligent investment decisions, an ISA can go on to earn remarkable returns in the stock market. Even if that translates into 10% annualised gain (slightly ahead of the UK stock market average), investing £500 a month will grow into £630k in approximately 25 years. And thanks to compounding, those who are willing to wait a full three decades could have over £1.1m!

Of course, the question now becomes, what stocks are able to generate a 10% annualised return over the next 30 years?

Finding potential long-term winners

Maintaining double-digit returns over the long run sounds easy on paper. But in practice, it’s far more challenging. That’s because a lot can happen over the coming decades. And companies that have been outperforming today might not still be on top in the future.

Having said that, the list of potential winners can be narrowed down by looking exclusively at the companies with ample untapped growth opportunities. And one UK stock that I think could be in this category right now is Wise (LSE:WISE).

The cross-border payment specialist enables individuals and businesses to send and receive money abroad almost instantly at a fraction of the cost compared to traditional methods. And while it already has over 15 million active users, this might be the tip of the iceberg.

That’s because big banks have noticed the power of Wise’s payment technology. And rather than trying to fight it, they’re embracing it.

Morgan Stanley, Standard Chartered, and Raiffeisen Bank International are just a few of the leading financial institutions that now rely on Wise for their own international payments, making each of their customers an indirect customer of Wise. Don’t forget, Wise makes its money by charging small transaction fees.

Today, these institutionally sourced revenues make up just 5% of the group’s top line. But in the long-term management estimates, this could grow to over 50% – a massive growth opportunity.

What could go wrong?

Of course, Wise isn’t the only fintech aiming to disrupt the international payments space. This rising level of competition limits management’s ability to increase its fees, making the story all about volume.

Powering institutional money transfer certainly helps in that regard, but it nonetheless exposes Wise to shifting economic and geopolitical landscapes that can have a profound impact on international money transfers.

Nevertheless, with such enormous untapped growth potential, I’ve decided to take the risk and invest. And I think investors seeking to secure their retirement may want to think about doing the same.

The post How much do you need in an ISA to double the 2026 State Pension? appeared first on The Motley Fool UK.

As a result, I think the equation is much more favourable for investors. And that’s something I’m thinking of taking a closer look at for my Stocks and Shares ISA.

Wise

Wise (LSE:WISE) is a stock I’ve changed my mind on several times over the last few years. But I’m feeling a lot more positive about it now than I have been before. 

The company’s 2025 numbers reveal what I used to think was the big problem. The firm’s profit for the year was £417m, but £444m came from excess interest on customer balances.

If interest rates fall this is likely to evaporate. And this is why I didn’t buy the stock before – I was concerned about what its profits might look like if this happened.

That’s still the case, but I hadn’t realised quite how much the firm has already benefitted from this. It’s given Wise a way to build out its network without raising debt or issuing shares.

As a result, the firm’s customers are up 22% (personal) and 11% (business) in the last year. And the company has managed to bring its take rate down to its lowest level in history. 

That’s bad for Wise’s short-term profits, but it significantly strengthens its long-term competitive position. So with the stock down this year, I’m taking another look in December.

Airbnb

When Airbnb (NASDAQ:ABNB) went public five years ago, I had an idea that I’d be willing to buy it somewhere around $80 a share. It emerged at around $130 and didn’t really look back. 

Now though, it’s trading at $117 a share and the company’s revenues have roughly tripled. So I think the value equation is much more favourable today for investors. 

The key points about the business are still the same. The fact it doesn’t own and maintain the properties on its platform makes it highly cash generative and its market position is very difficult to disrupt.

Revenue growth has been slowing quite dramatically over the last five years, which is why the stock hasn’t been a good investment. And that highlights some of the risks with the business.

These include oversupply driving down prices, uneven quality from hosts creating reputation risk, and shifting regulations. All of these have been challenges for Airbnb recently.

The kind of growth the firm saw after the pandemic may not be about to be repeated. But at the current level, I’m looking seriously at adding the stock to my portfolio.

Stealth stocks

Neither Wise nor Airbnb has crashed in a meaningful way over the last five years. In each case, though, the underlying businesses have grown significantly. 

As a result, they’re much better value than they once were. And I’m planning on taking a closer look at both as potential additions to my portfolio in December.

Focusing on growth stocks that have fallen sharply is one way of looking for opportunities. But I think investors who do this risk missing out on some of the best shares to buy.

The post 2 stealthy growth stocks I’ve got my eye on in December appeared first on The Motley Fool UK.

Let’s take a closer look at why most analysts think this stock is currently undervalued.

Transferring money wisely

Before starting the company in 2011, Wise’s two Estonian founders lived in London. One was paid in euros and needed pounds, while the other was paid in pounds and had a mortgage in euros back in Estonia.

Instead of being stung by banks’ hidden mark-up fees on foreign currency transfers, they started swapping money locally through their own accounts at the real mid-market rate. 

Put simply, one got the pounds he needed and the other the euros, without money crossing borders. And this simple peer-to-peer hack became TransferWise (now just Wise). 

Fast forward 14 years, the company is helping millions of people and businesses move about £170bn across borders each year. And 74% of transfers are now done instantly.

A growing platfrom

Earlier this month, Wise reported solid H1 2026 results (for the six months to 30 September). Active customers grew 18% year on year to 13.4m, while cross border volume jumped 24% to £84.9bn. This translated into 13% growth in underlying income (£749.5m).

Meanwhile, customer holdings exceeded £25bn, jumping 34%. This is good for two key reasons. The first is trust, as people don’t leave money sitting in an app unless they believe it’s safe and worth doing. And second, higher account balances earn Wise more interest income.

As well as more people and businesses sending money abroad through Wise, some of the world’s largest financial institutions are also plugged into its infrastructure. These include Itaú Unibanco (Latin America’s largest bank), Standard Chartered, and Morgan Stanley. And it onboarded Unicredit and Raiffeisen Bank during the period.

However, underlying profit fell 17% as the company chose to invest aggressively in marketing, infrastructure, and more staff to drive growth.

Bullishness

Back in March, JPMorgan Cazenove initiated positive coverage on the stock. It said: “We see a long runway for Wise to continue capturing market share as it further invests in growth, sustaining mid-to-high-teens percentage sales and gross profit growth”.

Earlier this week, the broker assigned a bullish 1,375p price target on the stock. That’s almost 47% above the current level of 937p, as I write. And it’s not alone, as 13 out of 18 analyst teams rate Wise a Buy.

Dip-buying opportunity

Of course, a stock isn’t guaranteed to go up just because analysts like it. And Wise faces lots of competition from fintechs (including Revolut) and legacy banks.

However, the company’s strategy of lowering its take-rate to drive higher usage and capture market share is working. Meanwhile, it’s embedding itself ever deeper into the financial systems of enormous markets like the US, Brazil, India, and Japan.

Long term, I’m as bullish as JPMorgan Cazenove. I think the Platform segment serving large businesses could be a sleeping giant inside Wise. Here, its penetration rate globally is significantly less than 1% today.

With the stock trading at a reasonable valuation at 937p, and down 19% since June, I reckon this is a dip-buying opportunity worth thinking about. I’ve just bought more shares myself.

The post Can my favourite UK stock soar 47% in my ISA by 2026? This top broker thinks so appeared first on The Motley Fool UK.