So why’s that? Well, two reasons. Firstly, it’s cheap, and second, it’s operating in a sector that’s both surging and appears to offer long-term resilience.

The company’s Sanmina Corporation (NASDAQ:SANM). It provides end-to-end manufacturing services for complex electronics and precision components across industries including communications, industrial, defence, automotive, and medical technology.

The company has also positioned itself strategically within AI infrastructure, recently acquiring the ZT Systems data centre manufacturing business from AMD for up to $3bn, significantly enhancing its scale and presence in the fast-growing cloud and AI markets.

It’s now an $8bn company, with a modest net debt position around $1bn.

Why am I so interested?

The first part of my interest is the valuation (pretty much always my starting point). The company trades at 14.5 times forward earnings. This stands out because the sector average is actually around 23.5 times. With that in mind, we can already observe a 38% discount.

But none of this would matter if the company wasn’t growing earnings. And it is. The company is expected to grow earnings by around 25% annually over the medium term.

This leads us to a price-to-earnings-to-growth (PEG) ratio of 0.58. This is a 63% discount to the sector average and potentially suggests that the company is undervalued by more than half.

But, there’s another interesting comparison for me. And that’s with Celestica, a company I invested in over three years ago and have pretty much closed my positions now. It operates in a very similar market to the new-look Sanmina, but there’s a big difference, and that’s the valuation. Celestica’s up 3,083% over five years.

Celestica trades at 32 times forward earnings and has a PEG ratio of 0.72. Still potentially undervalued on a growth-adjusted perspective, but much pricier than Sanmina.

Here’s how the two companies stack up.

While Celestica leads on revenue and margins, Sanmina isn’t far behind. It isn’t clear at all why Celestica trades at more than double Sanmina’s valuation. There’s definitely cause to argue that Sanmina should be trading much higher than it is today — maybe double. And that’s just a near-term misplacing issue.

The real deal?

There’s a lot to like about Sanmina. But investors will want to see whether ZT Systems’ integrations go to plan. Even though the stock looks cheap, it’s had a good run and any setbacks could see it retreat.

Nonetheless, I’m very bullish here, which is why I bought it and think others might consider it too. I feel investors just need some good operational news to really get the stock moving again.

The post It’s not quite the next Nvidia, but could this US stock double my money in 2026? appeared first on The Motley Fool UK.

So how does someone actually get there? Let’s imagine you’re starting from nothing.

1. Open a Stocks and Shares ISA
No investing can happen inside the tax wrapper until one is set up. Most major platforms including Hargreaves Lansdown and AJ Bell, offer them. The process is usually straightforward and quick.

2. Make continuous contributions
Up to £20,000 can be invested each tax year. Consistently using the allowance is one of the most powerful wealth-building tools available in the UK.

3. Invest wisely
Investors can lose money if they make poor decisions. It happens to the best of us, but data-driven investments typically perform much better than hunches.

4. Reinvest returns
In the early years, reinvesting income helps the portfolio compound faster. Income today becomes much larger income later.

5. Know the rough target
A £3,000 monthly income equals £36,000 per year.
At a 4% yield, that requires a portfolio of around £900,000.
At a 5% yield, closer to £720,000.

That may sound large — but decades of compounding plus tax-free growth can make it achievable.

6. Think long term
Building a sizeable portfolio doesn’t happen overnight. Regular investing, reinvestment, and time in the market do most of the heavy lifting.

Reaching £720,000

There are so many hypothetical ways to turn an empty ISA into one worth £720,000. But here’s just one example. Let’s imagine someone invests £950 per month and achieves an annualised growth rate of 10% — this is strong but only just above the average ISA return in recent years. In this scenario, it would take just 20 years to exceed £720,000.

Where to invest to beat the market?

As I said before, invest poorly and you could lose money.

Well, I definitely think there are some overlooked US technology stocks at this time. Marvell Technology and Duolingo are two that stand out from a valuation perspective — I think both are worth considering, but I’m yet to buy either.

One of my favourites, however, is already in my portfolio.

Sanmina Corporation (NASDAQ:SANM) is an electronics manufacturing specialist that’s increasingly gaining exposure to higher-growth areas like cloud and AI infrastructure.

Its acquisition of ZT Systems’ manufacturing operations has strengthened its position in data centre hardware, bringing it into more direct competition with firms such as Celestica.

Despite this shift up the value chain, the shares still trade on a relatively modest forward earnings multiple (14.8 times vs Celestica at 33.2 times), suggesting the market is overlooking the company.

That could leave room for re-rating if execution is strong.

However, margins remain thinner than Celestica. What’s more, investors will want to see successful integration of the ZT assets. Any delays, cost overruns, or weaker-than-expected demand from hyperscale customers could weigh on profitability.

Nonetheless, I think it could be a real winner and certainly worth considering.

The post Want a £3,000 a month passive income, but don’t have an ISA yet? Follow these steps… appeared first on The Motley Fool UK.

At £60,000 a year, this level of income would comfortably exceed the UK’s average salary, while benefitting from the tax shelter of an ISA. It’s a great goal, but one that will undoubtedly take time to achieve.

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.

Where to start?

The maths is the natural place to start. If an investor targets a sustainable 5% annual return from a diversified portfolio — combining dividends, interest, and some capital growth — generating £60,000 a year would require an ISA valued at around £1.2m.

Using a more cautious 4% assumption, the figure rises to £1.5m. These numbers may look intimidating, but they’re not unrealistic over a multi-decade timeframe.

Now, the average Stocks and Shares ISA in the UK is valued at over £65,000. With that in mind, average Brits would need to continue contributing and investing for a while.

There are lots of hypothetical ways to turn savings into £1.2m, but one involves contributing £950 a month over 20 years, assuming a 10% annualised return. Interestingly, the average ISA return in recent years has been around 9.6%, although that can’t be guaranteed.

As we can see from the graph, over time, compounding does much of the heavy lifting, as returns themselves begin to generate further returns. Regular contributions, annual ISA allowances, and reinvestment can materially reduce the reliance on headline yields alone.

What’s more, compared with buy-to-let property, a stocks and shares ISA offers greater liquidity, far lower hassle, and none of the tax or regulatory creep that landlords have faced in recent years.

Invest poor, lose money

Of course, as with anything, do it badly and you could lose money.

That’s why I used a numbers-driven approach to investing. It’s not about hunches, it’s about what the numbers tell me — especially the valuation metrics.

So, which stocks do I think are worth considering today?

Well, one that stands out is Sanmina Corporation (NASDAQ:SANM). Sanmina manufactures complex electronic systems and, following its acquisition of ZT Systems’ manufacturing arm, now competes directly in cloud and AI server infrastructure. Following the takeover, there are plenty of similarities with one of my previous favourite Celestica, which I’ve held from the bottom to the top.

What do I like so much about it? Well, it’s currently trading at 13.3 times forward earnings. That’s less than half the average for the Nasdaq. What’s more, it’s one of the fastest-growing companies out there with average earnings growth for the next two years set to be around 57%.

On a growth-adjusted basis, it’s trading at around 25% of Celestica’s valuation. And that makes me very bullish, especially when we look at the below table.

However, there are still risks to consider. Margins are still a little thin compared to its peers and investors will want to see more evidence that the company has successfully incorporated ZT Systems. But I still think it’s worth a look.

The post How much does the average Briton need in an ISA for £5,000 of monthly passive income? appeared first on The Motley Fool UK.

One way to top up is through a self-invested personal pension (SIPP).

To receive an extra £2,000 per month from a SIPP, you need to consider how much you can safely withdraw each year. A common rule of thumb is the 4% withdrawal rate. At that rate, generating £24,000 a year would require a pension pot of around £600,000.

However, a higher yield would bring that required number down. At 5%, you would need £480,000, and at 6% just £400,000. The issue is, higher yields are typically less sustainable.

Making plans

If you aim to retire in 18 years, you can work out how much to contribute each month depending on expected growth.

However, it’s important to note that a SIPP also comes with a tax advantage. Contributions receive tax relief at your highest marginal rate, which effectively reduces the cost of saving. For instance, a £1,000 contribution from a basic-rate taxpayer only costs £800 after tax relief, while higher-rate taxpayers benefit even more.

Assuming an annualised growth rate of 10% — just above long-term Stocks and Shares ISA average returns — and £800 a month of contributions plus basic-rate tax relief of £200, it would take 18 years to reach the £600k mark.

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.

Where to invest?

Of course, this is great in theory, but investors need to know where to put their money. Bad investments can lose money.

My colleagues and I at The Motley Fool believe a well-researched portfolio of stocks is a best way to maximise returns over the long run.

And one stock I believe is strongly worth considering is Sanmina Corporation (NASDAQ:SANM), offering exposure to long-term growth trends in AI and cloud infrastructure at a reasonable valuation.

A recent acquisition transforms the company from traditional provider of electronic manufacturing services into a company that’s capable of delivering fully integrated data-centre racks (AI servers) for big tech companies.

This shift increases scale, deepens customer relationships, and moves Sanmina closer to the strategic infrastructure model seen in peers like Celestica. Yet, unlike Celestica, which trades on much higher multiples, Sanmina is trading at a forward price-to-earnings of 17.3, around 34% below the sector median, with a price-to-earnings-to-growth ratio of 0.69.

Moreover, enterprise value-to-sales also looks similarly discount at 1.08 versus the sector’s 3.76.

The main risk is execution. Scaling up manufacturing to build data-centre servers and winning business with hyperscalers is complex, and any delays or operational issues could impact growth expectations. It’s already got a deal to work with AMD — from whom it’s acquiring ZT — but Sanmina still needs to prove it can reliably deliver full racks at scale.

For me, however, this is an outlier in the sector for value and growth.

The post Here’s how to try and build a £2k-per month SIPP to boost the State Pension appeared first on The Motley Fool UK.

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.

The post Companies that could make my Stocks and Shares ISA blossom in 2026! appeared first on The Motley Fool UK.

At a 5% annual yield, that income equates to £12,000 a year — implying a portfolio worth roughly £240,000. Reaching that figure doesn’t require a windfall, but it does require starting early and allowing reinvested returns to do the heavy lifting inside a Stocks and Shares ISA.

The challenge then becomes choosing investments capable of growing capital steadily before eventually supporting a sustainable income stream.

The beauty of an ISA is that the compounding and the dividends are free from capital gains and tax.

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.

One stock to consider

To reach a £240,000 portfolio, the early focus should be less on headline yield and more on total return.

Businesses with strong cash generation, structural growth drivers, and scope for future shareholder returns tend to offer better long-term outcomes than high-yield but low-growth shares.

One stock worth considering in this context is Sanmina Corporation (NASDAQ:SANM).

Sanmina’s a US-listed electronics manufacturing specialist and it sits at the heart of several long-term growth trends, including cloud computing, AI infrastructure, and advanced industrial systems.

The company has recently moved further up the AI value chain following its acquisition of ZT Systems’ data-centre infrastructure manufacturing business. This deal materially reshapes what Sanmina does and how it earns money.

Historically, Sanmina was best described as a high-quality electronics manufacturing services (EMS) provider, producing boards, sub-assemblies, and finished units to customer specifications. The ZT transaction changes that profile.

With ZT’s assets, Sanmina can now manufacture and integrate entire data-centre racks, combining compute, networking, power, and advanced cooling into fully assembled, tested systems ready for deployment.

This pushes the group beyond component-level manufacturing into systems-level delivery, where average selling prices are higher, customer relationships are deeper, and switching costs are materially greater.

Importantly, Sanmina also becomes a strategic manufacturing partner to AMD (from whom it’s buying ZT) for cloud and AI infrastructure. This means it’s much more embedded into hyperscaler supply chains. Over time, this shift should support a higher-quality revenue mix, stronger margins, and more resilient earnings than traditional EMS alone.

The value proposition

From a valuation perspective, the shares look attractive relative to growth prospects. Sanmina trades on a forward non-GAAP price-to-earnings of 15.9, around 35% below the sector median, while its forward non-GAAP price-to-earnings-to-growth (PEG) ratio of 0.63 suggests growth isn’t fully reflected in the share price.

This combination of strong earnings growth and modest valuation makes it worth considering. Especially when we compare it with Celestica. Celestica’s an EMS player with significant AI offerings. I banged on about it for ages, but it now trades at 51 times forward earnings having surged 3,853% over three years.

To me, this comparison suggests Sanmina might have a lot of room to run. However, it’s worth noting that the ZT deal could compromise the balance sheet, especially if there’s any slowdown in global AI spending.

The post How much do you need in an ISA to target £1,000 of monthly passive income? appeared first on The Motley Fool UK.