21 top growth stocks for 2026
After its 2025 share tips outperformed the wider stock market, Graeme Evans names this team of City analysts’ best growth ideas for this year.
7th January 2026 13:35
by Graeme Evans from interactive investor
Growth-focused investors have been urged to consider Kier Group (LSE:KIE), MITIE Group (LSE:MTO), Renishaw (LSE:RSW) and Avon Technologies (LSE:AVON) after a leading City bank named 21 top stocks for 2026.
Peel Hunt’s growth choices, which also include Rightmove (LSE:RMV) and Atalaya Mining Copper SA (LSE:ATYM), span 10 sectors and are led by support services and technology with four selections each.
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Last year’s 19-strong list produced a weighted-average return slightly better than the FTSE 100 and FTSE All-Share at 25%. The stand-out performer for the second year running was Pan African Resources (LSE:PAF), which delivered a 257% return.
The forecast price/earnings multiple for this year’s group is a median 15.5 times, with an average market capitalisation of £1.3 billion.
Three stocks offer a potential upside of 70% or more to Peel Hunt price targets, led by Mortgage Advice Bureau (Holdings) (LSE:MAB1) at 85%.
The bank, which has a valuation of 1,250p a share, notes that the UK’s leading mortgage intermediary network aims to double in size and grow its profit margin to more than 15% from the 12% expected in 2025.
It added: “The group’s end markets should see continued growth in the near term. Mortgage volumes should grow on the back of a strong refinance cycle, while a more supportive regulatory backdrop should help grow new lending volumes.”
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Bytes Technology Group Ordinary Shares (LSE:BYIT), a value-added reseller (VAR), has been backed to recover after changes to its sales team structure and Microsoft incentives disrupted shares during 2025.
Peel Hunt said: “In the age of AI, tech procurement is even more complex. VARs exist to solve this complexity by creating win-win scenarios between vendors and clients - ensuring companies are tech-optimised for AI.”
The City bank thinks that a 5% price/earnings discount to peers will disappear over the course of the year as the “path back to double-digit growth becomes clearer”. Its price target is 638p, an upside of 82%.
Rightmove shares are trading at near a decade low after the FTSE 100-listed property portal spooked investors with its plans to invest a further £60 million over the next three years.
Peel Hunt views the weakness as a buying opportunity for a business with substantial opportunities for the future, noting that shares are at a 25% discount to their five-year average price/earnings multiple and 30% short of global classifieds peers.
It said: “With more than 90% highly visible recurring revenue and a clear strategic vision, we believe Rightmove’s business model remains compelling.
“Platforms with strong network effects are attractive: once they capture the audience, money follows the eyeballs — and Rightmove is investing to leap ahead. The business remains very cash generative, with all future free cash flow to be returned to shareholders via dividends and buybacks.”
Rightmove rates the shares 73% higher at 885p, while it sees upsides of 63% and 49% respectively for its other technology sector choices in mobile payments business Boku Inc Ordinary Shares (LSE:BOKU) and AIM-listed video games development firm Everplay Group (LSE:EVPL).
The choices in support services include Kier, whose progress from a recovery story to one with a growth profile of compounding profit and cash has impressed Peel Hunt.
The shares have risen more than 50% in the past year but the bank still sees significant value on 8.4 times forecast 2028 earnings, resulting in a price target of 260p.
Facilities management firm Mitie also has strong momentum, having reported record contract awards, order book and bidding pipeline in the first half of its financial year.
Peel Hunt said: “We believe the shares offer a compelling opportunity to invest in a UK market leader with improving margins, strong cash generation, and strategic momentum. Our 191p target price implies a 16% potential upside.”
Galliford Try Holdings (LSE:GFRD) is also described as being in great shape as the construction firm’s focus on framework-led relationships and disciplined risk management continues to drive revenue and margin growth. This market positioning has been complemented by well-timed, bolt-on M&A.
The shares are nearing Peel Hunt’s target price of 550p, which the bank intends to review after the company’s trading update on 21 January.
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Renew Holdings (LSE:RNWH) completes the support services line-up after Peel Hunt backed the AIM-listed company with a target price of 1,300p.
It said: “Renew is a proven leader in self-delivered essential engineering services to maintain and renew critical UK infrastructure networks.
“We believe that the defensive, compounding opportunities arising from markets that offer long-term structural growth potential, as well as market share opportunity through organic and acquisitive investment, create a compelling long-term sustainable growth profile.”
In the retail sector, the bank flags the growth potential of AO World (LSE:AO.) and Dunelm Group (LSE:DNLM) based on upsides for their FTSE 250-listed shares of 25% and 23% respectively .
AO has built its business model around its major domestic appliance offer but the report notes the huge market opportunity in other categories.
It said: “AO now sits in a small group of four-to-five retailers that are delivering record highs in sales and profitability, achieving upgrades through market share gains and strong execution, rather than recovery.”
Dunelm is regarded as one of the sector’s best compounders, having delivered a mid-teen total shareholder return over 15 years. It adds: “Dunelm has built share through challenging consumer markets, and looks set to reap the benefits once the outlook improves.”
Other picks for 2026 include Avon Technologies as the global leader in mission-critical protective equipment moves from margin optimisation into a growth phase.
The bank said: “We anticipate a continuation of recent strong demand trends, irrespective of short-term geopolitical developments. Our target price suggests 25% potential upside, and is based on historical multiples for the shares.”
On Renishaw, the bank believes the precision measurements firm is starting to accelerate out of the trough of the cycle but that this is not yet reflected in either valuation or investor sentiment. Its target price of 4,475p represents an upside of 26%.
Spain-based copper miner Atalaya Mining retains its place on this year’s list, despite delivering a 140% return as the second-best performing stock on Peel Hunt’s 2025 selection.
The other stocks on this year’s list are CVS Group (LSE:CVSG), Energean (LSE:ENOG), Genus (LSE:GNS), Premier Foods (LSE:PFD), Sirius Real Estate Ltd (LSE:SRE), Volex (LSE:VLX) and WAG Payment Solutions Ordinary Share (LSE:EWG).
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