£10,000 to invest in an ISA? Here are some lesser-known stocks that could surge in 2026

Investing through a Stocks and Shares ISA is great way to try and build wealth. As the name suggests, it allows us to invest in stocks, bonds, funds, trusts, and other asset types. What’s more, the profit made within the ISA is sheltered from tax. That includes any dividends we may want to transfer to our current accounts.

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.

Of course, as investors, we all want to pick the stocks that perform best. Novice investors typically have a wealth of ideas that really don’t help them pick stocks. These include “well this stock did well last year, it must do well next year” and “that stock trades at just five times earnings, it’s really undervalued”.

Sadly, it’s typically a bit more complicated than that. But not massively. The best stock pickers have robust criteria that combines valuation, profitability metrics, and momentum along with other things like revisions to the earnings forecast.

So, what lesser-known stocks should investors consider as we enter 2026?

Where to look?

Looking for stocks to buy is a constant endeavour, and my top pick for 2026 — in November — was Innovative Aerosystems. However, that stock is up 120% since I bought it last month and no longer looks quite so cheap. I’m not saying it can’t progress further, but the margin of safety is no longer there.

So, where else am I looking?

Well one of the more obscure stocks on my radar is M-tron Industries (NYSE:MPTI). The stock trades around 18.5 times forward earnings but is expected to grow earnings by 28% on average over the medium term.

This gives us a price-to-earnings-to-growth (PEG) ratio of 0.66. That represents a 61.4% discount to the information technology sector average.

What does M-tron do? It designs and manufactures frequency and spectrum control products for electronic circuits with broad exposure to the defence, aviation, and space industries.

I actually find the latter industry quite interesting because of the prospect of space-based data centres. This is potentially a huge industry and M-tron’s RF filters and oscillators could certainly play a part.

What could bring the stock down? Well, tariffs and global trade disruption is one aspect. The company has three manufacturing sites in the US and India. There has seemingly already been some impact on margins.

Nonetheless, it certainly looks worthy of consideration.

What else?

Another company on the list is Sanmina Corporation, which has doubled its share price in six months, driven by surging AI and data-centre demand and the transformative $3bn ZT Systems acquisition.

The deal positions Sanmina as a key AMD manufacturing partner, lifting AI exposure and earnings power. Pro forma sales could approach $14bn, with margins near 5% and earnings trending towards $8 per share.

With a PEG of 0.67, valuation remains attractive, though integration and customer-concentration risks persist.

Other stocks on my watchlist include SkyWest, with a PEG ratio of 0.76, and truck attachment company Douglas Dynamics. The latter, a snowplough maker, has a PEG ratio of around 0.7. It’s got some net debt on the balance sheet, but also returns a 3.5% dividend yield.

I believe all are well worth considering.

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James Fox has positions in Sanmina Corporation. The Motley Fool UK has recommended Advanced Micro Devices. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.