MTI Wireless Edge: the 61p defence penny stock that’s delivered 10x the return of Rolls-Royce shares in 2026
I donât allocate a lot of capital to penny stocks. Because they tend to be risky investments.
However, occasionally I spot an opportunity thatâs really tempting. And MTI Wireless Edge (LSE: MWE) is one of those opportunities.
Winning defence deals
MTI Wireless Edge is a small Israel-based company that designs and manufactures state-of-the-art antennas and related systems. It makes products for a broad range of markets but where itâs having a lot of success at the moment is on the military front.
We can see this in a trading update posted this morning (7 April). Here, it advised that it has recently won a bunch of new defence orders (all from existing customers) including:
- A $2.2m contract to supply communications infrastructure to the Israeli Ministry of Defence
- A $1.9m contract to supply military antennas to an international defence company
- A $0.5m contract for military antennas from a local defence company
- Additional orders totaling approximately $1.3m to supply components primarily to a defence company
Put all these together and we have $6m worth of contracts. Not bad for a company with a market cap of just over £50m.
The market is clearly impressed â the companyâs share price is up about 8% as I write. That takes the stockâs year-to-date gain to around 33% â miles ahead of the returns from some bigger defence stocks such as Rolls-Royce Holdings (3%) and Rheinmetall (0%).
An investment opportunity?
Is this penny stock worth a look today? I think so â it appears to offer a winning combination of growth, value, momentum, and income.
We can see the growth in the deals above. These should boost the companyâs top line.
âThe volume of orders significantly enhances our order book for FY2026 and FY2027 and supports our ability to continue to grow our business.”
MTI Wireless Edge CEO Moni Borovitz
As for value, the forward-looking price-to-earnings (P/E) ratio is only about 14. That earnings multiple suggests to me that this stock is flying under the radar of a lot of investors.
Turning to momentum, the share price is in a strong upward trend. And âthe trend is your friendâ as they say.
We also have income. For 2025, this company paid out 3.4 cents in dividends per share â that translates to a dividend yield of about 4.2% today.
Of course, we need to remember that this is a penny stock. And that means that there are plenty of risks. It’s also in a sector in which many investors wouldn’t want to invest.
On the operational front, risks include deals drying up and revenue growth stalling and higher supply chain costs eating into profits. Meanwhile, on the trading/investment front, a risk is a lack of liquidity (not being able to sell the shares at a good price).
Overall though, I like the risk/reward set-up at the current share price valuation and valuation. I believe this stock is worthy of further research.
The post MTI Wireless Edge: the 61p defence penny stock thatâs delivered 10x the return of Rolls-Royce shares in 2026 appeared first on The Motley Fool UK.
Should you invest £1,000 in M.T.I Wireless Edge Ltd. right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if M.T.I Wireless Edge Ltd. made the list?
More reading
Edward Sheldon has no positions in any shares mentioned. The Motley Fool UK has recommended M.t.i Wireless Edge and Rolls-Royce Plc. 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.
