3 US and UK shares to consider in an ISA for a Santa Rally

After a sluggish start, stock markets have staged the sort of rally we’ve become used to each November. And, in an encouraging sign for UK shares in December, the FTSE 100‘s touched new highs this week. I’m looking for stocks to buy in my ISA for a possible end-of-year surge.

More specifically, I’m hunting for undervalued shares that could have room to rise. History shows that December is the second-best month on global stock markets after the current month. So here are three top UK and US stocks on my radar.

Serve Robotics

Serve Robotics (NASDAQ:SERV) stock has fallen sharply in recent days. A mixed set of third-quarter results on Wednesday (12 November) saw the company beat earnings estimates but miss sales guidance, spooking investors.

The company manufactures four-wheeled robots that make food deliveries. It describes itself as “a national leader in sidewalk robotics“, and has significant room for growth, as retailers and restaurants turn to automation to slash costs.

Serve’s delivery volumes rose 300% in Q3 from last year. To drive tenfold sales growth in 2026, it plans to have 2,000 robots on the streets by the end of this year, supported by long-term deals with Uber Eats and DoorDash.

Shares could remain volatile if weak consumer spending further impacts revenue. But on balance, I believe Serve could spring back sharply.

Fresnillo

Closer to home, I think Fresnillo (LSE:FRES) is an attractive stock to consider for a Stocks and Shares ISA. It’s up 268% in 2025, but falling precious metals prices have pulled it sharply lower in recent weeks.

And so the FTSE 100 gold stock now trades on a forward price-to-earnings-to-growth (PEG) ratio of 0.1 for this year, and 0.7 for 2026. Any reading below 1 indicates that a share is undervalued.

I think the Mexican miner could bounce back in December, reflecting a bright outlook for gold and silver prices. HSBC thinks gold (which is edging back to October’s record of $4,381 per ounce) could hit $5,000 by early 2026.

Operational problems are a constant threat to miners like Fresnillo. But I think it’s worth a close look on balance.

Verizon Communications

Despite Verizon‘s (NYSE:VZ) solid price gains in 2025, the telecoms titan still offers a stunning dividend yield. At 6.9%, its forward yield beats those of almost all FTSE 100 companies, those traditional targets for passive income investors.

That’s not all, as the US share also looks cheap based on projected profits. Its price-to-earnings (P/E) ratio is 8.9 for 2025, while its PEG multiple sits at 0.8.

I think Verizon’s a top dividend share to consider for these uncertain times. Earnings are highly sensitive to rising costs, reflecting the enormous capital expenditure budgets of utilities companies. Still, the defensive nature of the telecoms industry should translate to robust revenues and cash flows even if the economy struggles.

Verizon has hiked its annual dividend every year for almost 20 years.

The post 3 US and UK shares to consider in an ISA for a Santa Rally appeared first on The Motley Fool UK.

More reading

• These FTSE 100 stocks have walloped Rolls-Royce shares in 2025
• As the price of gold rockets, this is one of the best FTSE 100 stocks to take advantage
• As the gold price dips, this FTSE 100 stock has crashed 23%!
• The Fresnillo share price falls 17% in a week as gold and silver slip. Time to load up?
• After the Fresnillo share price crash, is this FTSE 100 stock now too cheap to ignore?

HSBC Holdings is an advertising partner of Motley Fool Money. Royston Wild has positions in HSBC Holdings. The Motley Fool UK has recommended Fresnillo Plc and HSBC Holdings. 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.

See author's posts