2 ideas for a SIPP or ISA in 2026

With markets up significantly, 2025 has likely been a great year for most SIPP and Stocks and Shares ISA investors. But what about next year? Here are two shares that I think deserve closer attention.

FTSE 100 stock

After a massive multiyear rally, the BAE Systems (LSE:BA.) share price peaked above 2,000p in early October. Yet it has since retreated to around 1,700p, as I type (30 December), representing a 17.5% fall.

This downward pressure appears linked to renewed hopes for a Ukraine peace settlement, with President Trump stating that he thinks President Putin is now serious about peace. Time will tell. Any actual ceasefire would be welcome, but could see the stock fall further.

This sets up a somewhat strange dynamic for shareholders like myself. I obviously want peace in Ukraine, but also don’t like to see a falling investment value. How to square this?

Well, peace doesnât suddenly equal much lower defence spending. Even if thereâs a negotiated settlement, Europe has fundamentally changed its attitude to defence spending, while military budgets are rising elsewhere too.

By November, BAE had secured orders of more than Â£27bn for the year, including Â£4bn for 20 Typhoon aircraft for TÃ¼rkiye. And that doesn’t include the UK’s deal with Norway to supply at least five Type 26 anti-submarine frigates. This is “expected to lead to a substantial order“.

Next year, revenue is tipped to rise 7% to Â£32.8bn, with earnings per share increasing around 12% to 84p.

This puts the FTSE 100 stock on a forward-looking earnings multiple of 20.4. That’s not particularly expensive for a diversified defence giant with a massive order book (Â£75.4bn in June).

Looking ahead to 2026, I don’t expect defences shares to deliver similar returns (BAE still rose more than 40% in 2025, even after the pullback). But for long-term investors, I reckon BAE is worth considering at current levels.

GLP-1 stock

In contrast, 2025 has been painful for shareholders of Novo Nordisk (NYSE:NVO). The pharma stock has fallen 39%, as I write. This reflects fears that the Wegovy maker has fallen badly behind rival Eli Lilly in the GLP-1 weight-loss drugs space.

Since the summer of 2025, Novo shares have crashed more than 60%!

The company has also faced pressure from online pharmacies selling cheaper compounded versions of its injectable Wegovy treatment. This has seen it deliver profit warnings in the past 12 months, as well as replace its CEO.

However, Novo recently became the first firm to have a GLP-1 oral pill approved by the FDA. This came after a late-stage study showed it safely helped patients lose an average of 16.6% of their body weight.

Obviously, a daily Wegovy pill should expand the market opportunity to millions of overweight people who are scared of needles. And the firm announced the starting dose will be available for just $149 per month in January 2026 via direct-to-consumer telehealth channels.

This could help it undercut compounded injectable versions of Wegovy, as well as reaccelerate sales next year. It also improves its competitive standing with Eli Lilly, which isn’t expected to get FDA approval for a GLP-1 pill till March, at the earliest.

Competition is still a risk here. But with the stock trading at less than 15 times next year’s forecast earnings, I think it’s an opportunity worth thinking about.

The post 2 ideas for a SIPP or ISA in 2026 appeared first on The Motley Fool UK.

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Ben McPoland has positions in BAE Systems. The Motley Fool UK has recommended BAE Systems and Novo Nordisk. 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.