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UK shares are sometimes neglected by worldwide traders and that is very true of the FTSE 250. In consequence, it may be a extremely attention-grabbing place to search for potential alternatives.
With 2026 on the best way, I feel there are just a few shares that look very enticing from an funding perspective. However one specifically stands out to me.
Underneath-the-radar alternatives
FTSE 250 shares typically get missed by institutional traders and there are good causes for this. They’re typically too small and the businesses aren’t notably well-known outdoors the UK.
Given this, they’ll signify a number of work for not a number of potential alternative. So it simply doesn’t make sense for lots of worldwide funding corporations to pay a lot consideration.
That nevertheless, isn’t the scenario for retail traders within the UK. Most of our portfolios aren’t value billions of kilos (mine definitely isn’t) so FTSE 250 companies are a lot sufficiently big.
In a number of instances, UK residents additionally know fairly a bit concerning the firms via first-hand expertise. In consequence, I feel it may be an incredible place to search for alternatives.
Earlier than attending to my prime FTSE 250 choose for 2026, I’d like to provide a few honourable mentions. Greggs, JD Wetherspoon and Vistry have been all shares I assumed rigorously about.
I feel there’s so much to love about every of the underlying companies and not one of the shares appears overvalued to me proper now. However for my primary selection, I’ve gone elsewhere.
Prime of the pile
On the prime of my record is Gamma Communications (LSE:GAMA). The primary cause is that I feel the cloud communications agency has each short- and long-term potential.
The corporate’s been constructing a presence in Germany by way of some latest acquisitions. And whereas the market there’s massive, uptake of cloud communications has been comparatively low.
That’s a long-term progress alternative, however there are additionally causes to be optimistic concerning the close to future. These come from the UK’s shift away from its copper phone community.
That is set for January 2027, however a number of firms haven’t ready for the change. So 2026 must be a busy yr for communications suppliers and Gamma has a powerful place.
The apparent threat right here is the potential of this being delayed. It’s occurred as soon as (the change off was speculated to be in 2025) so it’s onerous to rule out the potential of it taking place once more.
In that case, Gamma may not see the type of progress I’m anticipating in 2026. However I’m anticipating it to point out up in the end and it must be a giant enhance to earnings when it does.
I’m a purchaser
Gamma’s share worth has fallen 43% within the final yr. However at a price-to-earnings (P/E) ratio of 17, it’s now buying and selling at a degree that doesn’t replicate such excessive progress expectations.
From right here, I feel the inventory has a number of potential to contemplate. This comes from the UK within the quick time period and its growth into Germany over the long run. That’s why it’s my prime FTSE 250 choose for 2026. And it’s why I’ll be trying so as to add to my funding within the new yr.
