Here’s my top FTSE 250 pick for 2026

UK shares are sometimes missed by worldwide buyers and that is very true of the FTSE 250. Consequently, it may be a very fascinating place to search for potential alternatives.

With 2026 on the best way, I feel there are a number of shares that look very engaging from an funding perspective. However one particularly stands out to me.

Below-the-radar alternatives

FTSE 250 shares usually get missed by institutional buyers and there are good causes for this. They’re usually too small and the businesses aren’t notably well-known outdoors the UK. 

Given this, they will characterize a whole lot of work for not a whole lot of potential alternative. So it simply doesn’t make sense for lots of world funding companies to pay a lot consideration. 

That nonetheless, isn’t the state of affairs for retail buyers within the UK. Most of our portfolios aren’t price billions of kilos (mine actually isn’t) so FTSE 250 companies are loads sufficiently big. 

In a whole lot of circumstances, UK residents additionally know fairly a bit concerning the firms by means of first-hand expertise. Consequently, I feel it may be an incredible place to search for alternatives. 

Earlier than attending to my high FTSE 250 choose for 2026, I’d like to offer a few honourable mentions. Greggs, JD Wetherspoon and Vistry have been all shares I assumed rigorously about. 

I feel there’s quite a bit to love about every of the underlying companies and not one of the shares appears overvalued to me proper now. However for my primary alternative, I’ve gone elsewhere.

High of the pile

On the high of my listing is Gamma Communications (LSE:GAMA). The principle motive 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 may be massive, uptake of cloud communications has been comparatively low.

That’s a long-term development 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 whole lot of firms haven’t ready for the change. So 2026 ought to be a busy yr for communications suppliers and Gamma has a robust place.

The plain danger 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 occurring once more.

In that case, Gamma may not see the type of development I’m anticipating in 2026. However I’m anticipating it to indicate up ultimately and it ought to be an enormous enhance to earnings when it does.

I’m a purchaser

Gamma’s share value 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 mirror such excessive development expectations.

From right here, I feel the inventory has a whole lot of potential to think about. 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 high FTSE 250 choose for 2026. And it’s why I’ll be wanting so as to add to my funding within the new yr.