Forget Rolls-Royce shares! I think this is a better growth opportunity for 2026

Rolls-Royce shares are up 104% up to now 12 months. The enterprise is one of many top-performing shares within the FTSE 100 over this interval. Nonetheless, some are involved in regards to the excessive valuation and whether or not there’s a lot potential for additional good points in 2026. When trying for alternate options, I got here throughout one which I think may do very well.

Present me the MONY

I’m speaking about MONY Group (LSE:MONY). The inventory’s up a modest 2% up to now 12 months. This represents the primary motive why I think it may do better than Rolls-Royce. It’s a firm that hasn’t skilled a sharp share value rally (but), which makes it way more engaging from a valuation perspective.

For instance, it has a price-to-earnings ratio of 10.95. This contrasts to Rolls-Royce at 60.90. So by way of choosing a inventory the place there may very well be extra potential to rally, I’d say MONY Group will get the nod.

After all, this is irrelevant if I’m not optimistic in regards to the agency’s prospects. But in this case, I am. The enterprise is a UK-focused financial savings and price-comparison platform that helps customers discover better offers on monetary services. It tends to outperform when the UK financial outlook isn’t nice. If extra individuals are involved about their private funds, they’re extra more likely to store round and use value comparability websites. This will increase visitors to the group and lead charges from referrals.

Given the danger of gradual UK growth in 2026, I think MONY Group may see a visitors spike, in the end boosting earnings and the share value.

Producing AI good points

Synthetic intelligence (AI) is changing into more and more vital in all companies. When I examine the 2 corporations, I think MONY Group stands to achieve extra from additional integrating this into operations than Rolls-Royce.

For instance, MONY Group’s deployed Fin, an AI agent, which is now concerned in 98% of buyer conversations. It’s reportedly dealing with over 25,000 queries a month through chat and e-mail. Over time, this will save prices, releasing up human assets. It could course of queries sooner, enabling it to serve extra prospects and retain extra enterprise.

It’s additionally utilizing AI in different methods, corresponding to to push extra tailor-made advertising and marketing and affords to purchasers. As this continues to increase this 12 months, I think it’s properly positioned to assist cut back prices and enhance earnings. I’m not suggesting Rolls-Royce isn’t making good use of AI, however I think MONY Group’s use circumstances are larger and will work to its benefit.

Caveats

After all, I may very well be incorrect for my part. Momentum may stick with Rolls-Royce as traders get the concern of lacking out (FOMO) and easily purchase as a result of it retains going up. As for MONY Group, there’s continued regulatory threat. If the UK regulator decides to tighten up on monetary promotions or disclosure necessities, it may hamper growth.

But on steadiness, when trying for growth shares for 2026, I think MONY Group may very well be a viable growth various to Rolls-Royce to think about.