I’m a huge fan of UK shares – I believe they offer a unique combination of sturdy businesses and low valuation multiples. But which ones will do well in 2026?

It is impossible to say with certainty what will happen on the stock exchange in the next 12 months. However, investors have some pretty clear signs they can look to for clues.

Economic prospects

Different businesses are suited to different economic environments. So a lot of the questions about which stocks will do well in 2026 come down to what the economy will be like.

Early signs are not particularly positive – economic growth is expected to be sluggish and unemployment is expected to rise. The good news, however, is that inflation will fall as oil prices fall.

A lot can happen over the next 12 months. However, early signs suggest that companies that can generate consistent cash flow in a relatively arduous environment should be attractive.

This points to companies that are not driven by discretionary spending. Promising sectors include consumer protection, healthcare, real estate and utilities.

Property

One stock that seems to fit the bill is Supermarket Income REIT (LSE:SUPR). The company is FTSE250 a real estate investment trust (REIT) that leases a portfolio of retail properties.

Supermarkets as an industry should be relatively resilient, even in the face of a challenging economy. People may change where and how often they shop, but it’s unlikely they’ll stop shopping altogether.

With tenants, among others: Aldi and Lidl as well Tesco AND Sainsbury’sthis should be enough for Supermarket Income REIT. The only thing that matters is whether tenants will be able to pay the rent.

For investors, this means an annual dividend of 7.5%. And that could be attractive – especially in a challenging environment – so I think there’s a good chance the company’s stock will do well in 2026.

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Long-term investing

I think anyone looking for UK shares that have a good chance of doing well in 2026 should take a look at Supermarket Income REIT. However, I am less convinced as I look further into the future.

Almost two-thirds of the company’s lease agreements have a term longer than 10 years. That’s good from a sustainability perspective, but it means the chances of significant growth over the next decade are minimal.

Moreover, 71% of the company’s rent comes from Tesco and Sainsbury’s. This reduces the risk of insolvency, but also means it is not in a sturdy position to negotiate extensions.

Both of these factors can be positive in an environment where overall economic growth is likely to be subdued. However, in a stronger economy, they are likely to pose obstacles.

Stocks for 2026

Different investors will – rightly – have different ambitions. I think this means that for some, Supermarket Income REIT is worth stern consideration and for others it is not.

I expect the stock to perform well in 2026 and provide consistent income going forward. However, I think there may be better options for investors looking for long-term returns.