Seven Compelling Stock Picks Worth Your Attention in 2026

The stock market delivered impressive returns in 2025, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite posting gains of 15%, 18%, and 22% respectively through late December. Yet as we enter 2026, successful investors know that past performance provides little guidance for future decisions. Instead, the focus should shift toward identifying undervalued companies with sustainable competitive advantages and strong balance sheets heading into the new year.

Here’s my assessment of seven stocks that deserve keen consideration for 2026.

Sirius XM Holdings (NASDAQ: SIRI) - The Recurring Revenue Model

Satellite radio operator Sirius XM Holdings stands out as a company that combines legal monopoly status with a predictable business model. Despite recent subscriber growth challenges, the company maintains a critical competitive moat: it’s the only entity with satellite-radio licenses in the U.S., giving it substantial pricing power over its subscription base.

What truly differentiates Sirius XM is its revenue composition. Unlike terrestrial and streaming radio competitors that depend heavily on advertising, approximately three-quarters of Sirius XM’s revenue flows from subscriptions. This structure creates resilience during economic downturns and reduces cash flow volatility.

Valuation metrics are particularly attractive. With a dividend yield exceeding 5% and a forward P/E ratio below 7, Sirius XM offers income-focused investors compelling entry points in a historically expensive market.

The Trade Desk (NASDAQ: TTD) - Bridging Traditional and Digital Media

The Trade Desk presents a rare intersection of value and growth characteristics in today’s market. While macro concerns around tariffs and advertiser spending exist, the company’s structural tailwinds remain powerful.

The ongoing shift from cable to digital streaming creates an enormous opportunity for The Trade Desk’s programmatic advertising platform. Connected TV, representing roughly half of the company’s revenue, continues its double-digit growth trajectory as consumers abandon legacy networks. Additionally, The Trade Desk’s Unified ID 2.0 technology has achieved broad adoption as a cookie-replacement solution, enhancing advertiser targeting effectiveness and platform value creation.

At a forward P/E of 18 paired with mid-to-high teens revenue growth, the valuation represents a reasonable entry point for exposure to the digital advertising transformation.

Pinterest (NYSE: PINS) - Growth Obscured by Conservative Guidance

Social media platform Pinterest has attracted scrutiny due to quarterly guidance misses, yet underlying operational metrics paint a different story. The platform reached 600 million monthly active users in Q3, with double-digit year-over-year growth accelerating after post-pandemic user declines reversed.

More significantly, average revenue per user (ARPU) demonstrates remarkable momentum globally. While U.S. and Canadian ARPU grew 5%, Europe expanded 31% and Rest of World surged 44% in the most recent quarter. This geographic diversification suggests Pinterest’s monetization remains in early innings.

The balance sheet reinforces the investment thesis: $2.67 billion in cash and marketable securities with zero debt, combined with 15% annual sales growth and a forward P/E of 13.5, creates an asymmetric risk-reward profile for investors eager to capture the platform’s expanding international monetization opportunity.

Goodyear Tire & Rubber (NASDAQ: GT) - Transformation in Progress

Goodyear’s multi-year Goodyear Forward transformation program has systematically reduced financial leverage and refocused the business toward higher-margin opportunities. Over the past two years, the company has divested non-core assets and cut net debt by $669 million, creating a leaner operational structure.

The company is positioning itself to benefit from secular shifts in vehicle usage patterns. Extended vehicle ownership cycles drive demand for replacement tire sales and aftermarket services—segments with superior margin profiles compared to original equipment manufacturing. Should raw material costs decline in 2026-2027, margin expansion could accelerate.

Trading at a forward P/E of 7.7, Goodyear’s valuation reflects significant underappreciation of its transformation progress and margin improvement potential.

PennantPark Floating Rate Capital (NYSE: PFLT) - Hidden Yield Opportunity

Business development company PennantPark Floating Rate Capital generates a 13.6% annual dividend yield while operating largely beneath Wall Street’s radar. The BDC’s $2.77 billion portfolio emphasizes floating-rate loans, producing a weighted-average yield of 10.2% during the fiscal fourth quarter ended September 30, 2025.

Portfolio risk management demonstrates discipline: investments are distributed across 164 companies with an average position size of $16.9 million, and only 0.4% of the portfolio carried delinquent status. This diversification and conservative underwriting has translated into consistent distributions backed by tangible assets.

The cherry atop this opportunity is valuation—shares trade at a 16% discount to book value of $10.83 per share, providing both income and potential price appreciation as the market reprices the company’s quality profile.

The Campbell’s Company (NASDAQ: CPB) - Turnaround with Pricing Power

Campbell’s turnaround narrative deserves careful attention despite near-term macro headwinds from food inflation and tariff uncertainties. These challenges appear cyclical rather than indicative of fundamental business deterioration.

The company operates in resilient categories—consumers maintain spending on food and beverages regardless of economic conditions. Campbell’s portfolio of established brands provides pricing flexibility that consumers accept for quality and convenience. This consistency supports reliable cash generation through cycles.

Management is executing a two-pronged strategy: identifying $250 million in enterprise cost savings (with full realization expected by fiscal 2028) while simultaneously investing $230 million across manufacturing modernization initiatives. These efficiency improvements will compound over time, supporting margin recovery.

At a forward P/E of 10.7 representing a historic valuation floor, investors eager to participate in Campbell’s operational improvement have meaningful upside if execution proceeds as planned.

Fiverr International (NYSE: FVRR) - Marketplace Dynamics Shifting

Online services marketplace Fiverr International faces scrutiny due to annual active buyer declines of nearly 12% in Q3. However, this metric obscures the meaningful offsetting trend: annual spend per buyer increased 12% in the same period.

The structural environment remains favorable for Fiverr’s business model. Remote work participation—whether full-time or part-time—has permanently expanded since the pandemic, creating demand for flexible freelance services. Fiverr’s position as the connector between businesses and distributed talent pools strengthens as this trend persists.

Equally compelling is Fiverr’s marketplace take rate of 27.6%, an industry-leading figure indicating the platform’s negotiating strength with both suppliers and customers. This superior margin structure positions Fiverr for outsized profitability expansion as transaction volumes stabilize.

With a forward P/E of 6.7 near all-time lows, Fiverr represents exceptional value for investors eager to capture the freelance services infrastructure opportunity as work remains permanently distributed.

Looking Ahead to 2026

Each of these seven companies offers distinct catalysts and valuation support entering 2026. The common thread: all combine underappreciated competitive advantages with stock prices that fail to reflect their medium-term earnings power. Whether seeking income from Sirius XM and PennantPark, growth from The Trade Desk and Pinterest, or transformation upside from Campbell’s and Goodyear, 2026 presents meaningful opportunities for disciplined capital deployment.