12 Days of Christmas? 12 Stocks That Are Gifts for 2026

Dow Jones
3 hours ago

It's the holiday season, and what investors would probably like more than some spiked eggnog on Christmas morning are stocks that can be big winners in the new year.

Amazon.com doesn't deliver those, though. Still, with the help of Wall Street, it's possible to develop a Santa-like list of nice and naughty names.

Barron's looked at the Russell 1000 group of stocks and used Wall Street ratings and price targets by sector to find presents for any type of investor.

Some of the largest Magnificent Seven stocks jumped off the page. Nvidia, Amazon, and Microsoft shares are loved by the Street, with a Buy rating from more than 90% of the analysts covering them. The average Buy-rating ratio for stocks in the Russell 1000 is currently about 58%.

What's more, the average analyst price targets imply gains of about 40% for Nvidia shares and about 30% for Amazon and Microsoft stocks. Price targets for all Russell 1000 stocks imply gains of about 15% on average.

Wall Street price targets can typically be read in one of two ways. It is the price an analyst expects a stock to trade at over the coming 12 months, or the price an investor can pay to earn an adequate return in the future.

Big gains in large growth stocks are like unwrapping a longed-for Christmas gift. The naughtiest Magnificent Seven stock is clearly Tesla. Only 45% of analysts covering shares rate them Buy, according to Bloomberg, and the average target price, about $410 according to FactSet, is below where shares trade.

Only about 5% of the stocks in the Russell 1000 have price targets meaningfully below where shares trade.

There are also a handful of stocks of note where all the analysts rate shares Buy, including DuPont de Nemours spinoff Qnity Electronics; aerospace parts supplier Loar; building products distributor QXO; and airline Alaska Air.

Those four names span valuation ranges. Loar and QXO trade for 67 and 49 times earnings expected over the coming 12 months. Qnity trades for 27 times. Alaska Air trades for just 10 times.

Of course, companies with perfect Buy-rating ratios have nowhere to go but down. Still, analysts are paid to know what's going on at their companies and their industries. For investors who like to take a contrarian bent, asset manager T. Rowe Price has 15 analysts covering it, and none of them rate shares Buy. But the average analyst price target is above where the stock is trading.

Even contrarian investors might not consider that the best present. Stocks that double are always welcome. Five stocks have more than 100% upside implied in analyst price targets with strong Wall Street support. Those are data center infrastructure provider Fermi; crypto play Strategy; self-driving technology company Aurora Innovation; and biotechs Viking Therapeutics and Ultragenyx Pharmaceutical.

The average gain implied by target prices is enormous, but none of those have made investors money in 2025. Investors should tread cautiously.

As always, a stock screen is only a start. After identifying potential ideas, investors have more difficult work to do, such as understanding the businesses, trends, and what each company is worth.

Hopefully, some of the ideas will turn out to be good ideas in for the new year, or spur investors to find other winning names. Happy holidays everyone.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10