Five stocks have been identified as potential bargains for investors looking ahead to 2026. These include Amazon, Meta Platforms, The Trade Desk, Adobe, and PayPal. The analysis focuses on their recent market performance and valuation metrics.
Amazon, trading under NASDAQ: AMZN, saw a 5% rise in 2025, underperforming the broader market. However, the company reported growth highs in many operating segments during the third quarter. So far in 2026, the stock is up about 7%, with expectations for further gains.
Meta Platforms, under NASDAQ: META, trades at 21.1 times forward earnings, compared to the S&P 500's 22.4 times. Wall Street has expressed concerns over spending on AI data centers, contributing to the stock's discount. In Q3, Meta's revenue rose 26%, driven by generative AI investments improving its ad platform.
The Trade Desk, NASDAQ: TTD, operates in the ad space with buy-side software linking ad buyers to placements. Revenue increased 18% in the third quarter, though Wall Street views this as insufficient. A key factor noted is the lack of political ad spending in 2025 compared to 2024, which is expected to normalize in 2026. The stock trades at 18 times forward earnings.
Adobe, NASDAQ: ADBE, has maintained double-digit revenue growth despite concerns over generative AI disruption. The stock is down around 50% from its all-time high, leading to more effective share repurchases and faster diluted EPS growth. It now trades at about 14 times forward earnings.
PayPal Holdings, NASDAQ: PYPL, trades at 10 times forward earnings, the cheapest among the group. Growth is in the mid-single digits, but the company is using free cash flow for share repurchases, enabling double-digit diluted EPS growth. A rebound is anticipated in 2026.
Keithen Drury holds positions in Adobe, Amazon, Meta Platforms, PayPal, and The Trade Desk. The Motley Fool also holds positions in these stocks and recommends specific options. Stock Advisor's total average return is reported as 958%, compared to 196% for the S&P 500.