It’s been quite the run in the stock market, for investors of all ages and risk profiles. However, it’s been true that investors who have continued to hold overweight exposure to growth stocks have continued to perform better than those who have been sitting in fixed income assets, cash or other lower-beta stocks.
I’m all in favor of diversification and picking and choosing spots in those sectors. However, I’m also aware that capital continues to chase returns. And while I don’t know how long this can go on for, I also know that swimming against the tide is a move that’s made many long-term investors very poor very quickly.
The market really doesn’t care about an individual’s opinions of whether it’s overvalued or not. As the saying goes, the market can stay irrational longer than many folks can stay solvent. Accordingly, I think there are some stocks worth owning in 2026 that performed incredibly well in past years that will continue to outperform for the remainder of this year.
If I had to bet, these would be the three stocks I’d focus on for another banner year.
Alphabet (GOOG)
This pick, to me, is a no-brainer. Google parent Alphabet (NASDAQ:GOOG) has become much more than a search engine giant. I mean, that’s still the company’s core cash flow growth engine, and can’t be ignored.
However, the company’s robust cloud business and its dominance in the world of digital advertising and AI innovation can’t be ignored. Quarter after quarter of massive earnings beats have continued, with the company’s most recent Q4 earnings one again shattering expectations.
Despite its incredible size, Alphabet delivered top-line growth of 14% year-over-year, smashing expectations. With cloud revenue fueling most of this growth (up 30% year-over-year) and AI enhancements to the company’s core search business delivering results (never mind a fast-growing AI business Alphabet is growing internally), there’s a lot to like about Alphabet’s long-term upside.
And with Berkshire recently placing a massive bet on Alphabet (signaling its relative value to the marketplace), I don’t think my endorsement can move the needle as much as former Berkshire CEO Warren Buffett. Enough said.
Netflix (NFLX)
In the past, I’ve been pretty skeptical of Netflix (NASDAQ:NFLX), and in particular the company’s valuation. This has always been a stock that’s seemed too rich for my blood. That’s too bad, because I missed out on a hell of a run.
The thing is, I’m considering adding a position in Netflix (perhaps on the next drop the company sees – there is volatility in this name, after all – see above via valuation concerns). That’s because the company’s strong subscriber momentum and ad-tier expansion has resulted in even greater monetization upside than I could imagine before.
With paid memberships rising 12% year-over0year this past quarter, with 16% growth in Netflix’s paid memberships segment (an incredible growth rate, given the company’s reach), this is a company that’s operating on all cylinders. With operating margins now above 20% and EPS beating estimates by more than 2%, there’s solid fundamental momentum as well driving this company’s valuation higher.
I like growth stories underpinned by solid fundamentals. The ubiquity of Netflix in combination with its operational excellence make this expensive stock still worth it (albeit for me, on downturns).
Apple (AAPL)
The world’s largest company for most of the past two decades, Apple (NASDAQ:AAPL | AAPL Price Prediction) is a stock many investors may actually not expect to see on this list. That’s partly because Apple’s growth rate has slowed to a slog, with the company’s multiple exceeding many of the top names on Wall Street thanks to its brand and perception as a safe harbor in difficult times.
It turns out that even big ships can turn quickly, if they have to. In Apple’s case, it wasn’t as much of a turn as it was a strategy of making small but meaningful improvements to its core product portfolio that have driven rock-solid results in recent quarters.
Additionally, I continue to focus more of my attention (and the market seemingly has as well) on Apple’s growth via its fast-growing services segment as well as its AI-driven upgrades. If Apple can prove to the market that is has the best AI-enabled smartphone in the market, I think greater market share gains (and continued pricing power) could propel much higher margins over time.
At around 28-times forward earnings and 8-times sales, Apple looks cheaper than it has in quite some time. At this point, I’m looking at Apple’s fortress balance sheet and world-class brand and thinking about adding some exposure.
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