As the calendar approaches the transition from 2025 to 2026, the performance of major indices reflects robust investor sentiment. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have registered impressive gains of approximately 15%, 18%, and 22%, respectively, through the trading session concluding on December 24. However, for many investors, particularly those focusing on sustainable value and growth, the task is to identify stocks well-positioned for the coming year.
Highlighting seven such stocks, this analysis explores entities that exhibit strong fundamentals and attractive price points. These selections encompass a mix of established players and innovative firms, each carrying particular strengths that could make them appealing investments into 2026.
1. Sirius XM Holdings
Sirius XM Holdings occupies a unique place as the sole stock to warrant inclusion on this list for a consecutive year, underscoring its enduring appeal. Despite deceleration in subscriber growth seen in recent reporting quarters, Sirius XM capitalizes on several competitive benefits that bolster its long-term prospects.
Primarily, the company operates as one of the few legal monopolies within the American entertainment landscape, owing to its exclusive satellite-radio license. While traditional terrestrial radio remains a competitor for listener attention, Sirius XM’s monopoly on satellite broadcast rights grants it substantial leverage in setting subscription pricing.
Additionally, a remarkable aspect of its business model is the revenue composition. Unlike many terrestrial and online radio services that depend heavily on advertising revenues—which can be volatile—Sirius XM derives roughly 75% of its net sales from subscriptions. This stable revenue stream contributes to consistent cash flows even amid broader economic disruptions.
Valuation metrics further enhance its attractiveness, featuring a dividend yield exceeding 5% and a forward price-to-earnings (P/E) ratio below 7. In a market characterized by generally elevated stock prices, Sirius XM stands out as a potential bargain.
2. The Trade Desk
While the current investment emphasis tilts toward value, advertising technology leader The Trade Desk demonstrates qualities that span value and growth categories. Despite external pressures such as tariff-related challenges affecting some advertisers, the company benefits from key catalysts with a promising outlook.
The ongoing trend of cord-cutting places The Trade Desk at the forefront of the digital advertising evolution. Its revenue is approximately split evenly, with about half derived from connected TV—a segment experiencing sustained double-digit growth as audiences migrate away from traditional viewing platforms.
Technological innovation is another strength, embodied in The Trade Desk’s Unified ID 2.0 (UID2) system. This privacy-centric alternative to third-party tracking cookies facilitates more precise ad targeting, enhancing programmatic ad platform effectiveness and value for advertisers.
These elements, together with a forward P/E ratio near 18 and projected mid-to-high teens sales growth, suggest The Trade Desk occupies a compelling investment position.
3. Pinterest
Emerging social media contender Pinterest remains an attractive candidate for both growth and value investors. Despite some recent quarterly sales forecasts disappointing market expectations, key performance indicators illustrate progression.
Notably, Pinterest expanded its global monthly active users (MAUs) to 600 million in the quarter ending September 2025. After a short decline following the post-pandemic peak, user numbers are again increasing at a double-digit pace year over year.
Revenue per user also displays global gains. While growth in the U.S. and Canada remains modest at 5%, substantial increases have occurred in Europe and other regions, with ARPU rising 31% and 44% respectively during the same period.
Financially, Pinterest reports sustained annual sales growth of approximately 15%, backed by $2.67 billion in cash and liquid assets on a debt-free balance sheet. Its forward P/E ratio of 13.5 appears understated relative to these fundamentals.
4. Goodyear Tire & Rubber
Within industrial sectors, Goodyear Tire & Rubber merits attention due to its ongoing strategic shift under the "Goodyear Forward" initiative. This multi-year plan involves divesting non-core businesses and focusing on profitability enhancements.
Since the program’s implementation, Goodyear has reduced net debt by nearly $670 million. Concurrently, the company emphasizes higher-margin tire and service segments, aligning with trends such as extended vehicle ownership durations in the United States.
Additional margin expansion opportunities may arise if raw material costs, specifically rubber prices, moderate in 2026 or 2027. The stock's valuation, with a forward P/E near 7.7, suggests it could be undervalued given these recovery factors.
5. PennantPark Floating Rate Capital
Among smaller cap investments, PennantPark Floating Rate Capital stands out as an example of a business development company offering attractive yield and risk-adjusted fundamentals. Trading at a notable discount to book value, the company yields approximately 13.6% annually.
Its strategy centers on lending, composing the bulk of its $2.77 billion portfolio. This approach yielded a weighted-average loan portfolio yield of 10.2% during the fiscal fourth quarter ending September 2025.
Risk management remains a priority, with investments diversified across 164 companies and only a negligible delinquency rate of 0.4% on a cost basis. The average investment size approximates $16.9 million, reflecting a measured portfolio construction.
6. The Campbell's Company
Consumer staples giant The Campbell's Company offers a compelling turnaround narrative amid industry and macroeconomic challenges. Temporary headwinds such as inflationary pressures and tariff uncertainties have affected earnings, but its core business of essential food products provides resilience.
The longer duration of economic expansions relative to recessions tends to support sustained consumer preferences for branded, premium convenience foods, which benefits Campbell's operating cash flow consistency.
Operationally, Campbell’s pursuit of efficiency includes identifying $250 million in cost savings projected through fiscal 2028 and committing $230 million to modernizing production facilities. The company’s forward P/E ratio of roughly 10.7 reflects a favorable entry point compared to historical norms.
7. Fiverr International
Rounding out the list, Fiverr International exemplifies growth potential through an online marketplace connecting freelancers and clients. Despite a quarterly decline nearing 12% in annual active buyers, other performance metrics signal promising momentum.
Notably, annual spend per buyer increased by 12%, indicating deeper engagement from its customer base. The expanding prevalence of remote and hybrid work models positions Fiverr well to capitalize on this shift.
Moreover, Fiverr commands a leading marketplace take rate of 27.6%, surpassing many competitors and contributing to higher margins and profitability potential. The company’s forward P/E ratio of 6.7 represents an all-time low, suggesting undervaluation at present.
Collectively, these seven companies illustrate diverse strategies ranging from monopoly status and technological innovation to operational turnarounds and market disruption. With attractive valuations and varying catalysts, they present compelling cases for investors preparing portfolios for 2026.