My 10 Top Stocks to Buy to Start the New Year Off Right
A new year of investing is upon us, and if you have money to throw away, now is the time to start. Here I’ll highlight a few stocks that offer one or more of the following: an interesting valuation, a recovery story, a solid track record of earnings success, and leadership in a growing market. If you invest in a few of these players, you will offer yourself diversification and potentially long-term investment gains.
Let’s take a look at my top 10 stocks to buy to get the new year off to a good start.
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Palantir Technologies(NASDAQ:PLTR) wins in growing market artificial intelligence (AI). The company’s AI-powered software platform, Artificial Intelligence Platform (AIP), helps customers make better use of their data, and this has led to a massive increase in earnings over the last few quarters.
Palantir’s revenue, once generated by government customers, is now provided by both government And business customers. They flocked to AIP because it allowed them to easily and instantly implement AI according to their needs. The company has seen high demand every quarter, and that may continue as the AI boom progresses.
ionQ (NYSE:IONQ) is an innovator in the hot growth field of quantum computing. These computers offer the opportunity to solve problems that classical computers cannot solve. Although it may take a few years for quantum computers to become generally useful, progress is being made and IonQ is one of the promising players.
IonQ uses trapped ions for calculation, and this system has many significant advantages, such as lower error rates and long coherence times (which allows more time for calculation). The company currently sells access to its computers through major cloud service providers. We’re still in the early days of this growth story, and now is an ideal time to buy and hold this exciting quantum stock.
Nvidia(NASDAQ:NVDA) It is a proven winner in the field of Artificial Intelligence. The company sells the world’s most powerful artificial intelligence chips and produces record profits along with related products and services. Demand remains high and Nvidia plans to update its chips on an annual basis to maintain its lead.
The company announced that its artificial intelligence infrastructure expenditures Could reach 4 trillion dollars by the end of the decade — and Nvidia is poised to benefit because data centers rely on the company’s systems to serve more and more customers.
Even though Nvidia shares are up 1,100% in three years, it still has room to move as the AI story unfolds.
Microsoft(NASDAQ:MSFT) It gives you access to fast-growing fields such as artificial intelligence and quantum computing; It is involved in both, and recently said it would increase investment in AI to take advantage of the “massive opportunity before us.”
The tech giant also offers you security thanks to its long track record of earnings growth. Microsoft’s software, cloud business and other revenue streams will continue to drive earnings further in the future.
Considering all this, trading today at 29x forward earnings estimates, down from 36x a few months ago, makes the stock look particularly cheap.
costco(NASDAQ: COST) For example, it has become a winning investment with an increase of 87% in the last three years. But the stock has room to move higher over time. I like Costco for its business model, which generates most of its profits from membership fees — and its high year-over-year renewal rates give us reasons to be optimistic about future earnings.
This is also a company that can thrive in any economic environment because it offers customers access to very cheap prices on basic needs, from food to gas. It’s currently trading at its lowest level based on last year’s forward earnings estimates, presenting investors with a solid buying opportunity.
Carnival‘s (NYSE:CCL)(NYSE:CUK) The story was not so bright in the early days of the epidemic, when the suspension of flights plunged the company into losses and heavy debt. But Carnival expertly turned things around, paid off its debt, became more efficient and returned to profitability.
In fact, Carnival has reached record levels of revenue and adjusted net income in recent quarters, and bookings for future cruises have reached high levels even at higher price levels. The company even returned to its investment grade credit rating at Fitch Ratings.
Now looks like a great time to jump on board and bet on Carnival shares for 2026 and beyond.
Image source: Getty Images.
Aim(NYSE: TGT) It has been going through a difficult time in recent years, with various challenges hindering revenue growth. But starting next month, under new CEO Michael Fiddelke, the company may be about to turn things around.
The retailer has already made several moves that could help speed the recovery, from layoffs to improving service in stores. It’s important to remember that Target has multibillion-dollar brands that can fuel growth; these are higher margins for the company than national brands.
Target is currently trading at 13x forward earnings estimates, making it a great bargain recovery buy for 2026.
Intuitive Surgery(NASDAQ:ISRG) is the world leader in robotic surgery. The company’s flagship Da Vinci system is a favorite among doctors, and this has helped the company build a strong moat, or competitive advantage: Most surgeons train on Da Vinci, so they likely prefer to use that system they know well. It is also important to note that after hospitals make a large investment in a robotic system, they aim to amortize this investment and thus do not easily switch to another system.
Intuitive has updated the Da Vinci system over time to deliver peak performance to surgeons; This is another reason to stay loyal to the product. Finally, I like that Intuitive generates most of its revenue from selling accessories used during surgeries, which means recurring revenue for the company.
All of this makes the stock a fantastic long-term asset.
Vertex Pharmaceuticals(NASDAQ:VRTX) It is the world leader in the treatment of cystic fibrosis (CF) and generates billions of dollars in profits thanks to this portfolio. This will likely continue as Vertex protects its intellectual property portfolio at least until the late 2030s.
Moreover, Vertex has launched two products outside this area of expertise in the last few years: Casgevy for blood diseases and Journavx for pain management. Both have billion-dollar potential, and the company has made progress in making these treatments available.
Vertex has proven its ability to excel in CF and expand into other areas, and the company’s portfolio is strong; hence this biotechnology offers you security and growth.
American Express(NYSE: AXP) It has proven itself over the long term by providing shareholders with earnings growth, stock price performance and passive income. Last quarter, this well-established payment card company built on its strong track record with double-digit revenue growth topping $18 billion. Earnings per share also increased by double digits.
The company has seen growth in younger customers, which is a great sign for the future. Demand for the recently updated US consumer and business Platinum cards has exceeded American Express’ expectations.
I especially like that American Express, which serves high-income customers, is less vulnerable when periods of economic weakness arise. All of this makes this a great stock to own in any market environment.
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American Express is an advertising partner of Motley Fool Money. Adria Cimino He has positions in American Express, Target and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Costco Wholesale, Intuitive Surgical, IonQ, Microsoft, Nvidia, Palantir Technologies, Target and Vertex Pharmaceuticals. The Motley Fool recommends Carnival Corp. and recommends the following options: long January 2026 $395 calls and short January 2026 $405 calls on Microsoft. The Motley Fool has a feature disclosure policy.
