"2025 is three-fourths over. While that may be odd to say, the reality is that a new investing year is almost upon us. However, there are still plenty of stocks that are worth buying now, especially to capture an end-of-year rally that may occur as institutional investors reposition their portfolios to capture gains where they think the market will be heading in 2026."
"Alphabet is the parent company of Google, among many other brands. While it was initially a laggard in the AI arms race, it has caught up and established itself as a top option in the space. Its Gemini generative AI model consistently ranks as one of the best, and it is likely the most quickly used due to its integration with the Google Search engine via AI overviews."
"Now that both of those fears are essentially gone, investors can appreciate Alphabet for the impressive business that it is. I predict this will cause the stock price to increase substantially over the next few years, as it still trades at a discount to most of its big tech peers (when measured by its forward price-to-earnings ratio, as seen in the chart below)."
2025 is three-fourths over and investors are positioning portfolios for 2026, creating opportunities to buy stocks now to capture a potential end-of-year rally. Three stocks presented as must-owns heading into 2026 are Alphabet, Meta Platforms, and Amazon, each likely to draw significant investor interest as the AI arms race intensifies. Alphabet recovered from an initial lag in AI, built a leading Gemini model integrated into Google Search, and saw antitrust fears ease after a judge's limited remedies. Alphabet trades at a forward price-to-earnings discount to many big-tech peers, supporting expectations of substantial stock-price appreciation.
Read at The Motley Fool
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