Summary
Highlights
The stock market has shown strong performance in recent years, with 2023-2025 delivering solid returns of roughly 20%. Analysts project another strong year for 2026, with the S&P 500 expected to reach around 7,555 points, a nearly 10% gain. Wall Street and firms like JP Morgan have released their top stock picks for the year.
Microsoft is up 15% in the last year and 832% over 10 years, outperforming the S&P. It has a strong buy rating from Wall Street (4.71) but a 'hold' from Quant. Its forward P/E of 29 is below its 5-year average of 32, suggesting potential undervaluation. The company consistently increases its dividend at a double-digit rate. Our intrinsic value for Microsoft, based on discounted cash flow, is $559, implying a 15% upside. Wall Street projects $630 for 2026, a 29% upside.
Chevron is up 6% in the last year and 85% over 10 years. It trades at the midpoint of its 52-week range. It receives a 'buy' from Seeking Alpha and Wall Street, and a 'hold' from Quant. Its forward P/E of 21 is above its 5-year average of 12. Chevron is a dividend aristocrat, having increased its dividend for over 25 years. Our intrinsic value is $179, while Wall Street projects $182 for 2026, a 21% upside. Its cyclical nature means intrinsic value fluctuates.
Dell Technologies is up 12% in the last year and 79% over five years. It trades near its 52-week high. It has strong buy ratings from Quant, Seeking Alpha, and Wall Street. Its forward P/E is similar to its 5-year average. Dell is a relatively new dividend payer, with an 18% dividend growth in February. Our intrinsic value is $169, with a DCF suggesting $233. Wall Street projects 31% upside for Dell Technologies.
Meta Platforms is up 13% in the last year and 584% over 10 years. It receives a strong buy from Wall Street, a respectable buy from Seeking Alpha, and a hold from Quant. Its forward P/E is in line with its 5-year average. Meta is a recent dividend payer, with its first increase in February. Our intrinsic value is $919, using a 14% growth rate, suggesting 38% upside and a 28% margin of safety. Wall Street forecasts $840 for next year, implying 26% upside.
Marvell Technology is down 22% in the last year but up 957% over 10 years. It trades at a forward P/E of 26, below its 5-year average of 33, indicating potential undervaluation. The company has paid a dividend for 12 years without reduction. Our intrinsic value is $98, based on a 14% growth rate, indicating 13% upside and an 11% margin of safety. Wall Street sees $120 for next year, a 38% upside, suggesting even faster growth than our conservative estimates.
T-Mobile US is down 8% in the last year but up 418% over 10 years, outperforming the S&P. It trades near 52-week lows and receives a respectable buy from Wall Street. Its forward P/E of 19 is below its historical average of 22. T-Mobile is a relatively recent dividend payer, with a 16% increase in September. Our intrinsic value is $280, derived using a 10% growth rate, suggesting 38% upside and a 28% margin of safety. Wall Street projects $275 for next year, a 35% upside.