The 5 Stocks with Most Upside for 2026 (Better Than Nvidia)

When a stock like NVIDIA explodes, everyone starts hunting for the next big winner, the next NVIDIA. That's just human nature. So today we're going to walk through five stocks that investors are watching as potential big opportunities for 2026. And we're going to break down the numbers behind each one and keep in mind, guys, these are not my stocks. This is from an article. So here is the article from Motley Fool. Jeremy Bowman, a market analyst who's covered tech and consumer staples for 15 years, just published his list of the most undervalued stocks to buy in 2026. I have to say a few of these names really surprised me. Now these types of headlines are constantly flying around and I'm sure you guys have seen them. Best stocks to buy, most undervalued stocks you need to sell in 2026. Guess what? We do them on our videos, but keep in mind, we do them to grab your attention and then teach you a lesson from there. We're not here to sell any hype. We're not here to tell you what stocks to buy. That is not the purpose of these videos, but here's the issue. Even if there are good points within these articles, you need to know how to capitalize. You need to have a defined process without one you'll be forever guessing. Now here's the thing about value investing, and this is something I've been practicing for over 20 years. The world word, undervalued gets thrown around a lot. It is absolutely misused. Even Kathy Wood, who makes fun of value investors when the ---- stocks that she buys falls. She says these are deeply undervalued. I laugh and go, but wait a second. I thought you made fun of value investors. If that's the question, this is undervalued compared to what compared to the market compared to its peers or compared to what the business historically should actually be worth. That last one. That's what matters to me. That's what matters to Warren Buffett. That's what matters to our community members and other great value investors over time. So today we're going to talk about all five companies in this article. I'm going to be honest with you. And upfront, the most important thing you'll take away from today's video is not about the individual stocks. It's the importance of a process, your process of what allows you to build wealth over decades to sleep well at night, knowing you have a handle of your financial future, and you have made a good decision based on history. So we're going to run through these companies, do our full process that we've built and refined and everything money, the eight pillars, the key metric, the stock analyzer. So let's get into it. I'm going to start with Berkshire Hathaway. This is the most recognizable name on this list. If you're new to the channel, here's what Berkshire actually is. It's a holding company, which for decades has been led by Warren Buffett, the greatest investor the world has probably ever seen. When you buy a share of Berkshire, you're not buying one business. You're buying a collection of world-class businesses, Geico and other privately held businesses, BNS railroad, one of the most important freight railroads in North America, massive energy and utilities division. And on top of that, it's a stock portfolio that includes names like Apple, Coca-Cola, American express, and so many more. If you pay attention to the news, you probably know that the most recent development around Berkshire is that Buffett has actually stepped down as CEO, leaving Greg Abel as a successful. So your job as an investor is to determine what Berkshire will look like over the next 10 or 20 years, because it won't be the same as the past. When Warren Buffett started investing, even before Berkshire, he was getting 40, 50% returns a year because he was buying small mispriced entities. But now it's so big and guys, I'm gonna be honest with you. There's no need to analyze it. And here's why one, I don't understand insurance and a big part of their portfolio is insurance too. They have a lot of cash sitting there that makes it difficult to value. Cause what's that money earning in the long run and three, and probably most importantly is their earnings are the problem with the sec and the IRS is they're making all these companies when they buy a stock and it goes up, they're reporting it as income. That's not income. When it goes down, reporting it a loss, that's not a loss. It's only a loss or income when it's realized that greatly affects the financials here. What I would do is I would pay attention to what Berkshire is doing. If they're buying back shares, that's what grabbed my attention because there's such good capital allocators that they choose to buy back their own shares. They mean they're, they think their shares are undervalued. That's a big one for me. Warren Buffett in the past has said, I would look at book value and say, okay, if I can buy the stock back for less than 1.2 times book value, that's a great deal. Guys, book value is just, it's just assets minus liabilities. So basically your stockholders equity. So we go to the balance sheet, go to shareholder equity. So total liabilities, total assets of 1.23 trillion total liabilities of 5.25. That's $700 billion left over. 1.2 times 700 billion is 840 billion. The stock is currently 1.04 trillion. So according to his metric there, it might be overvalued, but lately he's been buying shares back even when the price is higher than 1.2 times book value. So if you see a big drop in the stock price, pay attention. It might be one to analyze. Now Berkshire probably won't do great during big booming bull markets, but during a bad market, when the price falls, it could be your opportunity. Stock number two, Lou Lou lemon. Now guys, this is when we talked about a lot in the last few years in the last year, all time high of five 16 down to one 60 recently. Now it's at one 76. Okay. It's the first of our three in-depth looks today. And this one's a very different kind of story. This is one that Bowman is calling a turnaround play. Lulu is heavily responsible for the rise of at leisure category. That's yoga pants, leggings, high-end workout gear. They built that market over recent years for years. This stock traded a massive premium because growth was incredible and women loved it and fought to it. But in 2025, the stock got crushed. It's still down well over 50% from its highs of five 16 back in 2023. Now comparable sales growth in the U S has suffered. What that means is sales of stores that have been around for a while has suffered. The CEO stepped down product missteps, weak consumer spending. It all added up to a rough year. Now here's the question we always ask is this fall justified or is it overdone? Are people making a reaction to a short-term problem or a long-term secular problem with this company? Because a stock falling 50% doesn't automatically make it a buy becoming a discount to intrinsic value does. What I mean by that is you have a house, it's worth half a million bucks. Let's say suddenly the market says it's worth, you decide it's worth 2 million post it for sale for 2 million bucks. No, it's it's there. Nobody buys it. You dropped to a million, you dropped to 50%. Guys, it's still a half million dollar house. It's still overpriced compared to the market. Just because you dropped it in price 50% does not make it a good buy. That's the way I want you thinking. What I find interesting about Lulu is despite the weakness in North America, they're still growing in China. They're still opening new stores globally. Has the brand not been permanently damaged? And that's what we need to ask because if not, and this could be an opportunity. So let's look at the numbers behind this business $21 billion market cap, only 23 billion enterprise value. That $2.4 billion difference is essentially their debt. Why does that matter? Cause then I go to their free cashflow guys. They can essentially pay off all their net debt in a little over two years of free cashflow. That's incredible. I love that. Now, one thing I don't like is their free cashflow last year, significantly lower than their one-year net income that disconnect. I don't like, but there could be a reason for that. Are they expanding stores? That capital expenses hits free cashflow, but not net income as much. That's something to pay attention to profit margin. Ironically, sales sucked, but profit margin was up last year. That's what's interesting. And great growth 14% a year for the last three years, 22% a year for the last five years, 18, 19% a year for the last 10 gross profit. Every unit they sell 58% of it is profit guys. Look at a company like Walmart, obviously low end it's 25% cause they're not manufacturing their stuff. So this company with their manufacturing ability has a huge gross margin. Now our community members have it as a buy, but let's go to the eight pillars here. It is an eight pillar stock. Doesn't mean you buy it, but it checks all the boxes here, buying back shares, cashflow, revenue, net income are up in the last five years. Great returns on capital. This means they are smart with their money. They're able to reinvest at high rates of return. And if they're not able to reinvest, it shows that they're kind of a moat business and a good business. This is kind of like the, is this a good business kind of metric low debt? Like we talked about the five-year PE and five-year price of free cashflow. Not that great. But if you believe in the growth story, still that could be a benefit for this company. Now, guys, if you're new to the channel and this feels overwhelming, you're not alone. Everybody in the history of the world who became a good investor was overwhelmed at some point, even Warren Buffett. We're here to simplify all of this guys. We have all of these metrics right here. I want you to understand these fully. I want us speaking the same language. I want you to feel so much more comfortable when you hear these terms. So I made it simple. I created a cheat sheet, click the link below, get the cheat sheet in a matter of minutes. You'll have this permanently for yourself to always have to look at any companies in the future. And as you watch our videos, you can pause and look up a metric to get a better understanding of it. This is exactly why I teach on YouTube. I was sick of people following others, just looking for stock advice. I wanted to teach a process. I wanted people to ask the questions that most hypesters are not willing to ask. So guys, in a couple of minutes, we're going to go over what the stock is actually worth, but let's look at the analyst estimates before we go any further. So here's what's interesting guys expected to make 1337 this year, which is down their profits expect to go down next year. Analysts have them doubling their profit in the next five, six years. Now, why is it important? Well, first off, we can't just trust analysts for everything, but look at this. Let's say we give them a premium of $20, 20 times earnings. In five years, this makes us a $530 stock. Would you pay $175 today? You get 530 value in five years. I'm not saying that's going to happen, but at least it's interesting to say, okay, they see a lot of growth here. Is this possible? Listen, Lulu's a great brand. They've expanded to men. Everyone loves it. Is it a fad? That is the question. Look at, look at revenue growth, not as high as I would have thought four and a half, four and a half, five and a half, 10, nine, 8%. So it's not the exciting growth story. It used to be. That's why the stock is down a lot. And this is the lesson we have to learn about this company. The growth story will eventually fade. So don't buy for the hype of growth because the second it goes away, the stock will plummet. Make reasonable assumptions. And that's what we're here to do with Stock Analyzer. Take the story. We take the numbers. We put it together in our Stock Analyzer tool. So let's see the last time I did Lulu, what assumptions I made. So I did three, five and 7% revenue growth over the next 10 years. Okay. Profit margin and free cashflow. I did 14 and a half, 15 and a half and 16 and a half. Even though free cashflow is lower, I want to sit there and say, okay, over a long period of time, they're probably going to equate out. And here's the other thing. We go to their cashflow. Their capital expenditures are up significantly in the last five, six years from 200, 300, $250 million a year to 750. So they're spending a lot on the business. That's why cashflow is so much different than earnings. So the hope is that it, that it ends up equating itself out over a long period of time. Next, what PE or price of free cashflow would I apply to this company 10 years from now? It's not today. It's not five years from now. It's 10 years from now. Well, the market average is 15 or 16. You go higher for good companies or good growth stories, lower for bad companies, bad growth stories. The growth story here isn't great, but these high returns on capital, maybe deserves a premium, but it is maybe a fad. This is where it becomes difficult. This is part of the art of investing. If somebody came here and said 20 times earnings, I'd say makes sense. Somebody else said to me 14, cause it's retail and makes sense too. I don't know the right number. I did 16, 19, and 22. I'm assuming it's not just a fad and it's going to be around for a while. And then finally, what's my desired return? Now guys, I put in the intrinsic value return of 9%. I'm not trying to figure out what I'm willing to pay for it. I want to figure out what is it worth to the market. But remember when you buy a company, don't buy it from market equal return. You need to sit there and get your margin of safety. You get that by putting a higher desire return because the more return you want, the lower the price. That's how you get your margin of safety. So I hit the analyze button. The stock's currently at 177. This is why it might seem interesting. 215 on the low side, 408 on the high side, 300 in the middle. Now guys, stock number three, Micron technology. And this one is right in the middle of the AI wave. Micron makes memory chips. Specifically, they're a big producer of something called high bandwidth memory. Those called HBM chips, which are essential components inside AI servers. Guess who their largest company customer is? Nvidia. Analysts are expecting sales to jump 55% in 2026. And the stock trades at a forward PE of just 13.4, despite that growth rate. Just a year ago, shares were around $65. Say they're at $410 a share, nearly 6X in 12 months. In the last one year, April 7th of last year is at $61 a share. Now here's why I'm not doing a full deep dive on Micron today. Memory chips are notoriously cyclical. Prices demand can swing wildly. Guys, great investors understand their circle of competence and heavily cyclical industries like memory chips are outside of mind. There's no shame in that. In fact, one of our in-house analysts, Dalton, he did an exclusive coverage of Micron last year for EM members, expecting why the bottom of that cycle may look ugly, but seeing $300 per share or higher. Once the cycle returns is very reasonable. He understands cyclical businesses a lot better than I do. So it's very important to understand the companies you invest in and why you're picking them. If you want to have more conversations about this, check out our community, everythingmoney.com where you can join and have these conversations with Dalton in the community. Interestingly enough, stock number four British tobacco. Now this is a company I own. Remember don't own a company just because I do. I was fortunate enough to buy it in the high twenties and low thirties. And my cost basis is somewhere there. I'm not saying to brag, I have a lot of criticisms of British tobacco. This one surprised me immensely to see on this list. Now I know what you're thinking tobacco 2026 for real. Is that really a growth story? And the honest answer is no, it's not a growth story, but it doesn't have to be. One of the biggest things I've learned over 30 plus years of investing is that oftentimes the best investments are the boring cash generating machines that the market ignores. Think about it. If the market ignores it, the price goes down. I was just in Dallas this weekend and I was driving around with my brother-in-law. He's an electrician and he was looking at all these apartment buildings going up. It's like, Oh my God, these things are awesome. I go, yeah, but they're probably not big moneymakers. And he laughed. I'm like, no, I'm serious. He goes, how's that? How could that be? I said, Dave, let me ask you a question. Do you think that building is beautiful? He's like, yeah. It's like, if you had a hundred million dollars, you buy it. He's like, absolutely. I go, exactly. Everyone wants to own that building. So what happens? The price is, it goes up. We drove a little bit later, kind of a rougher area. I go see that building right there. He goes, yeah, I go, that building probably makes more money than the other building. He goes, no way. I said, because nobody wants that building. I go, my best property is the ones that are not the nicest ones. Now guys, this is what's important of a way to think. I want you to have that thought process. Everybody loves it. I got to find a reason why they're getting it wrong. For there to be more upside. Now with British tobacco, I understood the opportunity when it was trading at four or six times free cash flow. Here's what happened. Basically in 2023, it took a $31.5 billion charge, essentially writing down the value of their cigarette brands. That spooked a lot of investors. The stock got hammered. Here's the thing. That was a non cash charge. It hurt the reported earnings number, but their balance sheet in terms of their cash didn't change anything. So now the stock has more than doubled since then. Let's see if it still looks undervalued today using our process. So the company is $136 billion market cap. By the way, I'm not going to lie to you. I make fun of dividend people, but when I bought it for 30, the dividend yield was nine to 10%. Funny thing is I hate the fact that they have a dividend, even though I like the dividend to get it. I hate the fact that they pay it. I'll tell you why in just a few minutes, it's selling for 18 times free cash flow and 13 times earnings. Okay. Free cash flows down a lot over the last five year average. But what I do love is they'll look at their five-year net income. It's because that big write down they had their five-year free cash flows, a lot higher profit margin, 29% a year for the last 10 years, 30% last year, but it did include that big write down. So you have to fact that in here, that's why the five-year profit margin is so low dividends, $7 billion eats up a chunk of their shares here, a chunk of their free cash flow. That's a big hit guys. That's a big hit. And look at the revenue, 10-year revenue growth of 7% a year. I'm quite sure that has to do with their acquisitions because look at the last three and five years, it's bad. Look at this gross profit, 83%. Guys, I want you to remember something. I want you to this way I want you to think about British tobacco. Is the tobacco industry growing? No. Might even be negative growth. Let me ask you a question. You can buy all British tobacco for $1, not a dollar per share for $1. Would you take it? Of course you would. Cause you get your money back in about 0.00000000001 seconds, right? Would you pay $10 trillion for it? Well, of course not. It's not growing and you only get 7.5 billion. So between $1 and $10 trillion, there's a price somewhere in the middle that makes a hell of a lot of sense. It's actually, there's probably a lot of prices, but there's a point where it stops making sense. That's our goal as investors. At what point does it stop making sense? That is the big key. I want you thinking. I use extremes to understand that there's a middle and sometimes that frustrates my wife. So those extremes helped me realize, okay, $1 to ridiculously low, $10 trillion ridiculously high somewhere in the middle. It makes a lot of sense. That's what I want to look at. Guys, let's look at the, uh, let's see what our community members have. It's a hold right now with intrinsic value of $52 eight pillars. Oh my God, this is an ugly eight pillar cash flows down revenues down net incomes, actually up PE is terrible. Five-year pre-office fee cashflow is great. Bad returns on capital proof that the eight pillars are not a buy or sell kind of metric. It's just a way of telling a story. So for me, the story I'm seeing here is you got to get it cheap and I feel like I got it cheap, but time will tell. Let's go to our analyst estimates here. Ironically, look at analysts. They have a growth in earnings per share for the next few years, six and a half, seven and a half, 6% growth. So guys, the business might be sucking, but the earnings per share is going up because look at the revenue. They actually have growth, growth, growth, drop, drop, but still higher revenue five years from now than today. Guys coming like this, in my opinion, needs to do one of two things, make intelligent diversified acquisitions in other areas and buy back shares. Cancel the stupid dividend. Yes, I love dividends, but cancel it. Start buying back shares and make good diversified acquisitions and other businesses. It's like Berkshire Hathaway. People don't realize that when Warren Buffett bought Berkshire Hathaway, it was a failing textile mill in Maine. And he made it into the world's like biggest, one of the world's biggest companies, the world's biggest holding company. He took a failing business, made it big. Same with blue chip stamps that he and Charlie Munger bought. They bought it in the early seventies and from the early seventies until the mid eighties, revenue fell 99.9% from a hundred, a hundred million, 120 million down to a hundred thousand get, they made 15% return on their money because they paid the right price. That's what's key here. So let's go put this all together in our stock analyzer tool. Let's see how this looks ETI. So guys, here's my revenue for the next 10 years, negative 2% a year, one and 4% of your growth profit margin and free cashflow. I did the same 25, 30 and 35% PE guys, declining business six, nine, and 12. In fact, I'd probably put six, eight and 10. And then finally my 9% no margin of safety return hit the analyze button. And remember our returns, the bottom include the dividend guys. I have felt that panic in my gut as well. When stocks fall, fear takes over. You start thinking, do I sell before it gets worse? I've been there. I've made those emotional decisions and I paid heavily for them, but patience and planning are what separates principle driven investors from degenerate gamblers. Once you understand value and how to determine it, your perspective completely transforms. Price drops become golden opportunities, not disasters. That's what we teach at everything money, how to think longterm and stay calm when other investors start losing their minds and they dig holes that kneecap their financial future. Get access to the tools and the knowledge that protect your portfolio and your future from those emotional decisions that will destroy wealth. Start your seven day trial right now. Scroll guys, low price of 30 high price of 73 middle price of 46. Do you see the difference here? I paid 30. It's now at 62. The parameters all change based on the price you're paying. It's so important to remember that just because it's doubling price, not make it a better company. It was a better company. It was a better investment at $30 per share. I happen to jump on it at the right time. Great. It worked for me. And I was buying at the low end of my, my assumptions, but guess what? My assumptions were all very low assumptions. I felt like I put enough margin of safety in there. Now our fifth and final stock is Lenar. One of the largest home builders in the entire United States. Here's the backdrop you need to understand. After the housing collapse, home builders were basically uninvestable in the eyes of many people out there. But if you zoom out, the stock was trading on the same levels in 2022 as it was in 2005, not just a lost decade, 17 years of loss. Let me show you guys that chart. Look at this 2022, hit a low, a $57 a share. And look at that, a high of 62 in 2005, nowhere for 17 years. That being said, it wasn't the same business in 2022 as it was in 2005. Today, Lenar has cleaned up its balance sheet. It's grown significantly. Meanwhile, the stock trades at a PE of just 11. On top of that, Berkshire Hathaway was buying shares throughout 2025. So guys on the surface, that interests me, but let's look at it a little bit deeper. Let's check out this company. Well, first off, our community members have as a buy with intrinsic value of $151. It's a $28 billion market cap business and enterprise value of 36 billion. Now here's my story about Lenar. I was buying a house in Florida, in Fort Myers, right? Airbnb business. It was a beautiful home. When I got down there, just something spooked me. And this never happens. I just said, I'm not buying this house. I'm like, I just think it's not a good idea. So I bailed on the deal like literally the week before we're going to close. Well, the seller's agent want to get on the phone with me. It's like my brother's at Lenar and he says we've hit the bottom and they've never seen a better market for them. Blah, blah, blah, blah, blah. To which I said, well, where's your brother in 07 when Lenar lost a billion dollars? Was he seeing that one? The bottom line is that was a year ago. Their cashflow was 28 million in the last year, five-year average, 2.6 billion. So I have two lessons there. Don't listen to anybody. And especially do not listen to realtors because they're ******* stupid. And if you're a realtor out there, I apologize. But the bottom line is you're a salesperson. You're not an investor. So that same house that I was buying has dropped the price twice now since I bailed on it. After I offered them a deal, somebody tells me I'm going to be buying the house for what I want. Ironically, he said he watched my videos. I doubt that. Let's check out the other metrics here. So they have a dividend here. It eats up 530 million. Not a lot. If they're able to do their, their five-year average free cashflow is $2.6 billion. But guys, this is a cyclical business. I just saw an article today that one of the most that more people are Googling house can't sell. And then during the great financial crisis. Now with that said, I don't know if it meant as a percentage of overall search or total number because the number of people using Google today versus 2008 is a very different number. So guys, back in 2008, there were 200 million searches a day on Google today. There's 8 billion searches a day on Google. It's 40 times larger. So that's what I mean when I say you got to understand the numbers behind everything. Is it more overall number of searches or as a percentage of all searches? That's the question. So return on capital sucks. Very low. Now, the one thing interesting to me guys is they're selling for five times free cashflow and seven times five-year earnings, man. I look at this like NVR is one of the best compounders of all time. It's like Ryan Holmes and they have like a hundred X in the last 25 years. Cause they bought, they bought stock back, which is really, really smart. Eight pillars. Okay. Cash flows down. We saw why net income is down. We saw why let's go cheat. Don't take a look at this. Yeah. So revenue is about even from 2000 from their highs. Um, profit is about, is less than half. So this is a cyclical business. So fact that in, when you go through, let's see what the analysts think. Oh wow. Look at this $9 per share in 26 going to $25 per share in 20, in 2030, big time growth and revenue. Man, it's so hard. Guys. I look at, I look at Lenar and I'm, have I ever done an analysis on Lenar? I have not. So let's start with Lenar here. Let's do a 10 year analysis. Okay. Let's say they grow. They have revenue growth with inflation. Let's do a low side of 3% middle side of six high side of nine profit margin consistently last 10 years has been booming. Let's call it six, nine, 12%. Same with free cashflow, six, nine, 12%. Now guys, before I go further, I want you to remember I'm spit balling here, but my goal is it's the first time I've ever analyzed Lenar. What you should do when you first find a company is throw in reasonable assumptions and see if it's even worth your time. The stock is currently selling for $110 a share. Let's say I hit the analyze button and the value is $20. Don't spend any more time. Let's say the value is 150 spend more time. That's the point of all of this, but don't make unreasonable assumptions. Now, PE they're a home builder, very cyclical. Let's call it 13, 16 and 19. And then finally my 9%, no margin of safety return, hit the analyze button. The stock is currently at $110 per share. Boom. We have a low price of one 15 high price of four 55 to 40 in the middle. This is interesting to me, but I got to tell you guys, you've got to be ready for volatility with these companies. This kind of potential return in the middle, 21% is awesome, but you got to understand what you're buying and why you're buying it and realize the cyclicality is an issue with home building. We've come off a big boom on home building, understand what their path is in the future, how they buy land. That's a big thing for home builders. Do they own the land? Do they, do they option the land from other owners and other developers? That's the big thing. So guys, overall with this video today, here's the big takeaway. Jeremy Bowman put together an interesting list. I was kind of shocked not to see your normal list of Nvidia, AMD, and Tesla. Berkshire is a world-class business. Micron has real AI tailwind behind it. We've gotten the numbers today. The ones that stood out the most were Lulu, British Tobacco, and Lenar. I think all three of these are worth doing some research into, and that's the most important thing I can emphasize to you. We don't just read articles and buy. We do the work. We run the numbers. We use stock analyzer tool. We decide what the business is actually worth. And then we only buy when the market gives us a margin of safety that works for us. If you take one thing away today, don't invest based on a list, invest based on a process. And I put together a video, of seven stocks that I think will beat the magnificent seven over the next five or 10 years. I'm gonna be honest with you. The results were not what I expected. You're going to want to see how this played out in the first year. Click right here to watch it. Thank you for your time.