After back-to-back years of 20%-plus gains in 2023 and 2024, the S&P 500 is up more than 16% in 2025 through Dec. 12. The S&P 500’s forward earnings multiple of 22.5 is also well above its 10-year average of 18.7, raising concerns about potentially bloated stock prices. In other words, stock selection may be important for investors in 2026.
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The 10 best stocks to buy included below are all recommended by Argus analysts and have a Thomson Reuters consensus rating of “positive,” an Argus A6 quantitative rating of “buy” and a Market Edge rating of “long”:
| Stock | Implied Change* |
| Lennar Corp. (ticker: LEN) | 17.3% |
| CME Group Inc. (CME) | 7.8% |
| Paccar Inc. (PCAR) | 8.5% |
| Chubb Ltd. (CB) | -0.2% |
| Marriott International Inc. (MAR) | 3.8% |
| Solventum Corp. (SOLV) | 8.5% |
| Hilton Worldwide Holdings Inc. (HLT) | 21.3% |
| Caterpillar Inc. (CAT) | 4.5% |
| MGM Resorts International (MGM) | 7.0% |
| Bank of New York Mellon Corp. (BK) | -0.9% |
*From Dec. 12 close.
Lennar Corp. (LEN)
Lennar is one of the largest U.S. homebuilders. Analyst Christopher Graja says Lennar shares have underperformed significantly in the past year, but that weakness could prove to be an excellent buying opportunity for investors heading into 2026. Graja says mortgage rates have dropped but remain too high for many average families to afford a home. Lennar has responded with incentives that support sales but hurt margins. Nevertheless, Graja says demand for affordable homes exceeds supply by 2 million to 4 million homes, a favorable long-term setup for homebuilders. Argus has a “buy” rating and $140 price target for LEN stock, which closed at $119.37 on Dec. 12.
CME Group Inc. (CME)
CME Group runs the world’s largest futures exchange and provides a wide range of futures and options products and services. CME operates the Chicago Mercantile Exchange (CME) and other exchanges. Analyst Kevin Heal says CME has several bullish catalysts on the horizon that could propel the stock higher. Heal says inflation, tariffs and geopolitical uncertainty will continue to weigh on CME’s interest rate contract volume in early 2026. However, he also anticipates enthusiastic retail traders will drive elevated trading volumes for equity index, cryptocurrency, metals and micro contracts. Argus has a “buy” rating and $295 price target for CME stock, which closed at $273.55 on Dec. 12.
Paccar Inc. (PCAR)
Paccar is a heavy-duty truck manufacturer that produces the popular Peterbilt, DAF and Kenworth-brand highway trucks. Paccar also provides financial services, truck parts and transportation tech solutions. Analyst Bill Selesky says trucking industry experts consider Paccar trucks to be high-quality, and the company’s management team has an equally stellar reputation for execution. Selesky projects a rebound in sales, new-truck deliveries and margins in early 2026. In addition, he says the Trump administration’s One Big Beautiful Bill Act will be a major tailwind for Paccar. Argus has a “buy” rating and $121 price target for PCAR stock, which closed at $111.56 on Dec. 12.
Chubb Ltd. (CB)
Chubb is a property and casualty insurance company that provides commercial insurance and reinsurance. The company also underwrites life and health insurance and has a high-end personal lines insurance franchise. Heal says Chubb has an impressive management team, a well-respected international brand and a healthy balance sheet. Chubb’s stock has lagged in the past year, but Heal says the company’s underwriting results have been solid and it is generating record core operating earnings, excluding catastrophes. Margins are also improving, suggesting 2026 could be a big year for investors. Argus has a “buy” rating and $308 price target for CB stock, which closed at $308.47 on Dec. 12.
Marriott International Inc. (MAR)
Marriott International operates and franchises hotels and other lodging properties and brands around the world. Its leading brands include JW Marriott, Ritz-Carlton and Sheraton. Analyst John Staszak predicts a rebound in corporate travel could create upside for Marriott’s stock, and the company’s liquidity, profitable fee-based business and focus on business travel create potential for earnings upside in 2026. In addition, Staszak says Marriott’s unique global operating model allows the company to expand room capacity virtually anywhere in the world based on favorable market trends. Argus has a “buy” rating and $310 price target for MAR stock, which closed at $298.72 on Dec. 12.
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Solventum Corp. (SOLV)
Solventum is a leading global health care company spun off from 3M in 2024 that develops, manufactures and sells a diverse portfolio of products and services. Its business segments include Medical-Surgical, Dental Solutions, Health Information Systems, and Purification and Filtration. Analyst David Toung says industry veteran and Solventum CEO Bryan Hanson has implemented a multiphase transformation strategy for the company that should play out favorably for investors in coming years. This strategy includes improving operating efficiency and repositioning underperforming businesses to help jumpstart revenue growth and improve return on invested capital. Argus has a “buy” rating and $90 price target for SOLV stock, which closed at $82.98 on Dec. 12.
Hilton Worldwide Holdings Inc. (HLT)
Hilton Worldwide is one of the largest global hospitality companies. The company owns and manages hotels and timeshares under various brands, including Hilton Hotels & Resorts, Hampton by Hilton and DoubleTree by Hilton. Staszak anticipates Hilton will benefit from a recovery in business travel and says higher management fees and unit expansion will also be growth drivers for the company. He says new brands, fresh development projects and the company’s leading loyalty program will be bullish catalysts for its share price in the long term. Argus has a “buy” rating and $340 price target for HLT stock, which closed at $280.24 on Dec. 12.
Caterpillar Inc. (CAT)
Caterpillar is one of the world’s largest producers of construction and mining equipment. Analyst Kristina Ruggeri says dealer destocking and macroeconomic softness have weighed on Caterpillar’s Construction and Resource segment. Tariffs on steel and aluminum imports have also squeezed Caterpillar’s margins. However, Ruggeri says the company is still on track to hit its full-year targets for operating margin, revenue and cash flow, and these achievements are a testament to Caterpillar’s execution. In addition, strong demand from data center and power project construction will continue in 2026 and beyond. Argus has a “buy” rating and $625 price target for CAT stock, which closed at $597.89 on Dec. 12.
MGM Resorts International (MGM)
MGM Resorts operates casino resort properties, including Bellagio, MGM Grand and Aria in Las Vegas, and MGM Macau and MGM Cotai in China. Staszak says MGM’s stock is attractively valued given BetMGM’s strong performance in the high-growth iGaming and sports betting markets. He anticipates the company’s $2 billion share buyback program, growth at MGM Digital and record revenue numbers at MGM China will fuel impressive earnings-per-share growth for MGM in 2026. In the longer term, Staszak sees growing casino spending in Las Vegas as well. Argus has a “buy” rating and $40 price target for MGM stock, which closed at $37.40 on Dec. 12.
Bank of New York Mellon Corp. (BK)
Bank of New York Mellon is a trust bank, which involves managing cash for large investment funds, providing day-to-day funding for large corporations and serving as a fixed-income clearing firm. The bank generates much of its income from transaction fees. Analyst Stephen Biggar says Mellon’s new commercial model is producing higher organic revenue growth, creating more multi-product relationships and accelerating product innovation. Biggar says Mellon’s Pershing unit will be a key long-term growth driver, and he anticipates the bank will maintain positive operating leverage. Argus has a “buy” rating and $116 price target for BK stock, which closed at $117.03 on Dec. 12.
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10 of the Best Stocks to Buy for 2026 originally appeared on usnews.com
Update 12/15/25: This story was published at an earlier date and has been updated with new information.
