After three consecutive years of above-average market returns, stock selection may be critical for investors in 2026.
The S&P 500’s forward earnings multiple of 21.6 is above its 10-year average of 18.8, suggesting stock valuations may be bloated at current levels. Many top-performing stocks of recent years are struggling, and money has rotated into some unexpected stocks and market sectors.
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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* |
| Consolidated Edison Inc. (ticker: ED) | -3% |
| W. R. Berkley Corp. (WRB) | 11% |
| Fastenal Co. (FAST) | 7% |
| Zimmer Biomet Holdings Inc. (ZBH) | 34% |
| Exelon Corp. (EXC) | -2% |
| D.R. Horton Inc. (DHI) | 25% |
| Regions Financial Corp. (RF) | 15% |
| Zions Bancorporation N.A. (ZION) | 18% |
| Pilgrim’s Pride Corp. (PPC) | 38% |
| Cintas Corp. (CTAS) | 10% |
*From March 9 closing price, per Argus price targets.
Consolidated Edison Inc. (ED)
Consolidated Edison is a regulated energy utility company that provides gas, electric and steam services in New York City and other areas of New York and New Jersey. The company’s main business operations include the regulated electric, gas and steam operations of Consolidated Edison Co. of New York, the transmission services of Con Edison Transmission, and the electric and gas utility operations of Orange and Rockland Utilities. Analyst Marie Ferguson says Edison is a low-beta utility stock that should continue to benefit from positive sector rotation. Argus has a “buy” rating and $108 price target for ED stock, which closed at $111.80 on March 9.
W. R. Berkley Corp. (WRB)
W. R. Berkley is a Connecticut-based insurance company that underwrites a range of commercial insurance and reinsurance products around the world. Analyst Kevin Heal says sticky price hikes and elevated demand for property and casualty insurance will be tailwinds for Berkley in 2026. Heal says higher interest rates have allowed the company to roll over maturing bonds into higher-rate bonds, improving the overall fixed-income portfolio. Heal says Berkley’s recent premium increases have more than offset claims, and he anticipates further improvement in the company’s combined ratio. Argus has a “buy” rating and $76 price target for WRB stock, which closed at $68.24 on March 9.
Fastenal Co. (FAST)
Fastenal is a leading industrial distributor that sells fasteners, safety supplies, and other tools and products, as well as supply chain solutions for manufacturing and non-residential construction clients. Analyst Kristina Ruggeri says Fastenal has successfully navigated an environment of inflation and sluggish end markets, relying on growth via technology to offset contracting margins and maintain growth. Ruggeri says the company’s onsite distribution sites located within or near customer facilities have been a bright spot for Fastenal and a contributing factor to the company’s ongoing market share gains. Argus has a “buy” rating and $50 price target for FAST stock, which closed at $46.80 on March 9.
Zimmer Biomet Holdings Inc. (ZBH)
Zimmer Biomet produces orthopedic and musculoskeletal implants. Analyst David Toung says Zimmer Biomet has a market-leading position in large-joint orthopedics, and the company has successfully generated growth via a combination of bolt-on acquisitions and new product launches. Toung says Zimmer’s acquisition of Paragon 28 is an excellent example of this strategy and will expand the company’s presence in the foot and ankle market. In the longer term, Toung says Zimmer will benefit from an aging U.S. population’s demand for replacement knee and hip joints. Argus has a “buy” rating and $125 price target for ZBH stock, which closed at $93.28 on March 9.
Exelon Corp. (EXC)
Exelon is a U.S. electric and gas utility company that operates in key metro areas such as Philadelphia, Chicago and Baltimore. Ferguson says she is bullish on Exelon’s decision to spin off its competitive energy business and become a pure-play transmission utility. She says this transition will allow Exelon to benefit from moderate wholesale energy prices in 2026 while also controlling costs. Ferguson says Exelon’s target of 5% to 7% earnings growth from utilities is achievable. Additionally, cleaner transmission and a focus on hydropower should provide tax benefits. Argus has a “buy” rating and $48 price target for EXC stock, which closed at $49.14 on March 9.
[Read: 7 Best Oil and Gas Stocks to Buy in 2026]
D.R. Horton Inc. (DHI)
D.R. Horton is one of the largest U.S. homebuilders. Analyst Christopher Graja says D.R. Horton’s expertise in producing affordable homes positions the company to take advantage of elevated U.S. demand for starter homes. Graja says Horton is one of the strongest U.S. homebuilders from a financial perspective, and large homebuilders have a relative advantage over smaller competitors in the current environment. He says President Donald Trump has made housing affordability a top priority, and 30-year mortgage rates have dropped significantly. Argus has a “buy” rating and $185 price target for DHI stock, which closed at $147.69 on March 9.
Regions Financial Corp. (RF)
Regions Financial is a U.S. regional bank that provides banking and wealth management services in 16 states in the South and Midwest regions. Heal says the macro environment has improved and Regions’ capital markets and wealth management businesses have been growth sources. He says Federal Reserve rate cuts could create a steeper yield curve, which would benefit Regions’ capital markets business. Management has guided for deposits to grow at a low single-digit pace in 2026, and Heal anticipates Regions’ net interest margin will remain relatively high. Argus has a “buy” rating and $31 price target for RF stock, which closed at $26.96 on March 9.
Zions Bancorporation N.A. (ZION)
Zions Bancorporation is a regional bank that operates seven different brands of bank branches in the western U.S. in states such as Utah, California and Texas. Its leading bank brands include Zions Bank, California Bank & Trust and Amegy Bank. Heal says Zions shares are attractively valued based on his 2026 earnings forecast. He anticipates a steeper yield curve will result in the bank’s net interest margin staying above 3.2%, supporting earnings. Heal is also bullish on Zions’ focus on retail customer service. Argus has a “buy” rating and $66 price target for ZION stock, which closed at $55.78 on March 9.
Pilgrim’s Pride Corp. (PPC)
Pilgrim’s Pride supplies fresh, frozen, and value-added chicken and pork products to distributors, retailers and foodservice operators. Argus analyst John Staszak says his bullish outlook for Pilgrim’s Pride is based on his belief that high pork and beef prices will result in elevated demand for chicken from both fast food chains and grocery stores. Meanwhile, Staszak says there is only room for moderate chicken supply growth, suggesting potential for higher prices moving forward. Finally, he says Pilgrim’s Pride is investing its impressive cash flow in long-term growth initiatives. Argus has a “buy” rating and $55 price target for PPC stock, which closed at $39.73 on March 9.
Cintas Corp. (CTAS)
Cintas is a leading supplier of corporate identity uniforms. The company also provides cleaning services and supplies, as well as first aid products. Ruggeri says Cintas has a long track record of outperformance thanks to its top-tier management team. Cintas has consistently delivered earnings and dividend growth, and Ruggeri says the company’s largely recurring revenue and opportunities to cross-sell services to new and existing customers make it an attractive investment. In addition, she says technology investments have made Cintas more efficient and helped improve margins and profitability. Argus has a “buy” rating and $220 price target for CTAS, which closed at $200.77 on March 9.
[Read: 9 Best Growth Stocks for the Next 10 Years]
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10 of the Best Stocks to Buy for 2026 originally appeared on usnews.com
Update 03/10/26: This story was published at an earlier date and has been updated with new information.
