Market Outlook for 2026
I openly acknowledge that predicting the stock market’s performance in 2026 is beyond my ability. It may continue its upward trajectory, or last year’s momentum might dissipate entirely.
Stock Predictions for 2026
However, I believe the individual stocks that will surpass the S&P 500 in the coming year will have significant catalysts driving them. With this in mind, I foresee three stocks that will excel in 2026.
Alphabet’s Growth Potential
Alphabet (NASDAQ: GOOG, GOOGL) has shown remarkable gains over the past year, despite a recent dip. I anticipate that this trend will persist, particularly due to its positioning in the artificial intelligence (AI) sector.
Cloud Services and Earnings Growth
In its fourth-quarter update, Alphabet indicated promising prospects as CFO Anat Ashkenazi revealed a 55% increase in Google Cloud’s backlog, now totaling $240 billion. As this backlog is converted into revenue throughout 2026, Alphabet’s earnings are expected to rise significantly.
Innovations in AI Technology
Another driver for Alphabet’s potential success in 2026 is its investment in agentic AI technology. Google Antigravity, which utilizes AI agents for complex software tasks, has already gained traction among developers. These advanced AI capabilities are also being integrated into tools for advertisers, which could lead to visible improvements this year.
BeOne Medicines: Expected Catalysts
BeOne Medicines (NASDAQ: ONC) is poised to benefit from multiple catalysts in 2026. The company already has a successful drug, Brukinsa, which dominates the market as a leading BTK inhibitor. An upcoming Phase 3 study results announcement for Brukinsa, used in treating mantle cell lymphoma, is expected in the first half of 2026.
Rhythm Pharmaceuticals: Key Developments Ahead
Rhythm Pharmaceuticals (NASDAQ: RYTM) is another biopharma stock that could thrive in 2026. With its existing product, Imcivree, approved for specific obesity disorders, the company is awaiting FDA approval for a fourth indication by March 20, 2026. Furthermore, Rhythm plans to share interim findings from various clinical studies, providing additional growth avenues.
Investment Considerations
Before investing in Alphabet, it’s worth noting that the Motley Fool Stock Advisor team has identified the 10 best stocks to buy now, which do not include Alphabet. The twelve stocks on this list could yield substantial future returns.
