10 Value Stocks To Buy For 2026

Key Concepts

• Barron’s Top Picks: Annual list of 10 stocks recommended by Barron’s, with accompanying investment theses.
• AI Integration & Licensing: Disney’s deal with OpenAI to license IP for AI content generation.
• Zillow & Google Competition: Impact of Google’s foray into real estate listings on Zillow’s stock price.
• iRobot Bankruptcy & Regulatory Impact: The failure of iRobot (Roomba) following blocked acquisition by Amazon, attributed to regulatory opposition led by Elizabeth Warren.
• Mergers & Acquisitions (M&A) & Antitrust Concerns: Elizabeth Warren’s consistent opposition to M&A activity and its potential negative consequences for US companies.
• Qualum: Stock analysis platform used for data and financial history visualization.
• Margin Expansion: The potential for increased profitability through cost control and efficiency improvements.
• Secular Decline: A long-term trend of decreasing demand or relevance for a business or industry.

Barron’s 2026 Top 10 Stock Picks – Analysis & Reaction

The episode centers around a breakdown of Barron’s recently published list of 10 stock picks for 2026, alongside analysis of current market news and a “Fail of the Week” segment. Barron’s picks outperformed the S&P 500 last year, demonstrating a track record of success.

1. Amazon (Top Pick):

• Barron’s Thesis: Amazon is poised for growth in 2026, following the surges of Meta (2023) and Nvidia (2024). Despite concerns about capital spending ($125 billion) and a slowdown in AWS, Barron’s highlights Amazon’s 40%+ share of US e-commerce, 20% AWS revenue growth (fastest in 11 quarters), and promising ventures like pharmaceuticals, Project Kuiper (satellite services), Alexa, and Zook (robo-taxi). Amazon currently trades at 29x projected 2026 earnings, a discount to Walmart.
• Joseph Carlson’s Reaction: Agrees with the pick, but emphasizes margin expansion as the key driver for future growth. He believes increased automation and robotics, enabled by AI, will significantly boost operating margins and free cash flow beyond current analyst expectations. He cites analyst Mark Mahaney’s $335 price target (vs. current $220).

2. Bristol Myers Squibb:

• Barron’s Thesis: The stock is down 9% in 2025 due to drug pipeline disappointments.
• Joseph Carlson’s Reaction: Strongly disagrees. He avoids pharmaceutical companies due to inherent risks in drug development and regulatory hurdles. He would replace Bristol Myers Squibb with Meta, citing its higher quality, earnings power, and potential for margin improvement.

3. Comcast:

• Barron’s Thesis: Trades at 6x earnings, but faces a shrinking cable/broadband business and potential separation of media/entertainment assets.
• Joseph Carlson’s Reaction: Strongly disagrees. Highlights Comcast’s flat revenue growth, massive debt ($93 billion), and declining broadband business. He views the proposed breakup as speculative and prefers companies with predictable growth.

4. ExxonMobil:

• Barron’s Thesis: Expected 13%+ annual earnings growth through 2030, driven by continued global demand for oil and gas.
• Joseph Carlson’s Reaction: A more favorable pick, acknowledging the continued importance of oil and gas during the energy transition.

5. Fairfax Financial Holdings:

• Barron’s Thesis: A “mini-Berkshire Hathaway” with strong insurance operations, an excellent investment record, and potential for 15% annual book value growth.
• Joseph Carlson’s Reaction: Positive view, comparing it to Brookfield and appreciating its diversified investment approach.

6. Flutter Entertainment (FanDuel):

• Barron’s Thesis: Concerns about competition from prediction markets (Khi and Poly Market) have caused a 33% stock decline.
• Joseph Carlson’s Reaction: Disagrees. Believes prediction markets pose a significant threat to sports betting and is concerned about market saturation.

7. Madison Square Garden:

• Barron’s Thesis: Undervalued due to the market’s inability to realize the value of the Knicks and Rangers. Potential for value creation through spinning off teams or selling stakes.
• Joseph Carlson’s Reaction: Highly skeptical. Doubts the family controlling the company will sell the teams, rendering the investment thesis unreliable.

8. Visa:

• Barron’s Thesis: Undervalued despite consistent double-digit earnings growth and leadership in stable coins.
• Joseph Carlson’s Reaction: Agrees with the pick, but slightly prefers Mastercard due to its lower exposure to declining debit card usage.

9. SL Green Realty:

• Barron’s Thesis: Undervalued due to concerns about the New York City office market.
• Joseph Carlson’s Reaction: Avoids New York real estate due to secular decline and concerns about policy changes.

10. Walt Disney:

• Barron’s Thesis: Trades at 16x earnings and is undervalued given its intellectual property and durable demand.
• Joseph Carlson’s Reaction: Positive view, believing Disney is a decent buy with potential for attractive returns.

Market News & Analysis

• Disney & OpenAI Partnership: Carlson views the licensing of Disney IP to OpenAI as a positive move, emphasizing Disney’s rigorous IP protection and the inevitability of AI integration. He believes Disney will profit from the arrangement while maintaining control over its brand.
• Zillow & Google Competition: Google’s testing of home sales listings directly in search results caused an 11% drop in Zillow’s stock price. Carlson highlights Google’s power to disrupt industries and its potential to dominate the real estate listings market.
• Fail of the Week: Elizabeth Warren & iRobot: The bankruptcy of iRobot, following the blocked acquisition by Amazon due to regulatory opposition led by Elizabeth Warren, is highlighted as a detrimental outcome. Carlson argues that Warren’s consistent opposition to M&A activity harms US companies and benefits foreign competitors (specifically, Chinese robot vacuum manufacturers). He criticizes her blanket opposition to mergers, citing numerous examples of blocked deals that could have benefited consumers and the US economy.

Tools & Resources

• Qualum: A stock analysis platform offering 30 years of financial history, DCF calculators, earnings call transcript summaries, and portfolio analysis tools.

Conclusion

Barron’s 2026 stock picks offer a diverse portfolio, but Carlson’s analysis reveals nuanced perspectives. He emphasizes the importance of margin expansion, predictable growth, and avoiding companies facing secular decline. The episode underscores the power of large tech companies like Google and the potential negative consequences of overly restrictive antitrust regulations, exemplified by the iRobot case and Elizabeth Warren’s consistent opposition to M&A activity. The key takeaway is the need for a discerning investment approach that prioritizes fundamental analysis and considers the broader economic and regulatory landscape.