If there’s one thing I’ve learned over the last few years, it’s that the market rewards the companies that stay disciplined through uncertainty and keep building while everyone else is distracted. As we approach 2026, I think there’s a group of businesses that are setting themselves up to lead the next major run.
These aren’t hype plays.
These aren’t “story stocks.”
These are companies with real momentum, fair valuations, strong fundamentals, and long runways.
Here are the five companies I believe will be at the front of the next market cycle — and why.
1. $SOFI — The New-Generation Financial Platform
SoFi has spent the last few years building the most complete financial ecosystem for younger consumers. Banking, lending, investing, credit cards, tech infrastructure — it’s all housed under one roof.
Business momentum:
SoFi continues to add members at a rapid pace, grow deposits, expand margins, and strengthen its lending engine. The financials improve every quarter.
Valuation:
Still priced like a small fintech, not like the emerging financial powerhouse it’s becoming.
Catalysts into 2026:
• accelerating profitability
• high-margin tech revenue (Galileo/Technisys)
• deposit-led expansion
• potential index inclusion
Why this cycle is different:
SoFi isn’t chasing traders — it’s building life-long customers.
2. $AMD — The Silent AI Infrastructure Winner
Everyone talks about AI, but very few companies actually enable it. AMD is one of them.
Business momentum:
Data center demand is booming. AI chips are ramping. Their execution continues to surprise.
Valuation:
Still reasonable for the growth ahead.
Catalysts into 2026:
• MI300/MI350 rollout
• hyperscaler adoption
• data center share gains
• accelerating AI workloads
Why this cycle is different:
2025–2026 will be the “AI infrastructure” phase — and AMD is positioned perfectly for it.
3. $GOOGL — The Most Underappreciated AI Powerhouse
Google has been quietly building dominance while everyone else chases hype.
Business momentum:
Search is stable. YouTube is exploding. Cloud is scaling. AI is improving everything behind the scenes.
Valuation:
Still one of the cheapest mega-caps relative to cash flow.
Catalysts into 2026:
• Gemini improvements
• YouTube TV growth
• Cloud margin expansion
• Waymo optionality
• massive buybacks
Why this cycle is different:
Google’s AI isn’t loud — it’s integrated. That’s what drives real long-term dominance.
4. $UNH — The Quiet Compounder
UnitedHealth isn’t flashy, but it’s one of the most reliable wealth-building machines in the market.
Business momentum:
Steady revenue growth, strong margins, consistent execution, and massive scale.
Valuation:
Attractive for a business this stable.
Catalysts into 2026:
• aging population
• Optum expansion
• healthcare consolidation
• margin stability
Why this cycle is different:
In uncertain environments, durable cash-generators outperform.
5. $PYPL — The Most Mispriced Large-Cap in Fintech
PayPal has been misunderstood for years, but the fundamentals are stabilizing.
Business momentum:
Payment volume keeps rising, margins are improving, and the core business remains strong.
Valuation:
Extremely cheap relative to cash flow and network strength.
Catalysts into 2026:
• improved monetization
• operational discipline
• EPS growth via buybacks
• Venmo execution
Why this cycle is different:
PayPal isn’t a high-growth name anymore — it’s a cash flow machine trading at value multiples.
Final Thoughts
The companies that lead the next market cycle won’t be the ones that led the last.
This time around, investors want:
• real cash flow
• strong balance sheets
• valuation support
• durable business models
• long-term visibility
And that’s exactly why $SOFI, $AMD, $GOOGL, $UNH, and $PYPL are positioned to outperform into 2026 and beyond.
Surmount
If you want real-time updates on my strategies, watchlists, and the value portfolio I’m finalizing on Surmount, you can check it all out there. I share deeper research, rules-based models, and insights I don’t always post publicly.
📄 Disclaimer
This newsletter is for educational and informational purposes only. It is not financial advice, investment advice, or a recommendation to buy or sell any security. Always do your own research and consider your personal financial situation before investing. I may hold or may in the future hold positions in some of the companies mentioned.
