25
Stocks Ranked
8
Sectors
$0-$3.4T
Market Cap Range
/30
Scoring System
Important Disclaimer
This is educational content, not financial advice. Glen Bradford is not a registered investment advisor. The stocks listed here reflect personal analysis and opinions based on publicly available information. Stock prices can decline, resulting in loss of principal. Past performance does not guarantee future results. Always do your own research and consult a qualified financial advisor before making investment decisions.
Why I Built This List
I ran a hedge fund called Global Speculation LP. I published over 300 articles on Seeking Alpha analyzing individual stocks. I was an activist investor in the GSE (Fannie Mae / Freddie Mac) preferred stock space for 12 years. Picking stocks is not a hobby for me -- it was literally my job.
Most "best stocks to buy" lists are recycled content farms that list the same ten mega-cap names without any real analysis. This list is different. Every stock is scored on three dimensions: value (is the stock reasonably priced relative to its earnings power?), growth (how fast are revenue and earnings growing?), and quality (does the company have a durable competitive advantage and a strong balance sheet?).
As a value investor at heart, I lean toward stocks where the risk-reward is asymmetric -- where the downside is limited and the upside is substantial. You will find a mix of defensive compounders, growth engines, and a few higher-conviction bets on this list. The goal is a diversified portfolio foundation, not a collection of moonshots.
The Rankings
25 stocks. 3 ratings each. Scored by a former hedge fund manager who published 300+ stock analyses on Seeking Alpha.
MSFTMicrosoft Corp.
26/30TechnologyLow RiskCore HoldingWhy It's Here
Microsoft dominates three massive markets simultaneously: cloud infrastructure (Azure, #2 behind AWS), enterprise software (Office 365, Dynamics), and AI infrastructure (OpenAI partnership, Copilot). Azure is growing 30%+ and gaining market share. Office 365 has 400 million paid seats with 99% renewal rates. The GitHub + LinkedIn acquisitions created developer and professional network moats. Microsoft is the picks-and-shovels play on the entire AI revolution -- every company deploying AI is writing Microsoft a check.
Glen's Take
Microsoft is the best-managed large-cap company in the world. Satya Nadella took a company that was becoming irrelevant under Ballmer and turned it into the most important technology platform on Earth. Azure, Office 365, and the OpenAI partnership give Microsoft three independent $100 billion+ revenue streams. The AI Copilot integration across the entire product suite means every existing customer pays more per seat. I published multiple analyses of Microsoft on Seeking Alpha and the thesis has only gotten stronger. If you own one tech stock, this is the one.
GOOGLAlphabet Inc.
26/30TechnologyMedium RiskBest Value in Big TechWhy It's Here
Alphabet owns Google Search (90%+ market share), YouTube (2.5 billion monthly users), Google Cloud (growing 28%), Android (3 billion devices), and Waymo (leading autonomous vehicles). Search advertising alone generates $175 billion in annual revenue with 55%+ margins. The company has $100 billion in cash, zero net debt, and a nascent dividend program. Google Cloud is now profitable and accelerating. Waymo has completed over 100,000 paid rides per week in multiple cities. Alphabet is arguably the most undervalued mega-cap in the market.
Glen's Take
At a 24 P/E, Alphabet is the cheapest mega-cap tech stock by a wide margin. The market is pricing in the risk that AI disrupts Search, but the data shows the opposite -- AI Overviews are increasing Search engagement, not cannibalizing it. YouTube is a cable TV replacement generating $50 billion annually. Google Cloud is the third hyperscaler and profitable. Waymo is worth $100+ billion as a standalone company. I think Alphabet at this valuation is a gift. The antitrust risk is real but priced in, and even a breakup would unlock value because the sum of parts exceeds the whole.
JPMJPMorgan Chase & Co.
26/30FinancialsMedium RiskBest-in-Class BankWhy It's Here
JPMorgan is the largest and most profitable bank in the United States. CEO Jamie Dimon has built a fortress balance sheet that consistently gains market share during crises -- JPM acquired Bear Stearns in 2008, WaMu in 2008, and First Republic in 2023. The company leads in investment banking, trading, commercial banking, consumer banking, and asset management. Return on tangible equity exceeds 20%, which is extraordinary for a bank of this size. Net interest income benefits from higher rates while the diversified revenue mix protects against rate cuts.
Glen's Take
JPM at a 13 P/E with 20%+ ROTCE is one of the most mispriced large-cap stocks in the market. The market still prices banks like it is 2008, but JPMorgan today has triple the capital ratios, better risk management, and a CEO who has navigated every crisis for 20 years. Dimon is the Buffett of banking. Every time a regional bank blows up, JPM gets stronger because deposits flow to the safest institution. The 2% dividend yield with 10% annual growth means you are getting paid to wait while the valuation re-rates. This is deep value hiding in plain sight.
AAPLApple Inc.
25/30TechnologyLow RiskCore HoldingWhy It's Here
Apple is the most valuable company on Earth for a reason. The installed base of 2.2 billion active devices creates a recurring revenue engine through Services (App Store, iCloud, Apple Music, Apple TV+, Apple Pay) that now generates over $100 billion annually at 70%+ margins. The hardware ecosystem is a moat disguised as a product line -- once you own an iPhone, MacBook, Watch, and AirPods, switching costs are enormous. Apple has reduced its share count by over 40% since 2013, concentrating future earnings on fewer shares. The balance sheet has $160 billion in cash and the company generates $110 billion in free cash flow annually.
Glen's Take
Apple is the closest thing to a risk-free equity in the market. I know that sounds hyperbolic, but name another company with $110 billion in annual free cash flow, a 2.2 billion device installed base, and pricing power that lets them charge $1,200 for a phone in a recession. The P/E of 33 looks expensive until you realize the Services segment is growing 15%+ and the buyback program shrinks the share count 4% per year. Apple is not a growth stock or a value stock. It is a compounding machine that will be worth $5 trillion within three years.
BRK.BBerkshire Hathaway (B)
25/30FinancialsLow RiskBuffett's EmpireWhy It's Here
Warren Buffett's conglomerate owns GEICO, BNSF Railway, Berkshire Hathaway Energy, See's Candies, Dairy Queen, and massive equity positions in Apple, Coca-Cola, American Express, and Bank of America. The insurance float generates $160+ billion in investable capital at near-zero cost. The operating businesses generate $40+ billion in annual earnings. Berkshire sits on $325 billion in cash and Treasury bills, making it the ultimate defensive holding. No dividend, but Buffett repurchases shares when they trade below intrinsic value.
Glen's Take
Berkshire is my single highest-conviction stock pick. I ran a hedge fund inspired by Buffett's approach, and BRK.B is the closest thing to buying a diversified portfolio of best-in-class businesses at a reasonable price. The $325 billion cash position means Buffett can deploy capital when the next crisis hits -- and he will, just like he did with Goldman Sachs in 2008 and Bank of America in 2011. The succession plan is solid with Greg Abel. At a 23 P/E with $325 billion in dry powder, BRK.B is a fortress. This is a stock you buy and hold for 30 years.
VVisa Inc.
25/30FinancialsLow RiskWhy It's Here
Visa operates the world's largest electronic payments network, processing $15 trillion in annual volume across 200+ countries. The business model is the closest thing to a toll booth in finance: Visa takes a small percentage of every transaction without holding any credit risk. Operating margins exceed 65%. The secular shift from cash to digital payments is still in the early innings globally -- 85% of the world's transactions are still cash. Every percentage point that shifts to electronic payments flows directly to Visa's top line.
Glen's Take
Visa is the perfect business. High margins, zero credit risk, massive moat, and a secular tailwind that will last decades. The 31 P/E is justified because earnings grow 12-15% annually with minimal capital requirements. Visa does not lend money -- it processes transactions. That means no loan losses, no credit risk, no bank runs. The company returns nearly 100% of free cash flow through dividends and buybacks. The only risk is regulation or disruption from real-time payment systems, but Visa has proven adept at adapting to new payment methods (contactless, mobile, crypto rails). This is a forever stock.
JNJJohnson & Johnson
25/30HealthcareLow RiskDividend KingWhy It's Here
Johnson & Johnson is one of only two U.S. companies with a AAA credit rating (the other is Microsoft). After spinning off the consumer health business as Kenvue, JNJ is now a focused pharmaceutical and medical device company. The pharmaceutical segment includes blockbusters like Darzalex, Tremfya, and Stelara. Medical devices span orthopedics, surgery, and vision. JNJ has increased its dividend for 62 consecutive years, making it a Dividend King with an unmatched track record of capital return.
Glen's Take
JNJ is the stock I recommend when someone says they want to sleep well at night. The AAA credit rating means the bond market trusts JNJ's balance sheet more than the U.S. government's. At a 15 P/E with a 3.2% dividend yield and 62 years of consecutive increases, JNJ is the definition of quality at a reasonable price. The Kenvue spinoff actually improved the company by removing the slow-growth consumer segment. The remaining pharma and medtech businesses are higher-growth, higher-margin, and more focused. I wrote about JNJ on Seeking Alpha more than almost any other stock.
METAMeta Platforms Inc.
25/30TechnologyMedium RiskWhy It's Here
Meta owns four of the ten most-used apps on Earth: Facebook, Instagram, WhatsApp, and Messenger. Combined daily active users exceed 3.3 billion people -- nearly half of humanity. Digital advertising revenue is $160 billion annually with 40%+ operating margins. Reels is now monetizing at rates approaching Stories. The AI recommendation engine has transformed the feed from social-only to interest-based, dramatically increasing engagement and time spent. Meta's open-source Llama models position it as a major AI platform player.
Glen's Take
Meta's 2022 crash was the greatest buying opportunity in large-cap tech in the last decade. Zuckerberg cut 21,000 employees, killed low-ROI projects, and refocused the company on efficiency and AI. The result: margins expanded from 20% to 40%+, and the stock went from $88 to over $600. At a 26 P/E with 20%+ earnings growth, Meta is still reasonably valued. The Risk: Reality Labs burns $15 billion per year with no clear payoff. But the core advertising business is so profitable it can fund metaverse experiments indefinitely. The 3.3 billion daily active users number is simply staggering.
SCHDSchwab U.S. Dividend Equity ETF
25/30Diversified (ETF)Low RiskBest for BeginnersWhy It's Here
SCHD is the most popular dividend ETF in America for good reason. It holds 100 high-quality U.S. dividend stocks selected by the Dow Jones U.S. Dividend 100 Index, filtering for financial health, dividend consistency, and yield. The expense ratio is 0.06% -- essentially free. SCHD provides instant diversification across sectors with a tilt toward quality dividend payers. Holdings include Broadcom, Home Depot, Verizon, Coca-Cola, and Pfizer. It is the lazy genius way to build a dividend portfolio without picking individual stocks.
Glen's Take
SCHD is the cheat code for dividend investing. Instead of building a 25-stock portfolio yourself, you pay 0.06% per year and get 100 high-quality dividend stocks with automatic rebalancing. The 3.5% yield with 10%+ annual dividend growth means your yield-on-cost doubles every 7 years. After running a hedge fund and analyzing hundreds of dividend stocks, my honest advice to most people is: just buy SCHD and go live your life. It is not exciting. It is not Instagram-worthy. But it works, and it will keep working for decades.
UNHUnitedHealth Group
25/30HealthcareMedium RiskBuy the DipWhy It's Here
UnitedHealth is the largest healthcare company in the United States, serving 150 million people through insurance (UnitedHealthcare) and healthcare services (Optum). Optum is the hidden gem: it includes a pharmacy benefit manager, a health data analytics platform, and a network of 90,000 physicians. Revenue exceeds $370 billion with consistent 13-16% annual earnings growth. The healthcare sector is recession-proof because people get sick regardless of the economy. UNH has increased its dividend for 15 consecutive years at a 15%+ annual growth rate.
Glen's Take
UNH's recent pullback is a buying opportunity. The stock dropped on concerns about medical cost ratios and political scrutiny, but these are cyclical issues that have occurred before and always normalize. At a 17 P/E for a company growing earnings 13-16% annually, UNH is genuinely cheap. Optum is becoming a healthcare technology platform that will be worth more than the insurance business within five years. The 1.8% dividend yield with 15%+ growth means your yield-on-cost doubles in five years. Healthcare is the one sector where I am comfortable buying the dip because demand is inelastic.
PGProcter & Gamble
24/30ConsumerLow RiskDividend KingWhy It's Here
Procter & Gamble owns the brands that stock every household: Tide, Pampers, Gillette, Crest, Charmin, Bounty, Oral-B, and Dawn. The company has increased its dividend for 68 consecutive years -- the longest active streak in the S&P 500. PG's portfolio of #1 and #2 brands in their categories creates pricing power that persists through recessions. Organic sales growth of 4-6% annually, combined with margin expansion and share buybacks, generates consistent double-digit earnings growth.
Glen's Take
PG is boring, and that is exactly the point. The stock outperforms during recessions because people keep buying toothpaste, diapers, and laundry detergent regardless of the economy. The 2.5% yield with 68 years of consecutive increases means the dividend is essentially guaranteed. $10,000 invested in PG 30 years ago now pays more in annual dividends than the original investment. PG is the anchor of any portfolio -- it is the stock that lets you take risk elsewhere because you know it will be there when everything else is falling apart.
AMZNAmazon.com Inc.
24/30TechnologyMedium RiskWhy It's Here
Amazon operates the world's largest e-commerce platform, the world's largest cloud infrastructure business (AWS, 31% market share), and a rapidly growing advertising business ($55 billion annually). AWS alone generates $100+ billion in revenue at 30%+ margins and is the profit engine funding everything else. Prime has 200+ million members paying $139/year with incredibly low churn. Amazon's logistics network now rivals FedEx and UPS in delivery volume. The advertising business is growing 24% and is nearly pure margin.
Glen's Take
Amazon is three world-class businesses wearing a trench coat pretending to be one company. AWS is worth $1.5 trillion alone on a sum-of-parts basis. The advertising business is worth $500 billion. E-commerce and logistics are the cherry on top. The 38 P/E looks expensive until you realize operating margins are expanding from 6% to 10%+ as the high-margin businesses (AWS, ads) grow faster than the low-margin businesses (retail). I wrote about Amazon's flywheel on Seeking Alpha years ago and the thesis has only compounded. The next trillion in market cap is easier than the last one.
AVGOBroadcom Inc.
24/30TechnologyMedium RiskWhy It's Here
Broadcom designs semiconductors for data centers, networking, storage, and wireless communications. The VMware acquisition transformed the company into a combined hardware + software platform serving enterprise infrastructure. Custom AI accelerators (XPUs) designed for Google, Meta, and other hyperscalers are driving data center revenue growth of 40%+. VMware's recurring subscription revenue adds predictability. CEO Hock Tan is the best capital allocator in semiconductors -- every acquisition has created value. The dividend has grown 30%+ annually for the past decade.
Glen's Take
Broadcom is NVIDIA's quieter, more diversified cousin. While NVIDIA gets all the AI hype, Broadcom is building custom AI chips for the hyperscalers who want alternatives to paying the NVIDIA premium. The VMware acquisition at $69 billion looked expensive but is already being accretive. Hock Tan's playbook -- acquire, optimize, extract margin -- has worked perfectly for 15 years. The 1.1% yield with 30%+ annual growth is a dividend growth investor's dream. At a 38 P/E with multiple growth vectors (custom AI, VMware, networking), Broadcom has more upside than the market appreciates.
COSTCostco Wholesale
23/30ConsumerLow RiskWhy It's Here
Costco's membership model creates the stickiest recurring revenue in retail. 130 million cardholders pay $65-130 per year for access to wholesale prices, and the renewal rate is 93%. Costco makes nearly all its profit from membership fees, which means the retail operation runs at near-breakeven -- passing every savings to the customer. This creates a flywheel: low prices attract members, more members create buying power, more buying power enables lower prices. Costco has been opening 25+ new warehouses annually with strong same-store sales growth.
Glen's Take
Costco's 55 P/E looks insane until you understand the business model. The company does not need to earn a profit on merchandise -- membership fees ARE the profit. This means Costco can undercut every competitor on price indefinitely. The 93% renewal rate is higher than most SaaS companies. Kirkland Signature is now the fifth-largest consumer brand in the world. The recent membership fee increase proves pricing power. I view Costco as a long-duration bond that pays you in real terms -- the cash flows are predictable, growing, and inflation-protected. This is a 20-year hold.
NVDANVIDIA Corp.
23/30TechnologyHigh RiskAI LeaderWhy It's Here
NVIDIA designs the GPUs that power the entire AI revolution. Data center revenue has exploded from $15 billion to over $100 billion in two years as every hyperscaler (Microsoft, Google, Amazon, Meta) races to build AI infrastructure. The CUDA software ecosystem creates a moat that AMD and Intel cannot easily replicate -- developers have built their entire AI pipelines on NVIDIA's platform. The Blackwell architecture is the next step. NVIDIA is not just selling chips; it is selling the infrastructure layer for the most important technology shift since the internet.
Glen's Take
NVIDIA at a 60 P/E scares people, and I get it. But the P/E based on next year's earnings is closer to 30, and earnings are still accelerating. This is the rare case where the stock that has already gone up 10x might still be undervalued. The AI capex cycle is in the early innings and NVIDIA has 80%+ market share in training GPUs. The risk is that hyperscalers build custom chips (Google TPU, Amazon Trainium), but so far every company that has tried to replace NVIDIA has ended up buying more NVIDIA. Position size matters here -- this should be 5-8% of a portfolio, not 20%.
CATCaterpillar Inc.
23/30IndustrialsMedium RiskWhy It's Here
Caterpillar makes the heavy equipment that builds the world: excavators, bulldozers, mining trucks, generators, and turbines. The $1.2 trillion U.S. infrastructure bill, global data center construction boom, and mining capex cycle create a multi-year demand tailwind. CAT's dealer network of 2,700 locations worldwide is an irreplaceable distribution moat. Parts and services revenue (high margin, recurring) now exceeds 50% of total. CAT has increased its dividend for 30 consecutive years.
Glen's Take
Caterpillar is the ultimate infrastructure play. Every road, bridge, mine, building, and data center on Earth requires CAT equipment. The dealer network is a moat that no competitor can replicate -- it took 100 years to build. The stock moves with the economic cycle, but the parts and services business provides ballast during downturns because equipment that is already deployed still needs maintenance. At an 18 P/E with a multi-year infrastructure spending cycle ahead, CAT is set up for sustained earnings growth. The data center construction boom alone could drive demand for years.
HONHoneywell International
23/30IndustrialsMedium RiskWhy It's Here
Honeywell operates across aerospace, building technologies, performance materials, and safety/productivity solutions. The aerospace segment supplies components for every major commercial and defense aircraft. Building technologies provides smart building automation systems for energy efficiency. The company has undergone a portfolio transformation, spinning off non-core businesses to focus on three high-growth megatrends: automation, aviation, and energy transition. The backlog exceeds $33 billion, providing multi-year revenue visibility.
Glen's Take
Honeywell is the most boring stock on this list, and I mean that as a compliment. Aerospace aftermarket revenue is sticky and growing. Building automation is a secular trend as every commercial building needs to reduce energy costs. The recent pullback to a 21 P/E is a nice entry point for a company that consistently grows earnings 8-12% annually. The portfolio simplification strategy should unlock value as the market re-rates a more focused Honeywell. I view this as a 3-5 year compounding play at a reasonable valuation.
LLYEli Lilly & Co.
22/30HealthcareHigh RiskWhy It's Here
Eli Lilly is the undisputed leader in GLP-1 weight loss and diabetes drugs, the largest new drug category in pharmaceutical history. Mounjaro and Zepbound are generating revenue that is growing 50%+ year-over-year with no signs of slowing. The total addressable market for obesity treatment is estimated at $150+ billion globally. Lilly's pipeline extends beyond GLP-1s into Alzheimer's (donanemab), immunology, and oncology. The company has invested $20 billion in manufacturing capacity to meet demand that currently far exceeds supply.
Glen's Take
Lilly at a 68 P/E is the most controversial pick on this list, and I am okay with that. The GLP-1 opportunity is so massive that traditional P/E analysis breaks down. If Mounjaro and Zepbound reach peak sales of $50-80 billion (which multiple analysts project), the current valuation is actually reasonable on forward earnings. The manufacturing buildout is the bottleneck, and Lilly is solving it. The risk is competition from Novo Nordisk and potential pricing pressure, but Lilly's pipeline depth provides insurance. This is a high-conviction, high-volatility position. Size it accordingly.
MCDMcDonald's Corp.
22/30ConsumerLow RiskWhy It's Here
McDonald's is the world's largest restaurant franchise with 40,000+ locations in 100+ countries. The franchise model means 95% of restaurants are operated by franchisees who pay McDonald's rent and royalties -- making MCD essentially a real estate and licensing business with minimal capex. Same-store sales growth is driven by digital ordering, delivery partnerships, menu innovation, and breakfast dominance. The company has increased its dividend for 48 consecutive years.
Glen's Take
McDonald's is not a restaurant company. It is a real estate and franchise royalty company that happens to sell burgers. The franchise model means McDonald's collects rent and a percentage of every sale without operating restaurants or employing cooks. This is why margins are 45%+ and capital requirements are minimal. At a 25 P/E with a 2.3% yield and 48 years of dividend increases, MCD is a recession-tested compounder. People eat at McDonald's more during recessions, not less. That counter-cyclical demand is worth paying for.
XOMExxon Mobil Corp.
22/30EnergyMedium RiskWhy It's Here
ExxonMobil is the largest publicly traded oil and gas company in the Western world. The Pioneer Natural Resources acquisition added the best acreage in the Permian Basin, making Exxon the dominant U.S. shale producer. The company generates $35+ billion in annual free cash flow at $70/barrel oil. Exxon has increased its dividend for 42 consecutive years through oil price crashes, pandemics, and energy transitions. The downstream (refining) and chemical segments provide diversification beyond upstream oil prices.
Glen's Take
Energy stocks are hated by ESG investors, which is exactly why they are cheap. Exxon at a 14 P/E with a 3.3% yield is priced like the world is about to stop using oil. Spoiler: it is not. Global oil demand is at record highs and growing. The Pioneer acquisition transformed Exxon's production profile -- Permian Basin shale is low-cost, high-decline, and enormously profitable. The 42-year dividend increase streak survived $20/barrel oil. Exxon maintained its dividend during COVID when the entire energy sector was cutting. That tells you everything about management's commitment.
CRWDCrowdStrike Holdings
22/30TechnologyHigh RiskWhy It's Here
CrowdStrike is the leader in cloud-native endpoint security, protecting devices and workloads from cyberattacks using AI-powered detection. The Falcon platform processes 2+ trillion events per day and has an industry-leading detection rate. Net dollar retention exceeds 120%, meaning customers expand their subscriptions by 20%+ annually. Annual recurring revenue exceeds $3.8 billion with 33% growth. Cybersecurity spending is non-discretionary -- companies cannot cut security budgets, even in recessions. CrowdStrike is consolidating security spend onto its single-agent platform.
Glen's Take
CrowdStrike's July 2024 outage was a gut-punch, and the stock has not fully recovered. That is your opportunity. The outage was a content update error, not a fundamental platform flaw, and customer churn was near-zero because switching endpoint security providers is incredibly painful. CrowdStrike at $85 billion market cap with $3.8 billion in ARR growing 33% is actually more reasonably priced than most cybersecurity peers. The module adoption story (customers buying 7+ modules from a single platform) is the real thesis. Security spending only goes up, and CrowdStrike is the platform winner.
PANWPalo Alto Networks
22/30TechnologyMedium RiskWhy It's Here
Palo Alto Networks is the largest pure-play cybersecurity company by market cap. The platformization strategy bundles network security, cloud security, and security operations into a single platform, displacing dozens of point solutions. Next-gen security ARR exceeds $4.2 billion growing 40%+. The company has transitioned from hardware-centric firewalls to cloud-delivered security services with higher margins and recurring revenue. CEO Nikesh Arora's strategy of offering free platform access to displace competitors is aggressive but working -- net new ARR is accelerating.
Glen's Take
Palo Alto is executing the most ambitious land-and-expand strategy in cybersecurity. The platformization approach of giving away products to win the full platform deal is counterintuitive but brilliant for long-term revenue concentration. Customers who adopt the full platform spend 5-10x more than point-product customers. At a 50 P/E with next-gen ARR growing 40%+, the valuation is demanding but justified by the unit economics. Cybersecurity is the one tech spending category that never gets cut. I prefer PANW over CRWD for its broader platform scope, but both deserve a spot in a growth portfolio.
UBERUber Technologies
22/30TechnologyMedium RiskWhy It's Here
Uber is the global leader in ride-sharing (25+ billion trips completed) and food delivery (Uber Eats). The two-sided marketplace creates network effects: more drivers attract more riders, and more riders attract more drivers. The company achieved sustained profitability in 2023 and is now generating $5+ billion in annual free cash flow. Uber's advertising platform is an emerging high-margin revenue stream. Autonomous vehicles are a long-term opportunity, not a threat -- Uber will be the distribution platform for AV fleets from Waymo, Cruise, and others.
Glen's Take
Uber's transformation from cash-burning startup to free cash flow machine is one of the best turnaround stories in tech. The company went from losing $8 billion in 2020 to generating $5+ billion in free cash flow. At a 28 P/E with 15-20% revenue growth, Uber is reasonably valued for a platform that is still gaining share in a massive TAM. The AV debate is misunderstood -- Uber does not need to own autonomous vehicles, it needs to be the marketplace where AV fleets find riders. That is exactly what the Waymo partnership demonstrates. The advertising business is pure upside.
ORealty Income Corp.
21/30Real Estate (REIT)Medium RiskMonthly DividendWhy It's Here
Realty Income is the gold standard of REITs, paying monthly dividends for 55+ years. The company owns 15,400+ commercial properties leased to investment-grade tenants including Walgreens, Dollar General, FedEx, and Walmart. Triple-net leases mean tenants pay all taxes, insurance, and maintenance costs. Realty Income has increased its dividend for 30 consecutive years (109 consecutive quarterly increases). The 5.6% yield is paid monthly, making it a favorite for income investors who want regular cash flow.
Glen's Take
Realty Income is the closest thing to a bond that grows. The monthly dividend makes it feel like collecting rent without the hassle of being a landlord. At a 5.6% yield with a track record of 109 consecutive quarterly dividend increases, O is the anchor income holding in any portfolio. The risk is rising interest rates, which compress REIT valuations, but Realty Income has survived every rate cycle for three decades. If you need income now, not 20 years from now, this is where you start. I recommend O to anyone within 10 years of retirement.
PLTRPalantir Technologies
19/30TechnologyHigh RiskHigh Risk / High RewardWhy It's Here
Palantir builds software that helps governments and enterprises make decisions from complex data. Gotham serves defense and intelligence agencies; Foundry serves commercial enterprises. The Artificial Intelligence Platform (AIP) has created a new growth vector as organizations deploy large language models on their proprietary data. Government revenue provides a stable base with long-term contracts, while commercial revenue is accelerating 40%+ year-over-year. Net dollar retention exceeds 115%, meaning existing customers spend more each year.
Glen's Take
Palantir is the most polarizing stock on this list. At a 200+ P/E, the traditional value investor in me says this is insanity. But Palantir has cracked something that no other enterprise AI company has: they can deploy AI on messy, real-world data sets in weeks instead of years. The AIP boot camps are converting prospects to customers at an unprecedented rate. Revenue growth is re-accelerating. Government contracts provide stability while commercial is the growth engine. This is a 2-3% position max because the valuation leaves zero room for error, but the product-market fit is real.
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How to Evaluate Any Stock
These are the five metrics I used when running my hedge fund and writing 300+ articles on Seeking Alpha. Master these and you can analyze any stock in 15 minutes.
Want to learn how to read stock charts visually? Read my complete guide.
Price-to-Earnings (P/E) Ratio
The most basic valuation metric. Divide the stock price by earnings per share. A P/E of 15 means you pay $15 for every $1 of earnings. Compare a company's P/E to its sector average and its own 5-year average. A stock trading below both is potentially undervalued. But never buy a stock solely because the P/E is low -- it might be low for a reason (declining earnings, structural problems). Context matters more than the number.
Free Cash Flow Yield
Free cash flow (FCF) is the cash a company generates after all expenses and capital expenditures. FCF yield is free cash flow divided by market cap. A 5% FCF yield means the company generates $5 in cash for every $100 of market value. I prefer FCF to earnings because cash cannot be manipulated by accounting tricks. A company with a high FCF yield and growing free cash flow is almost always a good investment. This was the primary metric I used when running my hedge fund.
Return on Invested Capital (ROIC)
ROIC measures how efficiently a company turns invested capital into profit. An ROIC above 15% indicates a company with a genuine competitive advantage. An ROIC below 8% suggests the company is destroying value. The best long-term investments consistently generate ROIC above their cost of capital. Look for companies with ROIC that is stable or increasing over 5+ years -- it signals a durable moat.
Debt-to-EBITDA Ratio
This measures how many years of earnings it would take to pay off all debt. Below 2x is healthy. Between 2-3x is acceptable. Above 4x is dangerous unless the business has extremely stable cash flows (utilities, REITs). Companies with high debt and cyclical revenues blow up during recessions. I have seen it happen dozens of times with the GSE preferred stocks I analyzed. The balance sheet matters most when times are bad, and times are always bad eventually.
Revenue Growth + Margin Expansion
The two most powerful forces in stock investing are growing revenue and expanding margins. A company that does both simultaneously sees earnings grow faster than revenue -- this is operating leverage. Look for 3-year revenue growth trends and operating margin trends. The best stocks on this list (NVDA, MSFT, META) exhibit both. A company with flat revenue can still grow earnings through margin expansion, but the most powerful compounders do both.
Glen's Portfolio Philosophy
After running a hedge fund, writing 300+ stock analyses, and spending 12 years as an activist investor, here is what I have learned about building a stock portfolio:
Core Holdings (60-70%)
MSFT, AAPL, GOOGL, BRK.B, JPM -- companies with durable moats, strong balance sheets, and predictable earnings. These are the stocks you hold for 10+ years and never sell. They compound quietly while you sleep.
Growth Allocation (15-20%)
NVDA, AVGO, LLY, PLTR -- companies with massive addressable markets and accelerating revenue. Higher volatility, but the potential for 3-5x returns over 5 years. Size positions smaller because the range of outcomes is wider.
Income Layer (10-15%)
JNJ, PG, O, SCHD, XOM -- stocks that pay meaningful dividends with long track records of increases. These fund your retirement income and provide stability during market downturns.
Opportunistic (5-10%)
Stocks trading at significant discounts due to temporary problems. UNH after the recent pullback is a perfect example. This is where stock-picking skill matters most -- buying quality companies when the market overreacts to short-term noise.
Disclaimer
This ranking reflects Glen Bradford's personal analysis and investment opinions. It is not financial advice. Glen is not a registered investment advisor. Stock prices can decline, resulting in loss of principal. Past performance does not guarantee future results. Do your own research and consult a qualified financial advisor before making investment decisions.
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Burton Malkiel's classic case for index investing. The book that convinced millions to stop stock-picking.
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John Bogle's manifesto on why low-cost index funds beat everything else. Straight from the founder of Vanguard.
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Frequently Asked Questions
What are the best stocks to buy right now in 2026?
The best stocks to buy depend on your investment goals, time horizon, and risk tolerance. For most investors, a core position in high-quality mega-cap stocks like Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), and Berkshire Hathaway (BRK.B) provides a foundation of compounding growth with lower risk. For income, add Johnson & Johnson (JNJ), Procter & Gamble (PG), and Realty Income (O). For growth, consider NVIDIA (NVDA) and Broadcom (AVGO). The key is diversifying across sectors and balancing growth with quality.
How do I know if a stock is overvalued or undervalued?
Compare the stock's P/E ratio to its sector average and its own 5-year historical average. Check the free cash flow yield -- above 4% generally indicates reasonable value. Look at the PEG ratio (P/E divided by earnings growth rate) -- below 1.5 suggests the stock is fairly valued relative to its growth. But valuation is both art and science. A stock with a high P/E can be cheap if earnings are growing fast enough (NVDA), and a stock with a low P/E can be expensive if earnings are declining. Always consider the growth trajectory alongside the valuation.
Should I buy individual stocks or index funds?
For most people, index funds (like VTI or VOO) are the better choice. Over 90% of professional fund managers fail to beat the S&P 500 over 15 years. If you enjoy analyzing businesses and have the temperament to hold through volatility, a portfolio of 15-25 individual stocks from this list can work. The hybrid approach is best: put 70-80% in index funds for your core allocation, and use 20-30% for individual stock picks you have high conviction in. This gives you market-matching returns with the potential for outperformance on the margin.
How many stocks should I own?
Research shows that 90% of diversification benefits are achieved with 15-20 stocks across different sectors. Owning fewer than 10 stocks concentrates risk excessively. Owning more than 30 individual stocks makes it difficult to follow each company meaningfully -- at that point, just buy an index fund. The sweet spot is 15-25 stocks with no single position exceeding 8-10% of your portfolio. Warren Buffett disagrees and advocates concentration, but Buffett is a professional investor who spends 8 hours a day reading annual reports. You probably do not.
What is the difference between growth stocks and value stocks?
Growth stocks are companies growing revenue and earnings faster than average (typically 15%+ annually) and trade at higher valuations (P/E above 25). Examples: NVDA, LLY, PLTR. Value stocks trade below the market average valuation (P/E below 18) because the market underestimates their earnings power or stability. Examples: JPM, BRK.B, XOM. The best investments are 'growth at a reasonable price' (GARP) -- companies growing faster than the market expects at a valuation that does not fully reflect that growth. Alphabet (GOOGL) at a 24 P/E with 15%+ earnings growth is a perfect GARP example.
When should I sell a stock?
Sell when the investment thesis has fundamentally changed, not because the stock price dropped. The three valid reasons to sell are: (1) the company's competitive advantage has eroded, (2) the valuation has become so extreme that even optimistic projections cannot justify the price, or (3) you have found a significantly better opportunity for the capital. Never sell because of a bad quarter, a market correction, or fear. Most investors sell their winners too early and hold their losers too long. If the business is still excellent and the valuation is reasonable, the best move is usually to do nothing.
Is now a good time to invest in the stock market?
Time in the market beats timing the market. Studies show that investors who try to time market entries and exits underperform buy-and-hold investors by 3-4% annually. The stock market has delivered 10% average annual returns over the past 100 years through world wars, pandemics, recessions, and every crisis imaginable. If you have a 10+ year time horizon, any time is a good time to invest. Dollar-cost averaging (investing a fixed amount monthly) removes the timing decision entirely and is the strategy I recommend to anyone who is not a professional investor.
How much money do I need to start investing in stocks?
You can start with as little as $1. Most brokerages (Schwab, Fidelity, Robinhood) offer fractional shares, commission-free trading, and zero account minimums. You do not need $10,000 to buy a share of Amazon. You can buy $50 worth of Amazon. The amount matters less than the habit. Someone who invests $100 per month starting at age 25 will have over $500,000 by age 65 at 10% annual returns. Start now with whatever you can afford, automate it, and increase the amount as your income grows.
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