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๐ The Best Performing Stocks of 2026

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-Tim Sykes

๐ The Winners And Losers Of 2026 Tell One Clear Story
Let's play a quick game.
Here are the best-performing stocks in the entire S&P 500 this year:
Sandisk up a preposterous 693%
Moderna up 518%
Dell up 338%
Micron up 278%
Seagate up 229%
Intel up 229%.
Now, what do five of those six have in common? They make chips, storage, or the guts of a data center. Outside of Moderna's cancer-vaccine moonshot, the entire leaderboard of 2026 is one enormous, screaming bet on artificial intelligence and the hardware that feeds it.
That's the whole market in a nutshell right now. Money didn't just flow toward AI. It stampeded, trampling everything in its path to get there.
Now let's flip the board over and look at the wreckage, because the losers tell you exactly as much as the winners. The worst performers of 2026 read like a hit list of "things a robot might do instead": real estate data firm CoStar down 56%, ad-tech player The Trade Desk down 52%, medical device maker Boston Scientific down 51%, and TurboTax parent Intuit down a brutal 55%. Toss in beaten-down consumer names like Lululemon, off 44% on a leadership shake-up and fading brand heat, and a clear theme emerges. Wall Street spent all year buying the machines and dumping anything those machines might one day replace.
๐ฏ The rally is dangerously narrow: A tiny cluster of chip stocks did the heavy lifting while huge swaths of the market got left for dead, which means "stocks are up" is hiding a very lopsided, top-heavy reality.
๐ Losers love a comeback: Over the past five years, the ten biggest annual losers in the S&P 500 have averaged a positive return the following year, proving today's dumpster fire can become next year's darling.
โ ๏ธ But not every discount is a deal: Some of these names are cheap for painfully real reasons, whether it's genuine AI disruption or a broken business model, so the bargain bin demands a scalpel, not a shovel.

So where do we actually go hunting? Let's use Intuit as the perfect case study, because it captures the whole opportunity and the whole risk in one stock. The market crushed it 55% on a single fear: that AI agents will eventually do your taxes and bookkeeping for free, killing the need for TurboTax and QuickBooks. That's a legitimate worry, and we're not dismissing it. But here's the other side. This is a company still pulling in over $21 billion in revenue, with fat 80% gross margins, that owns TurboTax, QuickBooks, Credit Karma, and Mailchimp. It's not some fragile startup. It's a fortress that got repriced as if it's already dead. The stock now trades at a forward earnings multiple near 13, absurdly cheap for a business this dominant, and analysts see 40% or more upside if it simply proves it can survive and adapt.
That's the exact type of setup we love. Not the 693% rocket that already flew, but the elite, cash-gushing business the market threw out with the bathwater over a fear that may be overblown.
The Munch Take: Here's our honest philosophy, plain and simple. We are not the type to chase a stock that already ripped 693%. Buying after that kind of run is how you become the sucker holding the bag when the music stops, and the music always stops eventually. If we love one of these winners, we wait patiently for a real, ugly pullback before touching it. What genuinely gets our blood pumping is the other list, the beaten-down blue chips with real moats, real cash flow, and real brands that got tossed aside while everyone crowded into the same six chip names. Whether it's Intuit surviving the AI scare, McDonald's collecting rent through a rough patch, or another world-class business on the discount rack, that's where the smart money quietly goes shopping. Boring, patient, and buying quality on sale beats chasing fireworks every single time. Let the crowd fight over the rockets. We'll take the fortresses on clearance.
5 Best Cheap Stocks Under $5 (Ad)
ne of the five names that cleared our sub-$5 screen is a defense-focused AI company carrying $409.8 million in cash and investments against a $1.45 billion market cap. Its $269.6 million backlog includes a single $53 million sole-source classified award. The free report names it โ and shows the one line on its share count you'd want to see first.
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