As the stock market enters 2026 with major indexes like the S&P 500 and NASDAQ hitting all-time highs, many investors are feeling the “FOMO” (Fear Of Missing Out) on AI-driven tech giants. However, seasoned investors know that the best opportunities often hide in plain sight—away from the headlines and within companies boasting solid fundamentals and attractive valuations.
In a recent analysis by Everything Money, Paul Gabrail highlights three stocks that have been “left behind” by the hype but present significant long-term upside for disciplined investors.
1. Target (TGT): The Retail Giant’s Recovery
Target has faced a turbulent few years, marked by inventory challenges and consumer pressure. Despite being down significantly from its 2021 highs, the company remains a cash-flow powerhouse with a loyal customer base.
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The Opportunity: Trading at a price far below its peak, Target offers a dividend yield of nearly 5%. With over 2,000 stores and a growing digital presence, its recovery is supported by a strong return on capital (around 14%).
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The Strategy: By focusing on “Shipt” (its same-day delivery service) to compete with Amazon, Target is positioning itself as a convenient, reliable retail staple. For value investors, the current price point represents a potential margin of safety.
2. Nike (NKE): A Brand in “Innings of a Comeback”
Nike, once a market darling trading at $180, has seen a dramatic price drop of nearly 70% from its all-time highs. However, the brand’s global dominance remains undisputed.
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The Opportunity: With new CEO Elliott Hill leading a “comeback” strategy, Nike’s fundamentals—including an 18% return on capital and steady gross margins—suggest the business is much healthier than its stock price indicates.
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The Strategy: The question for investors isn’t about short-term fluctuations, but whether Nike will still dominate in 20 years. At current levels, the stock offers a double-digit projected return based on discounted cash flow (DCF) models.
3. Sprouts Farmers Market (SFM): The High-Margin Specialist
Unlike traditional grocers that compete on price, Sprouts competes on product quality and a unique shopping experience centered on health-conscious consumers.
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The Opportunity: Sprouts is executing an aggressive expansion plan across the US. What makes it stand out is its increasing profit margins (approaching 6-7%), driven by its high-margin private label brands.
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The Strategy: Despite a recent pullback from its highs, Sprouts remains a “forever hold” candidate for many. Its ability to generate high returns on capital while expanding its footprint makes it a rare growth story in the defensive grocery sector.
Conclusion: Logic Over Emotion
The key takeaway for 2026 is to ignore the “noise” of the newsfeed. Whether it’s a retail staple like Target, a global icon like Nike, or a niche grower like Sprouts, successful investing is about the price you pay versus the value you receive. As the market reaches for new heights, looking for mispriced quality businesses may be the smartest move for your portfolio.