Where the Edge Lies in 2026
Welcome to Schaeffer's Top Stock Picks for 2026, the most highly anticipated stock picks report we release each year. This annual guide represents the culmination of months of rigorous research, deep quantitative screening, and strategic debate among our team of 10 elite trading analysts, bringing together more than 210 years of combined market expertise. Renowned for consistently uncovering high-potential opportunities across every type of market environment, our experts have hand-selected 15 standout stocks they believe are uniquely positioned to deliver exceptional returns in the year ahead. And we don’t just give you tickers; we walk you through exactly why each stock offers a compelling profit setup for 2026, backed by Schaeffer’s proprietary analysis. As we enter 2026, investors face a dynamic and fast-evolving landscape. Shifting monetary policy, accelerating breakthroughs in artificial intelligence and automation, and rising geopolitical tensions are all shaping what could be one of the most opportunity-rich and volatility-driven years in recent memory. Political currents will continue to influence sentiment and sector leadership, with high-profile policy decisions and unexpected headline shocks capable of moving markets in an instant. Whether you're a seasoned trader or building momentum in your investing journey, this report is your roadmap to navigating the unique opportunities of 2026. Dive in to discover how Schaeffer’s trusted approach can help you stay ahead of the curve and capitalize on the next major market moves.
Agnico Eagle Mines AEM
Agnico Eagle Mines (AEM) recently staged a strong breakout after multiple attempts to capture the $90 level. The shares haven’t closed beneath the 80-day moving average since January and are now consolidating at their recent highs in a bullish pennant pattern. Political tailwinds have also boosted the mining sector, particularly amid brewing tensions between the U.S. and Venezuela. Negative sentiment related to a potential AI bubble could bring more defensive positioning into hard assets as well. Historically, miners see 1.5 to two times the upside in such cycles. The company is fundamentally doing well, too, as it recently issued strong quarterly results and rose to the top of the VanEck Gold Miners ETF (GDX).
Baidu BIDU
China-based e-commerce giant Baidu (BIDU) is up over 40% in 2025, a bright spot after multiple years of underperformance. The momentum could continue into 2026, with the long-term trend now flipped to the upside. Earlier this month, the shares’ 20-week moving average crossed up through its 200-week moving average for the first time since 2020. A retest of that ascending trendline could be a good place to enter a longer-term trend. Since mid-July, short interest has increased by 25% despite the strong rally. An unwinding of this build in bearish bets could keep tailwinds blowing for months on end.
Bristol-Myers Squibb BMY
If interest rates are lower or stable in 2026, capital reallocates from high-multiple growth names to long-duration, cash generative equities. Pharma stock Bristol-Myers Squibb (BMY) could stand to benefit from this rotation, screening extremely well on free cashflow yield and dividend sustainability. Thanks to this rotation starting at the end of 2025, BMY has reclaimed its 200-month moving average, as well as a long-term trendline connecting higher highs from 2004-2012. The shares could test their March 2025 highs of $63, nearly 18% upside from this report. If that peak doesn’t cap sustained moves higher, there is as much as a 40% upside towards its former long-term high at $75, which could be attained in the next 12 months.
Cameco CCJ
Cameco (CCJ) is benefiting from the increased demand for alternate energy sources, as many experts are betting on the future of nuclear power. If the AI trend is to sustain its current growth rate, the need for power and data centers will also need to increase. With additional backing by the Trump administration, tailwinds could be in store. Even further, deglobalization and geopolitical risks could create even higher demand, with the U.S. locked in AI race against China that benefits the western supplier. CCJ is currently up over 80% year to date, after breaking out of a range between $35 and $60, where it spent most of 2024. Now the equity is consolidating above this region and possibly gearing up for its next move higher.
Colgate-Palmolive CL
Colgate-Palmolive (CL) is near the lower rail of a long-term bullish trend channel, as well as its 128-month moving average, a trendline that caught lows in Sept. 2024, Oct. 2022, March 2020, March 2009, and Oct. 2004. The stock boasts strong support at the $75 level, which provided resistance from July 2016 to July 2020 but has been growing as support since then. This level also marks a 38.2% Fibonacci retracement of the 2000 lows and the Sept. 2024 high. CL has historically rebounded from this retracement, as it did in Aug. 2015 and Oct. 2018. There is peak put open interest (OI) (all exchanges) at $75 as well, and a recent unwinding of negativity, per CL’s Schaeffer's put/call open interest ratio (SOIR) of 2.03, which sits in the 100th percentile of its 12-month range. Plus, its 50- and 10-day call/put volume ratios at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sit at 1.98 and 2.16. There is plenty of room for optimism, as the 14.30 million shares sold short is nearing all-time highs, while 10 of the 21 analysts in coverage carry a “hold” or worse rating.
CRISPR Therapeutics CRSP
Gene editing maven CRISPR Therapeutics (CRSP) is the leader in the proprietary CRISPR/Cas9 technology. In a partnership with Vertex Pharmaceuticals (VRTX), their lead product candidate Casgevy has significant potential as one of the first CRISPR/Cas9-based therapies for conditions like sickle cell disease and beta-thalassemia. This major commercial milestone aids in the company’s forecast for rapid growth; with analyst projections showing strong annual growth rates for earnings and revenue over the next few years. However, this is from a low base; the company is projected to beunprofitable over the next three years, typical of a high-R&D biotech. This means there’s an intriguing entry point for long-term contrarian investors. Beyond Casgevy, the company has an extensive pipeline focusing on cell therapies for oncology, in-vivo gene editing for liver diseases, all supported by strategic alliances with major pharmaceutical companies. Should this pipeline continue to improve in 2026, CRSP could achieve its long-awaited breakout.
DigitalOcean DOCN
DigitalOcean (DOCN) enters 2026 with a powerful setup as AI shifts from experimentation to real deployment across startups and SMBs. Nvidia’s (NVDA) announcement that it will step away from operating its own cloud business is an underappreciated catalyst. From a technical perspective, the stock is sitting near the top of a stage 1 accumulation base, and a breakout could fuel a move of 50% or more in 2026. Price has reclaimed its initial public offering (IPO) level, which now serves as support. The Fibonacci retracement levels from the 2021 highs to the 2023 lows create reasonable upside markers, with the 50% retracement at $76 and the 61.8% retracement at $89.50. Options activity aligns with this view. We are seeing size buyers out in time at the October 60 strike, and based on the premium paid, they would be targeting a move of at least +50% into year-end. This is consistent with the developing technical structure and the improving fundamental backdrop. Sentiment also sets up a favorable dynamic. Short interest is 14.57% of the stock’s available float and the highest it’s been since 2023, giving the stock potential for a short-covering rally as growth reacceleration takes hold. Options remain relatively inexpensive, with the equity’s Schaeffer's Volatility Index (SVI) of 63% ranking in the 12th annual percentile. This signals subdued volatility expectations at a time when the company is entering a stronger phase of execution.
Dollar Tree DLTR
Discount retailer Dollar Tree (DLTR) has cleared its longer-term 200-week moving average. After an earnings beat in early December, the shares also broke above a trendline connecting lower highs from January 2022 to March 2024. An extended run could see the stock test its February 2024 peak near $150, which is 20% higher than its current perch. If shares conquer this level, maybe even a move to all-time highs around $170 is in play. From a macro perspective, Dollar Tree offers exposure to defensive consumer demand with unit growth, which can become more valuable if economic growth slows into 2026, supporting relative outperformance even without broader market upside. Even if inflation cools, lower- and middle-income consumers that are conscious about value remain anchored to lower-cost items. In other words, Dollar Tree stock could benefit from persistent, non-cyclical, trade-down dynamics.
Energy Vault NRGV
Energy Vault (NRGV) is set to close out 2025 at a more than 50% discount to its initial public offering (IPO) price of $10, but are still trading within striking distance of a two-year peak. The company garnered attention in 2025 thanks to its focus on utility-scale energy storage systems, including gravity-based storage, batteries, and green hydrogen solutions. The stock sports a roughly 118% lead for the year and stands out as a 20-, 50-, and 60-day relative strength (RS) leader, and in December cleared a duo of highs that now serve as support. Despite this outperformance, short interest still accounts for 5.6% of the equity’s available float, while its StarMine short squeeze score ranks at 99 out of 100. This suggests NRGV looks ripe for a short squeeze heading into 2026. The brokerage bunch leans pessimistic, too, as two of three analysts in coverage carry a “strong sell” rating. In other words, round of bull notes or additional analyst coverage could push the stock higher.
GigaCloud Technology GCT
E-commerce stock GigaCloud Technology (GCT) broke through a downtrend in late 2025 with help from its 2024 highs and is now rising alongside support from its 20-day moving average. The shares boast an 112% lead for the year, and are a 20-, 50-, and 60-day relative strength (RS) leader. What’s more, GCTI notched a fresh 52-week peak in December after clearing the $36.75, which is three times its initial public offering (IPO) price of $12.25. Additional analyst attention could create tailwinds, as only five analysts are currently in coverage. A short squeeze could come into play as well, with the 2.62 million shares sold short making up a healthy 10.2% of the equity’s available float, while its StarMine short squeeze score ranks at 89 out of 100.
IONQ IONQ
Quantum computing maven IonQ (IONQ) boasts lucrative deals with Amazon Web Services (AWS), Google Cloud Marketplace, and Microsoft’s Azure Quantum. But for 2026, the encouraging sign is deals outside of the Big Tech space, with AstraZeneca’s (AZN) recent deal an example of the technology’s efforts to reach critical mass. On the charts,IONQ has skyrocketed 650% off its August 2024 lows, with support from its 50-week and 200-day moving averages. Pullbacks have come within the lower rail of a bullish uptrend that caught April and November lows, as well as highs from December 2024 and May-July 2025. The $47.50 level is a 50% Fibonacci retracement of the company’s initial public offering (IPO) closing price at $10.80. And while most analysts are mostly bullish on the shares already, only 11 brokerages in coverage indicates there’s room for more bulls to come aboard. The stock boasts a Starmine short squeeze ration of 98 out of 100, and with short interest up 34% in the prior month, 19.2% of IONQ’s total available float is sold short. Options traders show a heavy preference for puts, with 10-day buy-to-open put/call volume ratios above 1.00 across both 10- and 50-day timeframes. And unwinding of these bearish bets could fuel tailwinds throughout 2025.
Nebius Group NBIS
Nebius Group (NBIS) enters 2026 as one of the most compelling AI infrastructure stories in the market. From a technical perspective, Nebius stock recently found support at the 2021 highs after breaking out earlier this year. The stock continues to hold the rising 20-week moving average, and the trend structure remains constructive after coming off nearly 50% from its highs. I would continue to be a buyer on any early weakness in 2026 into the 52-week moving average, as well as the 2025 year-to-date anchored volume weighted average price (AVWAP) zone in the $65 – $70 area, which is in confluence with the equity’s 2020 highs. Options activity supports this view. We are seeing active large put sellers out to May 2026 in the $65 – $85 region, which tends to mark institutional willingness to accumulate shares on pullbacks and support price action. There is also buying at the January 2027 150-strike and 200-strike calls for next December. This area is littered with big out-of-the-money call buyers, which makes these two positions likely the most important for the time frame of this trade. Sentiment is bleak, giving us a contrarian bullish setup. Short interest is 13.93% of the float and at 2025 highs heading into the new year, despite improving fundamentals. This gives us potential for a short-covering rally in 2026. The Schaeffer’s Volatility Scorecard (SVS) is 87 (out of 100), which tells us the stock has consistently rewarded premium buyers, and the Schaeffer’s put/call open interest ratio (SOIR) sits in the 89th percentile, reflecting a pessimistic positioning backdrop that can unwind into strength.
Tetra Technologies TTI
Environmentally-conscious engineering stock Tetra Technologies (TTI) is trading near 10-year highs after breaking through a downtrend line using prior highs dating back to 2006. The shares recently crossed above the $1 billion valuation level and heading for an over 150% return in 2025. The stock is a 20-,40-, and 60-day relative strength (RS) leader, with its 20-day moving average helping with pullbacks along the way. Despite the recent highs, short interest is up 36.5% in the past month, now representing 5.8% of the stock’s available float with a Starmine short squeeze ratio of 91 out of 100. Puts also remain popular, per TTI’s Schaeffer’s put/call open interest ratio (SOIR) that sits in the 91st percentile of its annual range, and its 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks in the 84th percentile. An unwinding of these bearish bets could keep TTI in a favorable position. That same contrarian potential applies to analyst; per Zacks Research, only four brokerages cover TTI, leaving plenty of room for fresh coverage that provide tailwinds.
Velo3D VELO
Velo3D (VELO) specializes in advanced metal 3D printing technology, primarily serving the high-value aerospace, defense, and energy sectors. The company is heavily involved in high-growth sectors, with a customer base including Elon Musk’s SpaceX and Honeywell International (HON). What’s more, the firm has been making strategic moves of late, including a recently announced partnership with Anduril for drone manufacturing. More deals could boost VELO’s market share and supply chain capabilities in aerospace and defense. Case in point: VELO gapped 44% higher on Dec. 22 after the company secured a $32.6 million contract with the U.S. Department of War. Considering President Donald Trump’s late 2025 rhetoric lifted defense stocks, adjacent companies with scalable technologies like Velo3D’s "SupportFree" process for laser powder bed fusion (LPBF) will have a leg up in 2026. It also bears noting that with 13% of the stock’s total available float sold short, a short squeeze could keep tailwinds blowing next year.
QuantumScape QS
Lithium charger QuantumScope (QS) surged more than 450% off its April lows and into its October peak, now having doubled in 2025. The last four years had been a solid downtrend until a break in June. Since then, the shares have shown a strong emergence in relative strength and are retesting the $10 mark, a major resistance-turned-support area that also happens to be its SPAC price from June 2021. An exodus of bearish bettors could help the ascendancy in 2026, considering short interest accounts for nearly 12% of QS’ total available float. Analysts have yet to embrace the stock either; there are no “buy” ratings, with all 10 carrying a “hold” or worse stance. A round of overdue bull notes could provide a boost and send short sellers scrambling.
Long-term options, known as LEAPS, allow you to: Control stock exposure for a fraction of the price Limit downside risk to the premium paid Give your trade time to develop throughout 2026 Avoid getting shaken out by short-term volatility This makes LEAPS the perfect way to trade the high-conviction setups in this report. If you choose to use options, make sure you pick the right strategy: Big expected move: long calls or long puts Moderate trend: spreads (diagonal or vertical) Strong support/resistance levels: cash-secured puts or bear spreads High volatility: spreads help control cost These strategies pair naturally with the technical, sentiment, and volatility analysis included in each pick in our report. Now, let's break down the best ways to trade bullish picks vs. bearish picks.
Schaeffer’s annual stock picks aren’t just built for stock investors. They’re also ideal for traders looking to create long-term options positions with defined risk and powerful leverage. This quick guide shows how to turn bullish or bearish picks in this report into smart, probability-driven options trades.
Using Our Stock Picks to Create Long-Term Options Trades
How to Use Options for Bullish Stock Picks: Buy Long-Term Call Options (LEAPS Calls): This is best for simple, defined-risk bullish exposure. Look for: 9-18 month expirations on slightly in-the-money calls. Call Diagonal Spreads: In this strategy, you buy a long-dated call and simultaneously sell shorter-term calls against it. The benefits? Lower cost trades, income generation, and reduced time decay. Sell Cash-Secured Puts: This is a great strategy when there are strong technical floors and bullish sentiment setups. If assigned, you own the stock at a discount. How to Use Options for Bearish Stock Picks: Buy Long-Term Put Options (LEAPS Puts): This is best for clean downside exposure with limited risk. Bear Put Spreads: In this strategy, you buy a long-dated put and simultaneously sell a lower strike put against it. The benefits? Reduces premium and defines maximum risk. Covered Call Selling (Advanced): This is a great strategy to generate income on bearish or stagnating stocks with capped upside.