Episode summary
5 Stock Ideas for Your Short List
Zacks Market Edge
· · 28 min
Summary
The host argues that investors do not need to chase the AI trade to find momentum in October 2026. With major indexes near highs but many stocks weak beneath the surface, she highlights five large, familiar names that are breaking out and still showing strong earnings momentum: Palantir, BP, Palo Alto Networks, Visa, and AbbVie. The common thread is that each has either new highs or a fresh breakout and a favorable earnings setup heading into upcoming reports.
Palantir stands out for explosive growth, but the host stresses that its valuation is extreme, with a very high P/E and price-to-sales multiple. BP is the opposite: an energy turnaround story that looks cheap, yields 4.4%, and could benefit if oil stays elevated. Palo Alto Networks and Visa are seen as steady growth leaders with strong chart patterns, even if both trade at rich valuations. AbbVie rounds out the list as a big pharma name rebuilding after Humira, with pipeline progress and continued earnings growth supporting the move higher.
Key takeaways
- The host says Palantir has exceptional earnings and revenue growth, but its valuation remains very expensive even after breaking out again.
- The host argues BP is one of the cheapest large integrated energy names, with a 4.4% yield and earnings helped by higher oil prices.
- The host says Palo Alto Networks still merits attention because cybersecurity demand remains strong and the stock has no earnings misses in five years.
- The host highlights Visa’s unmatched earnings streak since its 2008 IPO and says the stock is breaking out again despite a stretched valuation.
- The host remains constructive on AbbVie because the market is gaining confidence in its post-Humira pipeline and earnings outlook.
Notable quotes
“Stocks are usually weak around this time, and certainly in um midterm election years, stocks have historically sold off during this time”
“I am anticipating seeing this kind of pattern as we enter into the end of the year”
“We are buying the growth here. And let's take a look at the growth scorecard and you can see um these numbers are pretty good”
“It's got to be under a little bit of a stress, don't you think, the the IR and the management department, like making sure it beats again”
“There's always someone coming up with something new and there's always competition out there”
How the episode opens
Stocks, bonds, ETFs. Straight out of downtown Chicago. This is Zacks Market Edge.
Welcome to Zacks Market Edge, the podcast about investing in your life. I'm your host, Tracy Ryniec, and this week I'm going solo to just talk about some stock ideas here in October of 2026. The market is holding up.
All of the indexes near or at their all-time highs on uh many of them, not the small caps, but the large caps are holding up. But, a lot of stocks underneath are selling off and have been weak in the September and October time frame. We knew this would happen.
Stocks are usually weak around this time, and certainly in um midterm election years, stocks have historically sold off during this time, only to rally once the election is over. So, I am anticipating seeing this kind of pattern as we enter into the end of the year. But, I know a lot of people are wondering what should they be investing in right now.
It seems like it's kind of gloomy and doomy out there, and even the AI trade doesn't appear to be working. The Mag 7 has recovered, and we talked about it here, um Ethan and I, on a podcast just a couple of weeks ago about the return of the Mag 7. But, if you don't want the Mag 7 stocks either, where are you looking for stocks that are breaking out or that have some upside momentum and not the downside momentum that we're seeing with a lot of stocks right now.
Well, I brought them for you, and I'm going to talk about five. I I could talk about more, but these are some big, well-known names. These aren't obscure small caps that are at or near their highs and are looking pretty good on the chart as far as earnings go as well.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai stocks
- stock momentum
- short list stocks
- equity investing
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Watch “5 Stock Ideas for Your Short List” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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