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Welcome to Episode #468 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey was joined by John Blank, Zacks Chief Equity Strategist, to talk about their favorite topic: is the United States in a recession?
And since it’s the end of the year, they also asked, will the United States be in a recession in 2026?
Additionally, no discussion with John Blank would be complete without looking at some stock picks. Tracey and John brought 5 stocks that they like for 2026.
It shouldn’t be a surprise that the AI Revolution is prominently featured. But several of the companies aren’t involved in the AI infrastructure buildout. They make AI products.
In the words of John Blank: “Don’t be a genius.” That means don’t overlook NVIDIA for 2026.
Earnings are expected to rise 54.5% in fiscal 2026 and another 52.4% in fiscal 2027. That’s incredible growth.
Analysts have been revising earnings estimates higher for both this year and next. NVIDIA is a Zacks Rank #1 (Strong Buy) stock.
What about valuations? NVIDIA now trades with a forward price-to-earnings (P/E) ratio of 39. Yes, that is stretched. But NVIDIA has a PEG ratio, which is the P/E ratio divided by growth, of just 0.86. A PEG under 1.0 indicates a company has both growth and value. That’s a rare combination.
Shares of NVIDIA are down 6.5% over the last month.
Newmont is the largest gold mining company in the world. With gold at record highs, earnings are expected to be up 74.1% this year and another 16.7% next year.
It’s a Zacks Rank #1 (Strong Buy).
Shares of Newmont are up 159% year-to-date. It’s also up 12% in the last month to new all-time highs. Yet the shares are still cheap. Newmont trades with a forward P/E of 15.6 and has a PEG ratio of just 0.66. Both indicate it’s a value stock.
Atlassian is a $42 billion market cap global software company. In the fiscal first quarter 2026, revenue was up 20%. Atlassian also had $2.8 billion in cash as of the end of Q1.
Shares of Atlassian are down 32.9% year-to-date. Earnings are expected to rise 29.4% in fiscal 2026 and another 14.3% in fiscal 2027.
Atlassian is not cheap. It trades with a forward P/E of 34. A P/E ratio over 30 usually means a company is expensive.
Zoom Communications soared during the pandemic as people worked at home and used home video to communicate. But now Zoom, which has a market cap of $26 billion, has moved into AI with Zoom AI products.
Shares of Zoom are up 10.6% year-to-date. It’s still cheap. Zoom trades with a forward P/E of 14.8.
Fiscal 2026 earnings are expected to rise 7.2%. It’s a Zacks Rank #2 (Buy) stock.
Should Zoom be on your watch list for 2026?
What Else Should You Know About the Economy and Stock Picks for 2026?
Tune into this week’s podcast to find out.
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Will There Be a Recession in 2026?
Key Takeaways
Welcome to Episode #468 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey was joined by John Blank, Zacks Chief Equity Strategist, to talk about their favorite topic: is the United States in a recession?
And since it’s the end of the year, they also asked, will the United States be in a recession in 2026?
Additionally, no discussion with John Blank would be complete without looking at some stock picks. Tracey and John brought 5 stocks that they like for 2026.
It shouldn’t be a surprise that the AI Revolution is prominently featured. But several of the companies aren’t involved in the AI infrastructure buildout. They make AI products.
5 Stocks for Your 2026 Watch List
1. NVIDIA Corp. (NVDA - Free Report)
In the words of John Blank: “Don’t be a genius.” That means don’t overlook NVIDIA for 2026.
Earnings are expected to rise 54.5% in fiscal 2026 and another 52.4% in fiscal 2027. That’s incredible growth.
Analysts have been revising earnings estimates higher for both this year and next. NVIDIA is a Zacks Rank #1 (Strong Buy) stock.
What about valuations? NVIDIA now trades with a forward price-to-earnings (P/E) ratio of 39. Yes, that is stretched. But NVIDIA has a PEG ratio, which is the P/E ratio divided by growth, of just 0.86. A PEG under 1.0 indicates a company has both growth and value. That’s a rare combination.
Shares of NVIDIA are down 6.5% over the last month.
Is it time to buy NVIDIA?
2. Newmont Corp. (NEM - Free Report)
Newmont is the largest gold mining company in the world. With gold at record highs, earnings are expected to be up 74.1% this year and another 16.7% next year.
It’s a Zacks Rank #1 (Strong Buy).
Shares of Newmont are up 159% year-to-date. It’s also up 12% in the last month to new all-time highs. Yet the shares are still cheap. Newmont trades with a forward P/E of 15.6 and has a PEG ratio of just 0.66. Both indicate it’s a value stock.
Newmont pays a dividend, yielding 1.1%.
Should Newmont be on your watch list for 2026?
3. Atlassian Corp. (TEAM - Free Report)
Atlassian is a $42 billion market cap global software company. In the fiscal first quarter 2026, revenue was up 20%. Atlassian also had $2.8 billion in cash as of the end of Q1.
Shares of Atlassian are down 32.9% year-to-date. Earnings are expected to rise 29.4% in fiscal 2026 and another 14.3% in fiscal 2027.
Atlassian is not cheap. It trades with a forward P/E of 34. A P/E ratio over 30 usually means a company is expensive.
Atlassian is a Zacks #2 (Buy) stock.
Should Atlassian be on your watch list for 2026?
4. Genpact Ltd. (G - Free Report)
Genpact helps businesses succeed. It specializes in AI and data and has 800+ global clients. Genpact has a market cap of $8 billion.
Shares of Genpact are up 10.3% year-to-date. Earnings are expected to rise 10.4% in 2025 and another 8% in 2026.
Genpact is cheap. It trades with a forward P/E of 12.8. A P/E under 15 indicates a company is a value.
Genpact is a Zacks #2 (Buy) stock.
Should Genpact be on your watch list for 2026?
5. Zoom Communications, Inc. (ZM - Free Report)
Zoom Communications soared during the pandemic as people worked at home and used home video to communicate. But now Zoom, which has a market cap of $26 billion, has moved into AI with Zoom AI products.
Shares of Zoom are up 10.6% year-to-date. It’s still cheap. Zoom trades with a forward P/E of 14.8.
Fiscal 2026 earnings are expected to rise 7.2%. It’s a Zacks Rank #2 (Buy) stock.
Should Zoom be on your watch list for 2026?
What Else Should You Know About the Economy and Stock Picks for 2026?
Tune into this week’s podcast to find out.