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Building a high-performing portfolio doesn't require constant trading. According to financial experts Joseph Hogue (CFA) and Brian from "Business with Brian," the secret lies in identifying "category killers" — companies so dominant in their niche that they become essential.
Here are the five stocks these experts agree are must-buys for 2026.
1. Broadcom (AVGO): The AI Infrastructure Backbone
Broadcom is considered a "softball pitch" for investors because it provides more inputs to the AI data center than almost any company besides Nvidia.
The VMware Boost: Its acquisition of VMware has increased efficiency, boosting margins by 13 points to over 67%.
Financial Health: The company boasts a $16 billion cash position (up 73% year-over-year) and an attractive PEG ratio of 0.98.
2. Palo Alto Networks (PANW): The Cybersecurity Essential
Cybersecurity is the one area of corporate spending that cannot be cut, especially since ransomware attacks now cost enterprises an average of $5 million each.
Balanced Growth: While competitors often operate at a loss to fuel R&D, Palo Alto maintains a healthy 12% operating margin.
Market Reach: It is one of the only firms large enough to dominate every segment, from cloud security (growing at 18%) to identity management.
3. Walmart (WMT): The Retail Category Killer
Walmart is leveraging its massive physical presence to dominate new high-margin sectors.
The "Amazon Playbook": By pushing private labels like Great Value and Equate to eye-level shelf space, it is taking market share from traditional giants like Kraft Heinz.
New Revenue: Its acquisition of Vizio allows it to turn televisions into a massive advertising network.
4. Amazon (AMZN): The Re-Accelerating Giant
Amazon often plateaus for a few years before a massive breakout; experts believe that the next surge is happening now.
AWS U-Turn: After a brief slowdown, Amazon Web Services is re-accelerating toward 20% growth as companies realize they cannot run AI models in-house.
Profit Explosion: Operating income skyrocketed from $12 billion in 2022 to $69 billion in 2024, demonstrating incredible operating leverage.
5. Nvidia (NVDA): The Unbeatable Chip Leader
Despite valuation concerns, Nvidia remains the "house" you don't bet against.
Dominant Margins: Nvidia converts $63 of every $100 in sales into profit, compared to just $10 for competitors like AMD.
The Software Moat: Their CUDA software and new Vera Rubin architecture (offering 5x better performance) make it nearly impossible for customers to switch suppliers.
Honourable Mentions: High Risk, High Reward
The experts also debated several high-growth, high-risk options that didn't quite make the "set it and forget it" list:
1. Nebius Group (NBIS): Boasts a projected revenue growth of 520%, but carries risks associated with its leasing model.
2. SoundHound AI (SOUN): A leader in voice assistant AI for cars and drive-thrus, though its high cash burn remains a concern.
3. Super Micro Computer (SMCI): A leader in AI servers with 65% revenue growth, although profitability is currently being sacrificed for market share.
Final Thoughts
To build a strong backup plan, start by believing in yourself and choosing reliable companies. Focus on these five tech and retail areas to create a solid portfolio for 2026 and beyond.