UBS is betting on several stocks that it expects to make big gains next year, including the “Magnificent Seven” Amazon, according to a recent research report from the firm. In a Dec. 16 note to clients titled “26 U.S. Stocks for 2026,” the firm listed more than 20 stocks that could make a big splash next year. These include major companies such as Amazon, UnitedHealth Group, and PepsiCo. The note also features companies in the telecommunications services, footwear, utilities, and financial services industries. UBS Research Management surveyed its team to come up with the top stocks for 2026, focusing on stocks where analysts had a different view than the consensus. They also considered the upside potential of the target price, risk-reward skew, and the stock’s exposure to key themes during the selection process. These are some of the stocks that made the list. Jeff Bezos’ e-commerce giant Amazon is among the top stocks expected to soar in 2026, largely due to the company’s efforts to grow its various business segments. “We have been characterizing AMZN stock as a ‘coiled spring’ for some time as it stands to benefit from multiple investment initiatives,” said UBS analyst Stephen Zhu. This includes increased capital and operational spending on AWS and generative artificial intelligence infrastructure, Amazon Leo (the company’s satellite internet initiative formerly known as Project Kuiper), and same-day e-commerce delivery from 2025 to 2026, he said. The analyst cited Amazon’s “aggressive re-entry” into grocery delivery services as well as the continued buildout of its streaming platform Prime Video as efforts that support Amazon’s plans to expand its revenue stream. UBS rates Amazon stock a “buy.” The company also has a price target of $310. Amazon’s stock price rose 6% in 2025. Healthcare stock UnitedHealth Group is poised to be a winner in 2026, according to UBS analysts. Health insurance companies have made it clear they intend to cut spending and reduce commissions for brokers who work with Medicare Advantage plans to improve profits. “A favorable MA rate announced early next year would further support UNH’s margin recovery efforts and increase the likelihood of above-low double-digit revenue growth in 2027,” UBS analyst AJ Rice said. “The company’s diversification of business lines also helps it mitigate some of the Medicaid and exchange-related headwinds relative to its peers.” UBS has a $430 price target on UnitedHealth Group shares and rates the company a “buy.” The company’s stock price has fallen about 35% this year. UBS analysts say food and beverage giant PepsiCo has plenty of room to maneuver, especially as it continues to innovate within its product categories. PepsiCo faces stiff competition, but the company has begun innovating its beverage and snack lineup by introducing products infused with proteins and prebiotics in an effort to increase market share. “We believe PEP represents a unique rate-of-change story over the next 12-18 months and is one of the few large-cap Staples stocks with a compelling case for multiple expansions,” UBS analyst Peter Grom said in a note to clients. PepsiCo has a buy rating from UBS. The company also has a price target of $172 for its stock. The stock price has fallen nearly 6% since the beginning of the year.
