Here's My Top Stock to Buy for 2026

Group 1 - ON Semiconductor is currently viewed as a compelling value stock due to its strong growth prospects in automotive and industrial markets, as well as its exposure to AI/data centers [1][6] - The company reported a non-GAAP gross margin of 38% and a non-GAAP operating margin of 19% in Q3, with a free cash flow conversion of 21% of revenue in 2025 [2][3] - Analysts project ON Semiconductor to generate $1.4 billion in free cash flow in 2025, resulting in a valuation of 13.8 times free cash flow, which is favorable for a company with its growth potential [3] Group 2 - The company focuses on two primary end markets: automotive and industrial, providing solutions for electric vehicles and traditional internal combustion engines, as well as various industrial applications [4] - Recent challenges include reduced EV investments from automakers and a slowdown in the industrial sector, impacting sales over the past couple of years [5] - Despite these challenges, long-term trends in the automotive and industrial sectors remain positive, indicating potential for future growth [6]