Insider Monkey·2025-12-08 05:25Core Viewpoint - The article discusses the market outlook for 2026, emphasizing a potential for lower interest rates due to a softer labor market, which could positively impact stock market performance [2][3][4]. Market Outlook - Michael Kantrowitz, Chief Investment Strategist at Piper Sandler, believes the stock market is set for a strong performance heading into 2026, with a focus on historical context to understand current market dynamics [2]. - The current labor market conditions are seen as a new concern, but they may lead to lower interest rates, which historically correlate with improved stock market performance [3]. Interest Rates and Market Dynamics - Higher interest rates have been a barrier to market broadening, but a shift to lower rates could benefit underperforming sectors such as manufacturing, transportation, and housing in 2026 [4]. Investment Opportunities - The article lists 12 cheap NASDAQ stocks to consider for investment, identified through a methodology that includes screening for stocks with a forward price-to-earnings ratio below 15 and cross-referencing hedge fund interest [7][8]. Company Highlights - Sanofi (NASDAQ:SNY): - Forward P/E Ratio: 10.7, with 32 hedge fund holders. Recently completed the acquisition of Vicebio, enhancing its vaccine development capabilities [9][10][11]. - Received EU approval for Dupilumab, a treatment for chronic spontaneous urticaria, expanding its market potential significantly [12][13]. - Trip.com Group Limited (NASDAQ:TCOM): - Forward P/E Ratio: 11.01, with 37 hedge fund holders. Reported a 17.64% year-over-year revenue growth to $2.58 billion in fiscal Q3 2025, exceeding estimates [14][16]. - Strong performance driven by cross-border travel, with international bookings increasing by 60% year-over-year and inbound travel bookings more than doubling [16][17].