Market Outlook - The market experienced a phenomenal year in 2025, with the S&P 500 achieving 41 record high closes and a total return of approximately 18% [2] - The bull market reached its 3-year anniversary, and expectations for 2026 include another bull market year with increased volatility and double-digit growth [2] - Key sectors expected to perform well include AI, AI infrastructure, aerospace and defense, biotech, and energy companies, driven by increased capital expenditure over the past two years [2] Diversification Trends - Analysts believe 2026 will emphasize diversification, with the influence of the "Mag Seven" on the S&P 500 weakening [3] - The contribution of the "Mag Seven" to total returns has decreased from 62% two years ago to around 44% for 2025 [3] - Earnings expansion and increased spending are expected to drive double-digit growth, while valuation multiples are anticipated to remain stable [3] Affordable Stocks Analysis - A list of the 15 Best Affordable Stocks was curated using various financial databases, focusing on stocks trading below a forward P/E of 15 with expected upside of over 25% [6] - Hedge fund sentiment was also considered, as imitating top stock picks from hedge funds has historically outperformed the market [7] Company Highlights - Sanofi (NASDAQ:SNY): - Forward P/E Ratio: 10.61, with a 12-month analyst upside potential of 26.14% [8][9] - Recently announced acquisition of Dynavax Technologies for $2.2 billion, enhancing its adult immunization portfolio [9][11] - The acquisition is expected to close in Q1 2026 and will not impact financial guidance for 2025 [11][12] - PVH Corp. (NYSE:PVH): - Forward P/E Ratio: 6.32, with a 12-month analyst upside potential of 30.61% [13] - Experienced a decline of over 21% since its fiscal Q3 2025 earnings release, yet analysts maintain a positive outlook [13] - Fiscal Q3 2025 revenue grew by 1.74% year-over-year to $2.29 billion, exceeding expectations [15] - EPS of $2.83 also surpassed expectations, driven by the execution of the PVH+ plan and growth in key categories [15][16]
15 Best Affordable Stocks to Buy According to Analysts