Benzinga·2025-12-31 11:31Core Viewpoint - Several notable stocks, particularly in the AI sector, are positioned for significant growth in 2026 after underperforming in 2025, with reasonable valuations compared to industry peers. Group 1: Apple Inc. - Apple Inc. has gained only 12.12% year-to-date, lagging behind the "Mag 7" peers which averaged 25.54% [2] - Analysts predict a turnaround for Apple in 2026, with expectations of strong iPhone sales and the launch of a new Siri before April 30 [3][4] - Apple scores high on Momentum and Quality in stock rankings, indicating a favorable price trend [4] Group 2: Adobe Inc. - Adobe Inc. is down 19.77% year-to-date despite being a key player in AI, but is seeing significant growth in its AI tools [5] - Analysts at JPMorgan Chase maintain an "Overweight" rating with a price target of $520, suggesting a 46.97% upside [6] - The stock trades at 15 times forward earnings, its lowest in many years, indicating potential for recovery [6] Group 3: Palo Alto Networks Inc. - Palo Alto Networks has only increased by 4.27% year-to-date, but analysts expect it to benefit from the intersection of AI and cybersecurity in 2026 [7][8] - The stock is considered a top pick for 2026, with a consensus price target of $225.32, representing a 19.56% upside [9] - Despite its high valuation at 49 times forward earnings, analysts remain bullish on its growth potential [10] Group 4: Airbnb Inc. - Airbnb has seen a modest gain of 4.06% year-to-date, with analysts expecting improvement in 2026 due to strong first-party data and upcoming events like the Milan Olympics [11][12] - RBC Capital Markets upgraded the stock to "Outperform" with a price target of $170, indicating a 24.25% upside [12] - The stock performs poorly on Momentum, Growth, and Value but has a favorable price trend [13] Group 5: Target Corp. - Target Corp. is down 27.44% year-to-date, facing challenges from declining foot traffic and inflationary pressures [14] - The company is undergoing leadership changes and is working to reduce reliance on Chinese imports [15][16] - Target is enhancing its AI capabilities through a partnership with OpenAI, trading at just 12.76 times forward earnings, which is lower than competitors [16][17] - Analysts have a price forecast of $110, suggesting a 10.49% upside, with recent activist investment seen as a potential catalyst [17][18]