5 Value Growth Stocks to Buy For 2026

Summary

In this video, the creator discusses five value stocks to watch for 2026, challenging the notion that value stocks are boring or unattractive. The stocks highlighted include Amazon, Uber, Mercado Libre, Meta, and Netflix, with a focus on their growth potential, profitability, and how they fit into the current market landscape. The creator also offers a bonus pick, United Health, emphasizing its restructuring and future growth potential. Viewers are encouraged to explore these stocks as part of a value growth strategy for the coming years, especially in the age of AI and innovation.

Takeaways

• 📈 The video highlights six 'value-growth' stocks for 2026—including Amazon, Uber, Mercado Libre, Meta, Netflix, and a bonus pick, UnitedHealth—emphasizing that value stocks can still display strong growth characteristics.
• 🛒 Amazon is viewed as undervalued relative to future profitability, with expectations of rising margins, strengthened AWS reacceleration, continued advertising growth, and a likely future share buyback program.
• 🤖 Despite recent underperformance, Amazon’s long-term free cash flow outlook is strong as capex stabilizes and profit metrics continue improving across business segments.
• 🚗 Uber is considered misunderstood by the market, with strong improving margins, rapid growth, and new opportunities in AV partnerships, delivery logistics, and advertising.
• 🤝 Uber’s partnerships with autonomous vehicle companies worldwide position it to remain relevant even as AV adoption expands, countering the bearish narrative that AVs will eliminate the need for Uber.
• 🛍️ Mercado Libre continues to post exceptional growth, with 39% revenue growth in the last quarter and a long history of 30%+ growth, driven by its commerce and fintech ecosystems despite temporary margin pressure due to strategic reinvestment.
• 💬 Meta is seen as attractively valued with strong margins and massive free cash flow generation, despite investor concerns over elevated AI-related spending; the core business continues to benefit from AI-enhanced efficiency.
• 📺 Netflix remains a high-quality business with strong margins, growing free cash flow, and accelerating ad-tier growth. A potential acquisition of Warner Bros. Discovery could significantly strengthen its competitive position.
• 🏥 UnitedHealth is undergoing a restructuring period in 2026, with margin pressure and membership contraction expected, but management anticipates strong earnings recovery and sustainable double-digit growth in 2027 and beyond.
• 💡 Across all companies, the theme centers on rational growth, improved profitability, and long-term structural advantages—positioning them as compelling value-growth plays heading into 2026.

Q & A

What are value stocks, and why are they considered attractive despite not being growth stocks?

Value stocks are typically stocks of companies that are perceived to be undervalued relative to their intrinsic value. They may not show high growth rates, but they often provide steady returns through stable operations and dividends. These stocks can be attractive because they present opportunities to buy at a discount, especially when the market undervalues them, as long as the underlying business fundamentals are strong.

How does the speaker define 'buy and hold forever' in the context of investing?

The speaker clarifies that 'buy and hold forever' isn't a fixed concept. It’s about purchasing a stock you believe in, but it's not about holding it blindly forever. You should be ready to adjust your investment if the company's story or prospects change. The idea is to buy a stock when its future potential looks solid, but always be open to reassessing your position over time.

Why does the speaker believe Amazon will become more profitable in the future?

The speaker believes Amazon will become more profitable due to the expected increase in margins and free cash flow. As capital expenditures (capex) stabilize, operating margins and free cash flow margins should improve. Additionally, Amazon's various profitable segments, like AWS, advertising, and third-party services, will continue to drive growth.

What factors are driving Uber’s future growth potential, according to the speaker?

Uber’s growth potential is driven by its expansion into autonomous vehicle partnerships, growing e-commerce delivery services, and increasing use of its platform for non-ride-sharing services, such as food and goods transport. The speaker also highlights Uber's strategic partnerships with autonomous vehicle players and its focus on high utilization rates for AVs.

Why does the speaker consider Mercado Libre an attractive investment despite its high PE ratio?

The speaker argues that Mercado Libre is worth its high PE ratio (around 48 times) due to its consistent growth of over 30% annually. While its margins have taken a hit recently due to aggressive investments, the company’s dual ecosystems in e-commerce and fintech are expected to drive strong long-term growth, making it a worthwhile investment despite its price.

What is Meta’s current situation, and why does the speaker see it as a solid investment?

Meta has recovered significantly from a major stock crash in 2022, and its core business remains strong. The speaker notes that Meta’s profitability has improved with a focus on disciplined spending, particularly in AI, while its margins and cash flow have grown. With a relatively low PE ratio of 22.9 times forward, the speaker sees Meta as undervalued with potential for growth.

Why is Netflix seen as a potential value growth stock despite its recent pullback?

Netflix’s recent 30% pullback is seen as an opportunity for long-term growth. The speaker believes that Netflix’s core business remains solid with strong operating margins, free cash flow, and revenue growth. Furthermore, the potential acquisition of Warner Brothers could significantly enhance its content library and market reach, strengthening its position in 2026 and beyond.

What challenges is United Health facing, and how is it expected to navigate them in the future?

United Health is going through a period of restructuring, with challenges including a contraction in Medicare Advantage memberships and the effects of high medical costs. However, the company is shifting from growth to disciplined management, focusing on value-based care and narrowing provider networks. The speaker expects this restructuring to lead to more sustainable earnings growth by 2027.

What is the speaker’s stance on the role of AI in the stocks mentioned in the video?

The speaker sees AI as a major positive factor for many of the stocks, particularly in driving future profitability. For instance, Meta and Amazon are leveraging AI to enhance their core businesses, improve profitability, and optimize operations. AI is seen as a key enabler of efficiency and growth, though it must be managed carefully to ensure returns on investment.

Why does the speaker consider share buybacks an important factor in evaluating stocks?

The speaker emphasizes that share buybacks signal confidence from a company’s management in its own stock value. Companies with strong cash flow and stable financials, like Amazon, Uber, and Meta, are expected to implement share buybacks, which can increase shareholder value by reducing the number of outstanding shares and potentially increasing the stock price.