- (0:15) - Does Berkshire Hathaways Investing Strategy Still Work For Value Investors?
- (3:05) - Breaking Down Berkshire Hathaways Earnings Estimates and Performance
- (14:30) - Should You Just Buy What Berkshire Hathaway Is Buying?
- (20:40) - Episode Roundup: BRK.B, AMZN, BAC, UNP, HVT
- Podcast@Zacks.com
Welcome to Episode #475 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
The Magnificent 7 is over. We had the FANG stocks, then the FANGMAN stocks. But they both died. Some wanted to add Tesla into FANGMAN. To do that, FANGMAN morphed into the Magnificent 7.
But with some of the Mag 7 stocks lagging, it seems to be the end of the line for that grouping.
What will replace it?
Bye-Bye Apple and Microsoft
For the last few years, the mega-cap technology companies have dominated but what if that were to change?
Tracey examines five stocks that are not big cap technology companies that could be the “new” magnificent stocks. Each of the five are hitting new 5-year highs. Each is also expected to grow earnings by the double digits in 2026.
Are you ready to look beyond Apple and Microsoft for “new” winning stocks?
5 New Magnificent Stocks to Own in 2026
1. MasTec, Inc. (MTZ)
MasTec is an engineering and infrastructure firm in the communications, energy, and utilities industries. This means it’s an “AI infrastructure” play.
Shares of MasTec are hitting new 5-year highs in 2026, up 225% over that time. It hasn’t reported fourth quarter 2025 earnings yet but will do so on Feb 26, 2026. But earnings are expected to rise 61.8% in 2025 and another 28.6% in 2026.
MasTec is trading with a forward price-to-earnings (P/E) ratio of 33.5. A P/E over 20 is considered high. That company is not normally a value.
Should an infrastructure company like MasTec be on your short list?
2. Caterpillar Inc. (CAT)
Caterpillar makes construction and mining equipment. With infrastructure and construction projects on the upswing, so is Caterpillar. Shares of Caterpillar are at new 5-year highs, up 262% during that time.
Earnings of Caterpillar are expected to rise 18.9% in 2026. It isn’t cheap either. Caterpillar has a forward P/E of 33.6.
Is it too late for investors to buy Caterpillar or is there more gas left in the tank?
3. Walmart Inc. (WMT)
Walmart is one of the largest retailers in America. Since the start of the pandemic in 2020, Walmart has moved some of its business from brick and mortar to online.
Shares of Walmart are at 5-year highs, up 164% during that time. It’s not cheap. Even though earnings are expected to rise 11% in fiscal 2027, it has a forward P/E of 42.6. This is a higher P/E ratio than NVIDIA, which is at 25x.
Is Walmart too hot to handle?
4. Eli Lilly & Company (LLY)
Eli Lilly is a large pharmaceutical manufacturer which is making, among other things, weight loss drugs. It is set to launch a new weight loss pill this year.
Shares of Eli Lilly are up 404% over the last 5 years, easily beating the S&P 500. It’s trading near its all-time high.
Earnings are expected to jump 39.6% in 2026. Eli Lilly is trading with a forward P/E of 30. It’s not a value stock, but it’s not as expensive as Walmart.
Should Eli Lilly be on your short list this year?
5. Howmet Aerospace Inc. (HWM)
Howmet Aerospace is in the aerospace and defense industry. Shares of Howmet Aerospace have been red-hot over the last 5 years. It’s trading at new all-time highs, up 798% over the prior 5-years.
Earnings are expected to be up 18.8% in 2026. Howmet Aerospace isn’t cheap. It trades with a forward P/E of 56. A P/E over 50 is considered expensive.
Should a defense company like Howmet be a new magnificent stock?
What Else Should You Know About the “New” Magnificent Stocks?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns LLY in the Zacks Insider Trader portfolio.]
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpCaterpillar Inc. (CAT) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
MasTec, Inc. (MTZ) : Free Stock Analysis Report
Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
