Welcome to Episode #503 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to talk about stocks that are breaking out, instead of breaking down. October has been rough for some stocks, including many of the AI Revolution stocks.
Why not talk about stocks that are doing well instead?
Tracey did not run a screen to find these stocks. She has been tracking some of them herself. She also owns AbbVie in the Zacks Value Investor and in her own personal portfolio.
These are stock ideas for those who think everything is gloomy right now.
There’s always a bull market somewhere.
1. Palantir Technologies Inc. (PLTR)
Palantir is a software company which bills itself as the “foundational software of tomorrow.” In the second quarter, Palantir grew revenue by 93% year-over-year. It also raised FY2026 revenue guidance.
Shares of Palantir are trading near all-time highs but are up just 12.8% year-to-date. Palantir is expected to grow earnings in FY 2026 by 118.7% and another 40.9% in FY 2027.
Palantir is not cheap. It trades with a forward price-to-earnings (P/E) of 122.
For investors looking for a growth company, Palantir should be on your short list.
2. BP p.l.c. (BP)
BP is a global energy company with oil and natural gas production and refining. It is what many refer to as “big oil.”
Shares of bp are up 39.5% year-to-date and are at new 5-year highs. Earnings are expected to jump 162.8% in 2026 thanks to high oil prices due to the Iran War.
BP is cheap. It trades with a P/E of 6.5. A P/E under 10 usually indicates a company is a deep value.
BP is also shareholder friendly. In the second quarter of 2026, bp raised the dividend 4%. It is currently yielding an attractive 4.2%.
BP is also a Zacks Rank #1 (Strong Buy). It will report third quarter earnings on Oct 30, 2026.
For investors looking for a way to play the high oil prices, bp should be on your short list.
3. Palo Alto Networks, Inc. (PANW)
Palo Alto Networks is a global cybersecurity company with a market cap of $300 billion.
Shares of Palo Alto Networks are near their all-time highs and are up 101% year-to-date. It’s a growth stock. Earnings are expected to rise 8.8% in fiscal 2027 and another 17.5% in fiscal 2028.
Palo Alto Networks is not cheap. You are paying for the growth. It trades with a forward P/E of 90. A P/E over 20 is considered to be expensive. One at 90, like Palo Alto Networks, is at nose-bleed level.
Palo Alto Networks is an earnings all-star. It hasn’t missed on earnings in five years. It will report earnings again in Nov 2026.
For investors looking to invest in cybersecurity, Palo Alto Networks should be on your short list.
4. Visa Inc. (V)
Visa is a leader in digital payments, facilitating transactions between consumers, sellers, financial institutions, and government entities across more than 200 countries and territories. It has a market cap of $698 billion.
Shares of Visa are breaking out to new all-time highs and are up 14% year-to-date. Earnings are expected to rise 15.3% in 2026 and 13.3% in 2027.
Visa is a growth stock with a forward P/E of 26. While it’s not a value, it’s not as stretched as Palantir or Palo Alto Networks.
Visa has the best earnings surprise track record in the S&P 500. It hasn’t missed on earnings since it’s 2008 IPO. What an incredible track record. Visa will report earnings again on Oct 27, 2026.
For investors looking for a financial company with consistent earnings growth, Visa should be on your short list.
5. AbbVie Inc. (ABBV)
AbbVie is a global biopharmaceutical company with a market cap of $500 billion. It was spun off from Abbott Laboratories in 2012.
Shares of AbbVie are hitting new all-time highs and are up 24% year-to-date. Earnings are expected to jump 39.7% in 2026 and another 14.9% in 2027. AbbVie is attractively priced with a forward P/E of 20. While it’s not dirt cheap, you are getting growth.
However, AbbVie is currently a Zacks Rank #4 (Sell) stock. Four estimates were cut for 2026 in the last seven days. The 2026 Zacks Consensus Estimate has fallen to $13.97 from $14.05 during that time.
It will next report earnings on Oct 30, 2026.
AbbVie is shareholder friendly. It pays a dividend, currently yielding 2.4%.
For investors interested in the big pharmaceutical companies, AbbVie should be on your short list.
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of ABBV in the Zacks Value Investor and her own personal portfolio.]
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This article originally published on Zacks Investment Research (zacks.com).
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