5 Core Stocks to Buy and Hold in 2026: Lessons from a Volatile 2025
After a turbulent 2025 marked by market swings and shifting investor sentiment, analysts are now turning their focus to 2026—with an emphasis on high-quality, long-term “core” stocks that can anchor portfolios through different market cycles.
On a recent episode of The Morning Filter podcast, Morningstar strategists David Sekera, CFA, and Susan Dziubinski reviewed the highs and lows of 2025 and identified five stocks they believe are well-positioned for buy-and-hold investors in 2026.
Looking Back: What Defined the Market in 2025?
• 2025 was highly volatile, driven by earnings surprises, valuation resets, and shifting expectations around growth and inflation.
• Stock selection mattered more than broad market exposure, rewarding investors who focused on fundamentals and fair value.
• Several companies saw significant re-ratings—both upward and downward—based on earnings strength and long-term outlook.
⭐ The 5 Core Stocks for 2026
These stocks are considered core holdings—companies with strong fundamentals, competitive advantages, and the potential to deliver value over the long term.
1️⃣ Constellation Brands (STZ) – Consumer Staples with Pricing Power
• A key stock to watch in early 2026 due to its upcoming earnings report.
• Benefits from strong brand positioning in the alcoholic beverages segment.
• Seen as resilient even in uncertain economic conditions.
2️⃣ Darden Restaurants (DRI) – Consistency in Consumer Spending
• Owner of major restaurant brands, Darden stands out for operational discipline.
• Analysts reviewed recent earnings to assess its ability to manage costs while sustaining growth.
• Represents stability within the consumer discretionary space.
3️⃣ Micron Technology (MU) – A Valuation Reset Opportunity
• Morningstar recently raised Micron’s fair value estimate by 50%, signaling improved long-term prospects.
• Positioned to benefit from structural demand in memory and semiconductor markets.
• A key example of how cyclical stocks can become long-term winners when bought at the right price.
4️⃣ FedEx (FDX) – Global Logistics at Scale
• FedEx’s results were reviewed as part of the broader market discussion.
• Its global network and efficiency improvements support long-term earnings potential.
• Often viewed as a bellwether for global trade and economic activity.
5️⃣ Novo Nordisk (NVO) – A Leader in Obesity and Diabetes Care
• Analysts debated Novo Nordisk vs. Eli Lilly as top obesity drug investments.
• Novo Nordisk stands out for its strong product pipeline and leadership in metabolic treatments.
• Considered a durable healthcare stock with secular growth drivers.
What Makes These “Core” Stocks?
According to Morningstar’s framework, core holdings typically:
• Have strong competitive advantages (economic moats)
• Trade at or below fair value
• Offer resilience across market cycles
• Support long-term portfolio stability rather than short-term trading
Key Takeaway for Investors
As 2026 begins, the focus is shifting from chasing momentum to building durable portfolios. These five stocks represent quality, balance, and long-term conviction, making them suitable anchors for investors willing to ride out market volatility.
Rather than timing the market, the emphasis is on owning strong businesses at reasonable prices—a strategy that proved essential in navigating 2025 and may be even more critical in the year ahead.
After a turbulent 2025 marked by market swings and shifting investor sentiment, analysts are now turning their focus to 2026—with an emphasis on high-quality, long-term “core” stocks that can anchor portfolios through different market cycles.
On a recent episode of The Morning Filter podcast, Morningstar strategists David Sekera, CFA, and Susan Dziubinski reviewed the highs and lows of 2025 and identified five stocks they believe are well-positioned for buy-and-hold investors in 2026.
Looking Back: What Defined the Market in 2025?
• 2025 was highly volatile, driven by earnings surprises, valuation resets, and shifting expectations around growth and inflation.
• Stock selection mattered more than broad market exposure, rewarding investors who focused on fundamentals and fair value.
• Several companies saw significant re-ratings—both upward and downward—based on earnings strength and long-term outlook.
⭐ The 5 Core Stocks for 2026
These stocks are considered core holdings—companies with strong fundamentals, competitive advantages, and the potential to deliver value over the long term.
1️⃣ Constellation Brands (STZ) – Consumer Staples with Pricing Power
• A key stock to watch in early 2026 due to its upcoming earnings report.
• Benefits from strong brand positioning in the alcoholic beverages segment.
• Seen as resilient even in uncertain economic conditions.
2️⃣ Darden Restaurants (DRI) – Consistency in Consumer Spending
• Owner of major restaurant brands, Darden stands out for operational discipline.
• Analysts reviewed recent earnings to assess its ability to manage costs while sustaining growth.
• Represents stability within the consumer discretionary space.
3️⃣ Micron Technology (MU) – A Valuation Reset Opportunity
• Morningstar recently raised Micron’s fair value estimate by 50%, signaling improved long-term prospects.
• Positioned to benefit from structural demand in memory and semiconductor markets.
• A key example of how cyclical stocks can become long-term winners when bought at the right price.
4️⃣ FedEx (FDX) – Global Logistics at Scale
• FedEx’s results were reviewed as part of the broader market discussion.
• Its global network and efficiency improvements support long-term earnings potential.
• Often viewed as a bellwether for global trade and economic activity.
5️⃣ Novo Nordisk (NVO) – A Leader in Obesity and Diabetes Care
• Analysts debated Novo Nordisk vs. Eli Lilly as top obesity drug investments.
• Novo Nordisk stands out for its strong product pipeline and leadership in metabolic treatments.
• Considered a durable healthcare stock with secular growth drivers.
What Makes These “Core” Stocks?
According to Morningstar’s framework, core holdings typically:
• Have strong competitive advantages (economic moats)
• Trade at or below fair value
• Offer resilience across market cycles
• Support long-term portfolio stability rather than short-term trading
Key Takeaway for Investors
As 2026 begins, the focus is shifting from chasing momentum to building durable portfolios. These five stocks represent quality, balance, and long-term conviction, making them suitable anchors for investors willing to ride out market volatility.
Rather than timing the market, the emphasis is on owning strong businesses at reasonable prices—a strategy that proved essential in navigating 2025 and may be even more critical in the year ahead.