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The stock market has generated great returns for investors in recent years. And many experts believe that 2026 will be another good year.
Looking for investment ideas? Here are three to consider.
Last year’s dogs
While 2025 was a strong year for global stock markets, not all shares participated in the rally. There were plenty of underperformers.
I reckon some of the dogs from last year could be worth a closer look. Because there are some really good companies in the mix, and they could rebound at some point.
An example is Rightmove, the UK’s largest property search portal. This is a high-quality company that dominates its industry (it attracted takeover interest last year) and can currently be picked up at an attractive valuation.
Other companies worth highlighting include Sage, RELX, Marks and Spencer, Diageo, and London Stock Exchange Group. All these shares had a bad time in the last year and are well off their highs.
Healthcare stocks
Healthcare stocks missed much of the 2025 rally. However, later they started to come good.
The momentum could continue in 2026. I think many investors will look to diversify away from technology to reduce risk in their portfolios and that this sector will be a beneficiary.
Taking a longer-term view, there’s a lot to like about the sector, in my view. Not only does it look set to benefit from the ageing population but there’s a ton of innovation going on (suxh as weight-loss drugs) that could drive growth.
It’s worth pointing out that buying individual stocks in this sector has its challenges. There’s a lot that can go wrong, like failed drug trials, new products from competitors, regulatory interference and more.
What I’ve been doing is buying a healthcare ETF. This gives me exposure to over 100 different stocks.
Warren Buffett-type stocks
Finally, it could be worth taking a look at Warren Buffett-type ‘quality’ stocks. I’m talking about companies with wide economic moats, stable revenues, high levels of profitability, and strong balance sheets.
These stocks tend to be great investments in the long run. However last year, many underperformed as investors were more focused on cyclical areas of the market such as banks.
I reckon 2026 is likely to be a better year for quality, especially if we see a bit of market turbulence. These stocks can be a good hedge against volatility as they tend to be more stable.
One stock in this area of the market that could be worth a look today is Automatic Data Processing (NASDAQ: ADP). Listed in the US, it’s the largest payroll company in the world.
There’s a lot to like about this company from an investment perspective. For a start, it has sticky revenues – once a company integrates its payroll, leaving is a logistical nightmare.
Second, it’s very profitable. Over the last five years, return on capital has averaged more than 40%.
Third, it has a brilliant dividend track record. In 2025, the company raised its payout for the 51st consecutive year.
Finally, the valuation looks attractive. At present, the price-to-earnings ratio is in the low 20s.
Of course, with a company like this, AI disruption is a risk. On the whole, there’s a lot to like about it and I think it’s worth considering.
