Motley Fool Backs 3 Stocks for Rally as S&P 500 Gains 10% in 2026
Updated
Updated · The Motley Fool · Jul 6
Motley Fool Backs 3 Stocks for Rally as S&P 500 Gains 10% in 2026
3 articles · Updated · The Motley Fool · Jul 6
Summary
Three picks—Netflix, Microsoft and Nvidia—were highlighted as buys even after a strong market run, with the S&P 500 already up 10% by July 1.
Valuation is the main case: Netflix trades at a 22.4 forward P/E versus a five-year average of 31.3, Microsoft at 16.7 versus 28.9, and Nvidia at 22.8 versus 35.4.
Recent operating growth underpins the call, with Netflix reporting 16% revenue growth, Microsoft 18% revenue growth and a $37 billion AI revenue run rate, and Nvidia posting 85% revenue growth.
The article argues investors should focus less on timing the next rally and more on long-term growth businesses, noting the S&P 500 has delivered double-digit gains in six of the past seven years.