3 Must-Have Stocks for Your Portfolio

Podcast Highlights

• 0:30 – Evaluating if the recent market dip presents a worthwhile investment moment
• 5:15 – Tracey’s top stock selections to keep an eye on
• 16:30 – Episode summary: CAT, FIX, LLY

Episode #477: Zacks Market Edge Podcast

Join us for another installment of the Zacks Market Edge Podcast, where Tracey Ryniec, a Zacks stock strategist, teams up with various guests each week to explore trending topics in stocks, bonds, and ETFs, and discuss their real-world impact.

Market turbulence has increased amid ongoing uncertainty in the Middle East. However, such volatility can offer strategic opportunities for investors.

Many investors have watched certain stocks soar to record highs over the past year, feeling as though they missed their chance to buy in. These missed opportunities highlight the importance of being prepared for future pullbacks.

Building Your Second-Chance Watchlist

Every investor should maintain a “wish list” of stocks they’d like to own if the market experiences a significant downturn—typically defined as a drop of 10% or more.

With numerous promising stocks available in 2026, here are three standout candidates to consider for your watchlist.

Three Stocks to Monitor

1. Caterpillar Inc. (CAT)

Caterpillar, a leader in construction and mining equipment, has seen its shares climb to five-year highs, gaining 220% over that period. Recently, however, the stock has retreated 5.7% from its peak. With a forward P/E ratio of 32, Caterpillar is trading at a premium—typically, a P/E below 15 signals value, while above 30 is considered expensive. Earnings are forecasted to grow 18.9% this year and 21.6% next year. Should Caterpillar be on your radar?

2. Eli Lilly and Co. (LLY)

Eli Lilly remains a frequent pick for Tracey and is part of the Zacks Insider Trader portfolio. The company’s shares have surged to new highs, driven by its successful GLP-1 drug lineup, with a five-year gain of 375%. Despite this, the stock has dropped 4.1% over the past week and is down 9% year-to-date. Analysts expect earnings to jump 41.1% in 2026 and 22.8% in 2027, with a forward P/E of 29.4. Is now the right time to consider Eli Lilly?

3. Comfort Systems USA, Inc. (FIX)

Comfort Systems specializes in mechanical, electrical, modular, and plumbing systems for buildings, boasting a $50 billion market cap. The stock has delivered an impressive 1,829% return over five years, though it has recently declined 5.8%. Earnings are projected to rise 26.1% in 2026 and 16.2% in 2027. With a forward P/E of 38.7, the stock is no longer a bargain. Would a further pullback make Comfort Systems a buy?

Why Keep a Wish List?

Curious about how to make the most of your investment wish list? Tune in to this week’s podcast for deeper insights.

Disclosure: Tracey holds LLY in the Zacks Insider Portfolio.

Zacks’ Top Stock Picks: Potential to Double

The Zacks research team has identified five stocks with the highest potential to gain 100% or more in the coming months. Among these, Director of Research Sheraz Mian spotlights one standout pick—a lesser-known satellite communications company poised to benefit from the rapidly expanding space industry. Analysts anticipate a significant revenue surge in 2025. While not every recommendation is a guaranteed winner, this company could outperform previous Zacks picks like Hims & Hers Health, which soared over 200%.