The year is coming to a close, and that's often a good time for investors to take stock of their holdings and plan for the future. If the S&P 500 (^GSPC 1.12%) keeps up its current performance, it will be the third year in a row of market gains.
Long-term investors know that despite the sometimes nail-biting experience of having your money tied up in a market that could be volatile, over time, the market does well much more often than not. At the same time, in a strong bull market, stocks can become expensive.
If you're looking for some excellent, well-priced stocks to close out the year, here are five recommendations in no particular order.
Image source: Amazon.
1. Amazon
Amazon (AMZN 2.85%) is finally getting some market love after it reported an outstanding third-quarter report. There was a lot to like about its latest update, but what got the market going was an acceleration in sales growth at Amazon Web Services (AWS), which means that despite it already being the largest cloud business in the world, it's attracting enough interest to get much bigger.
Management enthused investors further with its commitment to increase spending in 2026, positioning itself to gain even more money from its artificial intelligence (AI) operations.
With improvements on the e-commerce side of things as well, Amazon is poised for higher gains in 2026.
NASDAQ: AMZN
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2. On Holding
On Holding (ONON 1.58%) is a young athletic wear company with big ambitions. It's challenging the legacy leaders in the space, and it's gaining loyal fans worldwide for its premium products.
Growth has been robust despite a pressured economy and in contrast with most of its competitors. It's still somewhat unknown in many regions, and it has a huge opportunity as it rolls out globally.
On stock trades at 23 times forward, one-year earnings, a great entry point for new investors.
3. Lemonade
Whoever wrote off Lemonade (LMND 4.64%) when it plunged early on its stock journey is probably regretting it today. Although it took longer than many investors wanted, the digital insurance company's AI-driven underwriting models are working, and it's becoming bigger and more profitable. The stock has been correspondingly exploding, but Lemonade is just getting started.
Management expects to hit earnings before interest, taxes, depreciation, and amortization (EBITDA) profitability in 2026, and now is a great time to get on for the ride.
NYSE: LMND
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4. MercadoLibre
MercadoLibre (MELI 7.53%) has done an exceptional job of developing its e-commerce business in Latin America and expanding into a large suite of complementary fintech services. It's growing by leaps and bounds, and it still has a wide opportunity as its regions continue to embrace e-commerce and digital financial management.
MercadoLibre stock trades at 37 times forward, one-year earnings, which is an attractive valuation for a company with its growth potential.
NASDAQ: MELI
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5. American Express
American Express (AXP 0.04%) is the only real value stock on this list. It has a strong and stable credit card and banking business, and its fee-based model that targets an affluent consumer base creates resilience in a tough economy and robust opportunities in a thriving economy.
Its dual business also offers security in different environments, since customers spend when interest rates are lower, and the company makes more net interest income when rates are higher.
Despite being a value stock, American Express is beating the market, and it's well positioned to keep that up next year and long term.
