In this podcast, Motley Fool contributors Travis Hoium, Lou Whiteman, and Rachel Warren discuss:
- Why space is worth watching in 2026.
- Opportunities in healthcare.
- How Hims & Hers is disrupting the healthcare industry
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A full transcript is below.
This podcast was recorded on Dec. 31, 2025.
Travis Hoium: The calendar is turning to 2026 tonight, so it's time to talk about stocks we love for 2026. Motley Fool Money starts now.
Welcome to Motley Fool Money. I'm Travis Hoy. I'm joined by Lou Whiteman and Rachel Warren. We're gonna do something a little bit different today. Given a slow newsweek. We're going to talk about stocks that we like going into 2026. It's always one of the times we focus on what is next year going to look like. Lou, let's get specific. What stocks do you like in 2026?
Lou Whiteman: I'm going to start with the sector, and then we'll get the stocks. I am really intrigued by space and what will become of the space sector in 2026. This was a real winner in 2025. Lots of excitement. The RCSpace and Defense Innovation ETF, which is one way to look at it, up 50% for the year. That's not a bad year. A lot of these stocks we're talking about, we did a lot better than that. That's how averages work. In one sense, how can this continue. Once you had a year like this, there's no way you can see that again, or that's like conventional wisdom. But on the other hand, it turns out SpaceX is going to IPO in 2026.
Travis Hoium: $1.5 trillion is the rumored price, by the way.
Lou Whiteman: We'll get to that in a second. Just even if they come in at half of that, there's going to be a lot of discussion, a lot of talk about the potential of space. If that 1.5 trillion valuation does happen, hey, that makes a lot of these today's speculative stocks. Look, the valuations look really reasonable. I think actually, there can be momentum into 2026. Specific stocks, Rocket Lab is the leader. RKLB is the ticker. I really like them. I'd rather own Rocket Lab than SpaceX, even if SpaceX was public. That's how I feel about Rocket Lab. But let's have more fun, something more obscure, something with a little more risk. I'm intrigued by Redwire, Ticker RDW. This is a component manufacturer for space and drones. They make a lot of the stuff that is necessary to get things into space. They have big exposure to areas like solar panels for space. There's stuff that you just need if you are going to put something into space. Very neat company. Motley Fool members can just check out an interview I did with the CEO, Peter Cantillo. He described it as owning the fundamental building blocks if we're going to have a Golden Age in space. Did a big acquisition in 2025, diversified to business. I think it'll move them toward profitability in 2026. Lots of risks, lots of uncertainty, but it trades at 1/30 of the multiple Rocket Lab does right now. Price to sales multiple? Price to sales cause none of them are profitable yet. But the market hasn't discovered this one. No slam dunk. It could go to zero, but I am very intrigued by the opportunity.
Travis Hoium: One of the questions that I had when I saw this in the rundown is, this is an area where these companies are not profitable. Usually, I go to Lou for very sound, these companies are industrials. This is how they make money. This is how it's going to be durable for the next 20, 30, 40 years. This is much more speculative. What's the risk reward here? Because it seems like this could be an area where we go through a 2021 or 2022 style drawdown, where suddenly that space CTF is down 70% in 2026. It could be up another 50%, could be down 70%. Is that a fair way to look at the risk reward?
Lou Whiteman: I think it is. I mean, you're just setting it up, so I have to take it. It's a moonshot, baby. [LAUGHTER] But here's what I'll say. There are a lot of space start-ups right now. Most of them, and I've been following this area for a long time. Most of them, to me, are uninvestable right now because of the risk. What I like about Redwire, look, again, there's no guarantee the Edge autonomy deal that they did, this big deal they did last year to move them into drones, that will also help cash flow. I think that they have joined Rocket Lab as companies that have enough there to survive a winter. Look, there's no guarantees if it's a bad winter.
Travis Hoium: We went from cryptowinters to potential space winters.
Lou Whiteman: Well, winter happens all over, Travis. No, I mean, I do think when you're looking at this, as optimistic as I am heading into 2026, you do have to realize that none of these things are slam dunks. They all could go to zero. I do try to look at which ones I think can outrun the grim reaper in a bad market. I'm not sure on Redwire. It's hard to be sure of any equity, but I do like where they're set up, even if things don't go as well as I hope they were.
Travis Hoium: Does that seem like one of those areas even if you're not investing in this space to start 2026, definitely worth having it on your watch list. Lou, I want to get an idea of what are we going to be thinking about with space five or 10 years from now? It seems like a lot of these companies are related in some way to communications. You have SpaceX with StarLink, AST Space Mobile is a company that's putting up its own direct-to-sell network, they're going to be tying into other companies' networks. But is that the early use case? What are we going to be looking at back going, this was the killer app for space because saying, we're going to launch a bunch of satellites is cool. But if those satellites aren't adding value, then it isn't a sustainable business model.
Lou Whiteman: There's a lot of options here. The problem with communications is latency. For terrestrial communications, it can be second best, so it's an economics thing or a need thing. I'll give you two candidates. I don't know if I would put my money on either one of them, but I think they're both out there. The whole data centers in space. You do have the latency problem there too, but you have the solar power side of it there is a lot of opportunity there. Jeff Bezos has talked about that. That's probably more than five years off, but that is intriguing. The other thing, Redwire has a small unit called SpaceMD, and what that is is pharmaceutical companies doing just experiments in space, seeing how low gravity, zero gravity, just seeing how things work. I think there is some potential there or at least some interest for revenue. I think once we're up there and established, then you start looking around, and I think it's going to be some boring, mundane thing that we're not thinking about now, that's probably less glamorous than anything I said, but just makes life better in some way.
Rachel Warren: Lou, this is a really fascinating space. In particular, Rocket Lab. I know that they've had a lot of delays with the launches of their neutron rocket. They're looking to go ahead and launch that between Q1 and Q2, I think of next year. I think there's a lot of excitement in this space. What should we as investors look for in terms of the key hallmarks for these companies when evaluating space? Obviously is a nascent industry in terms of investibility. But what should we be looking for when we're looking at these companies?
Lou Whiteman: Rocket Lab specifically, he nailed it. The neutron has to get off. Peter Beck, the CEO, told Tom Gardner, look, we want to get it right the first time. He didn't name SpaceX, but SpaceX has no problem just launching things that explode until they don't Rocket Lab has a very good record, and they claim the delays is just making sure they get it right the first time. That's great if it happens, but it will happen. More broadly, the way I think investors should think about this is there are two hurdles, and we get focused on the first and we lose track of the second. For one, all of these things are basically glorified science projects. We're just seeing if something works. We're trying technology that hasn't been tried before. The first hurdle is to find out if it works. We tend to overinvest in that. If it's possible, we say, good, and we rush in.
Travis Hoium: This is the hype cycle.
Lou Whiteman: The hype cycle. The second hurdle is, can I turn it into a long-term profitable business? Just because it's a science project, can it be long-term profitable? That is the hurdle I think is going to trip up a lot of these space-based businesses, I fear, and that's something that I'm trying to filter out as I look at this.
Travis Hoium: Definitely a space to watch in 2026. When we come back, we're going to move to the medical industry. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Rachel, you are up with your favorite stack going into 2026. What are you looking at?
Rachel Warren: Well, I had to pick something in the healthcare space. I think this is a very fascinating industry. I think it receives varying attention from investors, depending on the cycle that year and what investors are really looking at. One company I find really intriguing. It's a medical device company called TransMedics Group. This is a commercial-stage medtech company, and they've essentially pioneered a new standard of care for organ transplantation. Really the core of the business is their organ care system or their OCS, as they call it. It is the only FDA-approved portable multi-organ platform for hearts, lungs, and livers. It really has changed the standard for how these organs are moved for transplantation. You've got those traditional older methods, static cold storage or placing organs on ice, if you will. But what the OCS does, what TransMedics product does, is completely different. It essentially perfuses organs with warm oxygenated blood. Hearts can continue to beat, lungs continue to breathe, livers produce bile. Basically, what this means is that surgeons can better assess organ viability and optimize quality before transplantation. The technology really extends the time and distance that organs can travel. One of the things that's really unique about this business is not just the fact that they have a first-to-market advantage, particularly in the US, but they've transitioned from being a pure play medical device seller to a fully integrated logistics and service provider. This is largely because back in 2023, they acquired a company called Summit Aviation. They now operate their own fleet of aircraft. It's about 21 planes at last count that I saw. They're basically able to control the entire transportation chain when using their OCS system. They just expanded internationally in Italy through a partnership with Mercedes-Benz. Their primary clients are transplant centers and hospitals across the US and now in their first key international target market, Italy, which is really, I think the first part of their vision to expand more broadly, internationally. There's a lot of catalysts for future growth here. Obviously, there's the revolutionary aspect of their technology. This is a profitable business. This is a high revenue growth business, and they tend to generate very high margin recurring revenue not just from the transplant fees, but also from the single-use plastic capsules and perfusion sets that are needed for every transplant. It's a really interesting business. Not one maybe as frequently talked about in the healthcare space. Really intriguing company to watch, I think, as we get into the new year.
Travis Hoium: If you look at the stock chart for TransMedics; this has been a really volatile ride over the past five years. Shares are actually up 560%, but man, you would have been up 500% and then down another 60% from there. Is this one of those where, keep it on your radar if we go through one of those huge drawdowns, because it seems like the catalyst for both the higher movements and the lower movements are crazy from quarter to quarter. That's when you may want to start nibbling or just set it and forget it. Don't worry about valuation in 20 years, this is going to be a revolutionary company. How do you think about that, Rachel?
Rachel Warren: I personally think it's one worth nibbling on, and I think it's interesting to note. When you look at the healthcare space, you have a smaller subset of these growth oriented businesses that tend to see these very wild price reactions. Again, as I noted, TransMedics is profitable. They have a pretty favorable balance sheet overall. They're not one of these early stage, unprofitable biotech. In the other lane in the healthcare space, you have a lot of those slower growing pharmaceutical companies that don't necessarily bring forth those wild price reactions, but don't necessarily, bring forward that growth either. I think this is an interesting example of a growth play in the healthcare space. I will note they are the market leader within the US. Their portable systems hold more than half the market share. A lot of this is because of their necessity and long distance decentralized transplant networks that vertically integrated business model has been really key. I would certainly expect more volatility ahead. They're not the only player in the space, but they are the market leader. There are a couple other things as well to note. They are right now focused on initiating two major clinical trials, which are expected to really be the main catalyst for their future growth, additional approvals for their organ care system. That's something that's really important to watch for. The broader the use cases and applications for their system, the more they extend that one way of growth for the business. One of the trials is expected to basically drive further adoption in the lung transplant market where they are a key player, but the other is the largest heart preservation for transplant trial ever. It's expected to enroll over 650 patients. That's another key area to watch with this business.
Lou Whiteman: I'm glad you mentioned that trials because I've looked at this a bunch of times, and the thing that gets me is for one, the core market, it's just not growing and part of that is just availability and just go to there's only so many transplants out there with the transportation business. That is hard to scale without cost. You just can't do that without cost. You need that. You couple it with there was a short report. I thought it was mostly not great, but the one thing I think it was Scorpion Capital said, there does seem to be some interest from the government to overhaul the whole transplant market, including Medicare reimbursement. Considering how expensive transmetic is, I think that's at least something to watch. A lot of it is just because this is a costly thing and it's life saving. I can't find red flags, but the trials better work out. They better figure out how to scale and add more just the infrastructure at cost. Then with the government hanging over, Europe seems intriguing with just the way payments work over there for healthcare versus Medicare, I don't know. I think this needs to be a US story, and I think it's almost back to what we said about space. I love the science project. I love what they're able to do, but turning it into a scalable, growing business is not an insurmountable problem, but it is going to be a bear.
Travis Hoium: Well, definitely an interesting one to watch going into 2026. When we come back, I'm actually going to play. I'm going to bring a stock to the table that I think will get some thoughts from Lou and Rachel. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. As the host, today, I decided to bring a stock to the table, as well. If you got our Spotify Wrapped, if you're listening to this on Spotify, you may be familiar with this stock. I did a little AI video where I recorded myself doing my stock pick and then writing a rocket into space. A little bit up Lose Alley there. But I wanted to bring Hims and Hers to the table. This is a healthcare company, but it's a little bit more like a wrecking ball than a traditional pharmaceutical or insurance company. They live outside of insurance. They have compounding facilities, which are legal but controversial. The first place to really scale some of these aspects of weight loss, they started with ED of hair loss, hair treatments. They're moving into testosterone, perimenopause, longevity is coming. But this is one of the real disruptors in the space, and I think they're thinking about healthcare very differently. It looks a lot more to me, like Netflix or Amazon, where they're pulling all of the demand together. This is one of the things that we've learned throughout the history of technologies: the companies that can pull demand together can then bring supply to the table on their terms. This is exactly why you have companies like Paramount and Warner Brothers Discovery in a little bit of trouble because people don't go to their apps, they go to Netflix. That's where the power is in the market is aggregating that demand, and they're bringing interesting solutions. They have this artificial intelligence play. I don't like investing in companies that are just, hey they're going to use AI, but there is a case to be made that in the medical field, a single human can only understand or remember so many things. Given the complex system that is the human body, and AI could potentially absorb much more data, especially on a real-time basis. I mean, I always think about I'm wearing a Garmin watch. If I take this data from my Garmin watch to my doctor, they're going to go, what in the world am I supposed to do with that? But that's the thing that can plug into a platform like Hims and Hers. That said, I know that this is not the favorite. This is actually a huge short interest. The short interest is over 30%. That can be either good or bad, depending on how you look at it. There could be a short squeeze, but the shorts could also be right. Rachel, I know this is one that you follow. What are your thoughts, either positive or negative, on Hims and hers going into 2026?
Rachel Warren: I'm glad you brought this one up, and I also glad you mentioned that short interest. It's fascinating. I think a lot of the attention and also some of the negative investor attention, as well that Hims and Hers has received this year has been down to that GLP-1 business. But I want to say, I really like Hims & Hers as a platform. I think that the model is sticky, well beyond any success they do or don't continue to have within the GLP-1 space. I want to emphasize that, because there I think have been some very justifiable concerns about how they have approached that. We've talked in the past about that agreement they had with Novo Nordisk, and Novo Nordisk backed out. It's worth noting that Novo is still working with other telehealth companies like Ro, for example, because Ro adhered to their terms to only offer the authentic branded WIGOV.
Travis Hoium: You can still buy, I believe their products through His and Hers, but it's not at a discounted price. I think it's still pretty expensive. Part of it was that they wanted to [OVERLAPPING].
Rachel Warren: The discounted offering.
Travis Hoium: Yes, it was a discounted offer, and then it would be just funneling to Novo Nordisk's online system. I wonder what the real battle was there because Novo Nordisk, Eli Lily, one of those companies, sued a whole bunch of compounders, did not sue Hims and Hers. I think that is an interesting piece of that picture because that was always the risk was this huge legal risk, and that never materialized in 2025.
Rachel Warren: But of course, there had also been some interactions between Eli Lily and Hims and hers, and that pre-established relationship can also create some legal hurdles when it comes to pursuing legal action. I think there has been some confusion about why there was this issue here. Bear in mind, under legal exemptions compounders, they can still produce a drug if it's significantly different from the branded version. Now, the semiglutide shortage ended almost a year ago. But there are these legal exemptions that allow compounders like Hims and Hers to produce essentially individualized doses. There might be minor tweaks because there's a particular allergy to a certain element, but it can also mean that you're basically selling compounded medications. They are made in outsourcing facilities that do follow federal manufacturing standards, but they don't have the specific drug formulation verified by the FDA. That's where some of that concern has come from. Now, we heard back in November that Hs and hers is maybe talking with Novo Nordisk again. Maybe they're reengaging. They're also selling a generic Liraglutide, which is basically an older GLP-1. It's not protected by a patent, and so it could be legally compounded without a shortage. We'll see where this goes. I think there's a lot of interest in this business because of GLP-1, I understand that. But I think there are other tailwinds for the company that we are watching.
Travis Hoium: To be clear, GLP-1s and weight loss is something like 20% of their business. It has been interesting to watch that.
Rachel Warren: It's moved the stock. [LAUGHTER].
Travis Hoium: It's moved the stock a ton, but it is not really the driver of the business, and now you move into things like labs. Just to test it, I got my labs done incredibly efficient. You go to a traditional labs facility, but I was getting results within 24 hours, just come straight to your phone. Lou, did you have thoughts on that? I tried to pick one that both of you would at least have an opinion on whether it was good or bad.
Lou Whiteman: Let's say on this is that this is a market that desperately needs disruption. I'm rooting for them. But it's also between regulation and it is life or death.
Travis Hoium: You got to get it right.
Rachel Warren: With Hims and Hers, I would just make sure the management team reads the Storia VIckers because there is a real risk of flying too close to the sun here. I think we have seen that they've had growing pains as they've done that. I do think that there is a path toward success here. But there is a lot of risk if you're pushing the envelope with people's health. I get both the skepticism and the excitement, and again, I wish him well because our health system is broken.
Travis Hoium: Their will definitely be another one to watch. Rocket Lab, TransMedics and Hims and Hers if you're looking for some ideas going into 2026. As always, people on the program may have interest in the socks they talk about. Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows the Motley Fool's editorial standards. It is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. For Lou Whiteman, Rachel Warren, Bart Chan behind the glass, I'm Travis Hoy. We'll be back after the New Year on Friday. We'll see you then.
