3 Underrated Growth Stocks That Look Like Great Buys Heading Into 2026

The piece highlights three stocks the author views as undervalued: Amazon, Viking Therapeutics and Carnival. Amazon (market cap ~$2.4tn) has underperformed this year (up roughly 3%) yet trades at ~32x trailing earnings versus a 42x tech-sector average, with AWS growing ~20% and longer-term upside from AI investments (in-house chips) and new businesses like Zoox. Viking, down modestly YTD after an August sell-off tied to concerns about its GLP‑1 candidate VK2735, has an injectable in Phase 3 that could be transformative if approved but remains a binary clinical/regulatory risk given the lack of approved products. Carnival trades at ~13x earnings versus the S&P’s ~25x, has posted operating profits in each of the last four quarters, and could benefit from demand for lower‑priced vacations; consensus targets imply roughly 29% upside, offering a value-oriented play with a margin of safety.

Analysis

The article highlights three understudied ideas: Amazon (market cap ~$2.4 trillion) has underperformed this year (up ~3% vs the S&P 500 rally of >16%) and is trading at ~32x trailing earnings versus a 42x Technology Selector Sector average, while AWS grew ~20% in the quarter ended Sept. 30 and overall revenue grew ~13%, with potential upside from AI initiatives (in-house chips) and new businesses such as Zoox. Viking Therapeutics (VKTX) is described as a high‑beta biotech opportunity: the stock is down ~3% YTD after an August selloff tied to concerns about a high discontinuation rate for VK2735, the injectable is in Phase 3 with encouraging results so far, the company has no approved products yet, and regulatory approval would be transformative and could drive M&A interest. Carnival (CCL) is positioned as a value trade — the stock is up ~4% YTD, trades at ~13x earnings versus the S&P’s ~25x, has posted operating profit in each of the past four quarters, and carries a consensus price target implying roughly 29% upside. The article’s tone is moderately positive, presenting Amazon as a scaled growth play, VKTX as binary clinical risk/reward, and CCL as a defensive, value-exposed travel recovery name.

Key Decisions for Investors

• Consider adding to Amazon as a core long‑term growth position given AWS’s ~20% growth, a 32x trailing multiple below the sector average and clear AI/capability catalysts, scale exposure to reflect execution risk on new businesses
• Treat Viking Therapeutics as a speculative, binary biotech trade — allocate only risk‑capital size positions, monitor Phase 3 readouts and discontinuation-rate data closely, and set strict risk controls given no approved products
• Favor selective value exposure to Carnival given a ~13x P/E, four quarters of operating profit and ~29% implied upside; consider overweighting vs discretionary travel peers with hedges for macro/consumer‑spend sensitivity