We have looked for companies that are set to be really exciting by the end of the year. Specific triggers could trigger a period of outperformance for these companies, laying the foundation for even greater success in the long term. But keep in mind that there is always a risk when it comes to investing. It is a gamble as is https://nationalcasino.com.
Which stocks should you buy in 2026?
New year, new luck: Many investors are currently looking for fresh stock ideas. But does an investment horizon of only one year even make sense?
When the overall market corrects, almost all prices fall – regardless of the quality and impact on individual companies.
Operational performance is only decisive in the medium and long term. If a group’s growth plans are successful, this leads to higher profitability.
Investors who accompany companies over several years as they grow and increase in value will eventually be rewarded in the form of rising share prices and dividends.
Therefore, the rule of thumb is:
- Investment period 0–5 years: Capital should be parked safely.
- Investment period >5 years: Those who have time can sit out fluctuations and benefit from the high return potential of the stock market.
We have searched our watch list specifically for companies that could become really exciting by the end of the year.
The reason: specific triggers could initiate a period of outperformance over the course of the year, laying the foundation for even greater success in the long term.
British American Tobacco shares
Why it is worth taking a look at BAT shares
From 2017 to early 2024 (a period of seven years), the price of British American Tobacco shares fell in waves. At one point, the second-largest tobacco manufacturer’s share price had fallen by 60%.
There were certainly many reasons to be skeptical: the ongoing industry-wide decline in volume, market share losses in the important US business, and increased debt.
However, the situation has now changed completely.
- Acceleration of growth
- In 2024, sales increased by 1%.
- In 2025, revenue growth of around 2% was achieved.
- In 2026, BAT is likely to achieve an increase of approximately 3%.
From 2027 onwards, management is aiming for sustainable revenue growth in the range of 4% per year
This is driven by progress in the reduced-risk products business:
BAT is already the global market leader in the vaping business.
The group ranks second in heated tobacco.
Sales of nicotine pouches are developing particularly dynamically. In the US, sales growth in this segment is currently in the hundreds of percent (albeit starting from a low base).
In addition, management sees potential for further increasing profit margins thanks to efficiency gains and strong pricing power.
Optimized capital allocation
After a seven-year phase of debt reduction, liabilities have been brought back into the target range (2.0 to 2.5 times EBITDA).
This means that British American Tobacco can increasingly use its surplus cash to buy back more of its own shares.
GBP 1.3 billion (approx. 1.5% of current market capitalization) is planned for 2026, with scope to expand activities to around GBP 2.5 billion per year in subsequent years.
As a result, earnings and dividends per share could grow at a disproportionately high rate.
Valuation scope
Management is forecasting annual earnings per share growth of 5-8% from 2027 onwards.
Even if a certain safety margin is deducted due to regulatory risks and exchange rate effects, the valuation still appears attractive despite the price increase that has already taken place.
The P/E ratio is 11 (2026e), and the initial dividend yield is more than 6% (2026e).
For context: in the ten years prior to the acquisition of competitor Reynolds (2007-2017), the average valuation was a P/E ratio of 15.
