- Market sentiment improves as valuations cool and Fed cuts are expected.
- Five standout stocks: Micron, Comfort Systems, Kinross Gold, On Holding, and Qualcomm.
- MU and FIX benefit from the AI and data-center boom; ONON leads in high-growth consumer trends.
- KGC offers defensive value amid strong gold prices; QCOM remains undervalued with rising auto & AI demand.
- A balanced mix of growth and value stocks may benefit investors heading into 2026.
Which stocks look attractive right now — and why investors are watching them
With 2025 in its last few weeks, feelings about the stock market are guardedly optimistic. After a strong year, valuations have cooled, and by late November America stocks were priced about 3% below Morningstar’s fair-value estimates — meaning they are no longer overpriced overall.
Investor activity is also a sign of the shift: value-oriented shares are starting to perform better than growth stocks, with signs that there is an uncelebrated rotation into companies with strong fundamentals at reasonable prices. Easing inflation and futures markets pricing in more than an 80% chance the Federal Reserve will cut rates in December have buoyed hopes for a classic year-end “Santa Claus” rally.
Yet the environment remains selective. Geopolitical risks, uncertainty over the timing of Fed policy and ongoing worries about consumer spending make it clear that investors have to focus on quality. Some pockets of the market — energy, with a trade around 9% discount to fair value being one example — still present attractive entry points. Against this uncertain and ever-changing backdrop, we present five stocks of today that have growth potential with a value-tinted twist that could prove attractive as the landscape shifts.
Micron Technology (MU) — AI Memory Demand Driving a New Cycle
Micron has emerged as one of the most compelling winners from the AI build-out for 2025. The company also left the consumer PC memory business late last year, refocusing on high-end memory solutions for AI servers and data centers. That pivot is paying off quickly: Micron this afternoon reported revenue of $11.3 billion, up 46% year-over-year, an EPS of $3.03 — both easily beating expectations.
Strong demand for high-performance DRAM and AI-optimized memory continues to show, and analysts responded. Price target raised to $300 from $200 at Susquehanna, and the rest of Wall Street is still overall bullish, with its average price target hovering around $225. Analysts remain bullish on MU even after the 2025 resurgence, saying that there is still room to grow in the valuation as spending on AI infrastructure continues. Micron is a fine growth bet for investors who want exposure to the AI trend but do not want to pay up mega-cap prices.
Comfort Systems USA (FIX) — The Quiet Winner of the Infrastructure & Data-Center Boom
Comfort Systems, a mid-cap name that does not receive much attention from retail investors — yet this company has given one of the strongest performances of the year. As a contractor of mechanical, electrical and HVAC systems, FIX is at the epicenter of the continuing surge in U.S. infrastructure projects, commercial construction and — crucially — data-center growth spurred by AI.
The company’s most recent quarter featured explosive momentum: net income more than doubled ($291.6 million vs. $146.2 million a year ago). The stock ripped to all-time highs just above $1,000, a move underpinned by 96% institutional ownership and strong fundamentals that included an impressive ~44% return on equity.
UBS recently lifted its target to $1,140, and FIX retains a consensus “Buy” rating. Even with insider selling signaling some short-term profit-taking, the long-term thesis remains robust. FIX is a “picks-and-shovels” play on the AI and infrastructure economy — a fast-growing stock that still seems underappreciated.
Kinross Gold (KGC) — A Value Play Leveraging Strong Gold Prices
For the investor who wants stability but a little upside juice, check out Kinross Gold. The continued romance with safer assets has also kept the price of gold near multi-year high on persistent political risks and bets that United States could lower interest rates, a positive environment for miners.
Kinross shares are approaching a triple off their lows, but the stock still isn’t egregiously valued (about 22x earnings) — and an extraordinary PEG ratio of just 0.42 says its growth is deeply undervalued, especially considering that high-quality rate of expansion.
Recent earnings support this perspective: Revenue was up 25.8% yoy, EPS of $0.44 beat estimates, and the company raised its dividend — albeit modestly. Analysts are optimistic, with UBS upping its target to $31 and Zacks moving KGC to a “Strong Buy”, forecasting EPS could double in 2025 as new projects ramp. For investors seeking a hedge against volatility — and without premium pricing for the gold sector — Kinross is attractive.
On Holding AG (ONON) — A High-Growth Consumer Brand With Global Momentum
On Holding continues to go from strength to strength in the burgeoning fitness footwear market. Renowned for its game-changing “On Running” products, the company has beaten expectations across its global sales and increased forecasted full-year 2025 revenue to 34% (from 31%). Its playbook — speedy products innovation, marketing stunts featuring celebrities and bold expansion in Asia-Pacific — has powered huge momentum.
The stock has jumped nearly 38% over the past months after an upbeat after an upbeat outlook, but Wall Street wants more upside. On carries a Zacks Rank #1 (Strong Buy), and approximately 25 analysts have an average target price of $61, with the stock’s potential for an additional gain amount to roughly 30%. While ONON’s valuation is a bit of a premium (about 29x forward earnings), we still like what the growth outlook is here. ONON could be an attractive high growth play for investors looking to capitalize on the consumer discretionary recovery, specially in premium athletic wear.
Qualcomm (QCOM) — Undervalued Tech With AI and Automotive Tailwinds
Qualcomm has a rare combination of attributes in a large-cap tech stock: a good balance sheet, growing revenue streams, and an abnormally low valuation. While a number of semiconductor stocks have surged this year, those gains have not been as pronounced for QCOM, which could be an opportunity. The company is also effectively expanding its business beyond smartphones with automotive chips, on-device AI and IoT solutions.
It had 10% overall revenue growth in its most recent quarter last year, including a 21% jump in automotive revenue and a 24% rise in IOT sales. But the stock itself is trading and just ~ 13x forward earnings — below peers.
Analysts are upbeat, with a strong “Buy” rating and an average price target of about $183. With more than 50 car models featuring Qualcomm’s Snapdragon digital chassis platform and projected auto revenue of $8 billion by 2029, the company’s long-term growth narrative is underpinned. Toss in a strong buyback and healthy dividend and QCOM is an attractive value tech play.
Frequently Asked Questions
Yes — valuations have cooled, inflation is taming down, and markets are pricing in Fed cuts shortly. This is supportive of markets, but still, stay selective and broad-based as an investor.
Demand for high-speed DRAM and AI-optimized memory is exploding. Micron’s shift from consumer PCs to AI data-center memory has buoyed earnings and analyst targets.
FIX is benefiting from the AI-fueled data-center building boom. Its profit doubled, its return on equity is high, and analysts still see upside despite its strong rally.
KGC is still trading at attractive valuations even with improving production and analyst upgrades due to gold prices staying near record highs (i.e. a value + defensive play)
QCOM is gaining automotive chips, IoT and on-device AI while trading at just ~13x forward earnings — very cheap relative to most semiconductor peers, each of which stronger near-term catalysts.
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