As we enter March 2026, it’s time to think about which stocks fit into an investor portfolio and which companies may be worth shelving to raise capital and take advantage of new opportunities.
-
HubSpot (HUBS) Revenue +20%, EPS up 10%, PEG ratio 1; Sanmina (SANM) Revenue +7%, Earnings +17% to $1.67 EPS; GoDaddy (GDDY) $1.27B revenue +7%, stock -14%, $5.2B full year guidance; Shopify.
-
HubSpot posts AI-driven pace in Q4, Sanmina benefits from near-offshoring manufacturing trends, and GoDaddy’s promotional pricing strategy pressures margins despite revenue growth.
-
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here for FREE.
Instead of focusing on the typical mega-cap names that get most of investors’ attention, I thought I’d dive into three less-discussed names, but stocks that many investors can own, to dive into two buying opportunities and one company I’d stay away from right now.
READ: The analyst who called NVIDIA in 2010 just named its top 10 AI stocks
With that, let’s dive in!
HubSpot (NYSE:HUBS) is among the leading providers of cloud-based CRM software used by businesses around the world. With a strong market share and a sticky product with a loyal customer base, this is one of the top software stocks that I think investors will want to take a look at, given the recent declines we’ve seen in this sector lately.
Driven by demand for AI, the company’s recent fourth-quarter results highlighted a key strength in the company’s core business. With revenue up more than 20% year over year and earnings per share that also beat expectations by a pretty wide margin (also up in the teens compared to the same quarter last year), HubSpot is a company that really seems to be trending in the right direction.
These top and bottom lines suggest there is plenty of momentum within the company’s core business to drive continued long-term cash flow growth. At the end of the day, that’s how companies are valued, and I think we should see significant price appreciation if these gains continue as they have been.
With a reasonable valuation and a PEG ratio of around 1, HubSpot looks like an attractive opportunity for long-term investors looking to add some underappreciated growth stocks to their portfolios right now.
sanmina (NASDAQ:SANM) operates in a much less “attractive” part of the market, but I would argue that it is becoming increasingly important. That is, for those investors who believe in the nearshoring and onshoring trends that are expected to develop in the years and decades to come.
Sanmina provides integrated manufacturing solutions, components, repair, logistics and other products and services to a variety of manufacturing companies in North America and around the world. As more and more countries are likely to seek to insulate their economies from global trade issues, this is a business model that is becoming very compelling, at least to me, at the moment.
With outstanding results in its Q4 presentation last quarter, Sanmina has made its case as a stalwart company that investors may want to consider. The company’s revenue increased more than 7% year over year, driven by strong demand from electronics manufacturing companies. Earnings were even more impressive last quarter, rising nearly 17% to a record EPS of $1.67. And with more growth expected to come from semiconductor and data center construction, this is a stock that I think investors should consider as a stealth growth angle when thinking about including SANM stock in their portfolio.
For me, Sanmina is a sleeper stock that I think investors should at least do some homework on. This is a company I intend to delve into in the future, as it has caught my attention a lot lately.
GoDaddy’s (NYSE:GDDY) Recent results didn’t give investors much to cheer about, despite what appeared to be solid numbers. The e-commerce platform provider posted revenue that was in line with estimates (at $1.27 in bullion, up nearly 7% from the year-ago quarter), and GAAP EPS figures were slightly ahead of estimates.
Unfortunately, GDDY stock sank about 14% on this report as the company issued disappointing guidance. Now that the company projects revenue will approach $5.2 billion for the fiscal year, it’s clear that promotional pricing is eating into margins. In this environment, investors clearly want to see margin expansion (or at least rigid margins), so these results were clearly not what investors were looking for.
Growing pressure on margins is expected to continue across the company’s core platform and application segments, and I can understand why. This is a competitive market, with other major players such as Shopify gaining significant market share.
I think there are simply better names for investors to rotate into right now.
Wall Street is investing billions in AI, but most investors are buying the wrong stocks. The analyst who first identified NVIDIA as a buyback in 2010, before its 28,000% run, just identified 10 AI startups that he thinks could generate huge returns from here. One dominates an equipment market valued at $100 billion. Another is solving the biggest bottleneck holding back AI data centers. A third is a pure play in an optical networking market that will quadruple. Most investors haven’t heard of half of these names. Get the free list of 10 stocks here.
