Merry Christmas to Barchart readers all over the place. I hope Santa’s been good to you and your loved ones. It’s been one other stable yr for the markets.
The S&P 500, as I write this, is up 16.2% with solely a handful of buying and selling days left in 2025. It’s the fourth consecutive yr of annual beneficial properties. There have been six situations since 1928 during which the index has delivered 4 consecutive years or extra of optimistic returns; the document, nonetheless, is eight, set between 1982 and 1989.
I discover it laborious to imagine we’ll get anyplace near the document, given inventory valuations seem vastly overvalued relative to historic norms.
That mentioned, sensible buyers know that point “in” the markets is much extra vital than “timing” the markets. In the event you’re nervous about your portfolio, you may at all times cut back your fairness publicity, shifting a few of your belongings to money, fixed-income investments, or commodities equivalent to gold.
Alternatively, you could possibly use choices to achieve publicity to corporations you want, with out the numerous upfront money outlay.
With this in thoughts, I’ve recognized 9 shares value proudly owning for the long run based mostly on their uncommon choice exercise to information the best way.
You’ll discover that the primary letters of the 9 corporations spell C-H-R-I-S-T-M-A-S. Not solely did they should be fairly enticing companies, however additionally they needed to have Vol/OI (volume-to-open-interest) ratios of 1.24 or increased and company names beginning with one of many 9 letters spelling out the massive day—no simple process.
Completely happy Holidays!
Service International (CARR), the worldwide HVAC enterprise, was spun off by United Applied sciences in April 2020. Its inventory’s had a tough go in 2025, down over 21% year-to-date. It’s buying and selling at one in all its lowest ranges over the previous two years.
I wrote about Service in April 2024, suggesting that “Service is a wise long-term funding for anybody who thinks local weather change is actual.”
OTM (out of the cash) by 6.5%, the $1.80 ask value is simply 3.35% of its Dec. 19 closing share value. You’ll be able to double your cash by promoting the decision earlier than expiration if the share value appreciates by $5.14 (9.6%) over the following two months. The anticipated transfer is $5.27, so it’s potential.
Analysts like Service inventory. Of the 22 rated, 12 charge it a Purchase (4.00 out of 5), with a goal value of $72.85, properly above its present share value.
Betting on Hormel (HRL)is a little bit of a Hail Mary. The shares are down practically 24% year-to-date in 2025.
The excellent news is that its earnings per share for This autumn 2025 had been $0.32, two cents above Wall Road’s estimate. Additional, the corporate’s EPS estimate for fiscal 2026 (October year-end) is $1.47. Whereas down from $1.58 in fiscal 2024, it’s up 7.2% from $1.37 in 2025.
Its shares commerce at an affordable 16.1 occasions the 2026 estimate. The shares solely have to understand by 90 cents (3.8%) over the following month to double your cash by promoting earlier than expiration. The anticipated transfer is 98 cents. Worst case, you shut out the decision for a slight loss and roll it ahead.
Finally, it has some robust manufacturers like Planters, Skippy, and Wholly Guacamole.
How costly is Robinhood Markets (HOOD)inventory? With its replenish practically 230% in 2025, it trades at 50.8 occasions its newest 12-month earnings per share, in accordance with S&P International Market Intelligence.
Its buyer base has grown— 26.8 million funded accounts, 10% increased in Q3 2025 alone — driving important income and revenue progress. Within the third quarter, revenues elevated by 100%, whereas earnings per share jumped 259% to $0.61. Sequentially, its income within the newest quarter was 29% increased than in Q2 2025, whereas its internet earnings elevated by 44% from June 2025.
Of the 22 rated, 16 charge it a Purchase (4.27 out of 5), with a goal value of $155.89, 28% above its present share value.
With an anticipated transfer of $25.29 and an ask value of $1.00, the chance/reward proposition appears tilted in your favor.
Intercontinental Alternate (ICE) acquired NYSE Euronext in November 2013 for about $11 billion. Because the acquisition’s completion, its inventory has gained 293% regardless of two large corrections in 2022 and 2025.
In October, ICE invested $2 billion in Polymarket, a number one prediction markets platform. As a part of the funding, ICE will distribute Polymarket information associated to its prediction market bets to its institutional investor prospects. Until you’ve been dwelling underneath a rock the previous yr, that prediction markets are all the craze. Some day, they may very well be extra well-liked than common investing.
The March 20 $165 name had an ask value of $4.70 on the Dec. 19 shut. That’s simply 2.9% of its $160.30 closing share value. Whereas the percentages of the share value being above the $169.70 breakeven at expiration are about 30%, the small outlay makes the chance value it.
Whereas SoFi Applied sciences’ (SOFI)inventory hasn’t gained as a lot as Robinhood’s, the share value continues to be up 78% with simply days left in 2025. I can keep in mind when the media questioned if its shares had been value $10, not to mention $27.
CEO Anthony Noto is an distinctive chief. He’s skillfully scaled the monetary companies platform. It now has 12.6 million members, producing $3.29 billion in income for the trailing 12 months ended Sept. 30. Extra importantly, it’s producing working earnings — $401.1 million previously 12 months — up from an working lack of $453.8 million in 2021.
Buying and selling at practically 50 occasions the earnings per share estimate for the following 12 months, whereas it’d seem extreme now, in 5 years, you’ll be glad you didn’t let valuation issues cease you from betting on its glorious fintech progress story.
You might generate a 50% return by promoting the decision earlier than expiration if the share value appreciates by $2.15 or 7.9%.
For a number of causes, TriplePoint Enterprise Development BDC (TPVG)could be the contrarian play of the 9 corporations on this article.
For starters, BDCs (enterprise growth corporations) have turn into entangled with the personal credit score worries swirling across the nation heading into 2026. In October, JPMorgan (JPM)CEO Jamie Dimon urged analysts ought to look extra carefully on the personal credit score dangers carried by these middle-market direct lenders.
Secondly, TPVG gives debt and fairness financing to venture- and growth-stage corporations in expertise and different high-growth industries, backed by main enterprise capital companies. The enterprise capital enterprise is inherently dangerous. Ought to buyers lose confidence in personal credit score, BDCs may have far more problem securing capital to lend.
Because of these two dangers, TPVG inventory is down practically 15% in 2025. With six months till expiration, you’ve bought loads of time to see in case your small $15 contrarian wager pays off.
On Dec. 16, the day earlier than Micron Expertise (MU)reported Q1 2026 earnings, I mentioned the maker of high-performance DRAM (Dynamic Random Entry Reminiscence) and different reminiscence and storage merchandise’ uncommon value quantity from the day gone by.
“I might not be in a rush to purchase MU inventory. Watch for tomorrow’s earnings to determine the place it’s headed within the near-term,” I wrote. The value-volume suggests MU may very well be decrease. Nonetheless, in hindsight, $233 shall be a great entry level for a long-term maintain.”
Positive sufficient, after the markets closed on Dec. 17, Micron reported glorious first-quarter outcomes. Its inventory’s been on a tear ever since. Additional, its Q2 2026 income steerage of $18.7 billion on the midpoint was 30% increased than Wall Road’s expectations. That can result in a lot increased earnings.
Whereas I ought to have inspired aggressive buyers to purchase calls earlier than earnings, no less than I mentioned $233 would seem like a great long-term purchase. Buying and selling within the $270s as of Dec. 22, it positive does.
Apart from Amazon (AMZN), Apple (AAPL)is the worst-performing Magazine 7 inventory over the previous 12 months, up 6% as of Dec. 22, which is lower than half the S&P 500’s return.
On Dec. 17, Morgan Stanley raised its value goal on AAPL by $10 to $315 whereas sustaining an Obese ranking. The agency’s analysts imagine Apple’s fiscal 2027 earnings shall be increased at $9.83 per share because of increased costs, elevated iPhone shipments and a payoff on its AI investments.
As well as, 2026 might see CEO Tim Cook dinner transition out of the function, offering buyers with succession certainty, which has been a priority this yr.
I’ve included two calls due to the large hole between the 2 ask costs. The $370 name’s $0.45 ask value is simply 0.2% of its Dec. 19 closing share value. It wants solely to extend by $16.13 (5.9%) to double your cash by promoting earlier than subsequent Could. It’s unlikely to get anyplace close to $370, whereas the $290 name may be very reachable over the 18-month DTE.
Lastly, we’ve got the Starbucks (SBUX) Jan. 15/2027 $90 name, which doesn’t expire for an additional yr and a month. Quite a bit might occur to the world’s largest espresso chain in that point. The anticipated transfer is $19.16, up or down, considerably increased than the $13.92 transfer wanted to hit the $102.25 breakeven.
Analysts are lukewarm about Apple inventory. Of the 34 that charge it, solely 17 give it a Purchase ranking (3.71 out of 5), with a $92.48 goal value that’s lower than 5% above its present value.
CEO Brian Niccol continues to work on the corporate’s turnaround. There are indicators it’s gaining traction, together with increased visitors and stronger September outcomes, which have led some analysts to view it extra favorably.
Whereas the $12.25 ask value is a excessive 13.9% of Starbucks’ Dec. 19 closing value, the 391-day DTE gives sufficient time for a profitable turnaround to play out totally. As a long-time buyer, I imagine it’s going to, however earlier than the inventory can actually take flight, the Seattle agency should restore its strained relationship with frontline workers.
On the date of publication, Will Ashworth didn’t have (both immediately or not directly) positions in any of the securities talked about on this article. All data and information on this article is solely for informational functions. This text was initially printed on Barchart.com
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