My 15 Top-Ranked Stocks to Buy Right Now in May (2026)
By Parkev Tatevosian, CFA
Summary
Topics Covered
- Hyperscalers' $750B AI Spend Powers Semiconductor Growth
- Tesla Marketing Created a Ridiculous Uber Opportunity
- Market Overreaction to AI Threats Creates Value Opportunities
- McDonald's Tech Transformation Creates Rare Bargain
Full Transcript
After a volatile start to the year, stock markets soared on the back of the pause the ceasefire in Iran at the end of March. My portfolio of top stocks
of March. My portfolio of top stocks recovered and improved significantly.
I'm going to reveal my top 15 stocks to buy right now in May and I'm going to share with you the performance of my portfolio of top stocks to buy so far in 2026.
I want to thank the Mly Fool for sponsoring this video. Visit
fool.com/parkev
for the 10 best stocks to buy. Now,
the first on the list of 15 top stocks to buy is Amazon. What you're looking at is my proprietary discounted cash flow valuation calculation where I valued
Amazon stock at above $300 per share.
Even after the recent recovery, the price at $268 is well below my intrinsic value per share calculation. Amazon reported
share calculation. Amazon reported fantastic quarterly financial results last week where they reported an acceleration in the most lucrative
segment in AWS. The company is investing hundreds of billions of dollars in artificial intelligence and it's good to see they're already reaping the benefits of those investments. The next one on my
list of top stocks to buy is Meta Platforms. I calculated a fair value for this business at $763 compared with the current market price of $609.
Meta Platforms also reported earnings last week which I thought were fantastic. They reported revenue growth
fantastic. They reported revenue growth of 33% which was an acceleration from the previous quarter's revenue growth rate. But the stock price fell because
rate. But the stock price fell because investors were unhappy with the company's increase in capital expenditures and the surprised decline in monthly active users due to the war
in Iran and the loss of users from that country. Still, I think that created an
country. Still, I think that created an even better buying opportunity for Meta and I kept it ranked in my list of top 15 stocks to buy. The next on my list of
top stocks to buy is Micron, which is uh interesting, right? Because one of the
interesting, right? Because one of the reasons why Meta Platforms and other companies share prices fell is because they had to pay higher prices for
memory. Guess who's selling that memory?
memory. Guess who's selling that memory?
Micron, which has experienced a surge in revenue and profitability as a result of soaring demand for memory that's going into the data centers. Now, the market
price has soared to over $542 per share, and that's above my intrinsic value per share calculation of $483.
But this is a timing issue. When Micron
Next reports quarterly financial results, and I incorporate the new data with the higher memory prices, it's likely to create an increase in my intrinsic value per share calculation.
Furthermore, if you look at Micron on a forward price to earnings basis, the stock still looks undervalued. The next
on my list of top stocks to buy is Netflix. I thought the management team
Netflix. I thought the management team handled the negotiations for Warner Brothers extremely prudently, and I like that they stepped away from that acquisition. They can focus on the core
acquisition. They can focus on the core of their business, which they are arguably at least one step uh even two steps ahead of the competition. I
calculated an intrinsic value per share of $121 and Netflix market price right now is $92. The next on my list of top stocks
$92. The next on my list of top stocks to buy is Nvidia. I calculated a fair value of $263.
The current market price is $198.
I mentioned the hyperscalers. The big
four reported quarterly financial results last week and the estimates for capital expenditures for 2026 actually
increased surprisingly not. Last year
was a similar story where we started off the year with a massive estimate of $400 billion in capital expenditures and the companies exceeded those expectations
again. This year we started with
again. This year we started with estimates of $73 billion and already less than halfway throughout the year those estimates have increased to $750
billion. Roughly 2/3 of the capital
billion. Roughly 2/3 of the capital expenditure that's being spent by those hyperscalers are going into the components that are going into the data
centers, the GPUs, the CPUs, and the memory. And Nvidia boasts the largest
memory. And Nvidia boasts the largest part of that data center spending. The
next on the list is Uber, the ride sharing and food delivery company, where I calculated an intrinsic value per share of $129,
and you can buy the stock today at a relatively cheap valuation of just $75.
Uber has added millions of new customers, cash flow is soaring, and profits are increasing. So, you might ask, why is Uber create why is Uber selling at a discount price despite its
excellent performance? Well, it's
excellent performance? Well, it's because Tesla has done an excellent job marketing its driverless car technology.
Tesla has made everyone in the stock market, or nearly everyone in the stock market, but not me, it's convinced everyone that its driverless car technology will take over the ride share
business and will capture nearly all of the market. And because Tesla has said
the market. And because Tesla has said it's not going to partner with ride share companies like Uber, investors have priced Uber stock as if it's going to go out of business in the next 3
years. That's what's creating a
years. That's what's creating a significant opportunity for long-term investors to purchase Uber stock at a ridiculously cheap price. Broadcom is
another one of my top 15 stock recommendations that have soared in recent weeks. The market price has
recent weeks. The market price has jumped all the way to $421 per share. It
was only $300 per share when I started recommending this stock. The current
intrinsic value I calculated is $384, but this is another one that's likely to capture a revision upwards in the next update. Remember I mentioned the
update. Remember I mentioned the hyperscalers are spending significant sums of money on Nvidia chips. Well,
they're not too happy about that and they want to create their own proprietary chips. Broadcom helps
proprietary chips. Broadcom helps companies like Alphabet create their own proprietary chips for their data centers, helping them diversify their
supply chain away from Nvidia to a little bit. And Broadcom has captured
little bit. And Broadcom has captured significant contracts and revenue growth and profit margins are soaring as a result. The next one on the list is
result. The next one on the list is Microsoft, which also reported quarterly financial results last week that beat expectations. But again, the share price
expectations. But again, the share price fell as a result of an increase in the capital expenditure forecast. And two
out of its uh several segments forecast to decline. Its PC segment and its
to decline. Its PC segment and its gaming segment are expected to decline in the upcoming quarter by at least double digits. Investors were not happy
double digits. Investors were not happy about that. And of course, investors
about that. And of course, investors have been unhappy with Microsoft because of its connection with Open AI and investors are skeptical about OpenAI because it's losing so much money on the
bottom line. I think that's created an
bottom line. I think that's created an opportunity for Microsoft right now. Its
market price at $414 I think is an attractive opportunity compared to the intrinsic value per share I calculated at $446. Pinterest is
another great value I see in the market today. Its current price of $20 is well
today. Its current price of $20 is well below the intrinsic value I calculated at 66. With two of the social media
at 66. With two of the social media companies reporting earnings already, including Meta Platforms and Reddit, both of them reported exceeding on the
topline revenue growth much better than expected. When Pinterest reports
expected. When Pinterest reports earnings, I'm more optimistic that there will be upside in the near term. Longer
term, I like the valuation. The social
media business model, the user generated business model is a lucrative business model at scale. And Pinterest is one of a few social media companies that are
adding users from the lucrative North American region. Qualcomm I added to my
American region. Qualcomm I added to my list of top stocks to buy just last month. And uh last week, Qualcomm
month. And uh last week, Qualcomm reported fantastic quarterly financial results with a huge update that it will be entering the data center market. And
that update sent Qualcomm's shares soaring by over 15%. But even after that increase, I think this is still a very attractive opportunity at a market price
of 177. I calculated an intrinsic value
of 177. I calculated an intrinsic value per share at 207. The trade desk stock has been hammered as a result of fears of competition from Amazon and those
fears are justified. Anytime Amazon
enters a category, investors are justified to be afraid. But I think the fears were overblown with the Tradeesk
stock, which has crashed by over 75% from its all-time highs. It's now
trading at just $24 per share, below half of my intrinsic value per share calculation of $51.
I do think there will be negative impacts to the trade desk's business as a result of Amazon entering its category, but I don't think those negative impacts will be as large as the
share price decline is imple is implicating. Visa is the next stock on
implicating. Visa is the next stock on my list at a current market price of $328.
I calculated an intrinsic value per share of $419.
Of course, the biggest threat to Visa stock in the near term is the European government trying to extricate itself from the Visa and Mastercard network and
create a network outside of these two companies grasps. Those risks are real,
companies grasps. Those risks are real, but I think those risks are overblown.
And I think that's an opportunity for Visa right now at $328.
It's one of the most profitable companies in the world. And there's I love the limited competition between itself and Mastercard and others in the industry. That's what creates such a
industry. That's what creates such a profitable industry is because of the lack of intense competition. Adobe is
another one of the top stocks on my list that's trading at a cheap valuation due to overblown risks. The risks for Adobe is that artificial intelligence and
companies incorporating AI will take market share away from Adobe. I haven't
seen any evidence of that just yet in Adobe's results. And the current market
Adobe's results. And the current market price at $251 is well below my intrinsic value calculation at $375. McDonald's is the next one on my list of top stocks to buy
and is the most interesting one to be sure. Investors are underestimating
sure. Investors are underestimating the way McDonald's will benefit from innovative technology. The expansion of
innovative technology. The expansion of food delivery networks and artificial intelligence will help McDonald's reach more customers at lower cost. And I
think that's putting McDonald's in a position to capitalize in a way that it hasn't had in decades. I think investors are sleeping on McDonald's. And at a
current price of $287, I think it's a bargain. I calculated an intrinsic value at 403. Last but not least, Lululemon, which is trading at
near its 52- week low of $133 per share.
This stock price has crashed as well.
The company experiencing major headwinds as a result of tariffs and the removal of the dimminimous exception where Lululemon was able to send products
worth less than $800 into the United States at zero cost. Now with tariffs and the removal of the dimminimous exception, Lululemon's gross profit
margins are declining dramatically. Its
revenue growth is also declining in the United States markets. Thankfully, its
international growth is robust and at the current market price of just 133, I think it's a bargain where I calculated the fair value at 183. Bonus, in
addition to talking about the 15 top stocks to buy, I wanted to share with you my portfolio performance of these top stocks, right? I covered these and I report on my performance every single
month. So, you can track my performance
month. So, you can track my performance of these top stock recommendations. Uh,
to start the year, it's been terrible, but it's improved dramatically in the recent month. In my April update, I
recent month. In my April update, I underperformed the market by 11.05%.
And thankfully, my performance improved.
As of April of 2026, my return was -14%.
As of this recording, my return is -2.3%.
So, I went from -14% to -2.37% in the previous month. A dramatic
improvement. I'm truly thankful. And the
S&P 500 also recovered. It was down by 3%. It's now up 5%. As I mentioned, the
3%. It's now up 5%. As I mentioned, the markets rallied after the ceasefire in Iran. So, now my underperformance is
Iran. So, now my underperformance is 7.42%.
an improvement from 11.05% but still negative and disappointing to be sure. I expect by the end of the year
be sure. I expect by the end of the year I will beat the S&P 500 index with these selection of stocks. But of course, I recommend everyone do your own due
diligence before making any selections of investments to add to your portfolio.
Loading video analysis...