Finding Top Strong Buy Stocks for 2026: A Momentum-Driven Approach

As we move deeper into 2026, investors face a critical decision: which stocks deserve a place in their portfolios? The momentum continues to build for strong buy stocks that combine upward earnings revisions with proven price momentum, offering compelling opportunities for those willing to look beyond near-term market noise. With Fed rate cuts potentially creating favorable conditions and robust earnings growth expected across major indices, identifying strong buy stocks has become more strategic than ever.

The recent market recovery has reminded investors of a fundamental truth—the best time to build positions isn’t always during panic selling. Instead, astute investors focus on securities that have already demonstrated their strength throughout the year, carrying that momentum into the next. This article explores how to identify these standout strong buy stocks using quantitative methods, then examines one compelling example that fits the profile perfectly.

The Case for Momentum-Based Strong Buy Stock Selection

What separates true strong buy stocks from the broader market? The answer lies in combining multiple factors: upward earnings momentum, favorable valuation metrics, and price strength relative to historical trading ranges.

The screening methodology we’ll examine identifies strong buy stocks through a disciplined process. It begins by filtering the universe of stocks rated #1 by Zacks Investment Research—a designation applied to fewer than 200 companies at any given time. These are the elite candidates showing the strongest fundamental catalysts and analyst consensus.

From this elite list, the screen narrows further, targeting stocks trading within 20% of their 52-week highs, indicating sustained price momentum. This isn’t chasing momentum blindly; it’s identifying securities where buyers have consistently outbid sellers, suggesting institutional confidence.

How Smart Investors Filter for Strong Buy Opportunities

Beyond momentum, valuation becomes paramount. The screening process incorporates two critical metrics that separate true bargains from overextended rallies:

The PEG ratio—price-to-earnings relative to growth—ensures that earnings growth justifies the valuation premium. A ratio below 1.0 indicates the market isn’t pricing in the full growth story. The Price-to-Sales ratio provides a second layer of protection, keeping valuations grounded at or below 3X sales.

When combined, these filters typically produce a focused list of approximately seven strong buy stocks each period—securities that have conquered both the momentum test and the value test. This rigorous dual screening removes emotional decision-making from the equation.

Commercial Metals: A Standout Strong Buy Stock for 2026

Among the strong buy stocks emerging from such disciplined screening sits Commercial Metals (CMC), a steel industry powerhouse that deserves closer examination.

CMC’s credentials are impressive on the surface: the stock surged approximately 40% over the course of 2025, reaching all-time highs. But the real story extends far deeper. Over the past three decades, CMC has delivered approximately 2,000% total returns—substantially outpacing the S&P 500’s 1,300% and the broader steel sector’s 141%. This isn’t accidental outperformance; it reflects a business model built for structural growth.

The Business Model: Why CMC Qualifies as a Strong Buy

At its core, CMC operates a recycling-to-production ecosystem. The company collects scrap metal and converts it into new steel products—primarily rebar for reinforced concrete used in infrastructure projects worldwide. Beyond rebar, CMC produces merchant bar stock, fence posts, and wire rod, diversifying its product portfolio across industrial applications.

This business model positions CMC at the intersection of multiple mega-trends:

Infrastructure Investment Wave: The U.S. has embarked on the largest infrastructure modernization cycle in decades. Ports, bridges, roads, and tunnels all require rebar and structural steel.

Energy Industry Expansion: The transition to renewable energy infrastructure—wind farms, transmission lines, electrical systems—demands massive quantities of steel products.

Artificial Intelligence Data Centers: Every major tech company is racing to build AI computing infrastructure. Data centers require substantial structural steel for the physical backbone supporting server farms.

Industrial Reshoring: Companies are increasingly localizing supply chains, creating new demand for domestic steel production. CMC benefits directly from this reshoring trend.

Strategic Moves Strengthen the Strong Buy Case

CMC management strengthened its competitive position recently by completing the acquisition of Foley Products in Q4 2025. Foley specializes in precast concrete and pipe products, primarily serving the Southeast region. This vertical integration move allows CMC to capture additional value in the infrastructure supply chain, controlling both the upstream materials and downstream precast applications.

This acquisition signals management’s confidence in the multi-year infrastructure tailwinds and positions the company to capture a larger share of infrastructure spending across North America and Europe, where CMC already operates meaningfully.

Earnings Revisions Paint a Bullish Picture

Perhaps most tellingly for strong buy stocks, analyst earnings estimates for CMC have surged dramatically. The company’s fiscal year 2026 earnings per share (EPS) estimates have jumped 21% in recent months, while 2027 projections are now 31% higher—reflecting a sustained pattern of upward revisions throughout the past year.

CMC itself delivered a beat on Q4 fiscal 2025 earnings, exceeding analyst expectations. This track record of beating estimates, combined with growing forward guidance, earned the company a Zacks Rank #1 rating—the same elite designation separating strong buy stocks from the broader universe.

Valuation: The Compelling Part of the Strong Buy Story

In growth investing, valuation is destiny. Yet here lies perhaps the most compelling aspect of CMC’s case as a strong buy stock: despite its impressive momentum and growth prospects, the market hasn’t assigned it a premium valuation.

CMC trades at 10.3X forward 12-month earnings—precisely at its 30-year median valuation. This represents a 34% discount relative to its steel sector peers and a 20% discount to historical peaks. In other words, investors gain exposure to accelerating earnings growth at a moderate valuation multiple.

This valuation disconnects represents classic strong buy stock territory: robust growth prospects priced at historical averages rather than future growth premiums.

Building a 2026 Portfolio Around Strong Buy Stocks

As 2026 unfolds, investors should resist the temptation to chase beaten-down bargains. Instead, conviction should flow toward strong buy stocks that have already proven themselves—companies like CMC that combine momentum, growth, fair valuation, and strategic positioning.

The screening methodology outlined above identifies approximately seven strong buy stocks each period meeting these stringent criteria. Rather than investing haphazardly, disciplined investors can use quantitative filters to identify strong buy stocks worthy of portfolio space, removing emotion and maintaining rigor.

CMC serves as just one example of how thorough analysis identifies strong buy stocks positioned to outperform throughout 2026 and beyond. As earnings growth accelerates and capital flows toward quality, these momentum-driven, high-conviction ideas should merit serious portfolio consideration.