The Best Stocks to Invest $1,000 in to Start the New Year Off Right
- - The Best Stocks to Invest $1,000 in to Start the New Year Off Right
Keith Speights, The Motley FoolJanuary 1, 2026 at 8:05 AM
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Key Points -
Alphabet should continue to benefit from a strong AI tailwind in 2026.
Vertex Pharmaceuticals has several growth drivers in the new year.
Enbridge offers stability in the event the economy declines over the next 12 months.
10 stocks we like better than Enbridge ›
Some kiss a loved one at midnight on New Year's Eve to usher in a new year on a positive note. In the South, many eat black-eyed peas and greens to hopefully ensure prosperity during the year.
However, I think the best way to begin the new year is to invest. The sooner, the better. But where should you put your money to work for you? Here are my picks for the best stocks to invest $1,000 in to start the new year off right.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
2026 with arrows pointing straight up.
Image source: Getty Images.
1. Alphabet
Companies well-positioned to meet the continued surge in demand for artificial intelligence (AI) products and services should generate tremendous profits in 2026. And I can't think of a more likely AI winner than Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
Google Cloud is growing faster than its two bigger rivals, Amazon's (NASDAQ: AMZN) AWS and Microsoft's (NASDAQ: MSFT) Azure. Its launch of the widely acclaimed Google Gemini 3.0 large language model (LLM) could attract even more customers.
Gemini 3.0 is also improving the generative AI capabilities of Google Search. Rather than being the "Google killer" that some predicted, genAI is instead boosting search traffic for Google. That translates to increased advertising revenue.
I expect that agentic AI will be a key growth driver for Google Cloud in 2026. The integration of AI agents into Google Workspace should also further increase the popularity of the cloud-based productivity suite.
Will 2026 be the year that Waymo becomes a significant revenue contributor to Alphabet? Probably not. However, I think Waymo's autonomous ride-hailing services will continue to gain momentum over the next 12 months. Forward-thinking investors could increasingly recognize the gold mine Alphabet owns with this business.
2. Vertex Pharmaceuticals
One important development to watch with Vertex Pharmaceuticals (NASDAQ: VRTX) in 2026 is the accelerating momentum for its newest cystic fibrosis (CF) therapy, Alyftrek. To be sure, much of Alyftrek's sales will cannibalize sales of Vertex's other CF products. However, because the royalties for Alyftrek are lower, successful commercialization of the drug should boost Vertex's profits.
I expect that Journavx will also really hit its stride this year. More than 170 million people already have access to the non-opioid pain drug. Vertex believes that access to Journavx will continue to expand in 2026. The greater the access, the greater the sales.
Povetacicept could be another big story for Vertex in the new year. The company has already begun a rolling regulatory submission to the U.S. Food and Drug Administration for accelerated approval of the drug as a treatment for IgA nephropathy. This chronic kidney disease affects nearly three times as many patients in the U.S. and Europe as CF. Vertex anticipates completing this filing in the first half of the year.
A second potential regulatory filing appears to be off the table for 2026. Vertex previously predicted that it would file for approval of zimislecel in treating severe Type 2 diabetes in the second half of the year. However, dosing in the Phase 3 study of the experimental drug had to be stopped while an internal manufacturing analysis was conducted. Vertex hopes to resume dosing in 2026.
3. Enbridge
Unlike Alphabet and Vertex Pharmaceuticals, Enbridge (NYSE: ENB) isn't a high-powered growth stock. However, I think it's a great pick for 2026 for three key reasons.
First, Enbridge doesn't have to deliver sizzling growth to still deliver strong total returns. The energy company's high forward dividend yield of 5.8% gives it a big head start. What's more, Enbridge has increased its dividend for 30 consecutive years.
Second, the company has exceptional long-term growth prospects. Enbridge estimates roughly $50 billion in growth opportunities through the end of the decade, with nearly half of that total related to its gas transmission business.
Third, this stock provides stability to investors' portfolios in the event the economy takes a turn for the worse in the new year. Enbridge ranks as the largest natural gas utility in North America and one of the biggest pipeline operators. Its business generates steady cash flow in all business cycles.
Over the last 20 years, Enbridge has delivered risk-adjusted total shareholder returns that beat the S&P 500 (SNPINDEX: ^GSPC) and the utilities sector. That's the kind of stock you'll want to own if the economy struggles in 2026.
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Keith Speights has positions in Alphabet, Amazon, Enbridge, Microsoft, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Alphabet, Amazon, Enbridge, Microsoft, and Vertex Pharmaceuticals. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Source: “AOL Money”
