Freedom offers 12 investment ideas for 4Q26, overhauling previous list

Micron, Nike, and Alibaba headline Freedom’s list of investment ideas for the fourth quarter of 2026. In a report seen by Oninvest, the analysts almost completely overhauled their list for the previous quarter. Here are the stocks that Freedom named as its top fourth-quarter picks by sector. Note that the Freedom target price has 12-month horizon, and the current price is that at the close on Wednesday, September 30.

Target price: $1,600/Current price: $1,065

Micron is Freedom’s top pick in the IT sector. As a supplier of HBM, high-capacity DRAM, and data center SSDs, the company remains a key beneficiary of the AI boom amid a memory shortage. Historically, Micron has been a highly cyclical business. However, its transition to multiyear take-or-pay agreements that lock in volumes and minimum margins above the peaks of previous cycles is making its revenue more predictable, Freedom notes.

Target price: $270/Current price: $163

The telecom operator’s strengths include consistently high business quality, growing free cash flow, and a modest undervaluation. The recent dip in the stock followed a warning from the management about a near-term increase in churn and a slowdown in postpaid account net additions as customers migrate to more expensive plans. At the same time, the company’s key financial metrics like service revenue, adjusted EBITDA, and free cash flow remain resilient, Freedom notes.

Target price: $54/Current price: $35.40

Nike is now trading at its lowest levels since 2013. The sportswear giant’s main problem is a double-digit decline in sales in China. Sales also remain under pressure in Europe, the Middle East, and Africa, partly because of the conflict in the Middle East. The trend in Nike’s home market remains positive, however: footwear sales rose 5% in the latest fiscal year. Nike is working to turn around its business in China and modernize its retail network. It is also preparing to introduce more than 10 new footwear models, with a focus on innovation and the premium segment.

Target price: $140/Current price: $107.50 

Alibaba’s cloud and AI businesses remain undervalued amid rapid revenue growth and an expected improvement in margins over the coming quarters, Freedom notes. Another potential catalyst for the stock is the growing popularity of Chinese AI solutions abroad: they are cheaper and are closing the quality gap with U.S. peers. The stock could also be supported by potential measures to stimulate domestic demand in China, including incentives for purchases of household appliances, as well as curbs on price competition in the food-delivery segment.

Target price: $142/Current price: $114

U.S. discount retailer Dollar Tree significantly exceeded forecasts in the previous quarter. Sales rose on increases in both the average ticket and store traffic. Freedom remains constructive on the stock over the long term, expecting sustained improvements in store productivity.

Target price: $14.50/Current price: $9.70 

Freedom’s top pick in the healthcare sector is a company with a market capitalization of $122 million. Legacy Education provides career education programs for healthcare professionals. The stock came under pressure after the company reported declines in new student starts for two consecutive quarters. Freedom attributes this to tighter admissions requirements and considers the impact temporary, expecting new student starts to recover as the company launches new programs.

Target price: $14/Current price: $8

Freedom has also selected a smaller company as its top pick in the financial sector. Abacus, which has a market capitalization of $775 million, specializes in investments and asset management in the life insurance segment. Freedom believes the market is underestimating its long-term potential, driven by low penetration in the life insurance market, growing institutional demand for alternative assets, and the scaling of recurring fee-based revenue, which could account for 70% of total revenue by 2030.

Target price: $31/Current price: $18.60 

The $334 million company is transforming from a niche avionics supplier into an integrated aerospace and defense player. The management expects to increase revenue from $84.3 million in fiscal 2025 to $250 million by fiscal 2029, with an adjusted EBITDA margin of 25-30%. The main growth drivers will be existing products for F-16 and KC-46 military aircraft, expansion through acquisitions, and a contract to develop the primary display and avionics architecture for a Japanese electric vertical take-off and landing aircraft manufacturer, with production scheduled to begin in 2027.

Target price: $40/Current price: $16.40

Digital brokerage Real, which has a market capitalization of $358 million, agreed this year to acquire franchisor RE/MAX, which provides real estate and mortgage brokerage services in the U.S., Canada, and internationally. The deal transforms Real into a globally scalable platform and creates new sources of growth. For that reason, the company is Freedom’s top pick in the real estate sector.

Target price: $122/Current price: $84

Ahead of the heating season, Freedom recommends taking a closer look at natural gas producers. Expand Energy is one of the largest natural gas producers in the U.S. In the first six months of the year, the company reduced its net debt by 31%. Further debt reduction could lower debt-servicing costs and create opportunities to increase shareholder payouts.

Target price: $13/Current price: $8.90 

Shares of the U.S. pesticide maker are trading far below their historical levels, but Freedom expects a turnaround. FMC is close to completing a program of noncore asset divestitures and other measures that could generate around $1 billion to reduce debt. Its $825 million share-buyback authorization offers additional potential, although the company is restricted from repurchasing shares through 2028. New products could also support growth as the industry recovers.

Target price: $57/Current price: $46.70

NWN distributes natural gas and provides water and wastewater services in the Pacific Northwest, Texas, and other regions. The company combines the stability of a regulated utility business with a dividend yield of around 4% and the potential for faster earnings growth through its expansion in Texas and investments in natural gas infrastructure, Freedom notes. It is the only company that Freedom retained on its list of investment ideas from the previous quarter.