Discovering Bargain Stocks for 2026 and Beyond
Finding a good bargain isn’t just limited to shopping at stores; it also extends to the world of investing. While stumbling upon a discounted item is straightforward, hunting for bargain stocks requires a mix of strategy and insight. Fortunately, several companies present valuable investment opportunities for the discerning investor. Here, I highlight three particularly compelling stocks: e.l.f. Beauty (NYSE: ELF), Rubrik (NYSE: RBRK), and GoDaddy (NYSE: GDDY).
1. e.l.f. Beauty: A Market Resilient Performer
e.l.f. Beauty is making waves in the cosmetics sector, selling a range of beauty products covering eyes, lips, and face. What sets e.l.f. apart is its ability to thrive in a recession-proof category, thanks to affordable pricing and a dynamic social media engagement strategy. The company’s solid management translates into effective cost control, featuring an impressive 11% operating margin.
Looking ahead, e.l.f. is forecasting a robust 22% year-over-year growth in net sales for fiscal 2026, despite some initial expectations for a profit dip due to tariff pressures. Thankfully, recent Supreme Court rulings could ease these concerns, suggesting that tariffs may not be a long-term obstacle for the company. The stock currently trades at around 3.5 times sales, an attractive entry point if e.l.f. continues its growth trajectory.
2. Rubrik: Cybersecurity on the Rise
In the ever-evolving landscape of cybersecurity, Rubrik has positioned itself as a vital player for businesses seeking to safeguard their data. As the complexity of cybersecurity threats increases, so does the demand for reliable solutions like Rubrik’s offerings. With a client base exceeding 2,600 customers each paying over $100,000 annually, Rubrik’s growth is undeniable — showcasing a staggering 48% revenue growth in the third quarter of fiscal 2026.
What makes Rubrik particularly appealing is that its rapid growth does not come at the cost of profitability. The company is projected to generate approximately $200 million in free cash flow this year, which is impressive for a business expanding at such a fast pace. Currently, Rubrik’s stock trades at a mere 8 times sales, making it an attractive option in a field where finding affordable cybersecurity stocks is challenging.
3. GoDaddy: The Hidden Gem
Although GoDaddy has been labeled the slowest grower among the three companies discussed, with a revenue growth of 10% in the third quarter of 2025, its price point is enticing. Trading at only 15 times earnings, many investors may consider it something of a hidden value. GoDaddy isn’t just resting on its laurels; the management team is actively repurchasing shares, which has resulted in a 12% reduction in share count over the past three years.
Moreover, GoDaddy is leveraging artificial intelligence to streamline its operating expenses and catalyze growth through innovative product offerings. Given its steady growth and low valuation, it stands out as a hidden-value stock that, while slower than its counterparts, has potential for significant appreciation in value.
Investment Insights and Considerations
For those contemplating diversifying their investment portfolios, allocating even $1,000 into one of these three bargain stocks could be a strategic move. However, before diving into an investment like e.l.f. Beauty, consider that not all analysts agree on its potential. For instance, the Motley Fool’s Stock Advisor recently listed ten other stocks they believe will outperform e.l.f. Beauty in the coming years.
Historical perspectives can add context here; for example, if one had invested in Netflix back in 2004, that initial $1,000 would be worth over $424,262 today. Similarly, investing in Nvidia around 2005 would have turned that same amount into $1,163,635, as both companies made Stock Advisor’s top stocks list.
The ongoing insights provided by platforms like Motley Fool can guide new and seasoned investors alike, ensuring they stay updated on emerging opportunities. However, as with any investment, thorough research and personal due diligence are critical before making any financial decisions.
In summary, e.l.f. Beauty, Rubrik, and GoDaddy present intriguing options for those looking to capitalize on potential future growth in 2026 and beyond. Each has its unique strengths, making them worthy of consideration in today’s investment environment.
