Best Stock Options For Beginners this January 2026

Netflix (NFLX) is transitioning to a model that prioritizes consistent cash flow, making it an attractive option for value investors, particularly in January 2026. Despite a high P/E ratio of 38, which raises some valuation concerns, the stock has delivered impressive returns—6.40% over the past year and 80.88% over the last five years. Analysts maintain a median 12-month price target of $134.50, with recommendations ranging from Hold to Buy, suggesting a mixed but generally favorable outlook for potential buyers.

Despite a high P/E ratio of 38, Netflix is considered a buy due to its strong growth prospects and potential for successful integration of Warner Bros.

NFLX has an implied volatility of 46.5, which is in the 92nd percentile, indicating that it is currently more volatile than 92% of the time over the past year.

Meta Platforms (META) stands out as an undervalued leader in the advertising space, generating substantial free cash flow. With a solid 1-year return of 5.53% and an impressive 5-year return of 155.67%, it's a compelling choice for new U.S. investors seeking growth. Analysts are optimistic, setting a median price target of $825.00, reflecting confidence in its continued success driven by enhanced engagement and monetization strategies through AI.

META's stock is thriving due to strong performance in its ad business, driven by improved engagement and monetization from AI advancements and growth in ad inventory across platforms like Threads and WhatsApp.

META shares have risen by $7.00, or 1.08%, closing at $653.06.

While Meta Platforms has long-term growth potential, it carries significant short- to mid-term risks due to high valuations and concerns about an AI bubble.

Seagate Technologies (STX) presents an interesting opportunity for beginner investors, particularly those exploring options strategies such as cash-secured puts and covered calls. With a solid 1-year return of 261.50% and a 5-year return of 444.60%, the stock has caught analysts' attention, earning a median 12-month price target of $275.00, although some valuation metrics suggest it may be overvalued.

Seagate Technology Holdings PLC appears overvalued, with a Value Score of F, indicating it may not be a good choice for value investors. However, it has a Growth Score of B, suggesting potential for growth.

STX is expected to perform in line with market averages over the next 12 months.

After significant revenue declines in fiscal 2023 and 2024, Seagate rebounded in fiscal 2025 with a 39% revenue increase to $9.09 billion, along with strong margin performance.

Delta Air Lines (DAL) is positioned as a top earnings watch on January 13, offering potential for profitable options trades. With a dividend yield of 1.12% and a solid 1-year return of 9.11%, it reflects financial strength amid a projected rebound in earnings per share for FY26. Analysts maintain a positive outlook, setting a median 12-month price target of $80.00, supported by strong ratings from firms like Barclays and TD Cowen.

Delta's revenue for the first nine months of 2025 reached $47.4 billion, a nearly 3% increase, with net income at $3.79 billion and earnings per share at $5.80, showing significant improvement over last year.

Although Delta's earnings per share (EPS) for fiscal 2025 dipped to $5.82 from $6.16 in 2024, projections for FY26 indicate a rebound to a record $7.17, reflecting strong long-term potential.

Delta Air Lines has a dividend yield of 1.04%, meaning investors earn $1.04 annually for every $100 invested, with a payout ratio of 8.94% of earnings allocated to dividends.