3 Stocks for Your Wish List

• (0:30) - Is The Current Pullback A Good Investment Opportunity
• (5:15) - Tracey's Top Picks For Your Watchlist
• (16:30) - Episode Roundup: CAT, FIX, LLY
• Podcast@zacks.com

Welcome to Episode #477 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

Stock market volatility has risen again on the uncertainty of the conflict in the Middle East. But investors should use this to their advantage.

Surely there have been stocks that investors have thought had galloped away from them in the last year. These stocks were hitting new all-time highs. Unfortunately, they had missed out.

A Wish List for Second Chances

That’s why every investor should have a “wish list.” These are stocks that you hope you can buy if there is ever a major sell-off.

What’s a major sell-off? A 10% or more pullback.

There are plenty of hot stocks to choose from in 2026, but these are three that should be on anyone’s wish list.

3 Stocks for Your Wish List

1. Caterpillar Inc. (CAT)

Caterpillar makes construction and mining equipment. Shares recently hit new 5-year highs, up 220% over that period.

But in the last week, Caterpillar shares have pulled back 5.7% off those highs. It’s not cheap, with a forward price-to-earnings (P/E) ratio of 32. A P/E under 15 usually indicates a value. A P/E over 30 is considered expensive.

Earnings are expected to jump 18.9% this year and another 21.6% next year.

Should a manufacturer like Caterpillar be on your wish list?

2. Eli Lilly and Co. (LLY)

Eli Lilly keeps making Tracey’s short lists. She owns it in Zacks’ Insider Trader portfolio. Shares have soared to new all-time highs on the strength of its GLP-1 drug portfolio. Eli Lilly is up 375% over the last 5 years.

But shares are down 4.1% over the prior 5 days and are also down 9% year-to-date.

Earnings of Eli Lilly are expected to rise 41.1% in 2026 and another 22.8% in 2027. It trades with a forward P/E of 29.4.

Is this a buying opportunity in Eli Lilly?

3. Comfort Systems USA, Inc. (FIX)

Comfort Systems is a building and service provider for mechanical, electrical, modular, and plumbing building systems. It has a market cap of $50 billion.

Comfort Systems has been a tremendous performer over the last 5 years. Shares are up 1,829%. But in the last 5 days, FIX has fallen 5.8%.

Earnings are expected to jump 26.1% in 2026 and another 16.2% in 2027. It’s not cheap anymore. Comfort Systems trades at a forward P/E of 38.7.

Is Comfort Systems a buy if it falls more than 10%?

What Else Should You Know About a Wish List?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns LLY in the Zacks Insider Portfolio.]

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Caterpillar Inc. (CAT): Free Stock Analysis Report

Eli Lilly and Company (LLY): Free Stock Analysis Report

Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research