Have $1,000? These 3 Stocks Could Be Bargain Buys for 2026 and Beyond

Key Points

• Adobe’s shares have plummeted by 38% over the past year due to concerns about competition from AI.

• ServiceNow expects continued growth this year, yet the stock is trading 50% off its highs.

• Netflix has captured less than half of its addressable market, but the stock is down 26% from its highs.

• 10 stocks we like better than Adobe ›

Businesses with a long history of consistent growth through subscription-based models never appear cheap. These businesses are highly valued by investors because customers pay recurring revenue to access their services throughout the year.

However, the market is offering investors the opportunity to buy top tech stocks at a discount right now. If you’re looking to invest $1,000 right now, here’s why you might consider scooping up shares of Adobe (NASDAQ: ADBE), ServiceNow (NYSE: NOW), and Netflix (NASDAQ: NFLX).

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1. Adobe

Adobe has been the dominant software provider for creative and advertising professionals for many years. But the stock has sold off on fears that artificial intelligence (AI) will make it easier to create software tools that replace its offering. Why spend money on a subscription for Adobe when users can create and edit images using Google’s Gemini? The stock is down 38% over the past year, and is currently trading at a forward price-to-earnings (P/E) ratio of 12.

Wall Street is pricing Adobe like it’s going out of business, but the company’s performance tells a different story. Adobe continued to report growing demand for its products last quarter. In fact, it is sitting on over $22 billion of remaining performance obligations (RPO), up 13% year over year. Management credited its growth last year to “strong global demand” for its AI solutions across enterprise and consumer.

Most importantly, RPO grew faster than revenue, which grew 10% year over year last quarter. This shows that Adobe is seeing bigger deals. It suggests that enterprise customers are responding positively to Adobe’s new AI capabilities in its products, like Acrobat AI Assistant and GenStudio.

Adobe’s subscription-based business generates steady revenue and robust cash flows. Still, investors should probably wait until after the company’s earnings report on March 12, just to make sure there are no negative surprises. If revenue and RPO growth remain on trend with previous quarters, it would suggest the stock is undervalued and worth starting a small position in.

2. ServiceNow

The rise of AI agents is also weighing on ServiceNow’s shares, the workflow automation leader. The stock is down 50% from its previous peak, yet management is still guiding for around 20% year-over-year revenue growth for the current fiscal year.

ServiceNow helps companies automate tasks such as IT help desk tickets and onboarding new employees. But where it adds value is acting as the control layer of AI. It creates a data trail to monitor and put guardrails around what the AI is doing. These capabilities add tremendous value to companies that are using AI in their workflows.

Demand is not weakening but remaining strong. ServiceNow’s revenue grew at a compound annual rate of 22% over the last three years, and it just posted 21% year-over-year growth in subscription revenue in the recent quarter. Renewal rates were 98% — consistent with historical trends.

Management’s guidance for subscription revenue growth of approximately 20% in 2026 suggests the stock’s sell-off might be overdone. Its current forward P/E of 30 is well below the 54 average over the past three years.

3. Netflix

Netflix has delivered excellent returns over the past decade. There is still significant growth runway, yet the stock is trading 26% off its recent highs, offering an attractive entry point for a starter position.

The stock rebounded recently on news that management was walking away from its Warner Bros acquisition offer. This shows a disciplined management team that won’t chase growth at any price. At the recent Morgan Stanley Technology, Media, and Telecommunications Conference, CFO Spence Neumann said, “This was an opportunity that was nice to have at the right price, not a must-have at any price.”

Netflix is walking away because it doesn’t need to acquire growth. While most streaming subscribers believe there are too many options, according to research from The Motley Fool, Netflix is one they are not giving up. The company’s revenue grew 17% year over year in the fourth quarter, and its trailing 12-month free cash flow climbed to $9.4 billion.

The opportunity is still significant. Netflix has captured less than 50% of the estimated 800 million connected households worldwide. The stock’s forward P/E of 31 may not look cheap, but it is a great value for a subscription-based business with 325 million customers. It’s expected to grow earnings at an annualized rate of 22% over the next several years, according to the Wall Street consensus.

Should you buy stock in Adobe right now?

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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Alphabet, Netflix, ServiceNow, and Warner Bros. Discovery. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.