Navigating the stock market can be a high-stakes game. Choose incorrectly, and your portfolio might suffer. But the right choices? They could be your ticket to financial triumph. With thousands of stocks to choose from, pinpointing those poised for success is no small feat. It’s a daunting task, requiring hours of market analysis and company research – time that many people simply don’t have.
That’s where we come in. Each week, we delve deep into the market’s vast array of options, sifting through countless possibilities to bring you a select few. These are not just any stocks; they are carefully chosen based on solid research, current market trends, and potential for noteworthy growth.
This week, we’ve honed in on three stocks that stand out from the crowd. Our picks go beyond the mainstream; they’re strategic selections, crafted for significant impact in both the immediate future and over the long haul.
Read on and discover the full watchlist and unveil these exceptional stock picks.
BigBear.ai (BBAI) – A Small-Cap AI Defense Stock with Big Potential
BigBear.ai has carved out a niche in the defense and intelligence sector with its advanced AI-driven decision support systems. While the stock has experienced volatility—down 22.23% recently—it remains one of the most compelling AI defense plays due to its growing contracts and strategic positioning.
The company’s acquisition of Pangiam in March 2024 significantly bolstered its capabilities in facial recognition, biometrics, and anomaly detection—technologies that are becoming increasingly crucial for national security and border protection. BigBear.ai’s ConductorOS platform is already being integrated into high-profile defense exercises, including Talisman Sabre 2025, a major multinational military operation.
Adding to its credibility, the company recently appointed Kevin McAleenan, former Acting Secretary of Homeland Security, as CEO. His deep expertise in security and government operations could help BigBear.ai secure additional high-value contracts.
With the U.S. military and its allies ramping up AI adoption for strategic defense initiatives, BigBear.ai is in a strong position to benefit from increased government spending in this space. While the stock remains speculative due to its small-cap status and sharp price swings, its technological leadership in AI-powered defense makes it an intriguing growth opportunity for risk-tolerant investors.
Ulta Beauty (ULTA)
Ulta’s unique position in the beauty retail space gives it remarkable insulation from tariff pressures. Despite pulling back more than 16% in 2025 so far, the company maintains significant advantages:
- Diverse supplier relationships across domestic and international markets
- Strong brand loyalty that supports price flexibility
- Experiential retail model that can’t be easily replicated by online competitors
The beauty industry continues to demonstrate remarkable resilience during economic uncertainties. Consumers may cut back on big-ticket purchases, but lipsticks, skincare, and personal care products remain relatively tariff-resistant.
While Ulta’s share price has retreated, this may represent an opportunity. Morgan Stanley analyst Simeon Gutman highlighted Ulta’s durability, noting: “ULTA remains a strong, durable business in a dynamic and attractive category. As the Beauty industry continues to grow, ULTA’s top-line should follow.”
Kraft Heinz (KHC): The Consumer Staple Ready to Break Out
Kraft Heinz has languished in the shadows for years following its failed 2019 turnaround. But while investors were looking elsewhere, CEO Miguel Patricio has quietly transformed the company’s balance sheet, reducing debt by over $8 billion since taking the helm.
The stock currently trades at just 11.8x forward earnings – a 48% discount to the S&P 500’s 22.7x multiple – despite growing organic sales for six consecutive quarters. More importantly, Kraft’s 50-day moving average recently crossed above its 200-day line, forming the bullish “golden cross” pattern that technical analysts love.
What makes this opportunity especially compelling is the 4.5% dividend yield – more than triple the S&P 500’s paltry 1.2% payout. With inflation still running above the Fed’s target, this income component provides meaningful protection while you wait for the valuation gap to close.
The company’s most recent earnings revealed something most investors missed: private label competition is actually decreasing for the first time since 2020, with Kraft brands gaining market share in 7 of its 10 largest categories.
