It’s that time of year again when the market noise dies down a bit, and some stocks quietly put together impressive runs without much fanfare. You know the ones I’m talking about—the steady performers that don’t dominate the headlines but still deliver solid gains for patient investors. This fourth quarter has been kind to a handful of names that have flown somewhat under the radar, and honestly, that’s part of what makes them interesting.
I’ve always found these quieter winners fascinating because they often reward those who stick around through the ups and downs. While the big tech stories grab all the attention, these companies have been grinding higher, posting gains ranging from solid to downright impressive. The real question now is whether they can carry that strength into the new year.
Under-the-Radar Stars of Late 2025
As we wrap up 2025, four stocks in particular have caught my eye with their fourth-quarter performances. They’re not the usual suspects, but they’ve delivered returns that would make any portfolio manager smile. What excites me most is thinking about what comes next—those key milestones that could either extend their runs or bring them back to earth.
Bristol Myers Squibb: Betting on Breakthrough Science
Let’s start with the pharmaceutical giant that’s been one of the quarter’s strongest performers. Shares have climbed nearly 21% since the end of September, which is no small feat in today’s environment. I’ve watched this name closely because its story really revolves around one innovative treatment that’s starting to change how we think about certain mental health conditions.
The core of the investment case here centers on a newer schizophrenia drug that works differently from traditional options. It gained approval last year, and despite hitting a bump with an add-on treatment trial earlier in 2025, the company bounced back strong with better-than-expected earnings in October. That report seemed to remind everyone why longer-term investors were hanging in there.
Looking ahead to 2026, the biggest catalysts will come from clinical trial results. Specifically, there’s ongoing work exploring whether this drug could help with psychosis associated with Alzheimer’s disease. One phase 3 update is expected before year-end, with two more major readouts scheduled for next year. These could be game-changers.
Success in expanding the drug’s applications could open entirely new markets and validate the company’s pipeline strategy.
In my view, that’s what makes pharmaceutical stocks both challenging and rewarding—you’re often waiting for those binary events that can swing sentiment dramatically. If the data comes in strong, it wouldn’t surprise me to see continued upside. The current valuation still leaves room for appreciation if execution remains solid.
- Strong Q4 performance built on recent earnings beat
- Key 2026 catalysts tied to Alzheimer’s psychosis trials
- Potential for label expansion into larger patient populations
- Patient investors rewarded after earlier setback
Of course, drug development is never guaranteed. But the risk/reward profile here feels compelling, especially after the stock has already proven it can rebound from disappointment.
Cisco Systems: Networking for the AI Era
Moving to technology, though not the flashy AI pure-plays, this networking leader has put up a respectable 14% gain this quarter. Sometimes the companies building the infrastructure get overlooked while everyone focuses on the applications, but infrastructure spending has to happen first.
What’s encouraging is hearing management talk about billions in AI-related orders from major cloud providers. They’re guiding for meaningful revenue from these deals in their upcoming fiscal year, which suggests the buildout phase is translating into actual business. I’ve found that when hyperscalers start placing big orders, it often signals a multi-year spending cycle.
Beyond AI infrastructure, there’s the broader enterprise networking refresh that many analysts expect to accelerate. Companies delayed upgrades during tougher economic times, but those needs don’t go away forever. When the cycle turns, it could provide a nice tailwind across their core business.
One area that bears watching is the security segment, which came in softer last quarter. Getting that piece firing on all cylinders again would go a long way toward building confidence in the overall story. Consistent beats and raised guidance will be crucial for maintaining momentum.
Perhaps the most interesting aspect is how this company sits at the intersection of traditional networking strength and emerging AI demands. It’s not going to grow like a startup, but steady execution in both areas could drive attractive returns from here.
Dover Corporation: Industrial Diversification Paying Off
This industrial conglomerate might be the least heralded of the group, yet it’s delivered over 19% gains quarter-to-date. That’s the kind of performance that gets my attention from a company with such a broad footprint across multiple end markets.
They operate in everything from specialized printing to components used in vehicle service and refrigeration. Some segments have faced headwinds this year, dragging on overall growth, but recent commentary suggests those pressures are easing. When cyclical businesses start to inflect, the operating leverage can be powerful.
There’s also an underappreciated angle tied to data center buildouts. Certain products help with cooling solutions critical for high-performance computing. As AI infrastructure spending continues, this exposure could become more meaningful to the growth profile.
For 2026, the key will be seeing acceleration across the portfolio. If the lagging segments turn into contributors rather than drags, combined with any benefits from AI-related demand, the setup looks promising. Analysts are starting to note that some of these headwinds could become tailwinds next year.
- Monitor recovery in vehicle service and refrigeration businesses
- Track any uplift from data center cooling solutions
- Watch for margin expansion as volume improves
- Assess acquisition strategy in higher-growth areas
Industrial stocks often move in waves, and timing those turns right can make all the difference. This one feels like it’s positioning for better days ahead.
DuPont de Nemours: Transformation in Progress
Saving perhaps the most dramatic performer for last—this materials science company has rocketed about 27% higher this quarter. That’s the kind of move that makes you sit up and take notice, especially after a major corporate restructuring.
The recent spin-off of its electronics business has left behind a more focused entity centered on healthcare, water treatment, and diversified industrials. Sometimes breaking up really is better for shareholders, as the remaining businesses can trade at higher multiples without being weighed down by slower-growing units.
Corporate separations can unlock significant value when the parts are worth more than the whole.
– Common observation among restructuring investors
Management has also been aggressive with capital returns, announcing a substantial share repurchase program and executing a portion already. That kind of commitment tends to support the stock price while they work on operational improvements.
Looking forward, continued beats against expectations and upward guidance revisions will be important. There’s also potential for strategic acquisitions, particularly in healthcare or water technologies, which could add new growth drivers. The portfolio now looks cleaner and more growth-oriented than it has in years.
I’ve seen this pattern before—companies that successfully simplify their operations often surprise to the upside as investors reassess the earnings power of the remaining businesses. The momentum here feels real, but sustaining it will require execution.
Common Threads and What Matters Next
Stepping back, what strikes me about these four names is how different their stories are, yet they share some important characteristics. Each has specific catalysts on the horizon that could drive further gains, whether clinical data, order acceleration, cyclical recovery, or successful post-spin execution.
They’re also trading at valuations that don’t seem to fully reflect their potential upside scenarios. That combination—clear upcoming milestones plus reasonable starting points—is what gets longer-term investors interested.
| Company | Q4 Gain | Key 2026 Focus | Potential Catalyst |
| Healthcare Leader | ~21% | Trial Results | Alzheimer’s Psychosis Data |
| Networking Giant | ~14% | Order Growth | AI Infrastructure Revenue |
| Industrial Conglomerate | ~19% | Segment Recovery | Cyclical Tailwinds |
| Materials Science Firm | ~27% | Post-Spin Execution | Share Repurchases & M&A |
Naturally, nothing is guaranteed in markets. Economic conditions, competitive pressures, or execution missteps could derail any of these stories. But that’s always true—successful investing often comes down to identifying asymmetric opportunities where the potential rewards justify the risks.
As we head into 2026, I’ll be watching these names closely. The fourth quarter reminded us that strong performance doesn’t always come with constant headlines. Sometimes the best opportunities develop quietly, away from the crowd.
Whether you’re building a diversified portfolio or just looking for ideas beyond the usual suspects, keeping an eye on companies with improving fundamentals and upcoming catalysts makes sense. These four have earned their place on the watchlist heading into the new year.
In the end, markets reward those who do their homework and maintain discipline. The flashy names will always get attention, but consistent winners often come from unexpected places. Here’s to finding more of them in 2026.
