The astonishing rally of the artificial intelligence (AI) trade has been showing no signs of abatement even after more than three and a half years. In 2026, the AI trade maintained its northward journey albeit at a slow pace.Â
This year, several non-AI stocks are flourishing along with AI-powered stocks. We have selected two such stocks with a top Zacks Rank that are currently trading at a lucrative valuation. Investment in these stocks should be fruitful for the rest of 2026.Â
These stocks are: Centene Corp. CNC and Franklin Resources Inc. BEN. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our two picks year to date.
Image Source: Zacks Investment Research
Centene Corp.
Centene has established itself as a national leader in healthcare services. It is a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs, while serving under-insured and uninsured individuals through member-focused services.
CNC continues to benefit from disciplined pricing, portfolio optimization, favorable Medicaid rate actions, and strong Medicare Prescription Drug Plan momentum. Strategic acquisitions, partnerships, and ongoing enterprise optimization initiatives are strengthening care delivery, improving operational efficiency, and supporting long-term margin restoration.Â
CNC expects premium and service revenues in the range of $173-$177 billion in 2026, reflecting confidence in the business outlook. While dependence on government healthcare programs, elevated medical costs, and a high debt burden remain key risks, CNC’s improving profitability, better reimbursement and disciplined execution position it well for sustained earnings growth.
Attractive Valuations
The stock price has jumped 61.7% year to date. Despite this, Centene currently has a forward P/E of 13.45X for the current financial year, well below 18.50X of the industry. CNC currently has a forward P/S of 0.16X, below 0.29X of the industry. It currently has a forward P/B of 1.44X, compared with 2.40X of the industry.
Solid Estimate Revisions
Centene has an expected revenue and earnings growth rate of 0.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.8% over the last seven days.Â
CNC has an expected revenue and earnings growth rate of -1.6% and 8.8%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.1% over the last seven days.Â
Franklin Resources Inc.
Franklin Resources derives most of its operating revenues and net income by offering investment management and related services to retail mutual funds, institutional and high-net-worth investors in jurisdictions worldwide. The mutual funds and other products are sold to the public under different brands.
BEN’s fiscal third-quarter 2026 results were supported by higher revenues and record assets under management (AUM). BEN’s strong distribution platform and first-mover advantage will continue to support revenue growth. Its earnings surpassed estimates in each of the four trailing quarters.
Moreover, strategic initiatives, including the 250 Digital acquisition and MoonPay partnership, have strengthened BEN’s investment platform and support AUM growth. A decent liquidity profile also reduces debt repayment risk.
Attractive Valuations
The stock price has jumped 40.3% year to date. Despite this, Franklin Resources currently has a forward P/E of 11.80X for the current financial year, below 11.89X of the industry. BEN currently has a forward P/S of 1.84X, well below 3.20X of the industry. It currently has a forward P/B of 1.33X, compared with 1.61X of the industry.
Solid Estimate Revisions
Franklin Resources has an expected revenue and earnings growth rate of 5.7% and 28.8%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last seven days.Â
BEN has an expected revenue and earnings growth rate of 3.3% and 10.3%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.6% over the last seven days.Â
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Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.Â
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