Gold, gigabytes and good shoes feature in our 2026 stock picks

There are those in our team who believe that the strategy must be to go deep and long on gold and copper in 2026. Any exposure to the two key commodities will already be tech stock picks by association, because the artificial intelligence (AI) and electrification booms rely on these precious metals at a component level.

Harmony Gold, Anglogold Ashanti

The gold price rocketed in 2025 to previously unheard-of highs, with $4,000 an ounce reached in October. There will be dips and “corrections”, but gold’s immediate future looks so bright that it needs to wear shades.

Political and economic uncertainty in the age of US President Donald Trump (which boosts the precious metal’s “safe haven” status), robust central bank demand (especially among emerging markets seeking to diversify from the dollar), and growing industrial uses (including for AI) are among the key factors that will underpin gold’s price even at elevated levels.

JSE-listed producers of the precious metal such as Harmony Gold, Gold Fields, Sibanye-Stillwater and AngloGold Ashanti all stand to gain from this state of affairs, and their share prices to date have arguably not reflected gold’s astonishing rise.

This brings us to the platinum group metals (PGM) producers. PGM prices have also rebounded from depressed levels and there will be ups and downs along the way. But years of underinvestment in South Africa – home to about 70% of known global reserves – point to a dwindling supply in coming years that will not meet expected demand.

This will be widespread given the astonishing range of applications for PGMs (including for the low-carbon “hydrogen economy”) that goes beyond emissions-capping catalysts for the internal combustion engine, whose obituaries are proving to be somewhat premature.

Sibanye straddles both gold and PGMs and South Africa’s other major producers – Valterra Platinum, Northam Platinum and Impala Platinum – look set to ride the crest of rising prices with different strategies.

Valterra Platinum

Anchor Capital’s investment team hailed Valterra as a clear sector outlier, pointing out that its fully integrated model spanning mining, processing, refining and global marketing delivers industry-leading cost control and margin resilience.

“Mogalakwena ... provides significant structural cost advantages, while technologies such as the Jameson cleaner circuit enhance all-in sustaining cost efficiency. Even after operational interruptions, including 1Q25 flooding at Amandelbult, management restored output ahead of schedule, demonstrating strong agility and discipline,” Anchor Capital said.

It pointed out that Valterra’s low net debt, ample liquidity and consistent dividend policy provide both stability and optionality. And because efficiency, mechanisation and disciplined capital allocation increasingly define sector leadership, Valterra is well positioned to convert a stabilising PGM backdrop into sustained margin uplift and stronger free cash flow generation.

“As the PGM sector enters this transition phase, Valterra stands out for its ability to deliver consistent returns through the cycle. Its integrated model, cost leadership, and disciplined growth strategy create a robust platform for compounding free cash flow, while its strong balance sheet and shareholder-­focused capital policy enhance upside capture.

“In our view, Valterra’s quality-over-leverage approach and strategic positioning make it the standout choice for investors seeking exposure to the next chapter of the PGM story,” Anchor Capital said in a closing note.

Cell C

At a recent tech conference, we were caught by surprise when a respected member of the South African tech fraternity said: “Don’t bet against the Levy brothers.”

And you know what, the Blue Label Telecoms brothers actually getting Cell C into listing shape was something we did bet against, so we will gladly give them the benefit of the doubt in Cell C’s stock performance.

Mike Gresty, fund manager at Anchor Capital, says he is cautious about Cell C management’s assertion that its model will prove to be superior to that of mobile operators with their own networks. Investors should be clear-eyed about how future contract renegotiations with Vodacom and MTN, on which it is dependent, might change the economics, he believes.

“That said, the Cell C that now exists as a listed entity has a clean capital structure thanks to a significant conversion of debt to equity before listing, should generate healthy free cash flow, will benefit from a sizeable, assessed tax loss for years to come, has valuable spectrum and has assembled a high-calibre management team that is keen to prove the sceptics wrong,” he said.

Gresty says the opening price of the initial public offering equates to a forward price-earnings multiple of about 4.5.

“Assuming that Cell C delivers on its promises, there is scope for it to rerate upwards.”

Afrimat

It would also be foolish to sleep on Afrimat in 2026. Yes, it has been talking a lot of smack about the Competition Commission and the general deal vetting process in South Africa, but it was also just granted the rights to mine the iron and manganese at the Farm Doornfontein 446.

Steel and batteries are the meat and potatoes of the Fourth Industrial Revolution – whichever way the revolutionary road decides to wind.

Capitec

I realise this must be very boring, but yes, I am picking Capitec for the third year in a row. Partly because I really think this star still has a way to go, and I can’t wait to see what happens next. But, mostly, it’s because I’ve written ad nauseam about sticking with a stock pick for the long haul, so I’m practising what I preach.

We all know the success story that saw Capitec burst onto the banking scene in 2001 to become the biggest bank in South Africa today by customer numbers (more than 25 million clients), so I won’t bore you with that history.

In its latest move, the bank forked out R400-million (R300-million in cash now, plus up to R100-million extra over three years if Walletdoc hits certain targets) to buy 100% of Walletdoc, a South African fintech company that lets businesses take online, app, EFT and wallet payments quickly and easily.

Capitec says the deal helps it to cut payment costs, boost digital access and increase financial inclusion. In plain English: make paying and getting paid easier and cheaper for more South Africans.

Optasia

Quite frankly, as we move towards broader digitisation, I really think this is where the moola lies.

And that's why I'm choosing Optasia as my other stock pick. Earlier this year, I had a chat with Optasia chief executive Salvador Anglada ahead of the company’s listing.

Although Optasia does not have an immediate plan to scale merchant and device financing in South African townships, Anglada said it would consider launching merchant loans in South Africa after evaluating the success of its services during a testing period of six to nine months. The roll-out of such products, if deemed successful, could take place by the end of 2026 or early 2027.

Not only is this listing good news for the JSE, but Anglada said Optasia would be looking to fill a number of roles in the year ahead, including technical roles such as software developers, data scientists and data architects, as well as commercial and operational roles such as market development, presales, sales, marketing and project delivery personnel.

Moving forward, he said, South Africa would continue to be one of the important places for the company.

Keagan Higgins, investment analyst at Anchor Capital, is also bullish on this stock. He points out that Optasia estimates a potential reach of about 860 million underserved mobile network members through its telecom rails and data network partners.

Only about 120 million are active users at the moment, and Higgins says this difference signals a significant potential for growth as Optasia deepens penetration within its existing footprint.

“In these segments, traditional banks often struggle to price and distribute small-ticket credit efficiently. Optasia fills this gap by using telecom data and real-time decisioning inside daily mobile channels.

“Years of high-volume operations have also built a deep consumer dataset that continuously enhances its credit models – a competitive moat that is difficult for new entrants to replicate,” Higgins says.

In typical Gen Z fashion, Kara le Roux decided to shake things up and brought two international stocks into the mix this year.

Netflix

Netflix has been out of reach for the typical small-stakes or retail investor for years. But it has finally broken down the barrier to entry, while positioning itself for a content coup d’état, which is why this stock is one of my 2026 picks.

The move that matters is the company’s recent 10-for-1 stock split, effective 17 November 2025. By taking a four-figure share and slicing it down to about $110, Netflix extended an invitation to the Robin Hood and fractional-share crowd.

This affordability is a mechanism to boost its liquidity and broaden ownership among the digital natives who are already its core consumers.

The company is also hunting big game. Reports of its interest in acquiring Warner Bros Discovery’s content – HBO’s prestige library and the DC and Harry Potter universes – add a long-term catalyst for a sustainable upside.

Netflix has a $462-billion market cap and minimal regulatory baggage compared with rivals like Comcast. If the Warner Bros deal goes through, it will boost the company’s competitive advantage, making it a content powerhouse capable of dominating the fractured streaming landscape.

Birkenstock

When you think of high-growth stock, your mind probably doesn’t jump to a two-century-old German sandal maker. But Birkenstock is not your average consumer stock.

Its 2026 investment case has a simple premise: timeless quality and style are structural winners.

The company’s revenue growth is historically strong, and an 18% annual lift is expected over the next four years. Margins should climb as sales jump faster than costs. Plus, paying down the big debt from its 2023 listing will give earnings an extra kick.

With its iconic Fussbett (footbed) and vertical German manufacturing, Birkenstock is proving its durability as both a footwear item and a sound stock investment. DM

This story first appeared in our weekly DM168 newspaper, available countrywide for R35.