Mintos: The best stocks to buy in 2026 and how to find them

The search for the best stocks is a constant companion for many investors. While financial portals and analysts publish new lists of supposedly promising titles weekly, the question of their actual suitability for the individual investor often remains unanswered. What constitutes a lucrative investment for one investor may be unsuitable for another. Mintos, known as a P2P lending marketplace, is expanding its offerings and now provides access to stock investments. This article examines the crucial criteria for stock selection and how investors can systematically find suitable investments.

Why there are no universally best stocks

The idea of having a fixed list of stocks that represents the best choice for every investor is a fallacy. Financial markets are dynamic, and the needs of each investor are unique. A young investor with a long investment horizon and high risk tolerance will prefer different stocks than an investor nearing retirement who is focused on capital preservation. The „best“ stocks are therefore always relative and must be considered in the context of personal financial situation and goals. Even financially healthy companies can experience significant short-term price losses, which underscores the importance of a long-term perspective.

Five criteria for stock selection

To make an informed decision, investors should look beyond mere price developments and focus on the fundamental aspects of a company. Mintos suggests five key criteria that form a solid basis for stock analysis:

1. Financial Health

Revenue growth alone is no guarantee of profitability. It is crucial to check whether a company can convert its increasing revenues into profits. Important indicators here are:

• Revenue development: Does the company show consistent growth or are there strong fluctuations?
• Profitability: How much of the revenue remains as profit after deducting all costs?
• Operating cash flow: Does the core business generate enough liquid funds to finance ongoing operations and make investments?
• Debt: To what extent does the company use debt capital and how well is it able to service its debts?

2. Valuation

The valuation of a stock relates the purchase price to the company’s financial metrics. A common measure is the price-to-earnings ratio (P/E ratio). A high P/E ratio can indicate high expectations for future growth, while a low P/E ratio can suggest slower growth, higher risks, or potential undervaluation. It is important to consider the P/E ratio in industry comparison and historical context.

3. Competitive Position

A company’s ability to defend and expand its market position is crucial for long-term profitability. This can be achieved through patents, strong brands, network effects, or cost advantages. Investors should examine how sustainable these competitive advantages are and what risks they face, for example, from new technologies, regulatory changes, or emerging competitors.

4. Dividends and Capital Returns

Companies can distribute profits to their shareholders (dividends) or reinvest them for further growth. The dividend yield (annual dividend in relation to the stock price) is a key figure that often interests investors. However, a high dividend yield is not always positive; it can also be the result of a fallen stock price, which could indicate problems within the company. The sustainability of dividend payments should always be questioned.

5. Risk Tolerance and Volatility

Stocks differ significantly in their susceptibility to economic fluctuations, competitive pressure, or market sentiment. Volatility measures how much the stock price fluctuates. Cyclical companies are often more dependent on the economy than defensive stocks from sectors such as utilities or basic consumer goods. Broad diversification across different industries and companies is essential to minimize concentration risk.

Types of Stocks and Their Characteristics

To further narrow down the selection, investors can distinguish stocks by various categories:

You can find more background on the platform in our Mintos experiences.

• Growth Stocks: Companies expected to grow faster than the overall market. They often invest heavily in research and development.
• Dividend Stocks: Companies that regularly distribute a portion of their profits as dividends.
• Value Stocks: Stocks considered undervalued compared to their fundamental metrics.
• Defensive Stocks: Companies from industries whose demand remains relatively stable even in economically uncertain times.
• Blue Chips: Large, established companies with a long history and solid financial standing.
• Small Caps: Companies with a smaller market capitalization, often carrying higher growth potential but also higher risks.

The path to your own stock selection: A workflow

A systematic approach is the key to success. Mintos suggests the following workflow:

1. Goal definition: What do I want to achieve with my investment? (e.g., wealth accumulation, regular income)
2. Investment horizon: How long can I leave the money invested?
3. Risk tolerance: How much fluctuation can I tolerate?
4. Portfolio analysis: What investments do I already own? How diversified is my portfolio?
5. Position size: What percentage of my portfolio should a single stock account for?

Once these questions are answered, the actual research begins. Company financial reports are the primary source of reliable information. Key figures such as earnings per share (EPS), P/E ratio, debt-to-equity ratio, and dividend yield provide insights into financial health and valuation. Fundamental analysts focus on these company values, while technical analysts tend to examine price patterns and trading volumes.

Mintos as a platform for stock investments

In addition to its core business of P2P loans, Mintos has expanded its offerings to include stocks. This allows investors to further diversify their portfolios and potentially benefit from opportunities in the stock market. Mintos particularly highlights the low costs: there are no order fees for buying, holding, or selling stocks. Furthermore, US stocks can be traded in euros, saving currency conversion fees. Investments are possible from as little as 1 euro, which makes entry easier even for small investors. The platform is licensed and regulated by Latvijas Banka.

Our own experiences with Mintos show a broad setup and continuous development of the platform. Withdrawals were often very fast in tests, and the variety of offered asset classes, including ETFs and crypto products, is positively evaluated. Nevertheless, it is important to always check the current conditions and product details directly with Mintos. Long-term experiences suggest that the risk-return ratio may not always be convincing, and investors should regularly review their strategies. For example, one user reported experiencing cash drag due to a restrictive auto-invest strategy with high return requirements.

Risks and Alternatives

Investments in individual stocks carry specific risks. Concentration risk arises when a portfolio is too heavily dependent on a few companies or industries. Unexpected news, regulatory changes, or competitive pressure can lead to significant losses. In the worst case, a company can go bankrupt, and shareholders lose their entire investment. Emotional trading decisions driven by short-term market movements can also be detrimental. Continuous monitoring of company developments and market changes also requires time and commitment.

For investors who desire broader diversification, ETFs (Exchange Traded Funds) are an option. These invest in a basket of hundreds or thousands of stocks and automatically spread the risk. Many investors use ETFs as the core of their portfolio and supplement this with a few selected individual stocks. Other asset classes such as bonds or P2P loans can also contribute to diversification.

The decision of when to buy stocks should depend less on calendars than on one’s own preparation and clear financial goals. The selection of the right stocks is based on a careful examination of financial health, valuation, competitive position, dividend policy, and one’s own risk tolerance. By using financial reports and key figures, a repeatable process for stock selection can be established.