Schaeffer's Research February 2026 Stock Recommendations: 25 Picks with Fortinet as Top Selection

Schaeffer’s Investment Research, a Cincinnati-based financial research firm established in 1981 by Bernie Schaeffer and specializing in options trading analysis, released its February 2026 stock recommendations through the “25 Stocks to Buy for a Profitable February” article published on February 3, 2026 [1][2]. This publication originated as Chart of the Week commentary distributed to subscribers on February 1, 2026, before broader public release. The timing positioned these recommendations following January’s market volatility, potentially capitalizing on early February rebound dynamics as investors reassess positioning after the month’s initial trading periods.

The market environment accompanying this publication presented notable sector divergence that contextualizes the recommendations. On February 3, 2026, major indices displayed mixed performance patterns: the S&P 500 stood at 6,945.74 (-0.57% daily, +0.98% month-to-date), the NASDAQ Composite at 23,363.12 (-1.29% daily, -0.50% month-to-date), the Dow Jones Industrial Average at 49,480.90 (+0.25% daily, +2.86% month-to-date), and the Russell 2000 at 2,654.95 (+0.26% daily, +6.55% month-to-date) [0]. The Russell 2000’s robust +6.55% month-to-date performance suggests continued small-cap momentum, while the NASDAQ’s negative monthly return indicates technology sector headwinds that may influence individual stock dynamics within Schaeffer’s recommendations.

Sector performance data revealed pronounced rotation patterns on the publication date. Consumer Defensive (+1.65%), Healthcare (+1.47%), and Basic Materials (+1.03%) sectors led gains, while Utilities (-2.08%), Technology (-1.69%), and Consumer Cyclical (-1.22%) experienced significant weakness [0]. This defensive rotation environment creates particular relevance for analyzing Schaeffer’s options-centric methodology, as implied volatility expectations and put/call ratios often shift during periods of sector rotation and uncertainty.

Fortinet emerged as Schaeffer’s featured stock selection for February 2026, representing a cybersecurity sector play amid broader technology weakness. Current market data positions FTNT at $79.14, reflecting a 2.64% daily decline (-$2.15) that aligned with the technology sector’s broader pullback on the publication date [0][3]. The stock trades within its 52-week range of $70.12 to $114.82, with a market capitalization of $60.65 billion and a P/E ratio of 32.57 based on trailing twelve-month earnings per share of $2.43 [0].

Analyst sentiment toward Fortinet has shown constructive positioning ahead of the company’s Q4 earnings report. Rosenblatt Securities upgraded FTNT from Neutral to Buy while raising its price target to $100 from $85, citing anticipated Q4 performance drivers including tax incentives and sales execution improvements [3]. Scotiabank maintained its coverage with a price target despite a neutral-to-underweight repositioning, indicating differentiated analyst opinions that investors should evaluate critically. The upgrade from Rosenblatt represents meaningful positive catalysts that may influence options activity and implied volatility expectations around the earnings announcement.

Financial health indicators present a mixed profile for Fortinet. The company demonstrates positive free cash flow of $1.88 billion for 2024, providing operational flexibility and supporting potential dividend or buyback initiatives [0]. The financial attitude assessment indicates neutral positioning with balanced accounting practices, while debt risk remains at moderate levels—a characterization consistent with growth-oriented technology companies maintaining strategic investment programs. Insider activity warrants monitoring, as Form 144 filings indicate proposed securities sales by company insiders, though such filings represent routine corporate governance procedures rather than necessarily indicating negative sentiment [3].

Beyond Fortinet, analysis of article navigation tags and sector correlations identified several additional stocks potentially included in Schaeffer’s complete 25-stock list [1]. Steel Dynamics, Inc. (STLD) demonstrated strong performance at $192.63 (+3.26%), benefiting from Basic Materials sector momentum that aligned with the sector’s +1.03% daily gain [0]. The company’s $28.13 billion market cap and construction-focused end markets position it as a potential beneficiary of infrastructure spending themes that may influence February trading dynamics.

The Trade Desk, Inc. (TTD) appeared at $28.24 with concerning -5.08% daily decline, trading near the low end of its 52-week range [0][1]. This significant weakness raises questions about the stock’s inclusion rationale within Schaeffer’s framework, as options activity and implied volatility measures for TTD may indicate elevated risk premiums. Axon Enterprise, Inc. (AXON) at $447.44 (-2.73%) represents growth-oriented positioning within the law enforcement and public safety technology sector, maintaining a substantial $35.31 billion market capitalization despite broader growth stock pressure [0].

The divergence among these identified stocks—STLD’s strength versus TTD’s weakness—illustrates the diversity of factors Schaeffer’s Expectational Analysis methodology potentially incorporates. Options sentiment indicators, put/call ratios, and implied volatility skew may identify opportunities across sectors despite underlying price momentum differences.

Schaeffer’s Investment Research employs a proprietary “Expectational Analysis” approach representing a three-tiered framework integrating technical analysis, fundamental analysis, and options sentiment indicators [2][8]. This methodology distinguishes Schaeffer’s recommendations from traditional equity research by emphasizing options market positioning as a predictive tool. The options-focused approach examines institutional and retail positioning through options contracts, identifying when market expectations may be misaligned with underlying fundamentals.

The timing of the February recommendations following the January 2026 volatility period provides particular analytical context. Options markets typically experience elevated implied volatility during and immediately following high-volatility periods, with term structures that may present opportunities for volatility arbitrage strategies. Schaeffer’s Chart of the Week service, which originated these recommendations, targets holding periods ranging from one day to four months depending on the specific opportunity identified [2][8].

The simultaneous observation of FTNT’s 2.64% decline alongside analyst upgrades (Rosenblatt’s price target increase to $100) presents a disconnect between traditional analyst expectations and actual price movement on the publication date [0][3]. This pattern may reflect the value of Schaeffer’s options-centric methodology, which identifies opportunities where equity price movements diverge from options market sentiment indicators. The question of whether FTNT’s decline represents a buying opportunity based on fundamental value or indicates legitimate concerns not yet reflected in analyst targets requires ongoing monitoring through options activity metrics.

The pronounced sector rotation observed on February 3, 2026—with Consumer Defensive and Healthcare outperforming while Technology and Utilities lagged significantly—creates a complex environment for stock-specific recommendations [0]. Schaeffer’s methodology may identify stocks within lagging sectors that possess idiosyncratic catalysts potentially driving independent performance. FTNT’s cybersecurity positioning provides recurring revenue characteristics and enterprise spending demand that may buffer against broader technology sector weakness, though the publication date’s price action suggests immediate market concerns dominated.

Multiple analysts have published February 2026 stock recommendations, creating an environment of competing narratives that investors must navigate. MarketBeat highlighted AMD, AMPX, CRDO, BE, and APLD as February picks [4], TipRanks featured J.P. Morgan recommendations with Buy-rated stocks and $319 price targets [5], Zacks emphasized Expedia (EXPE) as a Strong Buy momentum selection [6], and Forbes identified TransDigm, Newmont (NEM), Exxon Mobil (XOM), and Chevron (CVX) for February positioning [7]. Schaeffer’s options-focused methodology differentiates from these recommendations through its emphasis on options sentiment and implied volatility analysis rather than purely fundamental or technical approaches.

The incomplete disclosure of Schaeffer’s full 25-stock list within publicly accessible content presents evaluation limitations. The original Chart of the Week subscriber distribution on February 1 preceded public availability, suggesting tiered information access that may advantage paid subscribers [1]. Investors evaluating these recommendations should consider access timing alongside historical performance tracking to assess whether the recommendations provide informational edge or primarily reflect established analytical frameworks applied to publicly available data.

The publication date’s technology sector weakness (-1.69%) coincided with Schaeffer’s top recommendation experiencing a 2.64% decline, indicating potential short-term headwinds for the featured selection [0]. This alignment suggests broader sector pressures may overwhelm stock-specific catalysts in the immediate term, though such conditions may also create entry opportunities for longer-term investors.

The Trade Desk’s significant weakness (-5.08%) and proximity to 52-week lows, if confirmed as a Schaeffer recommendation, raises questions about the identification criteria for inclusion [0][1]. Options-based strategies require careful position sizing given the potential for rapid value changes in individual equity positions.

Insider selling activity through Form 144 filings for FTNT represents a monitoring factor, though such transactions frequently reflect routine diversification, tax planning, or estate planning activities rather than negative fundamental assessments [3]. Investors should distinguish between concerning patterns of insider selling and normal corporate governance procedures.

Q4 earnings anticipation for Fortinet represents a near-term catalyst with defined expectations around tax incentives and sales execution [3]. Options strategies positioned around earnings announcements may benefit from implied volatility movements, aligning with Schaeffer’s methodology expertise.

The Russell 2000’s robust +6.55% month-to-date performance suggests continued small-cap momentum that may benefit value-oriented selections within Schaeffer’s list [0]. If the complete 25-stock list includes small-capitalization companies benefiting from economic acceleration themes, these positions may outperform as sector rotation continues.

Options market dislocations during periods of elevated implied volatility—when investor expectations become detached from historical norms—create the specific opportunities Schaeffer’s methodology targets [2][8]. The post-January volatility period may present favorable conditions for options-focused selection.

This analysis synthesizes Schaeffer’s Investment Research February 2026 stock recommendations based on the “25 Stocks to Buy for a Profitable February” publication released February 3, 2026 [1]. Fortinet (FTNT) received top billing as the featured selection, with the recommendation employing Schaeffer’s proprietary Expectational Analysis methodology combining technical, fundamental, and options sentiment analysis [2][8].

Market conditions accompanying the publication featured sector rotation favoring Consumer Defensive and Healthcare while Technology experienced notable weakness (-1.69%) [0]. FTNT’s 2.64% decline on the publication date aligned with sector dynamics despite positive analyst developments including Rosenblatt’s upgrade to Buy with a $100 price target [3]. The stock trades at $79.14 within its 52-week range, with a P/E ratio of 32.57 and market capitalization of $60.65 billion [0].

Additional stocks potentially included in the 25-stock list include Steel Dynamics (STLD), The Trade Desk (TTD), and Axon Enterprise (AXON), representing diversity across Basic Materials, Technology/Advertising, and Public Safety Technology sectors [0][1]. Comparative analysis reveals multiple February 2026 recommendation sets from MarketBeat, TipRanks, Zacks, and Forbes, positioning Schaeffer’s list within a broader landscape of investment guidance [4][5][6][7].

The analysis provides information gathering and market context for decision-making purposes. It is NOT investment advice, trading recommendations, or financial guidance. Users should conduct independent due diligence, evaluate personal risk tolerance, and consult licensed financial advisors before making investment decisions.