Priced for a Pullback or More Gains? These 3 Stocks Are Testing the Limits

Key Points

• September has lived up to its historically weak reputation in 2026, but several stocks are still pushing toward or setting new highs.
• Strong earnings, AI demand, and favorable industry conditions are keeping momentum alive even as valuations and technical indicators become more stretched.
• Dell Technologies, HP, and Phillips 66 each illustrate the same question from a different angle: how much upside is left after a powerful run?

September is a historically weak month for stocks, and 2026 is doing nothing to shake that reputation. But, as is always the case, there are several stocks that are positive for the month. In fact, some stocks have recently made all-time highs.

That raises a question all investors must consider. Are these stocks fully valued, fairly priced, or is there potential for higher gains? In 2026, several sectors have been outperforming the market, with catalysts suggesting they aren’t done yet.

Dell Technologies: The AI Server Story Keeps Widening

Dell Technologies Inc. NYSE: DELL has been one of the primary beneficiaries in hardware as the artificial intelligence (AI) infrastructure trade moves beyond the chip sector. Dell has become one of the leading names in AI servers.

In the company’s Q2 earnings report for fiscal year 2027 (FY2027), it reported record revenue and demand, including a $95 billion backlog that includes over 6,500 customers. That demand extended beyond the company’s AI offerings.

Like many hardware names, Dell acknowledged potential supply constraints in the current and future quarters. However, that didn’t prevent the company from raising its full-year guidance for both revenue and earnings per share (EPS).

DELL is up nearly 370% so far in 2026. Notably, the stock gained about 3.5% even as the Federal Reserve raised interest rates by 25 basis points.

That said, the DELL chart looks stretched, and it does trade approximately 5% above its consensus price target of $560.24. The stock also sits roughly 29% above its 50-day moving average of about $456, and the MACD has curled decisively higher after cooling through the summer.

That's not a warning sign yet—but it does mean the stock has little cushion if AI server demand shows any sign of digestion. But until that shows up in the numbers, the investment case is straightforward: Dell isn't priced for a slowdown; it's priced for further growth.

HP Inc.: A Rally That's Outrunning Its Own Analyst Coverage

HP Inc. NYSE: HPQ is another technology company that’s having new life breathed into it from AI. The specific catalyst is that AI is moving to the edge, and that means demand for the company’s AI personal computers (PCs) is growing.

The company’s Q3 2026 earnings report confirmed the demand story. The company posted record revenue of $15.7 billion, which was up 13% year over year. The bullish report was anchored by the company’s Personal Systems revenue of $11.8 billion, up 18%. Premium pricing is offsetting volume weakness.

HPQ recently closed at $34.66, leaving it just below its 52-week high of $36.22. HPQ is trading about 35% above its consensus price target of $25.77. The stock sits about 21% above its 50-day SMA of $28.73, while a recent drop of around 3.5%, paired with a flattening MACD histogram, suggests the market is pausing to ask whether the AI-PC refresh cycle is real revenue or real hope.

Phillips 66: Geopolitics Did the Heavy Lifting

Phillips 66 NYSE: PSX is a midstream energy company that’s focused on transporting, processing, storing, and, more importantly in 2026, refining crude oil. Investors in the energy sector have been hearing about the widening crack spread. That’s the profit margin refiners earn on every barrel.

Middle East supply disruptions pushed crack spreads to record levels, with the company's marketing VP, Brian Mandell, noting that global markets are short 7 million barrels per day of refined products from the Middle East and Asia, and another 1.4 million bpd from Russia, a setup he said supports stronger margins through year-end.

That was reflected in the company’s Q2 2026 earnings report, in which it posted $9.41 in adjusted earnings per share. That came in well above the consensus estimate of $7.50. But it was the topline number that got the most attention, with $52 billion in revenue, roughly 55% higher year over year.

On Sept. 16, PSX closed at $264.62, which was basically flat. Technically, PSX trades roughly 18% above its 50-day SMA at $226.40, with MACD still elevated, confirming trend strength.

The risk to PSX is that the crack spread will normalize once the conflict with Iran is resolved. But it’s anyone’s guess as to when that will be.  PSX is trading over 13% above its consensus price target of $237.35. But recent analyst forecasts are bullish. Raymond James raised its price target on PSX to $300 from $240 on Sept. 14. That matches UBS Group, which raised its target to $300 from $235 on Sept. 8. That’s not a sign that analysts are pricing in a peace deal.