Quick overview
The bank expects a “polarized” market in 2026 and favors stocks with structural growth, strong balance sheets, and the ability to sustain margins amid rising uncertainty.
A JPMorgan Chase & Co. building in New York, US, on Friday, July 7, 2023. Photographer: Michael Nagle/Bloomberg
J.P. Morgan Chase & Co. is approaching year-end with optimism, but with a clear warning for investors: 2026 will not be a market for indiscriminate strategies. According to the bank, the coming year will be marked by increasing polarization between winners and losers, widening performance gaps across companies and making stock selection more critical than ever.
In this environment, J.P. Morgan recommends focusing on equities with solid fundamentals, exposure to long-term growth drivers, and the resilience to navigate a backdrop still shaped by macroeconomic uncertainty, regulatory shifts, and cyclical pressures. Artificial intelligence, data centers, infrastructure, electrification, and operational efficiency stand out as the core themes guiding its 2026 strategy.
Sector-by-Sector Opportunities
Industrials
Within the industrial sector, the bank sees opportunities tied to infrastructure investment, logistics, and the energy transition. Its preferred names include:
Boeing
Canadian Pacific Kansas City
Caterpillar
CRH
Valmont
Vertiv
Consumer Discretionary
In consumer discretionary, the approach is more selective. J.P. Morgan prioritizes companies with strong brands, pricing power, and business models capable of protecting margins even in slower demand environments:
AutoZone
Carvana
Celsius Holdings
Dana
DraftKings
McCormick
Mohawk Industries
Ralph Lauren
Starbucks
United Airlines
Viking Holdings
Energy
Energy also plays a meaningful role in the recommended portfolio. J.P. Morgan maintains a constructive view on the sector, particularly for companies well positioned for the energy transition and infrastructure-driven demand:
Devon Energy
Entergy Corp
ExxonMobil
GE Vernova
Schlumberger
Williams
Financials
In financials, the bank favors banks, insurers, and financial services firms with diversified revenue streams and exposure to potential deregulation in the United States:
Allstate
CBRE Group
Charles Schwab
Citi
Globe Life
TPG RE Finance Trust
Valley National Bancorp
Looking ahead, J.P. Morgan expects leadership in equity markets to be more evenly distributed than in 2025 and anticipates a more demanding environment in which quality once again outweighs quantity. Against a backdrop shaped by U.S. economic policy, potential regulatory changes, and a global race for artificial intelligence leadership, the message is clear: fewer broad bets and greater conviction in companies built for long-term performance.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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