Dec. 25 at 7:04 PM
Heading into 2026, Wall Street sees five themes that could outperform the S&P 500, supported by lower interest rates, macro normalization, and long-term growth trends.
Restaurants: Stronger consumer demand, Fed rate cuts, and easier comparisons may lift margins. Domino’s stands out for market-share gains, global expansion, and delivery partnerships.
Housing: Falling mortgage rates and improving household formation support homebuilders and related stocks. La-Z-Boy is favored for brand strength, valuation, and dividend growth.
Consumer staples: After lagging in 2025, selective rebounds are possible, led by Philip Morris, Monster Beverage, and BellRing Brands.
Artificial intelligence: AI spending continues to grow, and diversified exposure can capture upside even if leadership rotates.
Cannabis: Regulatory shifts, including potential U.S. federal rescheduling, could boost legalization, capital access, and valuations.
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