HALO Stocks are Essential Holdings for 2026

Episode #476: Exploring the New FANG and HALO Stocks

• 0:20 – Identifying the Next Generation of FANG Stocks
• 6:30 – Tracey’s Top Stock Recommendations for Your Watchlist
• 24:10 – Episode Recap: UNP, CHRW, NTR, LEA, XOM

Welcome to the 476th episode of the Zacks Market Edge Podcast.

Each week, Tracey Ryniec, a Zacks stock strategist, hosts discussions with guests on trending topics in stocks, bonds, and ETFs, exploring how these trends can affect your financial decisions.

HALO Investing: A New Trend on Wall Street

There’s a shift happening in the market, and technology is no longer at the forefront. The latest focus is on HALO investing, which stands for “Hard Assets, Low Obsolescence.” This approach targets companies with tangible assets that are unlikely to be replaced by artificial intelligence.

Examples of hard assets include land, railroads, gold mines, and oil rigs. The “low obsolescence” aspect refers to businesses where AI cannot easily substitute the core asset or service.

Take Union Pacific as an example. Founded in 1862, this railroad company has weathered economic downturns, wars, and pandemics. While AI can improve efficiency, it cannot replace the essential infrastructure of trains and tracks, making Union Pacific a prime example of a low obsolescence business.

Top 5 HALO Stocks to Watch for 2026

1. Union Pacific Corp. (UNP)

   Union Pacific, a historic American railroad company, was established during Abraham Lincoln’s presidency. While it’s no longer a high-growth stock, analysts anticipate earnings growth of 6.9% in 2026 and 7.5% in 2027. The stock has climbed 15% this year and is trading near five-year highs. With a forward P/E of 21.2 and a dividend yield of 2.1%, Union Pacific remains a solid choice for HALO investors.

2. CH Robinson Worldwide, Inc. (CHRW)

   CH Robinson is a leading logistics and trucking company. Despite recent challenges in the freight sector, the company’s earnings are projected to surge by 15.9% in both 2026 and 2027. The stock has soared 76.2% over the past year, reaching a five-year high. It offers a 1.4% dividend yield and trades at a forward P/E of 30. Notably, company insiders have been buying shares, raising the question of whether HALO investors should follow suit.

3. Nutrien Ltd. (NTR)

   Nutrien, based in Canada, is a major player in fertilizer production and agribusiness. Fertilizers represent a classic hard asset. Recent analyst upgrades predict 5.3% earnings growth in 2026. The stock has gained 39.4% over the past year, hitting a three-year high. With a forward P/E of 15 and a 3% dividend yield, Nutrien is considered a value stock. Although fertilizers are not currently in favor, Nutrien could be a strong HALO candidate.

4. Lear Corp. (LEA)

   Lear Corporation manufactures seating and electrical systems for the automotive industry. After two challenging years, earnings are forecasted to rebound by 11.2% in 2026 and 17.8% in 2027. The stock is up 13.1% this year and 38.2% over the past year. With a forward P/E of just 9.3 and a 2.3% dividend yield, Lear is considered a deep value stock. Investors may want to consider adding Lear to their HALO list for 2026.

5. Exxon Mobil Corp. (XOM)

   Exxon Mobil is one of America’s largest integrated oil companies. Despite a challenging earnings outlook, the stock has risen 21.7% year-to-date and is trading at all-time highs. Earnings are expected to decline by 3.6% in 2026 but could rebound by 21.8% in 2027. Exxon Mobil’s forward P/E is 22.4, and its PEG ratio is 15.6, indicating it’s not a bargain. However, the company is shareholder-friendly, offering a 2.7% dividend yield. Should HALO investors consider Exxon Mobil for their portfolios?

Additional Insights on HALO Investing

For more details, listen to this week’s podcast episode.

Disclosure: Tracey holds CHRW in the Zacks Insider Trader portfolio.

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Free Stock Analysis Reports

• Exxon Mobil Corporation (XOM): Free Stock Analysis Report
• Union Pacific Corporation (UNP): Free Stock Analysis Report
• C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
• Lear Corporation (LEA): Free Stock Analysis Report
• Nutrien Ltd. (NTR): Free Stock Analysis Report

This article was originally published by Zacks Investment Research.

Zacks Investment Research