HALO Stocks are the Must-Own Stocks of 2026

• (0:20) - Finding The New FANG stocks
• (6:30) - Tracey’s Top Stock Picks To Keep On Your Watchlist
• (24:10) - Episode Roundup: UNP, CHRW, NTR, LEA, XOM
•                 [email protected]

Welcome to Episode #476 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

There’s a new sheriff on Wall Street and it isn’t technology.

HALO investing has burst onto the scene. No, those letters are not company names. It means “Hard Assets, Low Obsolescence.”

H-A-L-O.

What is HALO Investing?

It’s an investment strategy used to avoid investing in companies that might see AI disruption. Investors want to buy companies that make or own hard assets and where AI cannot replace it.

The “hard assets” may be land, or a railroad. It may be a gold mine or an oil rig.

Low Obsolescence is a little more difficult to define. But if the AI can’t replace it, then it’s in the “low” category.

For example, Union Pacific was incorporated in 1862 and has survived depressions, recessions, world wars, and pandemics. AI may make a railroad more efficient and employees more productive, but it will never replace the train or the rails.

You could say UNP fits into the category of “low obsolescence.”

5 HALO Stocks for 2026

1. Union Pacific Corp. (UNP)

Union Pacific is an American railroad which was incorporated by Abraham Lincoln in 1862. It’s no longer a big growth stock but earnings are expected to rise 6.9% in 2026 and 7.5% in 2027.

Shares of Union Pacific are up 15% year-to-date and are near 5-year highs. Union Pacific has a forward price-to-earnings (P/E) ratio of 21.2. A P/E ratio under 15 is considered a value. It also pays a dividend, yielding 2.1%.

Should a railroad like Union Pacific be on your HALO short list?

2. CH Robinson Worldwide, Inc. (CHRW)

CH Robinson Worldwide is a logistics and trucking company. The freight industry has seen tough times in the last few years, but CH Robinson’s earnings are expected to jump 15.9% in both 2026 and 2027.

Shares of CH Robinson rose 76.2% over the last year to 5-year highs. It pays a dividend, currently yielding 1.4%. CH Robinson isn’t cheap. It has a forward P/E of 30.

Insiders are buying at CH Robinson. Should HALO investors buy too?

3. Nutrien Ltd. (NTR)

Nutrien is a fertilizer manufacturer and agribusiness company headquartered in Canada. Nothing says “hard assets” like a commodity like fertilizers.

Earnings estimates have been revised higher in the last week for 2026. Nutrien is expected to grow earnings by 5.3%. Shares of Nutrien have been on the move higher, however. Over the last year, Nutrien was up 39.4%, to a 3-year high.

Nutrien is a value stock, with a forward P/E of 15. It pays a dividend, currently yielding 3%.

Fertilizers aren’t yet back in favor. Should investors put a fertilizer company like Nutrien on their HALO short list anyway?

4. Lear Corp. (LEA)

Lear Corp. makes seating and electrical systems for the automotive industry. After two tough years, earnings are expected to rebound by 11.2% in 2026 and another 17.8% in 2027.

Shares of Lear are already on the move higher. Lear is up 13.1% year-to-date and has jumped 38.2% over the last year.

Lear is dirt cheap. It has a forward P/E of just 9.3. A P/E ratio under 10 usually indicates a company is a deep value. Lear also pays a dividend, currently yielding 2.3%.

Should auto industry companies like Lear be on your 2026 HALO list?

5. Exxon Mobil Corp. (XOM)

Exxon Mobil Corp. is one of the largest integrated oil companies in the United States. Shares of Exxon Mobil are up 21.7% year-to-date even though the earnings outlook is terrible.

Exxon Mobil’s earnings declined in 2023, 2024, and 2025 and are expected to decline again in 2026 by 3.6%. But analysts aren’t completely gloomy. In 2027, earnings are forecast to jump 21.8%.

Exxon Mobil is trading at new all-time highs even as earnings decline which means it’s not a cheap stock. It’s forward P/E is 22.4 with a PEG ratio of 15.6. A PEG measure P/E divided by growth. A low PEG ratio symbolizes a company may have growth but also be a value. A PEG above 10 is considered very high.

Exxon Mobil is shareholder friendly. It pays a dividend currently yielding 2.7%.

Should HALO investors put an oil company like Exxon Mobil on their 2026 short list?

What Else Should You Know About HALO Investing?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns CHRW in Zacks Insider Trader portfolio.]

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com