BTIG’s Top Stock Picks For 2026

As financial markets begin 2026, BTIG Research has shared its Top Stock Picks for the first half of the year. The firm believes the market is moving away from risky bets made in 2025 and toward strong, stable companies with real growth.

BTIG selected 21 large companies from seven major sectors. All of these companies are worth more than $10 billion and show strong performance, solid business fundamentals, and clear future growth plans.

A Shift in Market Thinking for 2026

In 2025, markets were driven by excitement around AI infrastructure and chip companies. In 2026, BTIG says the focus is changing. Investors are now looking at companies that can actually make money using AI, not just build it.

BTIG experts say money is moving:

• Away from overvalued semiconductor stocks

• Toward software companies, healthcare, and defensive growth sectors

This change makes the market more selective, meaning stock choice matters more than ever.

What Makes 2026 Different?

BTIG describes the current market as balanced, not overheated. Unlike previous years, prices are not extremely high, which reduces the risk of a big crash.

Because of this:

• Careful stock selection is key

• Companies that survived high interest rates are now stronger

• Long-term, profitable growth is more important than hype

Top Sectors to Watch in 2026

 Software Leads the Way

BTIG expects software companies to perform well as businesses spend more on AI-powered tools instead of hardware.

Top picks include:

• Zscaler – Cybersecurity powered by AI

• Atlassian and Monday.com – Workplace productivity tools

These companies help businesses work smarter and safer.

 Healthcare and Medical Technology

Healthcare is another strong area, especially diagnostics and medical devices.

Key picks:

• Guardant Health – Cancer testing using blood samples

• Edwards Lifesciences – Medical devices for heart care

An aging global population supports long-term growth in this sector.

 Consumer Brands with Strong Loyalty

BTIG favors brands that people trust and buy regularly.

Notable picks:

• Domino’s Pizza – Affordable prices and strong demand

• Nike and On Holding – Health and lifestyle-focused brands

These companies can raise prices without losing customers.

AI Is Entering the “Money-Making Phase”

BTIG says AI is no longer just a buzzword. Companies must now prove AI can boost profits.

Instead of chipmakers, BTIG prefers:

• Twilio

• Unity Software

These companies use AI to improve products and increase revenue.

Financials, Real Estate, and Other Opportunities

BTIG also sees value in:

• Capital One and Block – Signs that the credit market is stabilizing

• D.R. Horton and Prologis – Real estate firms adjusting to interest rates

• AeroVironment – A defense and drone technology company

These picks suggest the economy may be heading toward a soft landing.

What Investors Should Know Going Forward

BTIG warns that expectations are high. Companies must deliver strong earnings, or their stocks could swing sharply.

Key things to watch in 2026:

• Company earnings reports

• AI-driven revenue growth

• Interest rate stability

The first big test will be Q1 earnings in April 2026.

Final Takeaway

BTIG’s 2026 outlook shows a move toward fundamentals over hype. This is becoming a stock-picker’s market, where choosing the right companies matters more than following trends.

AI, healthcare, and strong consumer brands are expected to lead, while weaker and overvalued companies may fall behind.