New Edge Wealth's Jay Peters says 2026 will be the year of diversification

Core Viewpoint - The upcoming year is expected to focus on diversification in investment strategies, with three specific stock recommendations provided by a fund manager [1]. Group 1: Gilead Sciences - Gilead Sciences is highlighted as a strong investment opportunity, having increased by 30% over the year despite recent underperformance [2]. - The company is recognized for its innovative approach in the pharmaceutical sector, particularly in its HIV pipeline, with 50 drugs in development, including 11 in oncology [3]. - Gilead offers a stable growth profile with a 2.8% dividend yield and trades at 15 times earnings, supported by a 35% free cash flow margin [4]. Group 2: Mueller Industries - Mueller Industries, with a market capitalization of $13 billion, is a leader in manufacturing copper pipes and fittings, benefiting from its vertical integration [6]. - The company has a strong correlation with construction activity and housing starts, with recent growth driven by demand from data centers [7]. - The tight copper market and the ability to manage input costs allow Mueller to pass on price increases, benefiting from higher copper prices [8]. Group 3: NRG Energy - NRG Energy is one of the largest independent power producers in the U.S., with a generation capacity of 25 gigawatts, primarily from natural gas [12]. - The company has seen a stock increase of 70% this year, with expectations for continued growth due to rising electricity prices and robust demand [9][10]. - NRG is well-positioned to support the increasing power consumption of data centers, with double-digit revenue and EBITDA growth, trading around 19 times earnings [13].