Core Viewpoint - Analysts suggest that old economy stocks may thrive in 2026 as the market shifts focus from speculative assets to more traditional sectors [2][4]. Group 1: Market Predictions - A transition is expected in the first half of 2026 from speculative parts of the economy to the real economy, including sectors like transports, regional banks, housing, chemicals, and commodities [4]. - Financial stocks are highlighted, with Bank of America (BAC) recently closing at its highest since November 2006, indicating a potential deregulatory environment for financials [4]. - Mergers among regional banks are anticipated in 2026, reflecting a consolidation trend in the financial sector [4]. Group 2: Investment Opportunities - Alternative private capital stocks such as Apollo Global Management (APO) and Blackstone (BX) are favored, having been undervalued due to recent credit concerns [5]. - The healthcare sector remains strong, with companies like Eli Lilly (LLY) and Intuitive Surgical (ISRG) being noted for their resilience [5]. - The decline in Bitcoin prices suggests a shift towards real economy stocks, with Bitcoin currently well below its October high of $125,000 [5][6].

Market Overview - The AI-driven bull run of 2023 and 2024 has faced setbacks in 2025 due to the Fed's uncertainty over rate cuts, recession fears, and competition from a low-cost Chinese AI platform [1] - Concerns regarding the Trump administration's tariff and trade policies have negatively impacted confidence in risky assets, particularly in the technology sector [2] Company Highlights Howmet Aerospace Inc. (HWM) - HWM is experiencing strong momentum in the commercial aerospace market, supported by robust build rates and recovery in wide-body aircraft [6] - The company has a projected revenue growth rate of 8.5% and an earnings growth rate of 28.6% for the current year, with a 4.2% improvement in earnings estimates over the last 30 days [7] Newmont Corp. (NEM) - NEM is advancing its growth projects, including the Tanami expansion and the Ahafo North project, with a total investment of $950 million to $1,050 million [10][11] - The expected revenue growth rate is 2% and earnings growth rate is 20.1% for the current year, with a 9.7% increase in earnings estimates over the last 30 days [11] Sprouts Farmers Market Inc. (SFM) - SFM focuses on product innovation, e-commerce, and private label offerings, leading to better-than-expected fourth-quarter results [12] - The company anticipates net sales growth of 10.5% to 12.5% and comparable store sales growth of 4.5% to 6.5% for 2025, with expected revenue growth of 13.7% and earnings growth of 35.5% for the current year [13][14] GE Aerospace (GE) - GE Aerospace is benefiting from strong demand for commercial engines and rising defense budgets, with an expected organic revenue growth in the low-double-digit range [15][16] - The company has a projected revenue decline of 6.8% but an earnings growth rate of 19.6% for the current year, with a slight improvement in earnings estimates [16] Curtiss-Wright Corp. (CW) - CW is capitalizing on the global shift towards alternative energy, particularly in nuclear power, with potential orders for 20-25 new reactors in Central and Eastern Europe [17][18] - The expected revenue growth rate is 8.5% and earnings growth rate is 15.7% for the current year, with a 0.5% improvement in earnings estimates [19]