Core Viewpoint - David Bahnsen, Chief Investment Officer of The Bahnsen Group, identifies five stocks that present significant upside potential as investors shift focus away from Big Tech, highlighting where the strongest opportunities currently lie [1] Group 1: Investment Opportunities - The five stocks recommended by Bahnsen are positioned to benefit from the current market dynamics, suggesting a strategic pivot for investors [1] - The analysis indicates a growing interest in sectors outside of traditional technology, reflecting a broader market trend [1] - Bahnsen emphasizes the importance of identifying companies with strong fundamentals and growth potential in this shifting landscape [1]

Core Viewpoint - The article discusses the current state of the NASDAQ market and highlights 12 cheap NASDAQ stocks to consider for investment in 2026, amidst a backdrop of market volatility and strong earnings reports [1][2]. Market Overview - The NASDAQ Composite Index has declined over 2.5% year-to-date due to stock rotation, a software sell-off, and geopolitical tensions [1]. - Tom Lee from Fundstrat predicts the S&P 500 will reach 7,300 soon, despite recent market challenges [1]. - The earnings season has shown impressive results, with many companies exceeding expectations, although stock prices have not yet reflected this performance [2]. Company Analysis Ferrovial SE (NASDAQ:FER) - Ferrovial SE has secured a £80 million contract for upgrading the Slough Sewage Treatment Works in the UK, which is expected to modernize the facility to meet stricter environmental regulations [7][10]. - The project aims to reduce ammonia and phosphorus levels and improve storm overflow management, contributing to cleaner rivers and healthier ecosystems [8][9]. - Construction is set to begin in 2027, aligning with the company's strategy of integrating global expertise with local delivery [10]. PayPal Holdings, Inc. (NASDAQ:PYPL) - PayPal has faced recent downgrades from analysts, with Wells Fargo lowering its price target from $58 to $48 and Truist Financial from $58 to $39 following a fiscal Q4 2025 earnings miss [11][12]. - The company reported a revenue increase of 3.71% year-over-year to $8.68 billion, but fell short of expectations by $111.49 million, with EPS of $1.23 missing by $0.06 [12]. - Management has expressed dissatisfaction with execution and appointed a new CEO, Enrique Lores, to improve performance [13][14].

Core Viewpoint - Capital Economics warns that the current shift in U.S. equities may indicate a potential stock market bubble burst in 2027, leading to significant changes in leadership across major indexes [1]. Group 1: Market Performance - In early 2026, small-cap, value, and defensive stocks have outperformed large-cap, growth, and cyclical stocks by approximately 10 percentage points on a total-return basis [3]. - The rotation towards value stocks began in late 2025 and has gained momentum into early 2026, despite the overall U.S. market remaining elevated historically [3]. Group 2: Historical Comparisons - The current market dynamics bear similarities to the late stages of the dotcom boom, where small-caps began to outperform large-caps about 11 months before the bubble burst in 2000 [4]. - Unlike the dotcom cycle, where value stocks only began to outperform growth after the bubble burst, value stocks are currently outpacing growth as of early 2026, indicating a different market condition [5]. Group 3: External Influences - The report suggests that immediate political or legal events, such as the Supreme Court ruling on tariffs, are not expected to significantly influence the current rotation in U.S. equities [6].

Core Viewpoint - The company is making strategic trades by selling shares of Eaton and Procter & Gamble to lock in profits as the stock market approaches overbought conditions, while maintaining a focus on potential growth in technology stocks [1] Eaton - The company is selling 20 shares of Eaton at approximately $403 each, reducing its weighting in the portfolio from 2.75% to 2.55% and decreasing the share count to 250 [1] - Eaton's shares have increased by 27% year to date, prompting the company to raise its price target to $425 due to strong momentum in data center orders [1] - The decision to trim the position is aimed at securing gains from the recent performance over the past month and a half [1] Procter & Gamble - The company is selling 50 shares of Procter & Gamble at around $162, decreasing its weighting in the portfolio from about 1.9% to 1.7% and reducing the share count to 425 [1] - Procter & Gamble shares have risen 13% year to date, and the company downgraded its rating to a hold equivalent after the stock reached a new high for 2026 [1] - The initial investment in Procter & Gamble was made in anticipation of a rebound in the consumer staples sector, which has proven successful as the sector gains popularity [1] Market Conditions - The S&P Short Range Oscillator indicates that the stock market is nearing overbought conditions, leading to the decision to book profits in the aforementioned stocks [1] - Despite the overall market conditions, technology stocks, particularly the Magnificent Seven, are perceived to have room for growth, prompting the company to maintain a focus on selectively increasing positions in these areas, especially in Alphabet [1]

Core Viewpoint - A significant rotation from technology stocks to industrials has led to a notable increase in FedEx shares, which surged 13.3% this week and over 26% year-to-date, outperforming the Dow Jones Transportation Index [1][5]. Group 1: Stock Performance - FedEx shares have increased by 13.3% this week and more than 26% year-to-date, which is approximately double the return of the Dow Jones Transportation Index [1][5]. - UBS analyst Thomas Wadewitz raised the price target for FedEx from $314 to $412 per share, representing a more than 30% increase, with an implied 12% upside from Thursday's closing price [6]. Group 2: Analyst Insights - The recent surge in FedEx shares is attributed to a shift in investor focus from high-flying tech stocks to industrial names, alongside the positive outlook from UBS [5]. - The upcoming 2026 Investor Day on February 12 is expected to present a multi-year plan for FedEx, potentially including strategies for higher margins through cost reductions, improved pricing, and sustainable revenue growth [6][7].

Group 1 - The stock market is experiencing a pullback in precious metals and bitcoin, indicating a shift in market sentiment [1] - The S&P 500 index has shown a year-to-date increase of 0.5% as of Wednesday, excluding dividends, despite some significant declines in major components [2] - Microsoft shares have decreased by 14.4% year-to-date, contributing to the overall performance of the S&P 500 [2] Group 2 - Microsoft constitutes 5.2% of the $706 billion SPDR S&P 500 ETF Trust, which tracks the S&P 500 by holding all its stocks [2] - The SPDR S&P 500 ETF is weighted by market capitalization, reflecting the performance of its underlying stocks [2]

Group 1 - The market in 2026 is expected to be volatile, with major indices exiting 2025 at elevated multiples, prompting a recommendation for portfolio rotation to maintain gains [1] - Gary Alexander has extensive experience in technology companies, having worked on Wall Street and in Silicon Valley, and serves as an adviser to seed-round startups, indicating a strong understanding of current industry themes [1]

Core Viewpoint - The market is starting 2026 positively, with the S&P 500 maintaining last year's gains, but a significant rotation in large-cap stocks is anticipated this year [1]. Group 1 - The S&P 500 is holding onto last year's gains as 2026 begins [1]. - Investors are advised to prepare for a sizable rotation in the market, particularly among large-cap stocks [1]. - Gary Alexander has extensive experience in technology sectors, both on Wall Street and in Silicon Valley, influencing current industry themes [1].

Core Insights - The US stock markets are maintaining stability in 2026, driven by investor optimism [1] - There is an anticipated shift from high-priced, momentum-driven tech stocks to undervalued sectors [1] Group 1: Market Trends - Investors are currently exhibiting bullish behavior in the US stock markets [1] - A rotation is expected from expensive tech stocks to underappreciated sectors, indicating a potential change in investment strategies [1] Group 2: Analyst Background - Gary Alexander has extensive experience in technology, having worked on Wall Street and in Silicon Valley, and advises seed-round startups [1] - He has been a contributor to Seeking Alpha since 2017 and is recognized in various web publications [1]

Sector Rotation - Investors have shifted away from AI stocks and are moving into materials, industrials, financials, and healthcare, indicating a potential sector rotation with staying power [1] - The selloff in AI stocks was led by Oracle, whose earnings report and spending guidance raised concerns about excessive capital expenditures [1] Market Sentiment - Jeremy Siegel expressed uncertainty about the current stock market rotation but noted that it appears to have more sustainability due to various factors casting doubt on the speed and profitability of AI developments [2] - Concerns about valuations, margin sustainability, and high debt have shifted market sentiment away from technology stocks, particularly AI [5] Company-Specific Insights - Oracle's delays in data center construction may reduce expenditures, but questions remain regarding the profitability of AI investments [3] - Siegel highlighted that companies growing spending faster than income risk overexpansion, which can negatively impact profits and stock returns [3][4] Investment Strategy - Bank of America Securities indicated that markets are anticipating a "run-it-hot" scenario for the next year, leading to a rotation into mid- and small-cap stocks while exiting mega-cap names [4] - Eric Teal noted that financial and healthcare stocks have become more attractive, and small-cap and micro-cap stocks may benefit from declining short-term rates [5][6]