The Dow Jones Industrial Average hit an all-time high to start the new year. But stocks in many sectors still have plenty of room to grow. Finance experts pointed out that the healthcare, finance and retail sectors are worth watching in 2026, especially if the U.S. Federal Reserve continues to lower interest rates. With that in mind, here are five stocks to keep an eye on in 2026. Also see six investing moves to make right now to grow your wealth in 2026. 1. Novo Nordisk ADR (NVO) Investors are lookin ...

Group 1: Market Overview - Stock market investing is a reliable method for long-term wealth building, though it can be stressful due to volatility [1] - In 2026, the macroeconomic situation is tense, prompting investors to focus on companies with strong business models capable of weathering downturns while maintaining payouts [2] Group 2: Realty Income - Realty Income, founded in 1965, is a prominent real estate investment trust (REIT) with a market cap of $53.4 billion, known for returning the majority of its profits to shareholders [4] - The company's real estate portfolio is diversified across consumer staples providers, which are typically resilient during economic downturns, as rent payments are fixed costs that businesses prioritize [5] - Realty Income utilizes triple-net leases, which require tenants to cover property-level expenses, thereby stabilizing cash flow and shielding the REIT from inflation [6] - The current dividend yield of Realty Income is 5.6%, elevated compared to historical levels of 3%-5% before 2020, influenced by higher interest rates; however, rates are expected to decline in 2026, making the current dividend attractive [7] Group 3: Dollar General - Dollar General experienced a significant bull run in 2025, with shares increasing by 99% over the previous year, benefiting from attracting new income brackets amid economic challenges [8] - The company has shown resilience against inflation and is considered a recession-proof option in the current uncertain macroeconomic climate [9]

Core Insights - Dollar General Corporation (NYSE:DG) is recognized as one of the best consumer staples dividend stocks to invest in currently [1] - Analysts from Bernstein and Bank of America have raised their price targets for Dollar General, indicating positive expectations for the company's performance in the coming years [2][3] Group 1: Analyst Ratings and Price Targets - Bernstein raised its price target on Dollar General to $150 from $141, maintaining an Outperform rating, anticipating stronger spending power for middle- to high-income consumers by 2026 [2] - Bank of America has a Buy rating on Dollar General with a price target of $160, citing the potential for larger-than-expected tax refunds to support the company's results in the first quarter [3] Group 2: Market Conditions and Company Performance - The firm expects persistent inflation and a cooling labor market to pressure lower-income shoppers, while tax refunds from the OBBBA are expected to benefit middle- and high-income groups [2] - Dollar General's operational improvements, including streamlining operations and managing inventory, are beginning to show positive results, which should enhance margins and profitability in the upcoming quarter [3] - The company's shares have increased by more than 100% over the past 12 months, reflecting strong market performance [3]

Group 1 - Artisan Value Fund reported a continued equity market rally in Q3 2025, driven by strong corporate earnings, rising AI investment, and favorable US fiscal policies, resulting in fund returns of 0.83%, 0.91%, and 0.90% for its Investor, Advisor, and Institutional Classes respectively, compared to a 5.33% return for the Russell 1000 Value Index [1] - Dollar General Corporation (NYSE:DG) experienced a one-month return of 24.98% and a 52-week gain of 81.38%, with a closing stock price of $137.52 and a market capitalization of $30.27 billion as of December 29, 2025 [2] - Artisan Value Fund exited its position in Dollar General Corporation, citing concerns about the sustainability of its business turnaround amid tough competition and a weak lower-income consumer market [3] Group 2 - Dollar General Corporation was held by 54 hedge fund portfolios at the end of Q3 2025, a slight decrease from 55 in the previous quarter, indicating a stable interest among hedge funds [4] - Despite recognizing Dollar General's potential, the company believes that certain AI stocks present greater upside potential and lower downside risk, suggesting a shift in investment focus [4]

Core Insights - High-rolling investors are taking a bearish position on Target (NYSE:TGT), indicating potential privileged information influencing their trades [1] - The sentiment among major traders is mixed, with 35% bullish and 47% bearish, highlighting a significant disparity in market outlook [2] - Major market movers are focusing on a price range between $70.0 and $115.0 for Target over the past three months, suggesting a defined trading band [3] Options Activity - A total of 17 options trades for Target were identified, with one put option valued at $45,400 and 16 call options totaling $1,071,896, indicating a strong interest in bullish positions despite the bearish sentiment [2] - The volume and open interest data for Target's options reveal liquidity and interest levels, particularly within the $70.0 to $115.0 strike price range over the last 30 days [4] Company Overview - Target is one of the largest discount retailers in the U.S., operating nearly 2,000 stores and generating over $106 billion in fiscal 2024 sales [9] - The company's revenue breakdown includes apparel and accessories (16%), beauty and household essentials (30%), food and beverage (23%), hardlines (15%), and home furnishings (16%), with over 97% of sales fulfilled through its physical store base [9] Analyst Ratings - Recent analyst insights suggest an average target price of $110.0 for Target, with one analyst maintaining an In-Line rating at a target price of $95 and another analyst giving a Buy rating with a target price of $125 [11][12] Current Market Status - As of the latest data, Target's stock price is $95.28, reflecting a slight increase of 0.08%, with a trading volume of 3,649,056 [14] - The next earnings report is anticipated in 70 days, which could further influence market sentiment and trading activity [14]

Group 1 - Dollar General Corporation (NYSE:DG) is perceived as a strong player in the discount retail sector, benefiting from a cash-strapped consumer base and countercyclical business model [1][2] - The company has successfully reduced its direct imports from China to less than 70% and indirect imports to less than 40%, although it still faces challenges from tariffs [1] - Dollar General's stock has increased over 50% year to date, indicating strong performance despite previous execution issues and rising competition [2] Group 2 - The company is making progress in addressing operational challenges, including store standards, supply-chain execution, and labor efficiency [2] - With inflation stabilizing, there are signs of increased customer activity, as basket sizes and units are beginning to rise again [2] - The potential for Dollar General to benefit from trade-down business during economic downturns positions it favorably in the current market environment [2]

Market Overview - On Tuesday, the NYSE and Nasdaq recorded 56 and 99 new 52-week highs, respectively, while also seeing 42 and 256 new 52-week lows, indicating a bearish trend in the market [1] - The S&P 500 has fallen for three consecutive days, with new lows outpacing new highs significantly [1] Economic Insights - Gina Bolvin from Bolvin Wealth Management Group commented that the current economic data suggests a slowing economy, with job growth stabilizing but showing signs of weakness [2] Company Performance - Southwest Airlines (LUV) and TJX Companies (TJX) were among the new highs on the NYSE, with LUV achieving its 18th new high and TJX its 31st in the past year [2] - Year-to-date, Southwest's stock has increased over 25%, while TJX's share price has risen by more than 28%, both significantly outperforming the S&P 500 [3] Stock Analysis - Southwest Airlines' stock has shown strong performance in recent trading days, with daily gains recorded between 1.06% and 4.4% [4] - In the four weeks ending December 15, Southwest's stock had weekly gains of 6.13%, 8.73%, 8.77%, and 2.43%, leading to a year-to-date increase of over 25% [4] Operational Metrics - Concerns regarding Southwest Airlines include operational deficiencies, financial stability, and an overvalued stock price [5] - In Q3 2025, Southwest's cost per available seat mile (CASM) was 15.17 cents, a 0.4% increase from the previous year, while the revenue per available seat mile (RASM) was 15.25 cents, also up by 0.4% year-over-year [6]

Core Viewpoint - Dollar Tree Inc. shares are trading near 52-week highs, but fundamental signals indicate caution regarding growth potential [1] Group 1: Revenue and Growth Metrics - The company's growth score has significantly dropped from 15.25 to 7.77, placing it in the bottom 10th percentile of ranked stocks [2] - Dollar Tree has narrowed its fiscal 2025 sales guidance to a range of $19.35 billion to $19.45 billion, down from a previous forecast of $19.30 billion to $19.50 billion, indicating a capped sales upside [3][4] Group 2: Profitability and Market Sentiment - Despite the decline in growth metrics, Wall Street remains optimistic about the company's operational turnaround, with adjusted earnings per share for the third quarter reported at $1.21, surpassing the consensus estimate of $1.08 [5] - Analysts from Guggenheim and JPMorgan have raised their price targets, attributing this to the success of Dollar Tree's multi-price strategy and a record-breaking Halloween season, with market enthusiasm driven by margin expansion rather than raw sales volume [6] Group 3: Stock Performance - Year-to-date, Dollar Tree shares have increased by 62.47% and 73.45% over the past year, outperforming the Nasdaq Composite index, which gained 22.68% YTD and 18.06% over the year [7] - The stock closed at $124.24, just below its 52-week high of $125.79, although it experienced a slight decline of 0.33% in premarket trading [7]

Core Insights - Ollie's Bargain Outlet reported third-quarter earnings of $0.75 per share, exceeding analyst expectations of $0.73, while revenue was slightly below estimates at $613.6 million compared to the forecast of $614.56 million [1] - The company experienced a year-over-year sales increase of 18.6%, driven by strong new-store growth and a 3.3% rise in comparable sales [1] Store Expansion and Loyalty Program - Ollie's opened a record 32 new stores during the quarter, bringing the total to 645 locations across 34 states, marking an 18.1% increase from the previous year [2] - The Ollie's Army loyalty program grew by 11.8%, reaching 16.6 million members [2] Financial Performance and Outlook - Operating income increased by 24.5% to $55.4 million, with an operating margin improvement of 40 basis points to 9.0% [2] - The company raised its full-year revenue outlook to between $2.648 billion and $2.655 billion, surpassing previous forecasts and market estimates [3] - Adjusted EPS guidance was also increased to a range of $3.81 to $3.87, up from the prior guidance of $3.76 to $3.84 [3] Future Plans - For fiscal 2026, Ollie's plans to open 75 new stores, primarily in the first half of the year [3]

Core Insights - The performance of Dollar Tree (DLTR) and Dollar General (DG) indicates a preference for value investments amidst economic pressures, with DLTR and DG shares rising approximately 57% and 64% year-to-date, respectively, surpassing AI leaders like NVIDIA [1][2] Economic Indicators - Dollar General reported a same-store sales increase of 2.5% in Q3, while Dollar Tree's same-store sales rose by 4.2%, contrasting with Target's 3.8% decline [3][4] - Dollar Tree added 3 million new shoppers, expanding its customer base to 100 million [4] Consumer Behavior - A significant shift in consumer behavior is noted, with 60% of new Dollar Tree shoppers earning over $100,000, indicating that higher-income shoppers are "trading down" to discount retailers [5][6] - Dollar General's CEO reported increased customer traffic but noted more restrained spending per trip, reflecting changing consumer spending habits [6] Investment Implications - The rise of discount retailers suggests that value-focused investments may perform well in the near term due to ongoing economic uncertainties, despite a seemingly strong economy driven by AI investments [7] - In a volatile market, dividend ETFs are highlighted as a potential safe haven for investors seeking stable income [8] Value Stocks Characteristics - Value stocks, typically trading at low valuations, are favored in uncertain economic conditions due to their stable demand and predictable earnings, making them attractive for investors prioritizing cash flow [9] ETFs to Consider - DLTR and DG stocks are included in ETFs such as Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) and Invesco S&P 500 Pure Value ETF (RPV), which are recommended for investors [10]