00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Barron said artificial intelligence drove market gains in 2025,
00:06but expects a weaker environment for stock pickers in 2026,
00:10as valuations stretch and returns moderate.
00:14Investors poured into AI-linked companies in 2025,
00:17fueling speculative booms in sectors like robotics, nuclear power, and space,
00:22which Barron's reflected in its top picks, including Alibaba, Alphabet,
00:26ASML, Citigroup, and Uber.
00:29The stock market is expected to cool in 2026 after three years of strong gains,
00:34with stretched valuations leaving the S&P 500 trading at 22 times projected earnings.
00:40Barron said its 2026 picks favor value stocks that lagged the S&P 500 in 2025,
00:47highlighting Disney and ExxonMobil at about 16 times earnings and Comcast at a low-priced earnings
00:53multiple.
00:53Barron said its growth picks lagged in 2025,
00:57including Amazon with a 5.7% return, as well as Visa and Flutter Entertainment,
01:02which also trailed the market.
01:04The 2026 list includes Fairfax Financial, SL Green Realty,
01:09Madison Square Garden Sports, and Bristol-Myers Squibb,
01:12which offers turnaround potential and a nearly 5% yield.
01:16For all things money, visit Benzinga.com.
