In this article, we will take a look at the best stocks in each sector in 2026.
As we step into 2026, investors are increasingly seeking clarity in a complex market landscape. With several sectors to play and plenty of stock opportunities, it has become rather difficult to identify companies that offer resilience, long-term potential, and strong fundamentals – all of which make them the best stocks.
With a shift in the AI narrative, investors have become skeptical of a number of sectors, including software. According to BlackRock’s weekly commentary, dated February 17, the recent software selloff points to the market’s acceptance of AI’s disruptive influence, with a focus on underperforming names.
What’s ironic is that a previous debate on AI’s realism has now transformed to whether AI acts as a potential threat to business models, the authors noted, adding that the market is now examining companies most exposed to AI disruption. As stated,
“What has changed is the market’s focus: it now asks how AI adoption will translate into revenues and profits. This sorting of winners and losers means it’s prime time for active investing.”
The commentary advances by naming five mega forces that influence investment decisions, creating key risks and opportunities for investors. These are demographic divergence, digital disruption and AI, geopolitical fragmentation and economic competition, the future of finance, and transition to a low-carbon economy.
Against this backdrop, we have compiled a list of the 11 best stocks in each sector in 2026.
Photo by jason briscoe on Unsplash
Our Methodology
For this article, we began by sorting companies in each sector by market capitalization. Next, we selected the top twelve companies in each sector and narrowed the list to stocks with the highest hedge fund holdings, based on Insider Monkey’s database as of Q3 2025. The final picks are the stocks from each sector with the greatest upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. CBRE Group, Inc. (NYSE:CBRE)
Number of Hedge Fund Holders: 71
Upside Potential as of February 23, 2026: 29.70%
Sector: Real Estate
On February 12, Raymond James maintained an Outperform rating on CBRE Group, Inc. (NYSE:CBRE) with a price target of $180, which suggests an upside potential of approximately 25%. The firm said that AI-driven displacement of white-collar employment is neither a short-term challenge nor an unavoidable outcome, as it provided clarity on concerns regarding a potentially pressurized office leasing activity.
As the firm argued, office leasing accounts for roughly 10% of the company’s total net revenue, asserting that the office market is actually seeing improving pipelines and higher utilization. Thus, AI disruption is, in reality, a tangible opportunity for CBRE Group, Inc. (NYSE:CBRE), assisting management and project management mandates, along with data center demand transaction trends, the firm said, adding that it views the “near-zero risk” of AI disintermediating any of its divisions.
On the same day, Barclays reaffirmed an Overweight rating and $192 price target on CBRE Group, Inc. (NYSE:CBRE). The firm is optimistic about the company’s strength across business segments and acquisition capabilities.
CBRE Group, Inc. (NYSE:CBRE) is a Texas-based commercial real estate services and investment company operating through Advisory Services, Building Operations and Experience, Project Management, and Real Estate Investments segments.
10. The Williams Companies, Inc. (NYSE:WMB)
Number of Hedge Fund Holders: 73
Upside Potential as of February 23, 2026: 6.88%
Sector: Energy
On February 17, UBS lifted the price target on The Williams Companies, Inc. (NYSE:WMB) to $89, up from $78, and reiterated a Buy rating. With the highest 1-year price target among analysts, the firm’s estimate reflects an upside potential of 21.95%.
In a research note, the analyst notes that the company is among the best-levered midstream operators, thanks to a roughly $7.3 billion power generation backlog that positions it well to benefit from rising natural gas demand. This will positively impact its Power Innovation business in particular. With expectations to generate nearly $1.4 billion in annual EBITDA by 2029, The Williams Companies, Inc. (NYSE:WMB) has around 1.9 GW of power opportunities in execution by 2028, the firm noted, adding that from 2027 to 2031, the company has reported a backlog of roughly 6 gigawatts.
On the same day, Jefferies increased the price target on The Williams Companies, Inc. (NYSE:WMB) to $81 from $78 and reiterated a Buy rating. This comes after a “strong” analyst day update. The firm expects the company to sustain its over 10% EBITDA trajectory in 2030 and onwards.
The Williams Companies, Inc. (NYSE:WMB) is an Oklahoma-based energy infrastructure company operating through Transmission & Gulf of America, Northeast G&P, West, and Gas & NGL Marketing Services segments.
