Key Takeaways
- HALO investing targets firms with tangible assets and minimal risk of obsolescence.
- Union Pacific and Nutrien have reached multi-year peaks.
- Exxon Mobil has achieved record highs, despite a forecasted earnings decline in 2026.
- (0:20) – Discovering the New FANG Stocks
- (6:30) – Tracey’s Top Stock Selections for Your Watchlist
- (24:10) – Summary: UNP, CHRW, NTR, LEA, XOM
- [email protected]
Welcome to Episode #476 of the Zacks Market Edge Podcast.
Each week, host Tracey Ryniec, a Zacks stock strategist, and guests delve into the latest trends in stocks, bonds, and ETFs and their impact on your investments.
A significant shift is occurring on Wall Street, and it isn’t focused on tech.
HALO investing has emerged prominently. This acronym stands for “Hard Assets, Low Obsolescence.”
Understanding HALO Investing
This investment approach aims to steer clear of companies vulnerable to disruption from AI. Investors favor businesses that produce or possess tangible assets, which AI cannot easily replicate.
Tangible assets can include land, railroads, gold mines, or oil rigs. Defining “low obsolescence” is trickier; however, if AI can’t replace it, it likely falls into this category.
For instance, Union Pacific, established in 1862, has withstood various economic challenges and global events. While AI can enhance train efficiency, it won’t replace the physical infrastructure.
Five HALO Stocks for 2026
1. Union Pacific Corp. (UNP)
Union Pacific, an American railroad founded by Abraham Lincoln in 1862, may not exhibit rapid growth but is projected to see an earnings increase of 6.9% in 2026 and 7.5% in 2027. With shares up 15% this year, they approach five-year highs, and the stock has a forward P/E ratio of 21.2, along with a 2.1% dividend yield.
2. CH Robinson Worldwide, Inc. (CHRW)
CH Robinson, a logistics firm, has endured challenging times in the freight sector. However, its earnings are anticipated to rise by 15.9% in both 2026 and 2027. The stock surged 76.2% over the past year, reaching five-year highs, accompanied by a 1.4% dividend yield and a forward P/E of 30.
3. Nutrien Ltd. (NTR)
A Canadian fertilizer and agribusiness company, Nutrien exemplifies tangible assets. Its earnings estimates for 2026 have recently been upgraded, anticipating a growth of 5.3%. The stock surged 39.4% in the last year, with a forward P/E of 15 and a 3% dividend yield.
4. Lear Corp. (LEA)
Lear manufactures seating and electrical systems for the automotive sector. After facing two years of adversity, earnings are projected to rebound, rising by 11.2% in 2026 and 17.8% in 2027. The stock is up 13.1% this year and 38.2% over the past year, currently trading at a low P/E of 9.3 and offering a dividend yield of 2.3%.
5. Exxon Mobil Corp. (XOM)
As one of the largest oil companies in the U.S., Exxon Mobil has seen its shares climb 21.7% this year, despite unfavorable earnings projections. While earnings are expected to decline through 2026, a forecast increase of 21.8% is anticipated in 2027. Currently, the stock price is at an all-time high with a forward P/E of 22.4 and a dividend yield of 2.7%.
Additional Insights on HALO Investing
Listen to this week’s podcast for more details.
[Note: Tracey is a shareholder in CHRW within the Zacks Insider Trader portfolio.]
