On the last trading day of 2025, stocks wrapped up the year with a decline, though several market experts remain optimistic about specific companies in the upcoming year. During an appearance on CNBC’s “Halftime Report,” Jim Lebenthal, chief equity strategist at Cerity Partners, acknowledged the sour feeling in the market’s close but expressed confidence in a favorable 2026. The S&P 500 ended Wednesday down 0.7%, concluding a four-session losing streak. Despite this dip, the index achieved a significant 16.4% gain over the course of 2025, marking its third consecutive year of double-digit growth.
Lebenthal highlighted several companies that are expected to perform well in the new year. Both Stephen Weiss of Short Hills Capital and Joe Terranova from Virtus Investment Partners echoed these sentiments, revealing their own stock picks for 2026.
Apple emerged as a key focus, with expectations that the tech giant will capitalize on artificial intelligence advancements that have yet to fully materialize for its customer base. Terranova predicted that 2026 would clarify Apple’s strategy in AI, potentially involving partnerships with major players like Alphabet. He also noted a growing demand for iPhones in China as Apple seeks to regain market share in the region. In 2025, Apple’s stock rose by 8.5%.
Citigroup was described by Lebenthal as an attractive option due to its trading position at a discount compared to industry peers. Despite lower profitability relative to competitors, Citi has seen consistent profit growth over the past three and a half years, a trend he anticipates will continue into 2026. The bank’s shares soared approximately 66% in 2025.
EQT, a natural gas company, was also highlighted. Terranova praised EQT’s robust cash flow and its geographical positioning in Appalachia, which he believes places the company in a favorable position to meet the rising demand for data centers fueled by natural gas. EQT’s stock increased by 16% year to date.
Adobe has shown signs of recovery potential in 2026, despite underperforming in 2025. Lebenthal noted the stock’s relative stability in December, hinting at a rebound. The company exceeded expectations in the fourth quarter, with projected earnings beating consensus estimates. Adobe’s stock fell 21% in 2025, but it rose 9% in December alone.
Taiwan Semiconductor Manufacturing (TSMC) was identified as a strong prospect for 2026 by Weiss. He emphasized the company’s adaptability in working with various tech giants to produce chips essential for advanced AI applications. With a growing cash flow and strong design business, TSMC’s shares experienced a remarkable increase of nearly 54% in 2025.
As investors look ahead to 2026, these companies are positioned to potentially capitalize on emerging trends and market demands, reflecting a cautious yet optimistic outlook for the new year.
