Tom Lee, founder of Fundstrat Global Advisors, has released a report detailing his top stock picks for 2026, maintaining a bullish outlook as the S&P 500 nears all-time highs. His analysis incorporates a multi-factor quantitative model and momentum ratings, suggesting that stocks could rise further, with a target of 7,900-8,000 for the S&P 500 by the end of August.
Among his favored stocks are JPMorgan Chase, which has seen a 10% increase this year, and Lumentum Holdings, which has surged over 130% due to its role in AI infrastructure. Arista, another AI-related stock, has risen about 42% this year.
Conversely, Lee advises against investing in Robinhood Markets, which is down nearly 16% due to declining crypto revenues, as well as other crypto-linked stocks like Galaxy Digital and Riot Platforms, which have shown minimal gains. This guidance comes amid a backdrop of rising global bond yields and a strong earnings season, indicating a complex market environment for investors