These are Raymond James' top stock picks for 2026

Raymond James Highlights Key Stock Picks for 2026 to Watch for Long-Term Growth

Picking stocks for your investment portfolio is a lot like building a sports team—you want a mix of star players and hidden gems, not just the most famous names. That’s why Raymond James, a big financial company, is looking beyond the usual crowd favorites for next year’s winners.

Why This Matters for Investors

Many people focus on tech giants and artificial intelligence (AI) stocks, but Raymond James thinks smaller and less popular companies could do better in 2026. If you only bet on the biggest names, you might miss out on other big gains. This matters because diversifying your portfolio can help you avoid big losses if one sector stumbles.

The Bull Case: Why These Stocks Could Win

  • DoorDash: The food delivery company is spending big to improve its app and services. It also just bought Deliveroo, a British delivery company. Raymond James thinks these moves will make DoorDash stronger in the long run, even if profits dip for a little while. They set a high price target of $325, and the stock is already up nearly 40% in 2025.
  • Shake Shack: This burger chain’s stock price has dropped a lot, but analysts think it’s now a bargain. They say the company is making smart moves to boost sales and profits, and the stock could bounce back. Raymond James has a $150 price target, much higher than where it trades now.
  • Intercontinental Exchange (ICE): This company runs big financial markets and trading platforms. It’s growing steadily, especially in energy trading, and has a business model that doesn’t require a lot of spending to grow. If mortgage lending picks up, their Mortgage Technology business could also do well. Raymond James rates it a strong buy with a $210 price target.

The Bear Case: What Could Go Wrong

  • DoorDash: Heavy spending could hurt profits for longer than expected. The food delivery market is crowded, and competition is tough.
  • Shake Shack: If people keep spending less on eating out, or if costs stay high, the company’s profits might not bounce back soon.
  • Intercontinental Exchange: If trading slows down or mortgage lending stays weak, their growth could stall.
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Looking Beyond the Big Names

Raymond James points out that stocks in smaller and medium-sized companies (called small-caps and mid-caps) are priced more fairly compared to the past 25 years. Meanwhile, the S&P 500—mostly made up of huge companies, many tied to AI—is looking expensive. This is important because, according to Morningstar, small-cap stocks have often outperformed large-caps after periods when big companies got too pricey.

Pros and Cons of This Strategy

  • Pros:
    • More chances for growth by looking beyond the biggest companies.
    • Better prices on many smaller stocks, which could mean less risk of overpaying.
    • Diversification, which can help protect your portfolio if one sector falls behind.
  • Cons:
    • Smaller companies can be more risky and may not bounce back as quickly if things go wrong.
    • Some of these stocks are not well-known, so they might not get as much attention from big investors.
    • If the economy slows down, smaller companies often feel the pain first.

Investor Takeaway

  • Don’t just focus on the most popular stocks; look for value in smaller and mid-sized companies.
  • Pay attention to companies investing in their future, even if it hurts profits now—they could pay off later.
  • Check if your portfolio is too heavy in big tech or AI stocks; spreading out your bets can lower risk.
  • Keep an eye on how the economy is doing, since smaller companies are more sensitive to changes.
  • Do your homework—look at company fundamentals, not just recent performance, before you buy.

For the full original report, see CNBC

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