Episode summary
The New Magnificent Stocks to Own in 2026
Zacks Market Edge
· · 19 min · Hosts: Tracey Ryniec, Mark Zinski, Neena Mishra, Ethan Feller, John Blank
Summary
The host argues that the old Magnificent 7 no longer fully define market leadership and that a new group of “magnificent” stocks is emerging in 2026. He says the best candidates are breaking out on price charts, have strong earnings momentum, and in many cases sit in infrastructure, industrials, consumer staples, healthcare, or defense rather than pure big tech.
He highlights MasTec (MTZ) as an infrastructure and AI-power-enablement play with new highs, a forward P/E around 32, and improving earnings growth into 2026 and 2027. Caterpillar (CAT) is presented as a cyclical but powerful breakout with renewed earnings momentum, while Walmart (WMT) is framed as a resilient giant that has kept executing through inflation and tariffs, even if its valuation is rich. Eli Lilly (LLY) remains on the list because of weight-loss drug growth and a still-strong earnings trajectory, though the host notes competition and pricing pressure as risks.
He closes with Howmet Aerospace (HWM) as the standout chart, calling defense hot and saying the stock has no earnings misses in five years. Across all five names, his main point is that leadership has broadened beyond the Mag 7 and that investors should keep these higher-growth, high-momentum names on watch.
Key takeaways
- The host says the Mag 7 era is fading and that 2026 leadership is shifting toward a new set of breakout stocks.
- MasTec (MTZ) stands out to the host as an AI-infrastructure beneficiary with a forward P/E around 32 and accelerating earnings estimates.
- Caterpillar (CAT) is back on the host’s short list because cyclical earnings are improving and the stock is breaking to new highs.
- The host says Walmart (WMT) is still compounding through tariff and inflation pressures, but its valuation near 45 times earnings is rich.
- Eli Lilly (LLY) still makes the list on weight-loss-drug growth, though the host warns competition may pressure pricing and moat strength.
- Howmet Aerospace (HWM) is the host’s favorite chart, with no earnings misses in five years and strong defense-driven momentum.
Notable quotes
“I think 2025 was its final year so it's done. But so far nothing has really seem to replace it”
“these are the charts where I I stumble across them or I go to look at them and I'm like, "Wow, who knew”
“It is one of the bigger names on the construction side, more well-known than some of the others, but this is their time”
“the stock is not cheap here by any means trading at 45 times which is way up there”
“maybe the prettiest chart on the street. No misses in five years, including this last quarter, which it's now reported”
How the episode opens
Stocks, bonds, ETFs, straight out of downtown Chicago. This is Zach's Market Edge. Welcome to Zach's Market Edge, the podcast about investing in your life.
I'm your host, Tracy Brinick, and this week I'm going solo again to talk about the new Magnificent Stocks. I've kind of hinted at this on prior podcasts earlier this year when we were talking about just the hot breakout stocks and a lot of people have basically thrown in the towel on the MAG 7. I think 2025 was its final year so it's done.
But so far nothing has really seem to replace it. We don't have a new Fang or Fang Man. Not yet.
There's a few things floating around out there though that I have heard, but they're not that exciting to me and apparently not to everyone else yet because nothing has caught on. But I'm here this week to talk about five stocks that have the best charts on the street basically. And these are the charts where I I stumble across them or I go to look at them and I'm like, "Wow, who knew?
who knew this was going on because we've all been obsessed with the MAG Sevens. And while some of those have been very good performers as well, I can't complain. Um, they have started to lag, especially not just the S&P 500, but these other stocks, these old economy stocks really that have taken off and now have the charts we all wish the Mag Seven mostly had.
So, what are these charts? What are these stocks? Um, we're going to just dive right into it.
I had a bunch of names I could have chosen from. Now, some of these you obviously know. They're big cap, big names, but a few might be new to you, and that's okay.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- magnificent stocks
- 2026 stock picks
- megacap leadership rotation
- stock replacements
- equities investing
Watch the episode
Watch “The New Magnificent Stocks to Own in 2026” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Zacks Market Edge
Zacks Market Edge, this episode and its artwork belong to Zacks Investment Research. Octagon is not affiliated with the show; this page is an independent summary.
