Stephanie Link, chief investment strategist at Hightower Advisors, said Friday that Big Tech laggards, economically sensitive companies and automation businesses have a lot of room to run this year. The investor said Meta and Amazon, as well as railroad giants Union Pacific and Rockwell Automation, are among the best stocks to bet on in 2026, especially as fiscal policy, such as the Federal Reserve’s interest rate cuts, supports the U.S. economy. “I think 2026 will be good,” Link said Friday in an interview on CNBC’s “Squawk Box.” “Additional fiscal policy in the One Big, Beautiful Act that helps not only consumers but also businesses, which has shown resilience, could accelerate the economy.” Link said more deregulation at the federal level and bank lending could also stimulate the economy and, in turn, the stock market. There are also several undervalued stocks that traders can invest in for profits, as their stock prices are likely to rise. These are some of Link’s stock picks for 2026. According to Link, two tech laggards, Meta and Amazon, could emerge this year. Meta is down about 17% from its highs, making it a good buy for smart investors, Link said. He touted the company’s sales and bottom line growth, even as it moves forward with costly artificial intelligence-driven initiatives that have turned some investors off. Link said the company’s earnings could reach $38 per share by 2027, adding: “At this valuation, it’s very attractive to me if it just shows better performance despite the heavy spending.” According to the CIO, Amazon is also one of the “Magnificent Seven” names and is trading at a discount. Normally trading at 18 times EBITDA, the company’s stock is trading at 13 to 14 times EBITDA. But Amazon Web Services’ business accelerated last quarter, and Link said that trend is likely to continue in 2026. Amazon also has 11% of its competitors in the retail industry, and overseas sales are starting to improve, he noted. “Maybe it won’t recover to that extent, but I think it’s very attractive. I think profitability will continue to improve,” Link said. “That’s what we’ve been looking for all along with a growth story. Meta is down about 11% over the past three months, while Amazon is up just 1.3% over the same period. Rail transportation stocks, including cyclical stocks Union Pacific and Norfolk Southern, are good additions to investors’ portfolios as the economy is primed for an upswing,” Link said. “We like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we like it, we’ve got more volume and more service, we’ve got better margins.” Gaining 500 basis points over the past two years means it’s facing a railroad downturn, and the expected approval of Union Pacific’s proposed merger with Norfolk is also likely to push the stock higher, he said.“But if they reach a deal, they’re expecting about 3 billion in synergies.” Rockwell Automation is one of the names to own this year, according to Link, and “it’s definitely in its early stages. Companies like Rockwell are poised to reap greater benefits as the demand for automated and integrated manufacturing surges with the AI boom,” the executive said.
