The stock market heads into the second half of 2026 having staged a strong rebound from the Iran-war-induced swoon, led by technology stocks. However, tech is not at the top of the leaderboard for year-to-date returns. To the likely surprise of many investors, that prize goes to industrials. Meanwhile, energy stocks fell to the bottom of the pack after riding the oil price surge during the first quarter.
What’s next? Which sectors look cheap, and which look expensive? And where do Morningstar analysts see the best opportunities? We’ve collected the outlooks and top picks for each sector from across Morningstar’s US equity research team.
This post originally appeared at Morningstar.