In previous years, the Magnificent 7 stocks were the must-haves for one’s portfolio. But in 2026, it could very well be “HALO” stocks.
HALO stands for Hard Assets, Low Obsolescence. And there seems to be a rotation into these very types.
Some on Wall Street have been talking about the “great rotation” into old-economy industries, also known as value stocks. But there is a subset of these stocks that is getting a lot of attention. They are starting to call these stocks the “HALO” stocks.
Hard Assets
Hard assets are easy to understand. The company owns hard assets. It owns a gold or silver mine. It has manufacturing facilities and makes products. Its costs extend beyond knowledge workers, computer equipment, and cybersecurity protection.
Who isn’t in “hard assets”? Many internet companies. Airbnb does not own a single property that is rented on its platform. Likewise, many internet companies with “subscription” revenue are usually not HALO companies and are vulnerable to AI disruption.
Energy stocks are HALO stocks. So are Precious metal stocks. And Infrastructure stocks. But just because a company produces a physical product does not automatically make it a HALO stock.
Low Obsolescence
The second part is low obsolescence. This is trickier as it implies that the company cannot lose its edge to something like artificial intelligence (AI). Can AI replace the company’s business? AI can never become a gold mine. However, AI robots might be able to make mining in that gold mine more efficient.
Some products and services have been around for a long time and are unlikely to be made obsolete. That includes transportation, such as railroads and airplanes. Hotels aren’t going anywhere. Commodities like fertilizers, oil, gold, and copper aren’t going to be obsolete. Companies involved in petrochemicals and those that use their products, such as paint manufacturers, are in the low-obsolescence category.
HALO Stocks and Value Stocks: Are They the Same Thing?
There is no list of HALO leaders yet. It’s a relatively new designation. HALO doesn’t necessarily mean “value,” but many value stocks are HALO stocks. HALO stocks are often in old-economy industries that were left for dead over the last 30 years due to the rise of the technology industry.
These are companies involved in the AI Revolution on the infrastructure side. That includes construction firms, those involved in utilities, or other boring components of data center build-outs like HVAC.
HALO stocks may be old economy and boring. But right now, they have double-digit earnings growth and are in bull cycles in their industries.
See my previous posts that companies that follow this theme:
Growth vs. Value: Why Some Stocks Move So Differently
EMCOR: Moderate Reshoring Manufacturing
Constellation Energy: A Moderate Energy
Corning: A Moderate Manufacturing Profile
NVIDIA: Chip Designer to AI Powerhouse
Comfort Systems: An AI and Industrial Profile
Chevron: A Leading Oil and Gas Producer Oil
GE Vernova: A Datacenter & Electrification Profile
This article is for general informational and educational purposes only. It is not intended as financial advice, investment guidance, or a recommendation to buy or sell any security. The content reflects publicly available information and broad market commentary. Readers should conduct their own research and consult a licensed financial professional before making investment decisions.