JPMorgan's Stock Recommendations for 2026

JPMorgan's Strategy for 2026

As the year comes to a close, JPMorgan Chase has shared its top stock picks for 2026 with investors. According to the Wall Street bank, investors should be prepared for a year where artificial intelligence continues to drive the market.

S&P 500 Indicators

The bank predicts that the S&P 500 index will close at 7,500 points in 2026. This forecast implies a 10% increase compared to current levels. JPMorgan recommends that institutional investors focus on companies with strong balance sheets that are expanding data centers and investing in infrastructure.

The Magnificent Seven: GOOGL

JPMorgan expects GOOGL, the top-performing stock in 2025, to maintain its dominance in 2026. The report states, “We expect GOOGL to trade at approximately 24 times its earnings per share in the 2027 financials. Alphabet's strong leadership in artificial intelligence may help facilitate the expansion of applications,” supporting the outlook.

Expectations for Allstate Shares

The bank points out that its favorite in the insurance sector, Allstate, is trading at attractive levels. As of 2025, Allstate shares have increased by more than 6%. However, JPMorgan’s target price of $260 indicates that the stock has the potential to rise by over 25% in 2026. The evaluations reflect strong auto and home margins along with a high portfolio weight.

Avery Dennison: RFID Technology

There are opportunities in the packaging sector as well. Avery Dennison has signed a partnership agreement with Walmart to use radio frequency identification (RFID) tags for fresh food. This collaboration could strengthen the company’s RFID business in the future. The stock lost 2% in value in 2025, but JPMorgan's target price of $195 is about 7% above the current trading price.

We recommend conducting thorough research before making investment decisions. The information here is not intended as investment advice.