JPMorgan's Stock Recommendations for 2026

JPMorgan's Strategy for 2026

As the year comes to a close, JPMorgan Chase shared its top stock recommendations 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 Signals

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 the index's 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 best-performing stock of 2025, to maintain its superiority in 2026. The report states, “We expect GOOGL to trade at about 24 times its earnings per share in the 2027 financial figures. Alphabet's strong leadership in artificial intelligence could aid in the expansion of applications,” it indicates.

Expectations for Allstate Shares

The bank notes that its favorite in the insurance sector, Allstate, is trading at attractive levels. Allstate shares rose by more than 6% as of 2025. However, JPMorgan's target price of $260 reveals that the stock has the potential for an increase of over 25% in 2026. Assessments reflect a strong portfolio weighting along with robust automotive and home margins.

Avery Dennison: RFID Technology

There are also opportunities in the packaging sector. Avery Dennison signed a partnership agreement with Walmart to use radio frequency identification (RFID) tags for fresh foods. This partnership could strengthen the company's RFID business for 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 your investment decisions. The information here does not constitute investment advice.