Name: Good earnings and strong margins will continue this year, says Hightower's Stephanie Link
Uploaded: 2026-01-02T13:04:59+00:00
Duration: 257 s

Speakers

Stephanie Link — Chief Investment Strategist, Hightower

Summary

Stephanie Link, Hightower Advisors chief investment strategist, discusses her 2026 market outlook on CNBC's Squawk Box. She expects continued but slower S&P 500 gains, supported by economic acceleration, earnings growth, fiscal policy, bank lending, deregulation, M&A, and Fed cuts. She favors laggard Meta, economically sensitive rails like Union Pacific, automation through Rockwell Automation, consumer exposure via Capital One and Estee Lauder, and animal health leader Zoetis.

Stephanie Link expects U.S. economic acceleration in 2026.
She forecasts 8-10% S&P 500 growth and 10-12% earnings growth.
She favors laggard tech, specifically Meta.
She likes economically sensitive rails, including Union Pacific.
She recommends automation exposure via Rockwell Automation.
She wants consumer exposure via Capital One and Estee Lauder.
She sees opportunity in animal health leader Zoetis.

Ideas

Stephanie Link Chief Investment Strategist, Hightower 1:54

Expects 8-10% S&P 500 gain in 2026.

Link expects the S&P 500 to rise another 8-10% in 2026, below the prior three double-digit years but still positive. She cites an accelerating economy from a resilient consumer, AI momentum, fiscal policy from the One Big Beautiful Bill, ten consecutive weeks of accelerating bank loan growth, deregulation, M&A, and lagged Fed cuts. She forecasts 10-12% earnings growth, mid-single-digit revenue growth, strong margins, and continued buybacks.

Stephanie Link Chief Investment Strategist, Hightower 2:34

Meta is a laggard tech opportunity.

Link favors laggard tech and specifically Meta because it is 17% off its high at 23x earnings while offering 20% earnings growth and 26% revenue growth. She thinks 2026 sets up well as aggressive AI spending improves tools, customer applications, and messaging, Reality Labs cost cuts could save about $5 billion, and the company has a $31 billion buyback. She sees possible $38 EPS power by 2027 and argues the spending is improving ROI.

Stephanie Link Chief Investment Strategist, Hightower 2:38

Rails lagged; economic sensitivity offers upside.

Link wants economically sensitive companies, singling out Union Pacific and the rails, which lagged over the past year and should benefit as the economy accelerates.

Stephanie Link Chief Investment Strategist, Hightower 2:45

Automation early innings; own Rockwell.

Link wants to own automation because it is still in the early innings, and names Rockwell Automation as the way to play it.

Stephanie Link Chief Investment Strategist, Hightower 2:52

Favor consumer via Capital One, Estee Lauder.

Link wants continued exposure to the resilient consumer and says she likes that exposure via Capital One or Estee Lauder.

Stephanie Link Chief Investment Strategist, Hightower 3:00

Zoetis is industry leader with opportunity.

Link has been a big fan of animal health and names Zoetis, which was down 23% last year, as an industry leader with 20% market share; she sees opportunity there.

Good earnings and strong margins will continue this year, says Hightower's Stephanie Link

Summary

Ideas

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