Smart risk in a bull market - 7 stocks to watch for in 2026: Jon Erlichman

After a big run for growth stocks, some investors may feel guilty for wanting more. But Drew Pettit, Director of U.S. Equity Strategy at Citi, believes investors can still take risk if they are selective.

After a big run for growth stocks, some investors may feel guilty for wanting more. In a bull market, that discomfort can tempt investors to shift into other areas, only to find those stocks underperforming.

Drew Pettit, Director of U.S. Equity Strategy at Citi, believes investors can still take risk if they are selective. For 2026, he’s focusing on two kinds of growth areas: fast-growing companies investing wisely and cyclical businesses just starting to accelerate. Instead of buying the middle of the market, which he thinks could underperform, he’s concentrating on areas where risk is more likely to pay off.

Growth exposure: Boston Scientific, CrowdStrike, Uber

Boston Scientific (BSX)

Boston Scientific develops innovative medical devices that help patients and hospitals. Analysts like it because the company keeps investing wisely in growth initiatives.

CrowdStrike (CRWD)

CrowdStrike is a cybersecurity leader. It suffered a major outage in mid-2024 but has bounced back strongly. The company continues to add customers and expand its platform, with analysts seeing more upside ahead.

Uber (UBER)

Uber has had a strong year, easily outpacing the S&P 500. Its ride-hailing and delivery business keeps expanding, and improving efficiency gives it more room to grow.

Nvidia (NVDA)

Nvidia powers much of the AI revolution. Even after a huge run, demand for its chips remains high, and earnings momentum keeps it a key growth stock to watch.

Cyclical exposure: Teradyne, CoStar Group, Regal Rexnord

Teradyne (TER)

Teradyne makes the equipment that tests computer chips. As chip demand rises, Teradyne stands to benefit. Analysts like its steady position in the cycle and see more potential growth ahead.

CoStar Group (CSGP)

CoStar Group collects and analyzes commercial real estate data. The stock has had ups and downs, but analysts remain positive as the real estate cycle improves.

Regal Rexnord (RRX)

Regal Rexnord makes the parts that keep machines running in factories and warehouses. Analysts view it as a solid cyclical play benefiting from rising industrial demand and long-term trends.

The ticker take?

Bull markets are rarely straight lines. Pettit’s approach shows investors can still find opportunities by focusing on companies investing for future growth or positioned to benefit from cyclical rebounds. Targeted investments in these areas could translate into meaningful returns.

Jon Erlichman is a BNN Bloomberg contributor and the host of Ticker Take on YouTube.