Press Release: Dollar General Launches Its Latest "7 Days Of Savings" Event February 1-7

By Ben Levisohn

As it turns out, a little chaos can be very good for stock-picking.

For investors, last year will be remembered for Trump's Liberation Day selloff and the massive rally back from the brink; for DeepSeek's challenge to the dominant artificial-intelligence companies; and gold's continued rally in what was either a search for a haven or the ultimate risk-on trade. In other words, it was a mess.

But with the dominant themes being challenged, last year wasn't all about Big Tech. And that meant that Barron's stockpickers stood a fighting chance when it came to beating the market. And beat it they did, with the average Barron's pick last year gaining 10.4% from the time we recommended it to the end of the year, outperforming the average benchmark gain of 9.2% over the same periods.

Many of our best picks resulted from a willingness to go against the grain with out-of-favor stocks — and impeccable timing. We recommended buying Dollar General on Jan. 31, 2025, when it was near its lowest level in more than six years, arguing that the company's problems were more than reflected in the price. Shares gained 87% through the end of 2025, easily beating the S&P 500's 14% rise over the corresponding period. Similarly, we recommended buying Paramount Skydance on Aug. 8, immediately after the completion of its merger, a moment that was portrayed as hopeless for the newly combined company. Instead, shares climbed 28%, beating the benchmark's 7.7% rise.

We also managed to turn the so-called Dolan discount into a premium. James Dolan, of Madison Square Garden Sports and other MSG companies, has never been known as the most shareholder-friendly of owners, resulting in many of his companies underperforming. Last year bucked that trend. Barron's recommended buying Sphere Entertainment, which operates a high-tech theater in Las Vegas, on May 9, arguing that its success would lead to more Spheres globally. The stock gained 193%, beating the S&P 500's 24%.

But Sphere wasn't the only Dolan property to outperform in 2025. Madison Square Garden Sports, owner of the New York Knicks and Rangers, gained 20% after we recommended it on Sept. 19, outpacing the benchmark's 0.3% rise over the same period, as billion-dollar deals for teams like the Boston Celtics and Los Angeles Lakers pushed the stock higher.

We even managed to capitalize on volatility in the AI trade. When DeepSeek, a Chinese AI company, announced results that caused a selloff in everything connected to artificial intelligence, we recommended scooping up shares of Amphenol on the dip. The maker of connectors, cables, and other electrical components is the proverbial picks-and-shovels play, and as the AI trade rebounded, so did Amphenol. Its stock rose 96% after we recommended it on Jan. 29, besting the S&P 500's 15% rise. Another AI play, Arista Networks, gained 38% after we recommended it on June 5, outpacing the index's 16% increase.

Other winners included cruise-line operator Viking Holdings, which gained 61% to the benchmark's 11%; Innodata, which rose 39% against its benchmark's 6.1% rise; and miner Newmont, which rose 46% as gold prices surged, beating the S&P 500's 6.7%.

We had our fair share of stinkers. In the cases of Pinterest and Phreesia — two of our worst picks, with declines of 25% and 38%, respectively — our bull cases simply proved to be, well, too bullish. Others suffered from bad timing, such as when we recommended buying Dell Technologies and Netflix after both stocks had gone on serious runs and were trading at premium valuations. In the case of pet-food purveyor Freshpet — our worst pick, with a decline of 54% — we not only misunderstood the company's moat but got the timing wrong, too.

Still, we feel pretty good about our performance. Even with just two of the Magnificent Seven outperforming the S&P 500 last year, it was still a tough year for stockpickers, with just 152 stocks in the benchmark, or about 30%, outperforming the index. Against that backdrop, our 44% success rate looks pretty decent, as does our outperformance.

With more mayhem on the docket in 2026, we'll aim to be even better.

Write to Ben Levisohn at ben.levisohn@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

JPMorgan Chase’s (JPM) head of equity strategy, Dubravko Lakos-Bujas, believes that U.S. President Donald Trump’s administration is likely to increase its affordability efforts ahead of the midterm election season and this will boost companies targeting low-income consumers.

Lakos-Bujas said in a note to clients, according to a CNBC report, that while the White House’s affordability efforts at present have not had widespread impact, this would likely change ahead of the November midterm elections.

“A shift in policymaking towards affordability has favored value-oriented themes as the administration positions itself ahead of the November midterm elections,” Lakos-Bujas said in the note.

The bank named 10 U.S. companies likely to benefit from its exposure to lower-income consumers.

Analyst Rationale

Lakos-Bujas said that he continues to favor stocks catering to the low-end consumer, a group that has been strained by persistently high inflation, adding that tax cuts in the “big beautiful bill” and falling gasoline prices are reasons to be optimistic about this group.

The analyst also highlighted Trump’s efforts to cap credit card rates in the short term and ban large institutions from buying houses as signs of the president’s growing focus on affordability.

Trump said earlier this month that he would introduce a one-year 10% cap on credit card interest rates, citing the exorbitantly high rates at present. The President also said that he will ban large institutional investors from buying single-family homes to address housing affordability amid soaring home prices. Separately, Trump also said he would be instructing representatives to buy $200 billion in mortgage bonds to bring down mortgage rates and make the cost of owning a home more affordable.

The Companies That Made The Cut

Consumer retailers Dollar Tree Inc. (DLTR) and Dollar General Corp. (DG) made it to the list, along with off-price retailer Burlington Stores Inc. (BURL) and multinational company Walmart Inc. (WMT).

Hunt-focused value retailer Dollar Tree recently received a downgrade from BNP Paribas to ‘Underperform’ from ‘Neutral’ and a cut in its price target to $87, down from $118, citing a weaker sales environment and a fall in consumable units. However, DLT shares have gained over 78% in the past year.

Meanwhile, Walmart has been gaining from a recent surge in AI-driven traffic, emerging as a key product discovery entry point for consumers. WMT shares have risen over 25% in the last one year.

Financial companies Citigroup Inc. (C) and Western Union Co. (WU) also made the cut. AI-lending platform Upstart Holdings (UPST), and credit card company Bread Financial Holdings (BFH) were the other financial companies that Lakos-Bujas named as potential beneficiaries from Trump’s affordability push.

Others on the analyst’s list include low-cost flyer Southwest Airlines Co. (LUV) and hospitality company Choice Hotels International, Inc. (CHH).

Shares of C and BFH have gained over 38% and 6% in the past year while shares of WU and UPST have each lost over 8% and 35% respectively in the same period.

LUV stock has risen over 32% while CHH stock has lost over 28% in the last 12 months.

Meanwhile, S&P Retail Select Industry Index (SPSIRE), which features discount retailers, gained over 10% in the past year and the State Street Consumer Staples Select Sector SPDR ETF (XLP) gained over 6%.