US REITs set for rebound in 2026 as rate cuts and valuation gap drive 17% return

Investing.com -- The supermarket sector presents compelling investment opportunities for 2026, with several chains offering attractive valuations despite ongoing industry challenges. According to WarrenAI’s analysis using Investing Pro metrics, these grocery retailers stand out for their combination of value, growth potential, and stability.

Kroger leads the pack as the top supermarket stock for defensive investors in 2026. Despite a modest 3.6% one-year return, the company trades below both its fair value of $63.58 and analyst target of $73.86, offering 6.5% upside according to InvestingPro. With a solid 2.0% dividend yield and a forward P/E of 12.0x, Kroger presents quality at a discount.

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1. Kroger (NYSE:KR): Trading at $59.68, Kroger offers value and stability with a 2.0% dividend yield and a Pro Score of 2.17. The company’s forward PEG ratio of 0.62 indicates significant growth potential relative to its current valuation. The company’s EPS growth is forecast above 35%, with a low forward PEG ratio of 0.62 signaling undervaluation. Recent asset sales and a renewed focus on core grocery operations suggest a leaner, more focused business moving forward. While technicals appear bearish short-term, the fundamentals look strong for a potential rebound.

2. Albertsons Companies (NYSE:ACI): At $16.81, Albertsons represents a deep value play with considerable risk. Despite a -13.8% one-year return, it trades at an attractive forward P/E of 7.5x and PEG of 0.32. Analysts see substantial upside to $22.35 (32.9% above current price), though InvestingPro’s fair value of $15.60 suggests caution. The company offers a 2.9% dividend yield and has appeared on JPMorgan’s list of top consumer stocks for 2026, despite ongoing concerns about its high debt levels.

3. Sprouts Farmers Market (NASDAQ:SFM): Priced at $77.59, Sprouts emerges as the sector’s growth leader with the highest Pro Score (3.06) and impressive revenue growth forecast (14.1%). After suffering a steep -45% one-year decline, the stock now trades at a forward P/E of 14.4x and PEG of 0.39, potentially offering growth at a bargain. The company boasts the sector’s top ROIC at 13.0%, though analyst sentiment remains mixed with Deutsche Bank recently initiating coverage with a Hold rating and $88 target.

4. Weis Markets (NYSE:WMK): At $65.23, Weis Markets offers defensive characteristics with the lowest debt ratio (12% D/E) and a consistent 2.0% dividend yield. Trading below its fair value of $77.34 with 18.6% potential upside, the company provides stability but limited growth prospects, as reflected in its 0% growth forecast and higher PEG ratio of 2.04. For risk-averse investors, it represents a safe option without significant upside potential.

These supermarket stocks present varied investment profiles for 2026, from value plays to growth opportunities, allowing investors to select based on their risk tolerance and investment goals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- BMO Capital Markets upgraded Marriott International Inc (NASDAQ:MAR) to Outperform, saying the hotel operator is well placed to benefit from a steadier lodging backdrop in 2026 and potential upside from its credit card partnerships.

BMO set a $370 price target and said it has become more constructive on the sector for 2026, with Marriott standing out because of its high-end brand mix and asset-light business model.

The firm said Marriott’s fee-based structure delivers durable growth with low capital needs, limited fixed costs and strong cash generation, supporting more than $3 billion a year in share repurchases.

The analysts said they have previously underestimated the durability of Marriott’s growth and focused too heavily on valuation. In their view, the company’s ability to keep growing through a mixed macro backdrop supports the case for continued earnings growth and possibly further multiple expansion.

BMO expects Marriott to outperform peers on revenue per available room growth in 2026. It views the stock as a more offensive way to play the cycle than Hilton, citing Marriott’s higher exposure to incentive management fees, luxury and full-service hotels, and international markets. Marriott has outgrown Hilton Worldwide Holdings Inc (NYSE:HLT) on RevPAR by an average of about 180 basis points between 2023 and 2025, and BMO expects that trend to continue next year.

A key source of upside is Marriott’s credit card program. Credit card fees account for about 21% of Marriott’s franchise fees and have consistently grown faster than the company’s underlying earnings model. Since the last renewal in 2017, Marriott’s loyalty membership has more than doubled, room count has risen about 40%, and global card spending is up roughly 80%.


BMO said this sets the stage for a favorable renewal in 2026. A conservative 10% uplift would add about 120 basis points to EBITDA growth, which the firm believes is not fully reflected in current forecasts.

BMO flagged risks, including a muted RevPAR environment and slower unit growth compared with some peers. Still, it said the quality of Marriott’s growth and its brand mix support the upgrade despite those headwinds.

Investing.com -- Microsoft and OpenAI are viewed as the strongest artificial intelligence players among major technology vendors, according to Bernstein’s latest survey of 105 U.S. and European chief information officers. 

Bernstein analyst Mark Newman said respondents “perceived [them] to be the strongest AI players, with Apple making the top 10.”

The November–December survey showed a more optimistic outlook for technology budgets in 2026. 

Bernstein noted that CIO expectations for IT spending were “incrementally more constructive” compared with mid-2025, adding that stronger corporate earnings forecasts support the view that spending growth this year could match or exceed Gartner’s estimated 9 percent expansion for 2025.

CIOs continue to prioritise investment in software, networking and storage, while signalling declines for x86 servers, mainframes and printers. 

Bernstein stated that sentiment toward AI consulting is improving, although “enterprise CIOs were negative on GPU server spend.” 

Despite rising interest in generative AI, 72 percent of CIOs said AI and LLMs remain “a very small part of their budgets today,” even as the share who believe AI has changed how staff work rose to 10 percent.

PC spending is expected to fall over the next year, with only 14 percent of CIOs anticipating faster replacement cycles. 

Still, 40 percent plan Windows 11 upgrades, and Bernstein expects richer configurations and a higher mix of AI PCs to support average selling prices.

On vendor spending intentions over the next five years, Microsoft, Amazon and ServiceNow were the top winners. Bernstein highlighted Microsoft’s lead in cloud usage, with “88% of CIOs use Azure vs. 71% for AWS and 39% for GCP.”

Investing.com - European stocks gained ground on Friday, after the release of key U.S. jobs data that could shape expectations for Federal Reserve monetary policy in 2026.

The DAX index in Germany gained 0.5%, the CAC 40 in France advanced 1.4% and the FTSE 100 in the U.K. rose 0.8%. 

Payrolls data

The focus of investors in Europe, as well as most of the world, was firmly on the U.S. nonfarm payrolls report.

The U.S. economy added fewer jobs than anticipated in December, but the unemployment rate ticked lower, bolstering bets that the Federal Reserve will stand pat on interest rates later this month.

Nonfarm payrolls last month stood at 50,000, down from 56,000 in November. Economists had anticipated a reading of 66,000. November’s total was also revised lower from 64,000 initially. The Labor Department’s Bureau of Labor Statistics flagged that October’s decline in payrolls was revised lower by 68,000 to a loss of 173,000.

The unemployment rate ticked lower, coming in at 4.4%, compared to forecasts that it would match November’s downwardly revised level of 4.5%.

The Federal Reserve cut interest rates at each of its last three gatherings in 2025, prioritizing worries over the health of a weakening labor market above signs of sticky inflationary pressures.

However, it is widely expected to stand pat on rates later this month, and a large degree of uncertainty exists over the extent of future cuts this year as policymakers appear to be deeply divided.

Back in Europe, German industrial production grew 0.8% on the month in November, a significant improvement from the expected drop of 0.6%, suggesting that the eurozone’s largest economy was showing signs of recovery into the year end.

Eurozone retail sales for November are due later in the session, and are expected to show that the region’s consumers remain under pressure. 

Tariffs court ruling looms

On the political front, the future of Greenland remains in the spotlight, with the CEO of mining company Amaroq indicating that the U.S was mulling investing in critical minerals mining projects on the island. 

This comes ahead of talks between Washington and Danish officials over the island’s future as U.S. President Donald Trump maintains its importance to U.S. national security.

Also of likely interest could be the Supreme Court ruling on the legality of the Trump administration’s global tariffs, which could come as early as this session.

The court could decide the International Emergency Economic Powers Act of 1977 did not give Trump the authority to levy the duties, creating a great deal of uncertainty over the around $150 billion of duties already paid by importers.

Mega mining merger 

In the corporate sector all eyes will be on the mining sector after Glencore (LON:GLEN) confirmed late Thursday that it was in early talks to be acquired by Rio Tinto (LON:RIO), in a combination that would potentially create the world’s largest mining company.

Rio Tinto, the world’s biggest iron ore miner, has a market capitalization of about $142 billion, while Glencore is valued at $65 billion as of last close.

"It makes sense if terms are right for both,” said Argo Investments senior portfolio manager Andy Forster. ” The biggest question mark would be the culture of the two companies as Glencore clearly has a trading background, is very opportunistic and results-focused, some of those aspects of their culture could actually be good for Rio.”

Elsewhere, J Sainsbury (LON:SBRY) said it now expects retail free cash flow of more than £550 million for the current financial year, with the U.K. grocer raising its outlook after stronger grocery-led trading over the Christmas period.

Rivals Tesco (LON:TSCO) and Marks and Spencer (LON:MKS) both reported strong Christmas food sales on Thursday.

Crude set for weekly gain

Oil prices rose strongly on Friday, on course for another weekly gain, as developments in Venezuela and Iran threatened to disrupt global supplies.

Brent futures gained 3% to $63.86 a barrel and U.S. West Texas Intermediate crude futures rose 3.4% to $59.70 a barrel.

Both benchmark prices climbed more than 3% on Thursday, following two straight days of declines, putting the contracts on course for weekly gains of around 4 to 5%, the third in a row.

Civil unrest in major Middle Eastern producer Iran has added to concerns about global supply following the Trump administration’s seizure of Venezuela President Nicolas Maduro last week and his claims the U.S. will control the South American country’s oil sector.

Investing.com – U.K. stocks were higher after the close on Friday, as gains in the Oil & Gas Producers, Industrial Metals & Mining and Industrial Transportation sectors led shares higher.

At the close in London, the Investing.com United Kingdom 100 gained 0.84%.

The best performers of the session on the Investing.com United Kingdom 100 were Glencore PLC (LON:GLEN), which rose 9.60% or 39.65 points to trade at 452.65 at the close. Meanwhile, Antofagasta PLC (LON:ANTO) added 4.11% or 137.00 points to end at 3,473.00 and Auto Trader Group Plc (LON:AUTOA) was up 3.81% or 21.80 points to 593.60 in late trade.

The worst performers of the session were J Sainsbury PLC (LON:SBRY), which fell 5.29% or 17.40 points to trade at 311.60 at the close. Rio Tinto PLC (LON:RIO) declined 3.04% or 188.00 points to end at 6,006.00 and International Consolidated Airlines Group S.A. (LON:ICAG) was down 2.71% or 11.80 points to 424.10.

Rising stocks outnumbered declining ones on the London Stock Exchange by 1120 to 636 and 539 ended unchanged.

Shares in Glencore PLC (LON:GLEN) rose to 52-week highs; up 9.60% or 39.65 to 452.65.

Gold Futures for February delivery was up 1.32% or 58.96 to $4,519.66 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February rose 3.36% or 1.94 to hit $59.70 a barrel, while the March Brent oil contract rose 3.02% or 1.87 to trade at $63.86 a barrel.

GBP/USD was unchanged 0.22% to 1.34, while EUR/GBP unchanged 0.01% to 0.87.

The US Dollar Index Futures was up 0.24% at 98.93.

Investing.com – Spain stocks were lower after the close on Friday, as losses in the Consumer Services, Building & Construction and Telecoms & IT sectors led shares lower.

At the close in Madrid, the IBEX 35 fell 0.03%.

The best performers of the session on the IBEX 35 were Indra A (BME:IDR), which rose 2.54% or 1.45 points to trade at 58.60 at the close. Meanwhile, Puig Brands SA (BME:PUIGb) added 1.91% or 0.30 points to end at 15.97 and Banco Bilbao Vizcaya Argentaria SA (BME:BBVA) was up 1.89% or 0.38 points to 20.45 in late trade.

The worst performers of the session were International Consolidated Airlines Group SA (BME:ICAG), which fell 2.49% or 0.13 points to trade at 4.89 at the close. Corporacion Acciona Energias Renovables SA (BME:ANE) declined 2.35% or 0.54 points to end at 22.48 and Merlin Properties SA (BME:MRL) was down 2.20% or 0.28 points to 12.46.

Falling stocks outnumbered advancing ones on the Madrid Stock Exchange by 92 to 90 and 27 ended unchanged.

Shares in Indra A (BME:IDR) rose to all time highs; rising 2.54% or 1.45 to 58.60.

Gold Futures for February delivery was up 1.28% or 57.15 to $4,517.85 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February rose 3.36% or 1.94 to hit $59.70 a barrel, while the March Brent oil contract rose 3.03% or 1.88 to trade at $63.87 a barrel.

EUR/USD was unchanged 0.23% to 1.16, while EUR/GBP unchanged 0.01% to 0.87.

The US Dollar Index Futures was up 0.24% at 98.92.