5 sector specialists name 5 stocks to watch in 2026

In the final episode of 2025 on Antipodes' podcast, our sector portfolio managers were tasked with sharing their highest-conviction ideas for the year ahead.

The episodes produces an eclectic mix of stock ideas across global industrials, healthcare, infrastructure, technology, and emerging markets. 

But it also underscores a common themes our team believes will reward investors in 2025 - looking for companies that are mispriced relative to their business resilience and growth profile.

For clients and regular podcast listeners, you might remember similar podcast episode in previous years. So, we also check in on the sector PMs stock picks for 2025, to asses how they went. 

Listen here on this post, or on Spotify, Apple Podcasts, or YouTube. 

If you'd prefer to a quick summary of the 2026 stock ideas, read on below. 

Hidden value in US industrials

Sector: Industrials
Stock to watch: Honeywell International Inc (NASDAQ: HON)

Antipodes Hardware, Industrials, and Technology Portfolio Manager, Graham Hay says after several years of underperformance, Honeywell is emerging as a compelling value opportunity within US industrials. 

The $122 billion diversified conglomerate has begun addressing long-standing conerns around complexity by separating its businesses into three focused entities: advanced materials, aerospace, and automation.

This simplification has the potential to unlock significant shareholder value. The aerospace division benefits from strong aftermarket exposure and leading positions in business jets and auxiliary power units, while automation has attractive long-term tailwinds in building controls, energy efficiency and industrial software.

At a discount to the broader market, Honeywell offers investors exposure to high-quality industrial assets at a time when focus and capital discipline are returning to the group.

A turning point for big pharma

Sector: Healthcare
Stock to watch: Merck & Co Inc (NYSE: MRK)

Antipodes Healthcare Portfolio Manager, Nick Cameron highlighted why Antipodes believes Merck & Co is entering 2026 at an inflection point. While concerns around the eventual patent expiry of Keytruda have weighed heavily on the stock, recent developments suggest the market may be underestimating the company’s ability to offset this risk.

A strengthening late-stage pipeline, successful capital deployment through M&A, early momentum from new product launches and an increasing focus on share buybacks are all helping to reduce the overhang. 

At around 11x forward earnings, Merck trades well below peers despite improving fundamentals. 2026 will be critical year for the pharma giant, with several key clinical readouts that could help re-establish Merck’s growth credentials and drive a re-rating.

Volatility an opportunity for this infrastructure compounder

Sector: Infrastructure
Stock: Sabesp (Companhia de Saneamento Básico do Estado de São Paulo) (BVMF: SBSP3)

Sabesp is Brazilian water utility, which according to Antipodes Infrastructure Portfolio Manager, Max Shramchenko, provides a combination of attractive investment characteristics including, regulatory certainty, strong growth and an attractive valuation.

It serves nearly 30 million people in the state of São Paulo and benefits from a fully regulated model with clear visibility into the 2030s. 

Recent governance reforms, including the exit of state control and the appointment of experienced private-sector management, have materially improved the investment case.

With regulated asset base growth of around 10% per annum, and expected mid-to-high-teens returns on equity, the stock offers long-term compounding potential. 

Volatility surrounding Brazilian politics in 2026 may provide attractive entry points.

The high-profile Oracle sell-off provides opportunity

Sector: Technology, Media & Telecommunications
Stock: Oracle Corp (NYSE: ORCL)

Antipodes Developed Markets Portfolio Manager, James Rodda, is tipping US tech giant Oracle to bounce back following a sharp stock price plunge in recent months. 

While headlines have focused on its high-profile AI infrastructure partnerships, the core business (enterprise software and cloud infrastructure) continues to grow steadily and generate strong cash flows.

At current prices, investors are effectively paying for the core business alone, with optionality from AI-driven compute demand largely unpriced. Even if the most optimistic AI scenarios don’t fully materialise, Oracle offers downside protection through its entrenched customer base and recurring revenues.

For 2026, it represents an attractive combination of valuation support, growth optionality and margin of safety.

Growth at a discount in Emerging Markets

Sector: Emerging Markets
Stock: Globant SA (NYSE: GLOB)

Globant, a Buenos Aires-founded digital engineering services provider, has seen its share price fall sharply amid macro headwinds and investor concerns that AI could disrupt traditional IT services models. 

However, Antipodes Emerging Markets Portfolio Manager John Stavliotis, sees the recent sell-off as disconnected from the company’s underlying business offering and fundamentals, making it his sector's stock to watch in 2026.

Priced a steep discount to peers despite a long history of superior growth, Globant offers asymmetric upside as growth in the pipeline translates into revenue.

The company specialises in complex, custom digital solutions - positioning it as a partner for AI implementation rather than a casualty of automation. Its revenue pipeline has grown significantly, free cash flow is improving, and management has initiated a buyback.

Trading at a steep discount to peers despite a long history of superior growth, Globant offers asymmetric upside if demand normalises and AI adoption accelerates.

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