Michael Hakes’s Top Picks for Feb. 18, 2026
BNN Bloomberg
Top picks from Michael Hakes, Senior Portfolio Manager, Murray Wealth Group
Focus: U.S. & Global Stocks
Top picks: Nu Holdings, Thermo Fisher Scientific, Amazon.com
MARKET OUTLOOK:
As we move through 2026, the equity market is undergoing a transition from “AI exposure” to “show me the ROI (return on investment).” A Morgan Stanley study of 3,600 global stocks reveals a widening gap: upward earnings revisions for AI Adopters have outpaced AI-Disrupted peers by roughly two times since late 2023. With the market moving past speculative hype, the focus has shifted to measurable productivity, particularly as 80 per cent of expected AI value is projected to stem from cost efficiency and margin expansion rather than pure revenue growth.
Despite a “flattish” start to the year, the fundamental backdrop for the S&P 500 remains healthy, with earnings growth projected at eight to 10 per cent. This resilience is bolstered by a stable job market and anticipated U.S. Federal Reserve rate cut(s). However, significant headwinds remain. Midterm election cycles typically introduce policy uncertainty, and the “AI capex gap” looms large. Consensus estimates for project capex for the “Big 6” hyperscaler’s has gone from US$440 billion in 2025 to US$750 billion in 2026 and over US$900 billion by 2027.
Global food and beverage companies from PepsiCo to Coca-Cola are focusing on shorter ingredient lists and smaller pack sizes in 2026 as more people take appetite-suppressing GLP-1 drugs for weight loss.
Top picks from Michael Hakes, Senior Portfolio Manager, Murray Wealth Group
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