Jay Peters on 2026 Diversification: Top 3 Stock Picks

2026: The Year of Diversification

• 🎯 Jay Peters of New Edge Wealth predicts 2026 will be the year of diversification in investment portfolios.
• 💡 He offers three stock ideas to achieve this diversification, moving away from concentrated sectors like AI.

Stock Pick 1: Gilead Sciences (Biotech)

• 🔬 Gilead Sciences is highlighted for its innovation in the healthcare sector, particularly in its HIV pipeline and oncology focus.
• 💰 The company is described as a stable grower with a 2.8% dividend yield, trading at a reasonable 15 times earnings.
• 📊 With a 35% free cash flow margin, Gilead represents a profitable biotech firm suitable for diversification.

Stock Pick 2: Mueller Industries (Manufacturing)

• 🛠️ Mueller Industries, a global leader in copper pipes and fittings, is a $13 billion market cap company with over 150 years of history.
• 📈 Its vertical integration provides profitability and pricing power, with historical correlation to construction and housing starts.
• ⚡ The company is also benefiting from data center demand due to its HVAC and pipe fitting products, and from rising copper prices.

Stock Pick 3: NRG Energy (Power Generation)

• ⚡ NRG Energy, a major US power producer, is still seen as having upside despite a 70% stock increase this year.
• 🔌 The AI infrastructure boom is creating a bottleneck in power generation, with data center power consumption expected to triple in five years.
• 📈 NRG is well-positioned to benefit from rising electricity prices and robust demand, especially in the Mid-Atlantic grid.
• 💡 The company's focus on natural gas generation is seen as key to supplying data centers and the grid, offering double-digit growth and positive free cash flow.