JPMorgan has refreshed its high-conviction equity picks for October 2026, highlighting American Express, Thermo Fisher Scientific, and Liberty Energy. The brokerage suggests a tactical shift for the fourth quarter, balancing value and growth strategies to navigate current market uncertainties.
JPMorgan has recalibrated its preferred stock list as markets transition into the final quarter of 2026, signaling a strategic shift for investors. The bank’s research team has identified American Express, Thermo Fisher Scientific, and Liberty Energy as high-conviction picks, aiming to balance value-oriented plays with structural growth themes amid a volatile macroeconomic environment.
American Express is positioned as a core value holding within the portfolio. Despite a year-to-date share price decline of 18%, analysts view the company as a disciplined player with strong capital returns. The rationale relies on the firm’s resilience in consumer spending, though the stock faces potential risks from shifting credit rates and broader concerns regarding durable consumer demand.
Thermo Fisher Scientific is featured as a growth-oriented selection within the life sciences sector. The brokerage highlights the company’s ability to benefit from long-term themes, including the adoption of artificial intelligence in research, a renewed focus on U.S. biopharma reshoring, and a strategic partnership with the Mayo Clinic. This diversified revenue stream is seen as a way for investors to maintain exposure to innovation while mitigating cyclical downturns.
Liberty Energy serves as the firm’s pick for investors targeting growth in the energy sector. The company is expected to capitalize on the surge in demand for power infrastructure, particularly from data center developments and the broader power deficit in North America. This inclusion reflects a focus on energy market leverage, tying the investment thesis to the growing energy requirements of modern technology infrastructure.
JPMorgan’s broader outlook for the remainder of 2026 emphasizes a selective, high-dispersion market environment. Rather than expecting a broad-based rally, the firm suggests that growth is currently uneven, often referred to as a K-shaped economic trend. This environment requires investors to be mindful of market concentration and sector-specific risks.
Investors looking at these recommendations should note that risks remain prevalent. Macroeconomic factors, such as sticky inflation and volatile credit rates, could impact financial services companies like American Express. Additionally, the potential for regulatory or policy changes affecting industrial rebuild and energy infrastructure projects continues to be a factor for sectors like energy and life sciences. The next phase for these stocks will largely depend on upcoming quarterly results and management commentary regarding demand and margins in these specific areas.