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Buy 5 Non-Tech Stocks on the Dip to Strengthen Your Portfolio in 2026
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Key Takeaways
Investors are rotating into rate-sensitive sectors as markets hit new highs on a recent Fed cut.
Each featured stock is trading below its 52-week high while showing improved earnings estimates.
ONON, LEN, JEF, OMC and TRI are five cyclical sector stocks currently trading at lucrative valuation.
On Dec. 11, the two major indexes — the Dow and the S&P 500 — have advanced 1.3% and 0.2%, respectively. At the same time, these two benchmarks recorded their fresh all-time high closing. On the other hand, the tech-heavy Nasdaq Composite fell 0.3%.
The recent Fed rate cut and extremely high valuation of the technology sector compelled market participants to shift from technology to other rate-sensitive cyclical sectors, such as utilities, industrials, financials, energy, materials and health care.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
On Holding AG
On Holding provides footwear and sports apparel products including ultralight and stretchable fabrics and accessories. ONON offers its products through independent retailers and distributors, online and stores.
On Holding has an expected revenue and earnings growth rate of 20.6% and 79.3%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 22% over the last 30 days. ONON is currently trading at a discount of 22.7% from its 52-week high.
Lennar Corp.
Lennar is engaged in homebuilding and financial services in the United States. LEN’s prospects are benefiting from its focus on the tech-enabled manufacturing platform, aimed at unlocking scalable efficiencies, reducing customer acquisition costs, and modernizing its entire operating model. Also, an asset-light and land-light model, and playbook strategies, bode well.
LEN is focused on various playbook strategies to reduce the direct construction cost, deliver gross margin improvement and maintain starts for the upcoming quarters. LEN prioritizes collaboration with trade partners to streamline the cost structure according to the prevailing sales price environment, aiming to speed up construction and reduce supply-chain disruptions.
Lennar has an expected revenue and earnings growth rate of 1.9% and 11.1%, respectively, for next year (ending November 2026). The Zacks Consensus Estimate for next year’s earnings has improved 0.2% over the last seven days. LEN is currently trading at a discount of 21.2% from its 52-week high.
Jefferies Financial Group Inc.
Jefferies Financial Group has gained market share in the investment banking (IB) business over the years without commensurately expanding its balance sheet and taking risks. This will likely continue to drive JEF’s top-line expansion as the IB business shows strength. Additionally, strategic collaborations and solid trading and asset management operations are likely to bolster its financials.
JEF’s strategic JVs and partnerships are expected to bolster its financial performance. While JEF faced challenges due to relatively higher interest rates and uncertainties surrounding tariff policies, a changing macroeconomic environment will likely support demand for leveraged loans.
Jefferies Financial Group has an expected revenue and earnings growth rate of 16.5% and 59.5%, respectively, for next year (ending November 2026). The Zacks Consensus Estimate for next year’s earnings has improved 0.8% over the last seven days. JEF is currently trading at a discount of 23.7% from its 52-week high.
Omnicom Group Inc.
Omnicom Group’s diverse portfolio across domains and in both the traditional and digital marketing segments reduces reliance on single revenue streams, ensuring adaptability and stability of revenues.
OMC’s investments in IT, data, analytics, and precision marketing enhance operational efficiency and attract clients with personalized campaigns, supporting growth in the digital advertising space. These efforts of OMC are supplemented with strategic M&A and reorganization efforts that bolster profitability. OMC continues to return value to its shareholders through both repurchases and dividends.
Omnicom Group has an expected revenue and earnings growth rate of 3.1% and 8.8%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.4% in the last 30 days. OMC is currently trading at a discount of 13.2% from its 52-week high.
Thomson Reuters Corp.
Thomson Reuters is a leading provider of value-added information and technology to users in the fields of law, tax, accounting, financial services, higher education, reference information, corporate training and assessment, scientific research and healthcare. TRI has five segments: Legal Professionals, Corporates, Tax and Accounting Professionals, Reuters News, and Global Print. TRI operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Thomson Reuters has an expected revenue and earnings growth rate of 7.6% and 12.4%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.1% in the last 60 days. TRI is currently trading at a discount of 39.6% from its 52-week high.
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Buy 5 Non-Tech Stocks on the Dip to Strengthen Your Portfolio in 2026
Key Takeaways
On Dec. 11, the two major indexes — the Dow and the S&P 500 — have advanced 1.3% and 0.2%, respectively. At the same time, these two benchmarks recorded their fresh all-time high closing. On the other hand, the tech-heavy Nasdaq Composite fell 0.3%.
The recent Fed rate cut and extremely high valuation of the technology sector compelled market participants to shift from technology to other rate-sensitive cyclical sectors, such as utilities, industrials, financials, energy, materials and health care.
At this stage, we recommend five non-tech large-cap stocks that are currently trading on the dip from their 52-week highs and available at attractive valuations. These are: On Holding AG (ONON - Free Report) , Lennar Corp. (LEN - Free Report) , Jefferies Financial Group Inc. (JEF - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Thomson Reuters Corp. (TRI - Free Report) . Each of our picks currently carries a Zacks Rank b#2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
On Holding AG
On Holding provides footwear and sports apparel products including ultralight and stretchable fabrics and accessories. ONON offers its products through independent retailers and distributors, online and stores.
On Holding has an expected revenue and earnings growth rate of 20.6% and 79.3%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 22% over the last 30 days. ONON is currently trading at a discount of 22.7% from its 52-week high.
Lennar Corp.
Lennar is engaged in homebuilding and financial services in the United States. LEN’s prospects are benefiting from its focus on the tech-enabled manufacturing platform, aimed at unlocking scalable efficiencies, reducing customer acquisition costs, and modernizing its entire operating model. Also, an asset-light and land-light model, and playbook strategies, bode well.
LEN is focused on various playbook strategies to reduce the direct construction cost, deliver gross margin improvement and maintain starts for the upcoming quarters. LEN prioritizes collaboration with trade partners to streamline the cost structure according to the prevailing sales price environment, aiming to speed up construction and reduce supply-chain disruptions.
Lennar has an expected revenue and earnings growth rate of 1.9% and 11.1%, respectively, for next year (ending November 2026). The Zacks Consensus Estimate for next year’s earnings has improved 0.2% over the last seven days. LEN is currently trading at a discount of 21.2% from its 52-week high.
Jefferies Financial Group Inc.
Jefferies Financial Group has gained market share in the investment banking (IB) business over the years without commensurately expanding its balance sheet and taking risks. This will likely continue to drive JEF’s top-line expansion as the IB business shows strength. Additionally, strategic collaborations and solid trading and asset management operations are likely to bolster its financials.
JEF’s strategic JVs and partnerships are expected to bolster its financial performance. While JEF faced challenges due to relatively higher interest rates and uncertainties surrounding tariff policies, a changing macroeconomic environment will likely support demand for leveraged loans.
Jefferies Financial Group has an expected revenue and earnings growth rate of 16.5% and 59.5%, respectively, for next year (ending November 2026). The Zacks Consensus Estimate for next year’s earnings has improved 0.8% over the last seven days. JEF is currently trading at a discount of 23.7% from its 52-week high.
Omnicom Group Inc.
Omnicom Group’s diverse portfolio across domains and in both the traditional and digital marketing segments reduces reliance on single revenue streams, ensuring adaptability and stability of revenues.
OMC’s investments in IT, data, analytics, and precision marketing enhance operational efficiency and attract clients with personalized campaigns, supporting growth in the digital advertising space. These efforts of OMC are supplemented with strategic M&A and reorganization efforts that bolster profitability. OMC continues to return value to its shareholders through both repurchases and dividends.
Omnicom Group has an expected revenue and earnings growth rate of 3.1% and 8.8%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.4% in the last 30 days. OMC is currently trading at a discount of 13.2% from its 52-week high.
Thomson Reuters Corp.
Thomson Reuters is a leading provider of value-added information and technology to users in the fields of law, tax, accounting, financial services, higher education, reference information, corporate training and assessment, scientific research and healthcare. TRI has five segments: Legal Professionals, Corporates, Tax and Accounting Professionals, Reuters News, and Global Print. TRI operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Thomson Reuters has an expected revenue and earnings growth rate of 7.6% and 12.4%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 2.1% in the last 60 days. TRI is currently trading at a discount of 39.6% from its 52-week high.