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Forget AI - Buy 5 Non-Tech High-Flyers of 2025 for More Gains in 2026
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Key Takeaways
GM benefits from strong U.S. auto demand, China recovery and growing software and services revenue.
HOOD is seeing improved trading activity, higher net interest income and product diversification momentum.
FIVE raised full-year guidance on traffic gains, margin expansion and productive store expansion.
U.S. stock markets have been witnessing an astonishing rally since the beginning of 2023 barring some minor fluctuations. Although the rally has been primarily driven by the global boom in artificial intelligence (AI) technology, several non-tech behemoths have popped this year, aside from technology bigwigs.
Most financial researchers are busy talking about the AI revolution, next-generation quantum computing and massive deployment of 5G/6G wireless technologies. While doing this, we are missing out on several non-tech stocks that have thrived year to date. Investment in these stocks with a favorable Zacks Rank should be fruitful in 2026.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
General Motors Co.
General Motors remains the top-selling U.S. automaker with a 17% market share, driven by strong demand for its Chevrolet, GMC, Buick, and Cadillac brands. GM’s U.S. manufacturing expansion and China restructuring—where sales rose 10% year over year in the last reported quarter — support long-term growth.
GM’s software and services arm is becoming a key profit engine, with $2 billion in revenues at the end of third-quarter 2025 and 11 million OnStar subscribers. Strong liquidity of $35.7 billion and robust buybacks boost investor confidence. Additionally, the Auto Tariff Offset Process should increase GM’s domestic cost competitiveness. Backed by strong brands, operational recovery in China, and software-led diversification, GM appears well-positioned for sustained earnings growth and shareholder value creation.
General Motors has an expected revenue and earnings growth rate of -0.3% and 12.9%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.5% over the last seven days.
Robinhood Markets Inc.
Robinhood Markets operates a financial services platform in the United States that allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.
Given the higher retail participation in markets, HOOD’s trading revenues are expected to improve in the near future. Buyouts and product diversification efforts to become a leader in the active trader market will likely bolster its financials.
HOOD’s third-quarter 2025 results were aided by solid trading activity and growth in net interest revenues. HOOD’s vertical integration will likely enhance its product velocity. Further, a robust liquidity position will help HOOD to sustain share repurchases.
Robinhood Markets has an expected revenue and earnings growth rate of 21% and 17.9%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.8% over the last seven days.
Expedia Group Inc.
Expedia operates a strong platform that connects travelers and suppliers, creating a cycle that supports stable demand, thus driving stable increase in gross bookings. EXPE’s broad and well-recognized brand portfolio allows it to address diverse traveler needs across regions, supporting strong traffic, higher booking volumes and effective monetization.
EXPE’s extensive global supply base enhances its competitive positioning, while continuing investments in technology and partnerships are helping strengthen its international footprint. A solid balance sheet and healthy liquidity further support EXPE’s long-term stability.
Expedia has an expected revenue and earnings growth rate of 6.3% and 20.8%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.2% over the last 60 days.
Dillard's Inc.
Dillard's has been benefiting from growth initiatives and solid execution. DDS continues to strengthen its customer base through enhancements in stores and online, including better brand partnerships, trend-focused assortments, remodels and stronger personnel incentives.
Fashion-forward merchandise remains a key traffic driver for DDS, reflected in strong performance across juniors’, children’s and ladies’ apparel, accessories and lingerie. DDS’ focus on fashionable and exclusive merchandise continues to attract shoppers, while tight expense management contributed to better-than-expected earnings in the last reported quarter.
DDS also stands out for its strong financial health, with solid liquidity, minimal rent obligations as it owns most of its real estate, and a healthy cash balance. Shareholder-friendly moves like steady dividends and buybacks reflect its confidence.
Dillard's has an expected revenue and earnings growth rate of 0.7% and -8.2%, respectively, for next year (ending January 2027). The Zacks Consensus Estimate for next year’s earnings has improved 5.3% over the last 30 days.
Five Below Inc.
Five Below is delivering solid momentum, supported by accelerating traffic gains, improved marketing effectiveness and broad-based comp strength across new and returning customers. Operating leverage was also a key highlight, with gross margin expanding 70 bps due to shrink mitigation in the last reported quarter and fixed-cost leverage, and EPS increasing more than 60% year over year.
FIVE raised full-year expectations, citing a solid start to holiday trading and stronger expectations for sales, the operating margin and EPS. For fiscal 2025, FIVE’s total sales are now expected to be $4.62-$4.65 billion, an upward revision from the earlier stated $4.44-$4.52 billion.
Store expansion remained productive, highlighted by exceptional new-market openings, while curated assortments and stronger inventory positioning further reinforced FIVE’s growth trajectory.
Five Below has an expected revenue and earnings growth rate of 8.6% and 5.6%, respectively, for next year (ending January 2027). The Zacks Consensus Estimate for next year’s earnings has improved 1.3% over the last seven days.
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Forget AI - Buy 5 Non-Tech High-Flyers of 2025 for More Gains in 2026
Key Takeaways
U.S. stock markets have been witnessing an astonishing rally since the beginning of 2023 barring some minor fluctuations. Although the rally has been primarily driven by the global boom in artificial intelligence (AI) technology, several non-tech behemoths have popped this year, aside from technology bigwigs.
Most financial researchers are busy talking about the AI revolution, next-generation quantum computing and massive deployment of 5G/6G wireless technologies. While doing this, we are missing out on several non-tech stocks that have thrived year to date. Investment in these stocks with a favorable Zacks Rank should be fruitful in 2026.
Five such stocks are — General Motors Co. (GM - Free Report) , Robinhood Markets Inc. (HOOD - Free Report) , Expedia Group Inc. (EXPE - Free Report) , Dillard's Inc. (DDS - Free Report) and Five Below Inc. (FIVE - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
General Motors Co.
General Motors remains the top-selling U.S. automaker with a 17% market share, driven by strong demand for its Chevrolet, GMC, Buick, and Cadillac brands. GM’s U.S. manufacturing expansion and China restructuring—where sales rose 10% year over year in the last reported quarter — support long-term growth.
GM’s software and services arm is becoming a key profit engine, with $2 billion in revenues at the end of third-quarter 2025 and 11 million OnStar subscribers. Strong liquidity of $35.7 billion and robust buybacks boost investor confidence. Additionally, the Auto Tariff Offset Process should increase GM’s domestic cost competitiveness. Backed by strong brands, operational recovery in China, and software-led diversification, GM appears well-positioned for sustained earnings growth and shareholder value creation.
General Motors has an expected revenue and earnings growth rate of -0.3% and 12.9%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.5% over the last seven days.
Robinhood Markets Inc.
Robinhood Markets operates a financial services platform in the United States that allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.
Given the higher retail participation in markets, HOOD’s trading revenues are expected to improve in the near future. Buyouts and product diversification efforts to become a leader in the active trader market will likely bolster its financials.
HOOD’s third-quarter 2025 results were aided by solid trading activity and growth in net interest revenues. HOOD’s vertical integration will likely enhance its product velocity. Further, a robust liquidity position will help HOOD to sustain share repurchases.
Robinhood Markets has an expected revenue and earnings growth rate of 21% and 17.9%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.8% over the last seven days.
Expedia Group Inc.
Expedia operates a strong platform that connects travelers and suppliers, creating a cycle that supports stable demand, thus driving stable increase in gross bookings. EXPE’s broad and well-recognized brand portfolio allows it to address diverse traveler needs across regions, supporting strong traffic, higher booking volumes and effective monetization.
EXPE’s extensive global supply base enhances its competitive positioning, while continuing investments in technology and partnerships are helping strengthen its international footprint. A solid balance sheet and healthy liquidity further support EXPE’s long-term stability.
Expedia has an expected revenue and earnings growth rate of 6.3% and 20.8%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.2% over the last 60 days.
Dillard's Inc.
Dillard's has been benefiting from growth initiatives and solid execution. DDS continues to strengthen its customer base through enhancements in stores and online, including better brand partnerships, trend-focused assortments, remodels and stronger personnel incentives.
Fashion-forward merchandise remains a key traffic driver for DDS, reflected in strong performance across juniors’, children’s and ladies’ apparel, accessories and lingerie. DDS’ focus on fashionable and exclusive merchandise continues to attract shoppers, while tight expense management contributed to better-than-expected earnings in the last reported quarter.
DDS also stands out for its strong financial health, with solid liquidity, minimal rent obligations as it owns most of its real estate, and a healthy cash balance. Shareholder-friendly moves like steady dividends and buybacks reflect its confidence.
Dillard's has an expected revenue and earnings growth rate of 0.7% and -8.2%, respectively, for next year (ending January 2027). The Zacks Consensus Estimate for next year’s earnings has improved 5.3% over the last 30 days.
Five Below Inc.
Five Below is delivering solid momentum, supported by accelerating traffic gains, improved marketing effectiveness and broad-based comp strength across new and returning customers. Operating leverage was also a key highlight, with gross margin expanding 70 bps due to shrink mitigation in the last reported quarter and fixed-cost leverage, and EPS increasing more than 60% year over year.
FIVE raised full-year expectations, citing a solid start to holiday trading and stronger expectations for sales, the operating margin and EPS. For fiscal 2025, FIVE’s total sales are now expected to be $4.62-$4.65 billion, an upward revision from the earlier stated $4.44-$4.52 billion.
Store expansion remained productive, highlighted by exceptional new-market openings, while curated assortments and stronger inventory positioning further reinforced FIVE’s growth trajectory.
Five Below has an expected revenue and earnings growth rate of 8.6% and 5.6%, respectively, for next year (ending January 2027). The Zacks Consensus Estimate for next year’s earnings has improved 1.3% over the last seven days.