Why ‘HALO’ shares could be the FTSE 100’s biggest winners in 2026

There are a lot of FTSE 100 shares that could do well in 2026. However, there’s one type of stock that looks poised to do particularly well and that’s ‘HALO’ stocks.

No idea what a HALO stock is? Don’t worry, I’ll explain everything below (and highlight one I like the look of today).

What are they?

HALO is a new term coined by Ritholtz Wealth Management CEO and CNBC contributor Josh Brown. It stands for ‘heavy assets, low (chance of) obsolescence.’

Stocks with these characteristics have come into focus recently as fears over AI disruption have hit areas of the market such as software, insurance, and wealth management (anything office-based is coming into focus). All of a sudden, investors are seeking out businesses with heavy, tangible assets that can’t easily be replaced by AI.

Examples of HALO stocks in the FTSE 100 include the likes of Rio Tinto, BAE Systems, and Tesco (which are all up significantly this year). These all look relatively immune to AI – you can’t just ask Anthropic or OpenAI to build a copper mine, a submarine, or a supermarket.

Of course, HALO stocks aren’t immune to risks – they all have their own unique ones. However, in terms of AI disruption, they look relatively safe (and in many cases look set to benefit from the technology).

It’s important to note that HALO stocks aren’t the same as ‘old economy’ stocks. There will be plenty of areas of the old economy that do get disrupted by AI (banking, insurance, etc).

Many of them are in old economy sectors though. Think mining, energy, and industrials.

“These are undisruptable companies from an AI standpoint. There’s nothing Sundar Pichai and Sam Altman can take from them. HALO stocks are immune to Claude Code.”
Josh Brown

A Footsie pick to check out today

Now, a lot of HALO stocks in the FTSE 100 have already jumped this year. As noted above, Rio Tinto, BAE Systems, and Tesco are all up a lot year to date.

One stock in this area of the market that hasn’t jumped yet is construction equipment rental company Ashtead (LSE: AHT). Year to date, its share price is only up a few percent.

I can see this stock doing well in the medium term. It’s a classic HALO name (Anthropic can’t suddenly generate an excavator, forklift or tractor), so it could start to see more interest from investors.

Meanwhile, it should benefit from all the mega project construction taking place in the US (data centres, chip plants, etc). Today, the company generates the bulk of its revenues in the US.

Additionally, the company is planning to move its main listing to the US next month. This should dramatically widen its potential investor base.

One other thing to like is that the company is buying back a lot of shares. This should help to boost earnings per share.

There are risks, of course. An economic slowdown is one – this could result in less construction activity.

But with the stock trading on a fairly reasonable forward-looking price-to-earnings (P/E) of 16.8, however, I like the set-up. I think this stock is worthy of further research today.

The post Why ‘HALO’ shares could be the FTSE 100’s biggest winners in 2026 appeared first on The Motley Fool UK.

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Edward Sheldon has positions in Ashtead Group. The Motley Fool UK has recommended Ashtead Group Plc, BAE Systems, and Tesco Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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