Barron's 2026 Value-Oriented Stock Picks: Performance vs. Growth Strategies

Barron’s 2026 annual stock selection takes a value-oriented approach, focusing on 2025 market laggards across diverse sectors, including Amazon (AMZN), Bristol-Myers Squibb (BMY), Comcast (CMCSA), ExxonMobil (XOM), Fairfax Financial (FRFHF), Flutter Entertainment (FLUT), Madison Square Garden Sports (MSGS), SL Green Realty (SLG), Visa (V), and Disney (DIS) [3]. Most of these stocks underperformed the S&P 500, which posted a 14.76% YTD return in 2025 as of December 18: AMZN (+2.13%, a Magnificent Seven laggard), BMY (-6.32%), CMCSA (-19.92%), FLUT (-14.66%), SLG (-34.97%, an office REIT), and DIS (+0.15%) [0]. Exceptions include FRFHF (+36.27%) and MSGS (+15.19%), which outperformed the S&P 500 [0].

Valuation metrics reveal a value orientation for most picks, contrasting with the elevated S&P 500 valuations [1]: CMCSA (4.85x P/E, extremely low), FRFHF (7.89x P/E), BMY (18.32x P/E), XOM (17.26x P/E), DIS (16.47x P/E), and SLG (0.83x P/B, trading below asset value) [0]. Barron’s has a recent track record of outperformance, with its 2025 picks achieving 28% returns (outperforming the S&P 500) [3]. Market context shows that while growth stocks outperformed early in 2025, value stocks began showing signs of bottoming in late 2025 [2].

1. Mean Reversion Expectation
   : Barron’s focus on 2025 laggards suggests an anticipation of mean reversion—stocks that underperformed in 2025 may rebound to fair value levels in 2026.
2. Cycle Timing Alignment
   : The strategy is timed amid concerns over stretched growth stock valuations, a historical environment where value stocks have tended to outperform.
3. Diverse Sector Exposure
   : The 10 picks span technology, healthcare, media, energy, REITs, and financial services, reducing sector concentration risk compared to more narrow growth-focused portfolios.

• Opportunities
  :
  • The potential turn of the value cycle, supported by late 2025 value stock bottoming signs [2], could favor Barron’s strategy.
  • Barron’s 2025 track record (28% returns vs. S&P 500) indicates recent success with value-oriented picks.
  • Attractive valuations for several picks (e.g., CMCSA’s 4.85x P/E, SLG’s 0.83x P/B) provide a margin of safety.
• Risks
  :
  • Persistent growth stock momentum (particularly in AI and technology sectors) could overshadow value-oriented returns.
  • Sector-specific headwinds, including SLG’s ongoing office REIT challenges from remote work and DIS’s streaming and theme park competition.
  • Valuation traps: Some laggards may have low valuations due to fundamental business issues rather than temporary underperformance.

Barron’s 2026 value-focused strategy targets 2025 market laggards with attractive valuations across diverse sectors. Its 2025 picks outperformed the S&P 500, suggesting potential for success if the value cycle turns. However, the strategy faces risks from continued growth stock momentum and sector-specific challenges. The analysis provides factual context for evaluating the strategy’s potential relative to growth-focused approaches without prescriptive investment recommendations.