JPMorgan analysts have identified Argan Inc. and ASML Holding N.V. as top stock picks for the remainder of 2026, citing strong earnings momentum and specific operational catalysts in the utility and semiconductor sectors. The recommendations come as the S&P 500 has gained 12% year-to-date, driven by corporate earnings that have outpaced broader market expectations.
Kriti Gupta, a JPMorgan global investment strategist, noted that earnings expectations have been revised materially higher because companies are exceeding forecasts by wider-than-expected margins. Gupta stated that the narrative defining the 2026 market, characterized by earnings growth that is stronger and broader than anticipated, is likely to remain intact. This growth is spreading beyond the "Magnificent 7" tech giants, with five S&P 500 sectors now expected to deliver double-digit year-over-year earnings growth in the third quarter.
For Argan, a utility and industrial company, JPMorgan analyst Michael Fairbanks highlighted the firm's combined cycle gas turbine (CCGT) segment. Argan reported second-quarter fiscal 2027 revenue of $383.98 million, beating forecasts by $83.36 million and growing more than 61% year-over-year. Non-GAAP earnings per share came in at $3.76, exceeding estimates by $1.10. Fairbanks argued that investor fears regarding a peak earnings year for fiscal 2028 are overblown, pointing out that the company currently has only three CCGT projects under construction despite having capacity for five to six teams.
Fairbanks maintains an Overweight rating on Argan shares with a price target of $785. He cited potential catalysts including new CCGT project announcements, simple cycle or biofuel deals, and a potential framework agreement with a customer. The broader Street consensus for Argan is a Moderate Buy, with an average price target of $501.95 based on recent reviews.
In the semiconductor sector, JPMorgan analyst Sandeep Deshpande named ASML Holding a top pick following its third-quarter 2026 results. ASML reported revenue of 11.7 billion Euros, up nearly 49% year-over-year, though it missed expectations by $111.63 million in US currency terms. Non-GAAP earnings per share in US currency were $13.19, beating forecasts by $1.14. The company guided fourth-quarter revenue to between 14.2 billion and 15.2 billion Euros.
Deshpande raised his estimates for ASML, projecting fiscal 2028 earnings per share to rise approximately 27% to €89.6, with potential upside to €100 depending on price increases. He noted that gross margins are increasing significantly due to revenue scale and product mix. Deshpande assigned an Overweight rating with a price target of $2,350. The consensus rating for ASML is Moderate Buy, with an average price target of $2,289.07.