Zacks Investment Research has assigned a Rank #1 (Strong Buy) to five non-tech, non-AI companies, arguing that their current valuations and momentum offer upside as the artificial intelligence trade faces volatility. The selection includes Ross Stores Inc., Roku Inc., Interactive Brokers Group Inc., Target Corp. and Nucor Corp., all of which have delivered returns exceeding 25% year to date.
The recommendation comes amid a broader market correction in technology stocks. The Nasdaq Composite fell 5% last week, its worst weekly performance since April 4, 2025, while the VanEck Semiconductor ETF dropped 10%. Market participants are increasingly concerned that AI hyperscalers are borrowing heavily to build networks, with no clear timeline for monetizing their nearly $1 trillion annual capital expenditures. Against this backdrop, Zacks identifies these five firms as alternatives with strong fundamental support.
Ross Stores Inc. (ROST) is positioned for growth driven by a 13% increase in second-quarter fiscal 2026 sales and the planned opening of 115 new stores during the fiscal year. The company expects revenue growth of 12.8% and earnings growth of 32.7% for the current year ending January 2027. The Zacks Consensus Estimate for earnings has improved by 11.7% over the past 60 days.
Roku Inc. (ROKU) benefits from the shift of advertising budgets from linear television to streaming platforms serving more than 100 million households. Advertising revenues rose 24.8% year over year in the second quarter of 2026 to $672.8 million, with gross margins reaching 62.4%. Roku projects revenue growth of 18.5% and earnings growth exceeding 100% for the current year, with consensus estimates improving by 2.2% in the last 30 days.
Interactive Brokers Group Inc. (IBKR) leverages a widening product set and global reach to attract active traders and long-term investors across market cycles. The firm expects revenue growth of 18.8% and earnings growth of 23.3% this year, with its consensus estimate rising by 0.4% over the past seven days.
Target Corp. (TGT) is diversifying its revenue through rapid growth in Roundel advertising, the Target+ marketplace and Circle memberships. The retailer anticipates revenue growth of 5.1% and earnings growth of 37.8% for the current year ending January 2027, with its consensus estimate climbing by 23% in the past 60 days.
Nucor Corp. (NUE) is supported by resilient non-residential construction demand and improving steel prices. Strategic acquisitions and capacity expansions aim to reinforce its low-cost position. Nucor expects revenue growth of 24.9% and earnings growth exceeding 100% for the current year, with its consensus estimate up by 2.2% over the past 30 days.