Buy 5 Non-AI Stocks That Have Surged Year to Date to Tap Market Rally

Zacks highlights five non-AI stocks for 2026: ADM, CASY, NUE, ROST and IMO, all with Zacks Rank #1 or #2 and improving earnings estimates. The group shows solid expected current-year revenue growth ranging from 6.5% to 28.6%, with earnings growth estimates as high as 92.5% for Nucor and 70.7% for Imperial Oil. The article is broadly constructive on fundamentals and outlooks, but it is primarily a stock-picking commentary and is unlikely to drive broad market moves.

Analysis

The common thread here is not “quality” in the abstract, but earnings revisions with low beta to the AI capex cycle. These names give investors a way to stay long U.S. cyclical/consumer exposure without paying peak multiples on the AI complex, and the second-order winner is capital discipline: companies that can self-fund buybacks, capacity, or pricing investment should continue to take share from weaker operators. The market is likely to reward estimate momentum more than headline growth over the next 1-2 quarters, especially if rates stay sticky and investors keep rotating toward visible cash generation.

Among the group, NUE and IMO look like the cleanest macro-sensitive upside, but they are also the most exposed to a reversal in commodity assumptions. Steel pricing and downstream energy margins can fade quickly if demand softens or supply normalizes, so these names are better treated as tactical than core holdings; the catalyst window is days-to-months, not years. By contrast, CASY and ROST offer a more durable operating path because their margin expansion depends more on mix, integration, and execution than on external price inputs, which makes their earnings trajectories less fragile.

The contrarian read is that the market may already be underwriting much of the apparent fundamental improvement, particularly in the two highest-momentum cyclicals. If consensus keeps moving up but the underlying macro backdrop stalls, these stocks can become “good stories, bad tapes” — strong fundamentals but multiple compression as investors demand proof. ADM is the most interesting laggard: if nutrition and productivity gains are real, it could be the best catch-up trade because expectations remain lower than the other names and the upside comes from margin normalization rather than heroic top-line assumptions.

Key Decisions for Investors

• Long NUE on a 1-3 month horizon as a tactical cyclical: target a 10-15% upside if pricing and estimate revisions hold; cut exposure quickly if steel price momentum rolls over or construction data softens.
• Long IMO vs. short a diversified energy benchmark basket for 2-6 months: seek relative alpha from integrated/downstream leverage and buyback support, but size modestly given commodity reversal risk.
• Buy CASY on pullbacks and hold 6-12 months: favorable risk/reward as a defensive compounder with earnings visibility; prefer equity over call options because the thesis is execution-driven rather than catalyst-driven.
• Initiate a pair trade long ROST / short a weaker discretionary retailer with higher leverage and lower inventory discipline: the trade benefits from consumer value migration and should work over the next two earnings seasons.
• For ADM, consider a starter long position ahead of the next estimate cycle: upside comes from multiple expansion if nutrition margin recovery persists; risk/reward improves if the stock remains discounted relative to revised earnings power.