AI Revolution Fuels Growth for HALO Stocks
The AI Revolution is transforming industries and creating opportunities for investors to find strong growth stocks outside of tech. According to the Zacks Market Edge Podcast, companies that are benefiting from this trend include those with 'hard assets, low obsolescence,' or HALO stocks.
This term refers to companies that make real products with long lifespans, such as railroads, heavy equipment, and utilities. As hyperscalers invest in data centers and power generation, these HALO stocks are seeing a resurgence.
Three companies that fit this description are Caterpillar Inc., MasTec, Inc., and United Rentals, Inc. Caterpillar's sales jumped 24% in the second quarter of 2026, with a backlog of $72 billion, up 92% year-over-year. Its earnings are expected to rise 30.5% this year and another 25.2% in 2027.
MasTec had a record backlog of $21.4 billion, up 30% year-over-year, as of the end of the second quarter of 2026. Its earnings are expected to rise 41.2% this year and another 35.3% in 2027.
United Rentals reported record results for the second quarter of 2026 and raised full-year earnings guidance. Its growth accelerated in the quarter, with customers optimistic about large projects. Earnings are expected to rise 15.4% this year and 14.2% in 2027.