JPMorgan’s October Picks Shift Focus to Value Energy and Healthcare

JPMorgan’s October stock picks suggest a shift from the dominant AI-focused trades of 2026, highlighting value, energy, and healthcare as key themes. The bank added American Express (NYSE:AXP), Liberty Energy (NYSE:LBRT), and Thermo Fisher Scientific (NYSE:TMO) to its favorites, all carrying overweight ratings. This diversified approach signals a broader market strategy as the fourth quarter begins.

American Express, down 18% year to date, is seen by JPMorgan as an undervalued opportunity. Analyst Richard Shane noted the company’s strong returns and consistent capital returns, including dividends and share repurchases. Investors seeking ETF exposure can consider the Vanguard Financials ETF (NYSE:VFH), where AXP represents 1.87% of assets, or the Financial Select Sector SPDR Fund (NYSE:XLF), with AXP at 2.11%. The broader value trade aligns with a shift from high-multiple growth stocks to more reasonably valued companies.

Liberty Energy offers an intriguing angle on the AI trade through its power-generation business, benefiting from surging demand from data centers. JPMorgan expects the behind-the-meter power market to remain tight through 2030. The VanEck Oil Services ETF (NYSE:OIH) and the State Street SPDR S&P Oil & Gas Equipment & Services ETF (NYSE:XES) provide ETF routes to capture this theme. Liberty Energy accounts for 2.41% of OIH and 3.5% of XES, alongside other energy-services companies.

Thermo Fisher Scientific, up 14.3% year to date and 25% over the past three months, is favored for its AI adoption and U.S. biopharma reshoring potential. The Health Care Select Sector SPDR Fund (NYSE:XLV), with TMO at roughly 4%, offers a broader way to play the healthcare theme. Together, these picks suggest alternative routes into the next market rally beyond crowded AI trades.