Best Stock Picks in Citi’s Top for 3 Areas of the Market in 2026

The investing playbook to follow in the new year homes in on three key sectors of the stock market, according to Citigroup.

The bank’s investment research arm unveiled its list of sector calls heading into the first quarter of 2026, which included three areas it believes investors should be overweight in as the new year begins: Information technology, financials, and healthcare.

Besides financials, those sectors have seen a stellar performance in 2025. The healthcare sector of the S&P 500 is up 17% for the year, while technology stocks are up 28% year-to-date, beating the benchmark index. The financials sector has lagged the broader market, up 6% since January.

“For most of ’25, we led with a Growth cluster focus while frequently advocating a Cyclical barbell,” the bank wrote of its portfolio based on its 2025 sector picks, which outperformed the S&P 500 by over four percentage points. “Headed into ’26, we focus on a better balance with Defensives. This is aligned with our expectations for fundamental broadening,” it said of its outlook for the coming year.

Here are Citi’s areas of focus heading into the new year, followed by its top stock picks for each sector.