Politics · Gulfs Weekly
Published: October 16, 2026 at 6:00a.m. EDT Some investors think it’s time to move away from big tech. Drew Pettit says that could be a dangerous mistake.
His bullish case comes down to three words: revisions, revisions, revisions. In the latest episode of Ticker Take , I spoke with Pettit, chief investment strategist at Roundhill Investments, who returned to the show with his investment ideas for the rest of the year. Pettit has a strong track record, having joined us late last year with his 2026 picks, which included standout names such as Nvidia, CrowdStrike and Teradyne.
His framework starts with the estimates Wall Street uses to value stocks. He said in our interview that analysts have been consistently too low on profits, and they keep having to move their numbers higher. That holds even in a messy macro environment, and Pettit says it is the main reason big tech keeps surprising people who wrote it off.
It also changes how you read valuation. While many investors look at the price-to-earnings ratio, Pettit says that misses the point if earnings keep rising. He prefers to compare the price of a stock to the company’s growth, known as the PEG ratio.
On that measure, he says, the Magnificent Seven and other big cap tech stocks are not that expensive and look cheaper than small caps because they have growth that smaller companies don’t yet have. With that in mind, he highlighted eight names he likes heading into the final stretch of 2026. We also included some of the analyst recommendations, as measured by Bloomberg.
As always, this is not financial advice. Meta Platforms ( META ) More than 90 per cent of the 79 analysts covering it recommend buying. Pettit says Meta is a stock people keep writing off, and it keeps surprising to the upside, most recently with the launch of its Muse AI model.
He notes that estimates for 2027 and 2028 are up 10 to 20 per cent from the start of the year, and he says its PEG ratio is more attractive than the S&P 500. Alphabet ( GOOGL ) Roughly 90 per cent of the 71 analysts covering it recommend buying. Pettit puts it in the same revisions camp as Meta, with analysts raising their earnings expectations in the out years.
He points to the launch of Gemini 4, which got great reviews. Micron Technology ( MU ) Again, more than 90 per cent of the 62 analysts covering it recommend buying. Memory has a reputation as a boom-and-bust business, but Pettit says this time it doesn’t feel that way.
The computing power needed to run AI models keeps rising, and Wall Street has been raising its margin forecasts, which he says suggests profits will be more stable than in past cycles. Samsung Electronics All 44 analysts covering it recommend buying, and none have a sell. It trades in South Korea, which makes it harder for most investors to buy directly, making it a commonly sought after name in ETFs.
Pettit says that Micron has much better margins, but he expects that gap to close significantly over the next few years. CrowdStrike ( CRWD ) Nearly three-quarters of the 62 analysts covering it recommend buying, even after the stock’s big move since Pettit first flagged it. Software has been a tough place to pick stocks because of fears of AI disruption, but he says cybersecurity is the exception.
More AI agents and more data mean more to defend. Snowflake ( SNOW ) Currently, just under 90 per cent of the 57 analysts covering it recommend buying. Pettit gives three reasons for why he likes it: estimates are rising, AI may help drive more business for the company rather than disrupt it and the stock has very low correlation to the broader market and to semiconductors.
In his view, that can help diversify your portfolio. Lumentum ( LITE ) Like Snowflake, nearly 90 per cent of the 35 analysts covering it recommend buying. The company makes optical components that move data inside AI data centres.
Pettit says the stock has pulled back and been more volatile than it should be, but the story hasn’t changed. Estimates are still rising, growth is still good, and he calls it a tactical buying opportunity. Kirby ( KEX ) Kirby is the surprise pick on the list.
All seven analysts who cover it recommend buying, though that is a small group. Kirby falls into a category known as HALO, which stands for hard asset, low obsolescence. These are viewed as physical businesses AI can’t easily disrupt.
In Kirby’s case, Pettit says that means moving chemicals and oil products by water. The Ticker Take Pettit’s list is a bet that the market is still underestimating how much profit big tech can generate. Seven of the eight names are tied to the AI trade in some way, and the eighth is there to hedge against it.
That also means the list is not for everyone. If revisions stop moving up, the argument weakens quickly, and several of these stocks have already had big runs. For investors who share his view, though, it is a useful reminder that the stocks some people think have stalled out may be the ones where analysts are still catching up.
Jon Erlichman is a BNN Bloomberg contributor and the host of Ticker Take on YouTube .
Source: BNN Bloomberg
