Earnings season can push stocks around from one session to the next, but the trends that drive long-term results tend to move more slowly. Custom chips for artificial intelligence, business software moving to the cloud, global demand for natural gas, the upkeep of an aging housing stock, and the data centers that connect the internet all fit that pattern. The five stocks below are tied to those trends, and each carries a strong buy consensus from Wall Street analysts as of October 21, 2026.
The backdrop remains challenging. Inflation has run above the Federal Reserve's target, long-term Treasury yields are high, and the Fed's next policy decision comes at its October 27-28 meeting. On October 23, American Express, SLB, Eni, and Infosys are scheduled to report before the open, closing out a heavy stretch of earnings. The ideas below span semiconductors, software, energy, retail, and real estate. Editorial notes only, not investment advice.
Broadcom (AVGO) – Custom Chips for the Largest AI Buyers
Broadcom designs networking chips that move data between servers, along with custom AI processors built for a small group of very large cloud and internet companies. It also owns a large software business, including VMware, which sells tools that help companies run their data centers. In our view, big tech companies want chips designed around their own AI systems, and Broadcom is one of the few firms with the scale to build them.
Consensus on Broadcom reads strong buy, with nearly every covering firm bullish. Citigroup's Atif Malik kept his Buy rating and raised his price target on September 4.
Risks: DA Davidson's Gil Luria holds a Neutral rating and cut his target on September 4. Reliance on a few large customers, the cyclical nature of chip demand, and the risk that customers move more chip design in-house remain factors to monitor.
Microsoft (MSFT) – Cloud and Software at the Center of Corporate AI
Microsoft sells the Azure cloud platform, the Microsoft 365 office software used by most large companies, and a growing set of AI assistants built into those products. Because so many businesses already use its software, Microsoft can add AI features to tools its customers rely on every day. In our view, that installed base gives Microsoft one of the clearest paths to earning money from AI.
Consensus on Microsoft reads strong buy, with every covering firm in our data set bullish. Bernstein's Mark Moerdler kept his Outperform rating on October 19, and BMO Capital's Keith Bachman raised his price target on October 20.
Risks: Microsoft is spending heavily on data centers, and investors will watch whether AI revenue grows fast enough to justify that spending. Competition from Amazon and Google in the cloud, antitrust scrutiny, and its reliance on outside AI partners remain factors to monitor.
Cheniere Energy (LNG) – Shipping American Natural Gas to the World
Cheniere is the largest U.S. exporter of liquefied natural gas. It cools natural gas into a liquid at its Gulf Coast plants so the gas can be shipped overseas. Most of its capacity is sold under long-term contracts, which makes its cash flow steadier than many energy companies. In our view, demand from Europe and Asia for reliable gas supplies, along with rising power needs, supports Cheniere's plans to expand.
Consensus on Cheniere reads strong buy, with every covering firm in our data set bullish. Barclays' Theresa Chen kept her Overweight rating and raised her price target on October 7.
Risks: A wave of new export plants worldwide could weigh on global gas prices. Construction delays, changes in U.S. export policy, and hurricane risk on the Gulf Coast remain factors to monitor.
Home Depot (HD) – Waiting on the Housing Cycle
Home Depot is the largest home improvement retailer in the U.S. It serves both do-it-yourself shoppers and professional contractors, and it has expanded its business with pros through acquisitions. The average American home keeps getting older, and older homes need repairs whether or not the housing market is busy. In our view, Home Depot is well placed to benefit when home sales and remodeling pick back up.
Consensus on Home Depot reads strong buy, with most covering firms bullish. Mizuho's David Bellinger kept his Outperform rating on August 19.
Risks: Bernstein's Zhihan Ma holds a Market Perform rating, and RBC Capital's Steven Shemesh holds Sector Perform. High mortgage rates, slow home sales, and weaker spending on large projects remain factors to monitor.
Equinix (EQIX) – The Meeting Point of the Internet
Equinix operates data centers in major cities around the world where cloud providers, networks, banks, and other companies connect directly to each other. Customers pay to place their equipment in these sites and to link up with partners, which makes the business sticky. Equinix is organized as a real estate investment trust and pays a dividend. In our view, growing AI and cloud traffic increases the value of sites where networks meet.
Consensus on Equinix reads strong buy, with most covering firms bullish. Guggenheim's Joseph Osha reiterated his Buy rating on October 20.
Risks: Barclays' Brendan Lynch holds an Equal-Weight rating. High interest rates, heavy spending on new sites, power limits in key markets, and competition from data center developers remain factors to monitor.
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