Five stocks stand out heading into Monday, October 26, 2026, each backed by a bullish rating change issued on Friday, October 23. The market enters the new week on shaky footing. On October 22, the S&P 500 fell 1.2% to 7,663.43 and the Nasdaq Composite dropped 2.6% to 26,008.86 as worries about AI spending returned following results from Meta Platforms and Tesla. The Philadelphia Semiconductor Index lost 6.7% that day. Oil added to the pressure: Brent crude settled at $113.17 a barrel on October 22 after new Houthi strikes on Saudi oil sites. By midday on October 23, the Dow was down about 1%, the S&P 500 had slipped 0.2%, and the Nasdaq had edged up 0.2%. The Federal Reserve announces its rate decision on October 28, the same day Microsoft and Alphabet report after the close. Amazon, Eli Lilly, and Mastercard follow on October 29.
The five ideas below span regional banking, security products, cancer diagnostics, biotech, and industrial distribution. With tech under pressure, several of these names offer exposure away from the AI trade. Editorial notes only, not investment advice.
Valley National Bancorp (VLY) – KBW Upgrades the Regional Lender
Valley National was upgraded from Market Perform to Outperform on Friday by Keefe, Bruyette & Woods analyst Christopher McGratty, who kept a $17 price target. JPMorgan's Anthony Elian kept his Overweight rating the same day and raised his target to $16 from $15.50. Valley is a regional bank with branches in New Jersey, New York, Florida, and other states. In our view, a modest valuation and a solid dividend make Valley a reasonable way to own a regional bank while rates stay high.
Shares traded near $14.12 during Friday's session, up about 2.22%, giving Valley a market capitalization near $7.8 billion. The 52-week range runs from $10.34 to $15.20, the trailing price-to-earnings multiple is 11.02, and the dividend yield is near 3%.
Consensus reads strong buy, with nine of 11 tracked firms bullish and two neutral. The average price target of $16.05 implies roughly 14% upside, and the KBW target implies about 20%.
Risks: Morgan Stanley's Manan Gosalia held Equal-Weight on October 23 while raising his target to $17. Commercial real estate loan quality, deposit costs, and the path of interest rates remain factors to monitor.
Allegion (ALLE) – BofA Upgrades the Lock and Security Maker
Allegion was upgraded from Neutral to Buy on Friday by BofA analyst Rafe Jadrosich, who raised his price target to $200 from $164. Evercore ISI's Alexander Virgo kept his Outperform rating the same day and raised his target to $190 from $180. Allegion makes Schlage locks, door hardware, and electronic access systems for homes, schools, hospitals, and offices. In our view, the shift toward electronic and app-based access control gives Allegion a steady path to higher-value products.
Shares traded near $179.76 during Friday's session, up about 1.84%, giving Allegion a market capitalization near $15.3 billion. The stock sits close to its 52-week high of $183.11 and well above its low of $125. The dividend yield is near 1%.
This is a contrarian call. Consensus reads buy, but only three of eight tracked firms are bullish, with five neutral. The average price target of $177.12 sits slightly below the share price and looks dated, so the BofA target is the better guide, implying about 11% upside.
Risks: JPMorgan's Julian Mitchell held Neutral on October 23 while raising his target to $183. A slow commercial construction market, tariff costs, and a stock trading near its high remain factors to monitor.
Guardant Health (GH) – Roth Initiates the Blood-Test Developer at Buy
Guardant Health was initiated with a Buy rating on Friday by Roth Capital. Guardant develops blood tests that detect cancer DNA. The tests help doctors choose treatments for patients with advanced cancer and screen for colorectal cancer. In our view, blood-based screening is more convenient than many existing options, which could open a large new market for Guardant over time.
Shares traded near $169.28 during Friday's session, up about 3.89%, giving Guardant a market capitalization near $22.7 billion. The 52-week range runs from $68.02 to $191.05. The company is not yet profitable, so the price-to-earnings multiple is not meaningful.
Consensus reads strong buy, with all 19 tracked firms bullish. The average price target of $196.21 implies roughly 16% upside. Barclays' Luke Sergott raised his target to $220 on October 7.
Risks: The company still posts losses. Insurance coverage for screening tests, competition from Exact Sciences and Natera, and the pace of doctor adoption remain factors to monitor.
Pharvaris (PHVS) – BofA Upgrades the Rare-Disease Biotech
Pharvaris was upgraded from Neutral to Buy on Friday by BofA analyst Tazeen Ahmad, who kept a $44 price target. Pharvaris is a clinical-stage company developing deucrictibant, an oral drug for hereditary angioedema, a rare condition that causes sudden and painful swelling. In our view, a pill that can both prevent and treat attacks could compete well against injected therapies if it wins approval.
Shares traded near $31.29 during Friday's session, up about 1.98%, giving Pharvaris a market capitalization near $2.2 billion. The 52-week range runs from $21.02 to $43.25. The company has no product sales, so the price-to-earnings multiple is not meaningful.
Consensus reads strong buy, with all 10 tracked firms bullish. The average price target of $58.10 implies about 86% upside, a gap typical of clinical-stage biotech. The more conservative BofA target implies about 41%. Morgan Stanley's Maxwell Skor raised his target to $62 on September 9.
Risks: Regulatory decisions, trial results, competition from established hereditary angioedema treatments, and the need to raise more cash remain factors to monitor. Biotech shares of this size can swing sharply on news.
MSC Industrial Direct (MSM) – Two Upgrades for the Industrial Supplier
MSC Industrial drew two upgrades on Friday. Jefferies moved to Buy from Hold, and Stephens' Tommy Moll moved to Overweight from Equal-Weight, raising his price target to $135 from $130. MSC distributes cutting tools, metalworking supplies, and maintenance products to manufacturers across North America. In our view, the double upgrade suggests analysts see the industrial cycle bottoming, which would help MSC's sales.
Shares traded near $114.84 during Friday's session, up about 2.14%, giving MSC a market capitalization near $6.4 billion. The 52-week range runs from $78.80 to $133.95, the trailing price-to-earnings multiple is 28.90, and the dividend yield is near 3%.
Consensus reads strong buy, but coverage is thin, with only four tracked firms, all bullish. The average price target of $130.25 implies roughly 13% upside, and the Stephens target implies about 18%.
Risks: KeyBanc's Christopher Carril kept his Overweight rating on October 23 but trimmed his target to $140 from $145. Weak factory activity, competition from larger distributors, and limited analyst coverage remain factors to monitor.
Found this helpful? Share it with others.