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Stock Stars & Dogs: Mid-Year 2026 Review

  //stocks-investing.news-articles.net/content/2026/01/09/stock-stars-dogs-mid-year-2026-review.html
  Published in Stocks and Investing on Friday, January 9th 2026 at 18:35 GMT by The Globe and Mail
      Locales: UNITED STATES, CANADA

By Anya Sharma

Published Friday, January 9th, 2026

The dawn of 2026 brought with it a renewed focus on stock performance, and a re-evaluation of investment strategies. Building upon Tim Fiore's initial assessment from early 2026, this article expands on the 'stars' and 'dogs' of the market, offering a more nuanced perspective based on developments throughout the first half of the year and expert analysis. The market has seen continued volatility, influenced by persistent geopolitical tensions and evolving consumer behaviours, making careful stock selection more critical than ever.

The Shining Stars: Consistent Performance Amidst Uncertainty

Lockheed Martin (LMT/NYSE) continues to hold its position as a 'star,' demonstrating remarkable resilience. The initial assessment correctly identified the company's benefit from global instability, but the reality has been even more pronounced. Several ongoing regional conflicts have fueled a steady demand for defence systems, bolstering Lockheed's order backlog and providing a predictable revenue stream. However, the increased scrutiny of defence spending, a factor mentioned in the original report, has begun to be felt. While Lockheed's size allows it to weather these challenges, a careful eye on government policy remains crucial. Concerns about ethical implications of defence contracts are increasingly impacting investor sentiment, although the overall positive trend persists.

WD-40 (WDFC/Nasdaq) has surprised again. While the initial report highlighted its brand recognition and distribution network, its adaptability has been the real key. The company successfully pivoted to serving the burgeoning DIY and home improvement market spurred by supply chain issues and rising construction costs. This broadened appeal, coupled with a surprisingly effective digital marketing campaign targeting younger demographics, has kept revenues steady and profitability high. It's a testament to the power of brand loyalty and a willingness to innovate within established niches.

The SP-TSX (SP/TSX) ETF has mirrored the Canadian economy's fluctuating fortunes. While Canada has faced challenges with resource prices and trade negotiations, the ETF's diversified approach has mitigated some of the risk. Recent investments in renewable energy and technology sectors within Canada have begun to show promise, offering a glimmer of hope for stronger returns moving into the latter half of 2026. However, further fluctuations in global commodity markets will significantly impact its overall performance.

The Dogs That Haven't Recovered: Facing Persistent Headwinds

Gap (GPS/NYSE) remains firmly in the 'dog' category, and the turnaround attempts have yet to gain significant traction. The accelerated shift towards online retail, initially flagged as a challenge, has proven devastating for Gap's brick-and-mortar presence. The company's efforts to rebrand and offer more sustainable clothing lines have been hampered by competition from direct-to-consumer brands and fast fashion retailers. While a potential acquisition remains a possibility, the outlook is bleak, and a significant restructuring is required to avoid further decline.

Minto REIT (MINT.TO/TSX) continues to struggle. The original report accurately noted the impact of rising interest rates and urban landscape changes. However, the acceleration of remote work trends has further reduced demand for commercial properties, particularly in urban centers, exacerbating Minto's challenges. While the REIT has attempted to diversify into residential properties, the competition in that sector is fierce. The company's dividend yield, while attractive to some, is viewed by many as unsustainable, contributing to ongoing investor concerns. The rising cost of utilities and property taxes also further pressures profitability.

Looking Ahead: Key Considerations for Investors

The stock market remains a complex and unpredictable environment. Diversification remains paramount; the lessons from the past six months reinforce the wisdom of spreading investments across different sectors and asset classes. Market volatility, as initially mentioned, continues to be a defining characteristic. Further, sector-specific risks have been amplified. The evolving regulatory landscape, particularly concerning environmental and social governance (ESG), will increasingly influence investment decisions. Investors should carefully evaluate the long-term sustainability of companies and consider the potential impact of these factors on future performance. Finally, while past performance provides some insight, it is not a guarantee of future success - thorough research and a cautious approach are essential for navigating the current market landscape.