Wall Street has been witnessing an astonishing rally since the beginning of 2023. The rally has primarily been driven by the global artificial intelligence (AI) technology boom. However, in the first half of October, the AI trade suffered severe hurdles. Market participants are concerned that tech giants are borrowing excessively to build AI networks. It is still not clear when AI hyperscalers will start monetizing their gigantic nearly $1 trillion per annum capital expenditures.
Last week, the tech-heavy Nasdaq Composite shed 5%, marking its worst weekly performance since the week ended April 4, 2025. The VanEck Semiconductor ETF (SMH) plummeted 10%, reflecting its worst weekly performance since April 2025.
At this stage, we have narrowed our search to five non-tech, non-AI bigwigs that have provided more than 25% returns. These stocks are currently assigned a Zacks top rank, indicating more upside going forward.
These are Ross Stores Inc. ROST, Roku Inc. ROKU, Interactive Brokers Group Inc. IBKR, Target Corp. TGT and Nucor Corp. NUE. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Ross Stores Inc.
Ross Stores is well positioned for continued growth, supported by strong sales momentum, customer acquisition and a compelling value proposition. Second-quarter fiscal 2026 sales rose 13%, with broad-based strength across categories and regions.
ROST sees further upside from merchandising, marketing and store-execution initiatives that remain in the early stages. Store expansion adds another growth lever, with 115 openings planned for fiscal 2026. ROST also maintains a strong financial foundation, supported by healthy liquidity and cash generation.
ROST has an expected revenue and earnings growth rate of 12.8% and 32.7%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 11.7% in the past 60 days.
Roku Inc.
Roku continues to benefit from the shift of viewing and advertising budgets from linear television to streaming, with Platform revenue growth supported by Advertising and Subscriptions. ROKU’s scale of more than 100 million streaming households, broader programmatic reach and expanding subscription offering support continued monetization of the Roku Experience.
The new Home Screen and AI-powered search could further improve content discovery, retention and advertising opportunities as the rollout expands. ROKU is broadening its advertising model across programmatic demand, enterprise campaigns and self-service tools. Advertising revenues increased 24.8% year over year in the second quarter of 2026 to $672.8 million, while advertising gross margin rose to 62.4%.
ROKU has an expected revenue and earnings growth rate of 18.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.2% over the past 30 days.
Interactive Brokers Group Inc.
Interactive Brokers Group continues to benefit from a widening product set that keeps clients engaged across cycles. IBKR’s automated platform, broad product set and new launches will likely support top-line growth across market cycles.
IBKR’s global reach, a conservative balance sheet and focus on direct market access support competitive pricing and help attract active traders and long-term investors. IBKR continues to broaden its product suite and enhance platform capabilities, helping expand its addressable client base, deepen engagement and diversify fee-generating opportunities.
Interactive Brokers Group has an expected revenue and earnings growth rate of 18.8% and 23.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year has improved 0.4% over the past seven days.
Target Corp.
Target presents a compelling investment opportunity, supported by strengthening consumer engagement, differentiated merchandising and an expanding omnichannel ecosystem. Momentum in beauty, wellness and other strategic categories, alongside exclusive partnerships and owned-brand innovation, reinforces its competitiveness.
Rapid growth in Roundel advertising, Target+ marketplace and Circle memberships is diversifying TGT’s revenues and supporting a favorable margin mix. TGT’s continued store expansion, remodels and fulfillment optimization should enhance customer convenience and operational efficiency.
Target has an expected revenue and earnings growth rate of 5.1% and 37.8%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year has improved 23% over the past 60 days.
Nucor Corp.
Nucor benefits from resilient non-residential construction demand, strength in energy markets and improving steel prices, supporting earnings and cash flow growth. Strategic acquisitions have expanded NUE’s product portfolio and strengthened its presence across key end markets.
Capacity expansions and investments in new facilities should enhance production capabilities, reinforce NUE’s low-cost position and support profitable growth. Improving automotive demand, infrastructure spending and rising domestic steel prices provide additional growth opportunities.
NUE’s strong balance sheet and cash generation support consistent shareholder returns through dividends and share repurchases. NUE’s diversified end markets, expansion initiatives and shareholder-friendly policies support its long-term prospects.
Nucor has an expected revenue and earnings growth rate of 24.9% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year has improved 2.2% over the past 30 days.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
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Target Corporation (TGT): Free Stock Analysis Report
Nucor Corporation (NUE): Free Stock Analysis Report
Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report
Ross Stores, Inc. (ROST): Free Stock Analysis Report
Roku, Inc. (ROKU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).