RBC Overview

Stock Picks Overview: The second installment of the 2026 Barron’s Roundtable features 30 stock picks from five investment experts, highlighting both well-known companies and lesser-known options.

Familiar Names Included: Among the stock picks are recognizable brands such as Home Depot, Starbucks, and Nike, indicating a mix of established and emerging investment opportunities.

Biodegradable Innovation: The article hints at a British company that has recently acquired a manufacturer of biodegradable sneaker midsoles, showcasing a trend towards sustainable products in the footwear industry.

Investment Insights: The Roundtable serves as a platform for sharing diverse investment strategies and insights, appealing to both seasoned investors and those looking to explore new market trends.

Small-Cap Stocks Performance: Small-cap stocks have started 2026 strongly, with the Russell 2000 index rising over 6% this month.

Comparison with Larger Indices: This performance surpasses that of larger indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite.

January Effect: The strong start for small-cap stocks may be attributed to the "January effect," a phenomenon where these stocks typically see gains in the first month of the year.

Market Trends: The trend indicates a potential shift in investor sentiment favoring smaller companies at the beginning of the year.

Lombard Odier's Stake Reduction: Lombard Odier Asset Management (USA) Corp sold 3,334,000 shares of Bausch Health Companies, reducing its position by approximately $22.56 million, which now represents 0.74% of the fund's assets.

Bausch Health's Financial Struggles: Bausch Health Companies has faced a decline in share price, down 24.6% over the past year, raising concerns about its ability to manage heavy debt and ongoing legal liabilities.

Investor Sentiment: The reduction in Lombard Odier's stake suggests a shift in investor confidence, indicating that while there may still be potential upside, the fund no longer holds the same level of conviction in Bausch Health's recovery.

Future Outlook: The company's ability to improve its cash generation and manage its capital structure will be crucial for its long-term potential, as it seeks to avoid asset sales that could undermine its equity case.

Micron's Capital Expenditures: CEO Sanjay Mehrotra announced plans to increase Micron Technology's capital expenditures, which are currently at $18 billion annually, indicating potential pressure and a need for higher spending in 2026 and beyond.

Market Reaction: The announcement has caused Micron's stock to slide as investors express concerns over the significant investments required for artificial intelligence infrastructure, despite the company's strong technological position and a consensus Strong Buy rating from analysts.