Look, we all know that bank analysts love to sound important with their fancy sector calls and “overweight” recommendations. But sometimes they actually nail it, and Citi’s latest 2026 playbook might be one of those times.
The banking giant just released their “where to put your money next year” guide, and spoiler alert: they’re betting big on three sectors that have either been crushing it or are about to make a comeback. We’re talking tech (shocking, I know), healthcare, and financials.
Tech: Because Of Course
Citi’s still riding the tech wave into 2026, and honestly, can you blame them? The sector is up 28% this year, making the S&P 500 look like it’s moving in slow motion. Their picks here are Oracle (up 17% this year), DocuSign (down 22% – ouch), and ServiceNow (down 27% – double ouch).
The interesting thing? Citi says not all tech valuations are “stretched,” which in Wall Street speak means “maybe we won’t all go broke buying these stocks.” They’re particularly bullish on semiconductors and software services, probably because AI isn’t going anywhere and someone needs to build the infrastructure for our robot overlords.
Healthcare: The Comeback Kid
Here’s where it gets interesting. Healthcare has been the quiet achiever this year, up 17% while everyone was obsessing over AI stocks. Citi thinks the sector is about to get even better as “policy overhang” fades – basically, less government drama around drug pricing.
Their picks are a mixed bag: Arcus Biosciences (up 53% – nice!), Waystar Holding (down 11%), and Neurocrine Biosciences (up 8%). The thesis is simple: Trump 2.0 means fewer regulatory headaches, and pharma companies are already making nice with the new administration.
Financials: The Underdog Story
This is the most contrarian call. While tech and healthcare have been partying, financials have been nursing a hangover – up only 6% this year. But Citi sees opportunity where others see mediocrity.
Their picks tell a story: Payoneer Global (down 41% – yikes), Block Inc (down 24%), and Ally Financial (up 27% – the lone winner). The bank thinks profit margins look “healthy” and trading signals are flashing green. Translation: these beaten-down stocks might actually be bargains.
The Bottom Line
Citi’s 2025 portfolio beat the S&P 500 by over four percentage points, so they’ve earned some credibility. Their 2026 strategy is about “better balance with defensives” – fancy talk for not putting all your eggs in the growth stock basket.
Is this the perfect playbook? Who knows. But when a major bank that actually moved the needle last year says “hey, maybe diversify a bit,” it’s probably worth listening. Just remember: past performance doesn’t guarantee future results, but it sure beats listening to your cousin’s crypto tips at Christmas dinner.