Remember that kid in school who always crushed the curve and then actually shared their study notes? That’s basically Piper Sandler right now, except instead of acing calculus, they just schooled the entire stock market.
Their “Macro Select” stock-picking strategy returned about 22% in 2025, while the S&P 500 managed a respectable but comparatively pedestrian 16%. That’s like showing up to a potluck with homemade lasagna when everyone else brought store-bought cookies – technically we’re all contributing, but we know who the real MVP is.
So what’s their secret sauce? It’s not some mystical algorithm or insider trading (hopefully). Instead, they’re looking for companies that hit four key criteria: strong earnings surprises, positive earnings revisions, attractive earnings yields, and high return on equity. Think of it as speed dating for stocks – they want companies that are profitable, improving, reasonably priced, and efficient with their money.
“We believe there will be a broadening in markets in 2026,” says Michael Kantrowitz, their chief US equity strategist. Translation: “We think it’s time for the little guys to have their moment instead of just watching the Magnificent Seven hog all the spotlight.”
Their updated list for 2026 reads like a diverse portfolio party. You’ve got AT&T representing the “reliable but boring” crowd (up 10% last year), UGI Corporation as the surprise overachiever (33% gains – who saw that coming?), and a mix of everything from restaurant chains to water infrastructure companies.
The beauty of this approach is that it’s looking for “cyclical traits on the quality value side of the risk spectrum.” In normal human speak: they want companies that can ride economic waves but aren’t complete wildcards. It’s like choosing the friend who’s fun at parties but also remembers to call an Uber home.
Some highlights from their new picks include Brinker International (the Chili’s parent company – because apparently people really do want their baby back ribs), Mueller Water Products (because someone has to make sure the water keeps flowing), and Par Pacific Holdings (energy sector, because even in 2026, we still need gas).
What’s refreshing about this strategy is that it’s not chasing the latest AI hype or trying to predict which meme stock will moon next. Instead, it’s doing the financial equivalent of eating your vegetables – focusing on fundamentals, earnings quality, and reasonable valuations.
Of course, past performance doesn’t guarantee future results (thanks, SEC, for making us say that). But when a strategy consistently beats the market by focusing on boring stuff like “companies that make money and don’t overpay for assets,” maybe there’s something to be said for keeping it simple.
The real question is whether this approach will work in 2026, especially if we do see that market broadening Kantrowitz is predicting. If the mega-cap tech stocks finally take a breather and let the rest of the market have some fun, these picks could be sitting pretty.
Either way, it’s nice to see someone doing their homework and sharing the answers. Now if only they could help us with our taxes too.