6 Stocks to Watch in 2026: Top Picks Across Healthcare, Energy and Defense

As investors look beyond technology stocks for new opportunities, healthcare, energy, and defense are emerging as three sectors worth watching in 2026. Pharmaceutical innovation, oil-market developments, and rising demand for advanced defense systems are creating potential growth catalysts for companies of different sizes. While large-cap stocks may offer more established earnings and cash flows, small-cap companies can provide greater growth potential, often with higher risks.

In this article, we highlight six stocks to watch across healthcare, energy, and defense, including AbbVie (ABBV), TG Therapeutics (TGTX), ExxonMobil (XOM), Chord Energy (CHRD), RTX Corporation (RTX), and Kratos Defense (KTOS). We examine their business developments, potential catalysts, key support and resistance levels, and risks to help investors identify opportunities as market conditions evolve.

I. Healthcare

Healthcare is attracting renewed investor interest as capital rotates away from highly valued technology stocks. Pharmaceutical innovation, obesity treatments, and resilient demand for essential medicines support sector growth. Companies with expanding drug portfolios and strong cash flows may outperform, although patent expirations, regulatory pressures, and elevated valuations remain important risks.

AbbVie (ABBV) — Large Cap

AbbVie benefits from accelerating sales of Skyrizi and Rinvoq, both growing approximately 24% year over year in Q2. Shares are trading near record highs as investors favor defensive earnings growth.

A breakout above $291 could extend gains, while $280 provides initial support. Valuation and drug competition remain risks.

TG Therapeutics (TGTX) — Small Cap

TG Therapeutics offers strong growth exposure through BRIUMVI, whose US sales increased 64% year over year in Q2. Upcoming subcutaneous formulation trial results provide another catalyst.

Shares could challenge the $59 resistance area, with support near $53. Product concentration and clinical uncertainty remain significant risks.

II. Energy

Energy companies are benefiting from elevated crude prices, geopolitical supply disruptions, and improving refining margins. Integrated producers offer strong cash flows and shareholder returns, while refiners may capture additional upside from tight fuel supplies.

However, slowing global demand, easing geopolitical tensions, and potential oil-price corrections could challenge the sector's recent strength.

ExxonMobil (XOM) — Large Cap

ExxonMobil combines strong oil-price exposure with growing production from Guyana and the Permian Basin. Record upstream output and cost efficiencies support cash generation ahead of Q3 earnings.

Shares face resistance near $179, with support around $173. A retreat in crude prices remains the principal earnings and valuation risk.

Chord Energy (CHRD) — Small Cap

Chord Energy offers attractive cash-flow exposure through disciplined shale production and shareholder returns. Q2 adjusted free cash flow exceeded expectations, supporting dividends and buybacks.

A sustained break above $150 could extend the rally, with support around $143. Oil-price volatility and production costs remain the primary risks.

III. Defense

Defense companies are supported by rising military modernization requirements, missile stockpile replenishment, and growing demand for autonomous systems. Long-term government contracts provide revenue visibility, while unmanned technologies create additional growth opportunities.

Established contractors may benefit from backlog execution, although procurement delays, production constraints, and government budget uncertainty remain important challenges.

RTX Corporation (RTX) — Large Cap

RTX benefits from strong demand for missile-defense systems and commercial aerospace services, supported by a $289 billion order backlog. Its October 20 earnings release could provide the next catalyst.

Shares face resistance near $190, with support around $182. Production execution, costs, and guidance revisions remain key risks.

Kratos Defense (KTOS) — Small Cap

Kratos provides high-growth exposure to unmanned aircraft, missile systems, and next-generation defense technologies. Q2 revenue grew 30.5%, supported by expanding orders.

Shares rebounded toward $41 after a prolonged correction. A breakout above $43 could improve momentum, while $38 is initial support. Valuation, cash flow, and contract execution remain risks.