Quality Stocks Are on Deep Discount. 7 Ideas to Buy.

“We’re incautiously optimistic—buy hot garbage,” advised none of the big investment firms a year ago in their 2025 outlooks. Pity. The S&P 500 index, despite a springtime tariff wobble, has so far returned a splashy 18%. And since the beginning of March, speculative, low-quality stocks have beaten high-quality ones by 50 percentage points, UBS finds. It predicts 10% more upside for the U.S. market in 2026, but says that investors should now bet on high quality: “The sharp rally in low quality appears unsustainable amid elevated uncertainty and extreme crowding.”