January 21, 2026
Finance

Analyst Picks Highlight Tech and Utility Stocks Amid Market Fluctuations

Experts weigh in on Toast, Southern Company, and software ETFs as earnings approach

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Summary

During a recent financial segment, several market analysts shared their investment recommendations focusing on technology and utility sectors. Toast, Inc. and Southern Company emerged as notable picks, alongside an emphasized opportunity in the expanded tech-software sector despite recent selloffs. Expectations build ahead of Southern Company's forthcoming quarterly earnings report.

Key Points

Joshua Brown of Ritholtz Wealth Management confirms a buy recommendation on Toast, Inc., noting promising price movements.
Oppenheimer analyst Rayna Kumar maintains an Outperform rating on Toast but adjusts the price target slightly from $49 to $48.
Brian Belski of Humilis Investment Strategies selects The Southern Company as a key trade, ahead of its scheduled fourth-quarter earnings release.
Liz Thomas of SoFi highlights potential in the expanded tech-software sector ETF, advocating investment despite recent market selloff.

In a notable financial broadcast segment focusing on stock picks and market trends, prominent analysts provided their latest investment insights regarding specific equities and ETFs, highlighting emerging opportunities across different sectors.

Joshua Brown, CEO of Ritholtz Wealth Management, reaffirmed his endorsement of Toast, Inc. (NYSE:TOST), citing favorable price movements observed during the previous trading session. Brown's bullish stance underscores confidence in the technology-driven restaurant management company's potential amid current market conditions.

Adding a nuanced perspective, Oppenheimer's analyst Rayna Kumar reiterated an Outperform rating for Toast as of January 12. Kumar adjusted the price target marginally downward from $49 to $48, suggesting a slight moderation in near-term valuation expectations but maintaining an optimistic outlook on the stock's growth prospects.

Turning to the utility sector, Brian Belski, CEO of Humilis Investment Strategies, identified The Southern Company (NYSE:SO) as his definitive trade recommendation. Southern Company is positioning itself for its upcoming fourth-quarter earnings announcement scheduled for Thursday, February 19. Market analysts forecast earnings per share (EPS) of 57 cents and anticipate revenue generation totaling $6.41 billion, setting the stage for investor scrutiny.

On the ETF front, Liz Thomas, head of investment strategy at SoFi, advocated for the iShares Expanded Tech-Software Sector ETF (NYSE:IGV). Thomas argued that the recent selloff impacting technology-software stocks appears unwarranted, positing that the sector holds substantial upside potential throughout the year despite current market headwinds.

Complementing these selections, Joe Terranova, senior managing director at Virtus Investment Partners, recommended positioning in the ProShares UltraShort 20+ Year Treasury (NYSE:TBT). This choice reflects a strategic hedge against long-duration Treasury bond risks, capitalizing on market movements in fixed income securities.

Examining recent trading activity on Tuesday, shares of Toast, Inc. declined by 2.3%, concluding the session at $32.76. Southern Company experienced a slight decrease of 0.1%, closing at $88.82. The iShares Expanded Tech-Software Sector ETF faced a more substantial drop of 2.4%, reflecting the broader sector selloff, while ProShares UltraShort 20+ Year Treasury increased by 2.6%, indicating investor appetite for short-duration bond exposure.

Analysts and investors keen on evaluating stock momentum and trends can refer to additional financial metrics to gauge performance nuances. Southern Company currently trades around $89.32 with marginal positive movement; the ProShares UltraShort Lehman 20 Year Treasury (ticker TBT) is priced near $35.40 with minimal negative change; and Toast Inc. holds around $32.95 with slight upward momentum, reflecting dynamic shifts in market sentiment.

The forthcoming earnings report from Southern Company stands as a critical event, with the anticipated EPS and revenue figures offering insights that may influence trading decisions, particularly given the utility sector’s sensitivity to economic variables and regulatory shifts.

Overall, these analyst recommendations underline a diverse investment landscape balancing technology-driven growth prospects against traditional utility stability and tactical bond positioning.

Risks
  • Toast's share price experienced a 2.3% decline on the latest trading day, indicating potential volatility.
  • Southern Company's stock saw a minor 0.1% decrease before its upcoming earnings announcement, underscoring possible market uncertainty leading into earnings.
  • The iShares Expanded Tech-Software Sector ETF encountered a 2.4% drop, reflecting sector-wide pressures that may affect investment returns.
  • ProShares UltraShort 20+ Year Treasury rose 2.6%, suggesting fluctuating investor sentiment and potential risks associated with Treasury security positioning.
Disclosure
Education only / not financial advice
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Ticker Sentiment
TOST - neutral SO - neutral IGV - neutral TBT - neutral
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