The K-shaped economy has winning stocks on both ends of the K. The upper arm of the K includes the high-end, luxury consumer companies that appeal to the wealthy. This segment of the consumer sector has benefited as the stock market has risen and home values have increased over the past five years. The lower leg of the K also has produced winners. The mass consumers, supported by a low unemployment rate, continue to prove their resilience despite the challenges of inflation and affordability. Even so, all consumers are watching wallets closely and choosing wisely how to direct their spending. For this week's list, we look at BUY-rated stocks that we see as winners of the K-shaped economy. The price performance noted is year to date.

Hilton Worldwide Holdings is among the world's largest hotel companies. Its principal brands range from budget to luxury and include Hilton, Conrad, Waldorf Astoria, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Homewood Suites, Home2 Suites, Curio, Canopy, and Tru. The company has about 180,000 employees. The shares are a component of the S&P 500.

The newsflow for the coming week includes a possible peace deal in Iran and the Fed, which meets for the first under the chairmanship of Kevin Warsh. Wall Street is eagerly anticipating his press conference on Wednesday afternoon. It is also a short week, with markets closed on Friday for the Juneteenth holiday. Last week, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all rose 1%. Year to date, all three indices are in positive territory, with the DJIA up 7%, the S&P up 9%, and the Nasdaq up 11%. The earnings calendar is quiet as we are between reporting seasons, and the economic calendar is equally light. In addition to the Federal Reserve meeting, new data on Retail Sales will be released on Wednesday. Turning to economic forecasts, gas prices remain elevated, but did drop 16 cents last week and are now at an average of $4.15 per gallon for regular gas. The Atlanta Fed GDPNow forecasts 3.3% GDP growth for 2Q, higher than the last reading of 3.0%. The Cleveland Fed Inflation Nowcast calls for CPI of 4.1% for June, a slight step-down from the 4.2% print for May. Mortgage rates edged up four basis points last week, with the average 30-year fixed-rate mortgage now at 6.52%, according to FreddieMac. As noted, the next Federal Open Market Committee (FOMC) meeting is on Wednesday, and odds are at 3% for a rate cut. After that, there will be meetings on July 29 and September 16. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 9% year to date. The leading emerging market ETF (EEM) is up 24% year to date. Meanwhile, U.S. growth stocks are up 2% when looking at ETF IWF, while value stocks (IWD) are up 14%. Crude oil prices remain volatile. On Friday, crude clocked in at $84 per barrel, still up 45% for the year. In other asset classes, AGG bonds are down 1% year to date, gold is down 3%, and Bitcoin is down 27%. The U.S. dollar is up 2%, tracking DXY. The VIX Volatility Index was at about 18 on Friday, below its historical average of 20.

The first-quarter earnings season has been sensational. Many companies knocked it out of the park when delivering earnings and revenue numbers that well beyond expectations. With reports now in from about 96% of S&P 500 companies, earnings have climbed a staggering 29% from last quarter. Information Technology, up 56%, and Communication Services, up 51%, have led the pack. At the bottom are Healthcare, down 3%, and Energy, down 1%. With earnings season essentially over, we have had a chance to look at trends. In particular, we watch for companies that raised guidance as we view that action as a likely catalyst for market-beating returns in the quarters ahead. It's even harder for companies to raise guidance during uncertain economic times, as vision is murky. The following is a partial list of companies in Argus' Fundamental Universe of Coverage where management raised its outlook during the 1Q26 reporting season.