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.

Marriott International operates and franchises several brands of hotels, resorts and timeshare facilities across 138 countries and territories. The company has approximately 414,000 employees. The shares are a component of the S&P 500.

Stocks are deeply in the red at midday on Friday, as the good news/bad news battle is again in play. It's hard to not like the payrolls data that was reported this AM, as the number of new jobs created in the U.S. blew away expectations. But the flipside argument, which is winning the day so far, is that a solid employment picture makes the likelihood of an interest-rate cut very low. Indeed, a possible rate hike is capturing the headlines, and leading to equity market agita. Other notable events include the continued selling in Broadcom and peers, the price of Bitcoin falling hard and fast, and the soon to be crowning of the world's first trillionare in the form of Elon Musk. A busy day indeed, leading to a 10% spike in the VIX volatility index.

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.