In the Chinese Zodiac, the Horse represents energy, speed, and a free spirit.
For investors, 2026, the Year of the Fire Horse, offers a unique opportunity to align portfolios with this dynamic energy. While thematic investing is often symbolic, the fundamentals behind these eight “equine” equities suggest they may have the stamina to sprint ahead in the coming year. From iconic logos to literal horsepower, here are eight stocks that could lead the pack in 2026.
1. Ferrari NV (NYSE: RACE)
Few logos are as instantly recognisable as the Cavallino Rampante (Prancing Horse) of Ferrari. For 2026, the Italian luxury automaker continues to trade less like a car company and more like a high-margin luxury house.
With a “sold-out” order book extending well into the future, Ferrari remains relatively insulated from the cyclical downturns that plague traditional auto manufacturers. Analysts have recently raised price targets, citing the company’s ability to maintain exceptional pricing power and its disciplined rollout of new models, including highly anticipated EVs that do not compromise on the brand’s racing DNA.
Financially, Ferrari is entering 2026 with a projected EBIT margin expansion that aims for the high 20% to low 30% range. The company’s focus on personalization, allowing clients to customize every stitch and caliper, has driven average transaction prices significantly higher. This revenue quality, combined with the brand’s scarcity model, makes it a defensive yet high-growth pick.
Investors looking for “horsepower” in their portfolio will find Ferrari’s 2026 outlook compelling. The stock has historically demonstrated resilience, and with the luxury sector stabilising, the Prancing Horse looks poised to continue its long-term rally, justifying its premium valuation multiples.
We might be heading towards a world of EVs, but hey, rarely do people say no to horsepower with prestige.
2. Hermes International SCA (EPA: RMS)
La pièce de rèsistance. La crème de la crème.
The Hermès logo, depicting a Duc carriage with a horse, pays homage to the company’s roots as a harness workshop in 1837. In the volatile luxury market, Hermès stands apart as the “flight to quality” trade. While aspirational luxury brands have struggled with softer consumer demand, Hermès’ ultra-wealthy clientele remains unaffected by economic headwinds. The company’s strategy of scarcity, particularly with its Birkin and Kelly bags, ensures demand consistently outstrips supply, allowing for confident price increases in 2026 without a drop in volume.
It is worth noting that the fashion world is a stable full of equine imagery. Investors might also look at Ralph Lauren Corp (NYSE: RL), Burberry Group plc (LON: BRBY), or Tapestry Inc (NYSE: TPR) owner of Coach, which all features a horse on their logo and trademarks. However, Hermès remains the thoroughbred of the group. Its exposure to the resilient leather goods market and its conservative management style provide a safety net that other fashion houses often lack.
Entering 2026, Hermès is forecasting continued revenue growth, supported by a rebound in key Asian markets. The stock commands a high premium, but for good reason: it is widely considered the best-managed company in the luxury sector. For investors, it represents a long-term compounder that rarely stumbles.
3. Lloyds Banking Group (LON: LLOY)
The “Black Horse” is the historic symbol of Lloyds Bank, dating back to 1677. As one of the UK’s largest domestic banks, Lloyds is heavily correlated with the health of the British economy. Fortunately, the outlook for 2026 sees the bank benefiting from a stabilizing interest rate environment and improved mortgage lending volumes. The bank’s management has aggressively targeted a Return on Tangible Equity (ROTE) of over 16% by 2026, signalling confidence in their operational efficiency and cost-cutting measures.
Income-seeking investors will appreciate Lloyds’ commitment to shareholder returns. The bank is forecasted to increase its dividend payout in 2026, alongside a robust share buyback program. This “total return” focus makes it an attractive defensive play in the financial sector.
While not a high-growth tech stock, Lloyds offers stability. Its digitization strategy is reducing the cost-to-serve, while its dominant position in UK retail banking provides a wide economic moat. If the UK economy avoids recession and continues its modest recovery, the Black Horse could see significant multiple expansion this year.
4. Churchill Downs Inc (NASDAQ: CHDN)
As the host of the legendary Kentucky Derby, Churchill Downs Inc. is the most literal play on horse racing in the market, and maybe amongst the eight stocks featured here.
However, the company is much more than a single event. It has successfully diversified into a high-growth gaming entertainment company, expanding its portfolio of historical racing machines (HRMs) and casinos across multiple states. The “Most Exciting Two Minutes in Sports” provides a unique, irreplaceable anchor asset that generates massive annual cash flow, which the company reinvests into higher-margin gaming operations.
For 2026, analysts are bullish on the company’s expansion projects in Kentucky and Virginia. The HRM segment, which allows users to bet on historical race outcomes via slot-like machines, is growing rapidly and faces less regulatory friction than traditional sports betting. This creates a recurring revenue stream that complements the seasonality of live racing.
The stock has faced some pressure from broader consumer discretionary spending concerns, but its core customer base has proven resilient. With new venues coming online in 2026 and the Kentucky Derby’s brand power stronger than ever, Churchill Downs offers a blend of tradition and modern gaming growth that is hard to replicate.
5. Tractor Supply Co (NASDAQ: TSCO)
While they don’t sell horses, Tractor Supply is the premier retailer for everything a horse owner needs — from feed and fencing to stable supplies. The company is the “picks and shovels” play of the rural lifestyle boom. Despite a mixed end to 2025, the outlook for 2026 is robust, with the company guiding for renewed store growth and improved operating margins. Their “Life Out Here” strategy continues to capture market share from smaller, independent competitors.
The company is a consistent dividend grower, often included in high-quality dividend growth portfolios. For 2026, Tractor Supply is focusing on modernizing its store fleet and enhancing its loyalty program, which already boasts millions of members. The recurring nature of animal feed and maintenance supplies provides a defensive floor to their revenue, even if discretionary spending on big-ticket items slows down.
Investors should view Tractor Supply as a long-term winner in the retail space. Its niche focus on the rural lifestyle protects it from the direct onslaught of e-commerce giants like Amazon, as shipping 50-pound bags of horse feed is rarely cost-effective for generalist online retailers. This logistical moat makes TSCO a sturdy stallion in a retail portfolio.
6. Tencent Holdings Ltd (HKG: 0700)
Tencent earns its spot on this list thanks to its founder and CEO, Ma Huateng, who is famously nicknamed “Pony” Ma (Ma translates to “Horse” in English). As China’s tech titan, Tencent is entering the Year of the Horse with a renewed focus.
Ma has recently emphasised a “steady and pragmatic” strategy for 2026, explicitly pivoting the company’s massive resources toward Artificial Intelligence. He has signaled that AI is the only area where the company will aggressively increase investment, aiming to integrate it into their dominant WeChat and gaming ecosystems.
After navigating years of regulatory headwinds, Tencent appears to be finding its stride again. The company’s gaming division remains a cash cow, funding these new high-tech ventures. Valuations for Chinese tech stocks have been compressed, potentially offering a deep-value entry point for investors willing to stomach geopolitical risks.
With Ma at the reins, Tencent is prioritising high-quality growth over expansion at all costs. If their AI integration revitalises advertising and fintech revenues in 2026, the stock could see a significant re-rating, galloping back toward its historical highs.
And if Ma Huateng is not your cup of tea, there’s always another horse to bet on – Jack Ma of Alibaba.
7. Pony AI Inc (HKG: 2026)
This is the “wild card” of the group. Pony.ai, a leader in autonomous driving technology, went public in late 2025. In a twist of fate that seems almost too perfect, its stock ticker on the Hong Kong exchange is literally 2026 (HKEX: 2026). Analysts see 2026 as a critical inflection point for the company, forecasting it as the year robotaxi unit economics could finally turn positive as they scale their fleet in Tier-1 Chinese cities.
The company has aggressive plans to triple its fleet size this year, moving from pilot programs to commercial viability. While the stock is speculative and volatile, typical for a pre-profit tech company, it offers pure-play exposure to the autonomous driving megatrend. Wall Street coverage has been largely bullish, with price targets suggesting significant upside if execution remains on track.
For risk-tolerant investors, Pony.ai represents the future of “horses”, replacing biological horsepower with autonomous computing power. The convergence of its name, its ticker (on HKEX), and the Year of the Horse make it a thematic favourite, but its technology partnerships with major OEMs like Toyota provide the fundamental backing.
8. Jardine Cycle & Carriage Ltd (SGX: C07)
Listed in Singapore, Jardine Cycle & Carriage fits the theme through its name, referencing the horse-drawn carriages of its past, and its business as a leading automotive distributor in Southeast Asia. The company is a diversified conglomerate with a controlling stake in Astra International, the Indonesian auto giant. For 2026, the company is viewed as a deep value play, trading at a discount to its intrinsic value despite solid cash flows.
The company is currently undergoing a strategic streamlining, having recently moved to exit non-core investments (such as its stake in Vinamilk) to focus on its automotive and heavy equipment roots. This clearer corporate structure is expected to be well-received by the market in 2026. As the Southeast Asian middle class continues to grow, demand for both passenger vehicles and motorcycles remains on a secular uptrend.
Investors often overlook this conglomerate due to its complex structure, but it offers exposure to the high-growth Indonesian economy with the stability of a legacy firm. It is a steady workhorse stock that pays a reliable dividend, offering balance to the faster-moving tech and luxury names on this list.
Verdict – One’s man Horse is another man’s Poison
Just like various car makers having horses as their logo – Ferrari, Porsche and Ford’s Mustang, each and everyone of us would have a stock above that we gravitate to.
Whether if its for a sprint within the year of 2026, or a long haul ride across multiple years, each stock above have their traits and allure that calls out to different investors.
There is no right and wrong. There’s only which stock or horse that suits your needs.
Nevertheless, wishing your 2026 investments nothing short of bountiful returns, and a very Horseh 2026 Chinese New Year!
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