The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are RTX Corp (RTX); Robinhood Markets Inc (HOOD); Costco Wholesale Corp (COST); Targa Resources Corp (TRGP) and the Focus List deletions are Baker Hughes Co (BKR); Intercontinental Exchange Inc (ICE); Kroger Co/The (KR); Trane Technologies plc (TT).

Kroger, based in Cincinnati, operated 2,698 retail supermarkets and multidepartment stores in 35 states at the end of 4Q26. We estimate that these stores generated over 90% of the company's $147.6 billion in sales in FY25. KR also operated 1,731 supermarket fuel centers, 33 food processing plants, and 43 distribution centers in the U.S. at the end of FY26. These plants produce about 31% of KR's private-brand units. The company's name plates include Kroger, Ralphs, Fred Meyer, Food 4 Less, King Scoopers, Smith's, Fry's, Dillon's, City Market, and Harris Teeter. Some 11% of the supermarkets are in California, 8% are in Ohio, and 8% are in Texas. Walmart and Sam's Club are primary competitors in most major markets. KR has pharmacies in about 83% of its food stores. The company has 182 million square feet of supermarket space. Nonperishables represented 52% of FY25 sales, Fresh Foods were 25%, Supermarket Fuel was 10%, Pharmacy was 11%, and Other was 2%. We will update this after we review the annual report. The company's fiscal year ends on the Saturday closest to January 31. Kroger's fiscal first quarter is 16 weeks. The second, third, and fourth quarters are each 12 weeks. The current FY27 ends on January 31, 2027.

Stocks are lower at midday on Friday, on track to book a fourth consecutive losing week. Meanwhile, the U.S./Israeli war with Iran shows little sign of calming, with ongoing attacks throughout the Middle East. The event is leading to friction between the U.S. and its allies as the long-term global impact on energy markets grows by the day. At the very least, uncertainty and volatility are high -- two catalysts that equity investors dislike. From a technical perspective, the major indices are all establishing residency under their 200-day moving averages. The last time the indices lost their 200-day was in the first part of March 2025, during the tariff tantrum. In other market news, stocks must contend with a quadruple witching event today (the quarterly expiration of stock options, index options, index futures and single-stock futures), and investors in general are also mindful of inflation (seemingly on the rise again) and the path of interest rates (less certain today than it was just a few weeks ago).

Uncertainty over President Trump's new tariff policies almost knocked stocks into a bear market a year ago. While growth stocks suffered the most, value stocks also declined. Even bond prices were lower amid the confusion. Stocks have since recovered and the bull market that began in 2022 remains intact. But inflation is still an issue and now the Federal Reserve's treasured and valuable independence may be in question. Is a correction in the offing, given the high level of stock prices? Taking into account all the variables, is it time for investors to cash in their chips? As the market fluctuates between bull and bear, we note that investors exit equities at their own peril. So what's a potential equity strategy for investors amid all the uncertainty? Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate.