Stocks to Watch Monday: American Airlines, USA Rare Earth, and RevMed

The opening bell of the final week of January 2026 rings in an environment of high-stakes diplomacy and corporate earnings pivots. For investors identifying the Stocks to Watch Monday, the landscape is dominated by three distinct narratives: a legacy airline preparing for its quarterly report card, a rare-earth pioneer riding a wave of sovereign support, and a biotech leader dealing with the aftermath of a collapsed multi-billion dollar buyout. As the market processes President Trump’s recent weekend tariff threats alongside Wednesday’s upcoming FOMC decision, Monday’s price action will likely define the momentum for the rest of the quarter.

Understanding Stocks to Watch Monday requires a blend of technical analysis and macroeconomic foresight. In early 2026, the “geopolitical risk premium” has returned to the forefront of financial planning. From the “Greenland pressure campaign” to the accelerating shift toward domestic mineral independence, the companies featured today represent the “new normal” of 2026 investing. Whether you are a tactical trader or a long-term wealth builder, this guide breaks down the critical catalysts for American Airlines, USA Rare Earth, and RevMed.

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The Convergence of Earnings and M&A

On Monday, January 26, 2026, the market is no longer trading purely on fundamentals. Instead, we are seeing a convergence of “event-driven” catalysts. When you look at Stocks to Watch Monday, you are seeing a micro-snapshot of the 2026 economy: the travel sector’s pricing power, the strategic importance of critical minerals, and the valuation gap in high-growth oncology biotech.

American Airlines (AAL): The Earnings Countdown

American Airlines (AAL) is the primary “Legacy” ticker in focus as investors prepare for its Q4 2025 earnings release, scheduled for Tuesday morning. The stock has been a favorite of analysts lately, with Susquehanna recently upgrading the carrier to “Positive.” However, the Stocks to Watch Monday narrative for AAL centers on anticipation. Will the carrier confirm the 31% rally seen over the last 90 days, or will the “higher-for-longer” fuel and labor costs dampen the 2026 outlook?

USA Rare Earth (USAR): The Sovereign Mineral Play

Perhaps the most explosive story in the 2026 market is USA Rare Earth (USAR). This company has transformed from a speculative project into a cornerstone of the Western supply chain. In the last week alone, USAR has surged on news of massive French government subsidies for its European expansion. More importantly, rumors are swirling this Monday about a potential $1.6 billion stake from the Trump administration to accelerate its “mine-to-magnet” capabilities. This makes USAR a primary candidate for high-beta momentum today.

RevMed (RVMD): The M&A Fallout

Revolution Medicines (RVMD) is a stark reminder of the “valuation gap” risk in 2026. Early Monday reports confirmed that Merck has halted its $30 billion acquisition talks for the biotech leader. After a 50% surge earlier this month on buyout rumors, RVMD is expected to face significant selling pressure today as the “M&A premium” evaporates. For investors, this is the most critical stock to watch for “mean-reversion” or finding a new floor near the long-term moving averages.

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Trading the Monday Volatility

Navigating Stocks to Watch Monday requires a disciplined framework. In a market where a single tweet or a leaked M&A report can move billions, you must have a “Pre-Bell” strategy. Below is a step-by-step breakdown for managing these three high-signal tickers.

The AAL Earnings “Straddle” or “Hold”

Since AAL reports Tuesday, Monday is about “positioning.”

• Analyze the Revision Trend: Analysts have revised EPS estimates downward by nearly 30% over the last 30 days. This has lowered the “bar” for a beat.
• Watch the $16 Resistance: If AAL breaks and holds above $16.32 on Monday, it signals institutional confidence in the Tuesday report.
• The Move: For long-term investors, the Zacks #3 (Hold) rank suggests staying the course. For traders, look for a “buy the rumor” move toward $17.60.

Evaluating the USAR “Sovereign Catalyst”

USA Rare Earth is currently trading on “The News,” not “The Earnings.” Since the company is pre-revenue, you must trade based on government support milestones.

1. Check the $1.6B Rumor: If the government stake is confirmed, expect a massive liquidity event.
2. Monitor the RS Rating: USAR’s Relative Strength (RS) rating has jumped to 91, indicating it is outperforming 91% of the market.
3. Actionable Step: Use a “trailing stop-loss” of 5-8%. In 2026, these “critical mineral” stocks can gap up 15% but can also consolidate just as fast once the headline cools.

Playing the RVMD “Deal Break”

RevMed is a “Catching a Falling Knife” scenario today.

• The Support Floor: Technical data suggests strong accumulated volume support at $91.94. If the stock sinks toward this level on the Merck news, it may represent a long-term “accumulate” opportunity for the cancer pipeline.
• Actionable Step: Avoid a “market buy” at the open. Wait for the first 30 minutes of Monday’s trading to see where the volume settles.

Actionable Checklist for Monday’s Market:

• Verify the FOMC Sentiment: Monitor the 10-year Treasury yield. If it spikes on Monday, growth-heavy stocks like USAR and RVMD will face valuation headwinds ahead of Wednesday’s Fed meeting.
• Check the “Greenland” Headlines: Any fresh tariff threats from the administration over the weekend will hit the airlines (AAL) first through international travel sentiment.
• Review your “Buy List”: According to the International Monetary Fund (IMF), “private sector adaptability” is the key to surviving 2026. Ensure your portfolio isn’t too heavily weighted in any single “event-driven” stock.

Scenarios and Case Insights: Portfolio Weighting

To understand the impact of Stocks to Watch Monday, let’s look at a comparative scenario of how these stocks fit into a balanced 2026 portfolio.

Scenario: The “Event-Driven” Allocation

Imagine you have $10,000 in “tactical capital” to deploy this Monday.

In this scenario, AAL provides the “stability,” USAR provides the “alpha” (high growth potential), and RVMD represents the “contrarian” play—buying a high-quality pipeline at a discount after a merger fails. This “barbell” approach allows you to participate in the Stocks to Watch Monday momentum while maintaining a baseline of safety.

Expert Insight: “The 2026 market rewards speed but punishes lack of discipline. The ‘Greenland Effect’ and sovereign mineral stakes have made geopolitical literacy just as important as reading a balance sheet.” — Market Analyst Summary, Jan 26, 2026.

Common Mistakes and Risks to Avoid

• Chasing the USAR Surge: With the stock up 55% in January, buying at the daily high on Monday is risky. Wait for a “pullback to the 20-day SMA” before entering a large position.
• Ignoring the Fed’s “Quiet Period”: We are currently in the pre-FOMC window. The Stocks to Watch Monday may see erratic moves as traders “front-run” the Fed’s Wednesday commentary.
• Over-Leveraging on Biotech Rumors: The RevMed/Merck situation shows that M&A is never guaranteed until the papers are signed.
• Neglecting AAL’s Balance Sheet: While the “Hold” rating is positive, American Airlines still carries high debt compared to Delta or United. Don’t forget to check the “Net Debt” figure in tomorrow’s report.

Conclusion – Key Takeaways & Next Steps

The Stocks to Watch Monday—American Airlines, USA Rare Earth, and RevMed—offer a masterclass in the 2026 investment landscape. AAL is the test of legacy transport resilience; USAR is the vanguard of the new “Sovereign Supply Chain” era; and RVMD is a lesson in the volatility of the biotech M&A cycle. As we move through this “dense macro week,” the winners will be those who can separate the “noise” of tariff threats from the “signal” of government-backed industrial growth.

Ultimately, Monday is about “observation and positioning.” Whether you are bracing for AAL’s earnings or hunting for a floor in RVMD, your goal is long-term wealth building, not just short-term scalping.

What is your next move for the Monday open?

Start by setting price alerts for USAR at $20.00 and RVMD at $92.00. Would you like me to help you create a “2026 Risk Audit” for your current holdings to see how they would handle a potential Fed “Hawkish Surprise” this Wednesday?