In this article, we will look at the 10 Best Large Cap Stocks to Buy in 2026 According to Billionaire Dan Loeb.
US equity markets have bounced back from their losses amid the Iran War, driven by significant gains in large-cap stocks. The S&P 500 has already clocked a new all-time high, driven by strong gains in artificial intelligence technology.
Strong corporate earnings have also strengthened investor confidence, helping offset concerns about the long-term impact of the Iran-US war. About 82% of the S&P 500 companies have already topped first-quarter profit estimates.
Wall Street strategists are projecting further upside for the US equity markets. Consequently, long-term investors may benefit from staying invested and focusing on broader market trends rather than reacting to short-term volatility. Strategists at HSBC expect the S&P 500 to top the 7,650 level, while RBC Capital Markets has raised its target to 7,900.
JPMorgan strategists, led by Mislav Matejka, remain overly optimistic about the equity market’s long-term outlook amid a flow of positive news. While geopolitical developments have been the key driver of markets, a resilient US economy has helped investors shrug off their concerns.
Chris Zaccarelli at Northlight Asset Management said, “The economy is much better than the doom crew claims. There are many headwinds—higher oil prices, persistent inflation, and higher-for-longer interestrates—but the labor market keeps adding jobs.”
Billionaire hedge fund manager Dan Loeb remains overly optimistic about large-cap stocks. Through Third Point, the hedge fund he helped found in 1995, the billionaire investor continues to bet big on fast-growing companies and market leaders in various industries.
Daniel Loeb’s investment portfolio is highly diversified, focusing on large-cap stocks in various industries, from Industrials to consumer cyclical and technology. In 2025, the hedge fund’s flagship, Third Point Offshore Fund, generated an 8.9% return.
Dan Loeb of Third Point
Our Methodology
To come up with the list of the 10 best large cap stocks to buy in 2026 according to billionaire Dan Loeb, we scanned the billionaire’s Third Point hedge fund portfolio as of Q4 2025. From there, we identified companies with a market cap between $10 billion and $200 billion in the portfolio and selected the fund’s top 30 holdings by equity value within this market-cap range. Next, we applied additional filters to narrow the list to 10 stocks. We focused on stocks that are popular with other hedge funds in Q4 2025 and have at least 10% upside potential (as of May 14). Finally, we ranked the stocks in ascending order based on Third Point’s equity value in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Large Cap Stocks to Buy in 2026 According to Billionaire Dan Loeb
10. Spotify Technology S.A. (NYSE:SPOT)
Third Point Equity Stake: $58.1 Million
Number of Hedge Fund Holders: 121
Stock Upside Potential: 35.95%
Market Cap: $89.4 Billion
Spotify Technology S.A. (NYSE:SPOT) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb.
On April 29, Benchmark lowered its price target on Spotify Technology S.A. to $695 from $760, while maintaining a Buy rating. Analyst Mark Zgutowicz flagged concerns over Spotify’s cost structure disclosures, noting management provided a cost bridge without corresponding revenue projections.
The firm highlighted three key issues: ad monetization lagging behind engagement growth, an unclear commercial strategy for AI-generated music, including rights and royalties, and a largely qualitative payback period for current AI and research spending.
Benchmark emphasized that Spotify has yet to explain why advertising revenue trails engagement beyond programmatic pricing pressures, and investors remain unconvinced about a long‑awaited second‑half advertising rebound. With EPS and revenue estimates are trending lower in recent months, the firm said the burden of proof now shifts to Spotify’s Investor Day on May 21.
Despite near‑term concerns, Benchmark maintained confidence in Spotify’s broader strategic direction, suggesting the company’s long‑term growth story remains compelling if it can demonstrate clearer monetization strategies and stronger returns on AI investment.
Spotify Technology S.A. offers global audio streaming services through two main segments: Premium and Ad-Supported. The Premium segment provides subscribers with online and offline access to Spotify’s catalog of music and podcasts, along with select features such as video, lossless audio, and audiobooks in certain markets.
9. Chipotle Mexican Grill Inc (NYSE:CMG)
Third Point Equity Stake: $174.8 Million
Number of Hedge Fund Holders: 77
Stock Upside Potential: 34.96%
Market Cap: $41.6 Billion
Chipotle Mexican Grill Inc (NYSE:CMG) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. The Street sees Chipotle stock gaining more than 30% over the next 12 months.
On May 4, Argus upgraded Chipotle’s stock rating to Buy from Hold and set a price target of $40. The price target indicates substantial upside to the stock’s current price of around $32.
Argus believes Chipotle will surpass its 2026 comparable store sales guidance. Additionally, the firm is confident the restaurant chain can achieve its long-term growth goals as it continues to expand.
For 2026, Chipotle expects comparable store sales to be flat, but Argus views this as cautious guidance as it expects sales to accelerate in the remainder of the year. The chain plans to open 350 to 370 new stores in 2026.
Argus projects EPS of $1.20 for Chipotle in 2026 and EPS of $1.35 in 2027. The firm believes Chipotle can hit its long-term goal of high-single-digit revenue growth, mid-single-digit comparable sales growth, and mid-teens operating margins.
In Q1 2026, Chipotle’s revenue increased 7.4% YoY to $3.1 billion. Comparable restaurant sales rose 0.5% YoY.
Chipotle Mexican Grill Inc runs a food services business. It operates a network of fast-casual restaurants offering burritos, tacos, burrito bowls, and salads. The company is expanding its global footprint, including a recent entry into the Asian market.
8. LPL Financial Holdings Inc (NASDAQ:LPLA)
Third Point Equity Stake: $182.2 Million
Number of Hedge Fund Holders: 54
Stock Upside Potential: 33.87%
Market Cap: $24.3 Billion
LPL Financial Holdings Inc (NASDAQ:LPLA) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. Analysts see LPLA stock rising more than 30% in the next 12 months.
On April 30, LPL Financial announced that it has resumed its share repurchase program. It plans to make $125 million in repurchases during Q2 2026. This comes after the company reported strong Q1 results.
Revenue jumped 35% YoY to $4.93 billion in the first three months of 2026. The company posted adjusted EPS of $5.60 for the quarter, up from $5.15 a year ago and above the analysts’ expectation of $5.48.
LPL Financial paused the stock buyback program following the announcement of its acquisition of Commonwealth Financial Network in March 2025. LPL Financial acquired Commonwealth for $2.7 billion in its latest M&A deal to date, and the transaction closed in August 2025. Through Commonwealth, LPL Financial sought to add roughly 3,000 independent advisors and around $300 billion in client assets.
The pause on buyback was intended to help LPL Financial preserve capital and manage leverage during the transition. The company exited Q1 with more than $1 billion in cash and cash equivalents, and its leverage ratio stood at 1.86x.
California-based LPL Financial Holdings Inc operates a platform that supports independent financial advisors. It provides the technology, investment products, clearing services, and compliance oversight that enable advisors to manage roughly $2.3 trillion in client assets.
7. Rocket Companies Inc (NYSE:RKT)
Third Point Equity Stake: $184.2 Million
Number of Hedge Fund Holders: 114
Stock Upside Potential: 38.51%
Market Cap: $41.8 Billion
Rocket Companies Inc (NYSE:RKT) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb.
On May 12, Keefe, Bruyette & Woods reiterated an Outperform rating on Rocket Companies Inc stock but reduced the price target on the shares to $21 from $22. In making this decision, the firm pointed to higher interest rates, which led it to lower its EPS estimates for Rocket Companies.
Keefe cut its 2026 EPS projection for Rocket to $0.69 from $0.70. It reduced its 2027 EPS estimate to $0.99 from $1, and lowered its 2028 EPS estimate to $1.12 from $1.28. The firm specifically tied the price target reduction to 2027 estimate revisions, which it said better reflects the higher interest rate environment.
Notably, Keefe’s action on Rocket stock followed the release of the April inflation reading that showed consumer prices soared more than expected. According to a Wall Street Journal report on May 12, the high and rising prices diminish expectations for Fed rate cuts in 2026. Despite reducing its estimates due to higher interest rates, Keefe believes that Rocket’s business remains solid.
Rocket Companies Inc operates a fintech platform covering home loans and mortgage refinancing, real estate brokerage, and personal finance. The company’s brands include Rocket Mortgage, Rocket Homes, and Rocket Money. Rocket Companies was founded in 1985 and is based in Detroit, Michigan.
6. MasTec Inc (NYSE:MTZ)
Third Point Equity Stake: $201.1 Million
Number of Hedge Fund Holders: 71
Stock Upside Potential: 10.95%
Market Cap: $33.8 Billion
MasTec Inc (NYSE:MTZ) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. The stock has gained 120% over the past six months and surged nearly 170% over the past 12 months. The Street sees more upside in MTZ stock.
On May 4, TD Cowen boosted its price target on MasTec shares to $445 from $320 while keeping a Buy rating on the stock. The firm based its decision on MasTec’s solid Q1 2026 results and backlog growth, saying that it continues to see upside for the stock from backlog coverage.
The Q1 2026 report showed revenue increased 34% YoY to $3.83 billion, exceeding the $3.48 billion that analysts expected. EPS came in at $1.39, compared to $0.51 a year ago and above the anticipated $0.99.
MasTec’s 18-month backlog hit a record of $20.3 billion, reflecting an increase of $1.4 billion from Q4 2025. The company said the backlog growth was driven by strong growth in its clean energy and infrastructure segment.
Looking ahead, MasTec anticipates 2026 revenue of $17.5 billion, compared to $14.3 billion in 2025. The management sees the clean energy segment driving much of that topline growth. The 2026 EPS is expected to be $8.79, reflecting a 34% YoY increase.
MasTec Inc is engaged in engineering, construction, and maintenance of energy and communications infrastructure. It operates in market segments such as power delivery, renewable energy, pipeline, and communication networks. The company was founded in 1994 and is based in Florida.
5. Costar Group Inc (NASDAQ:CSGP)
Third Point Equity Stake: $212.8 Million
Number of Hedge Fund Holders: 56
Stock Upside Potential: 52.41%
Market Cap: $13.2 Billion
Costar Group Inc (NASDAQ:CSGP) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. The Street sees the stock gaining more than 50% over the next 12 months.
On April 29, Citizens reiterated a Market Outperform rating on CoStar stock but lowered its price target on the shares to $44 from $73. According to Citizens, CoStar’s portfolio of businesses is generally high quality, but the company needs to do something about its Homes.com brand.
Dan Loeb of Third Point
Homes.com is the company’s residential real estate marketplace. At the end of Q1 2026, CoStar said Homes.com had 35,000 members, up 200% compared to the same period a year ago.
Citizens expects CoStar to rationalize its Homes.com brand. The firm believes that CoStar will reduce its investment in this business rather than increase it. Without the Homes.com business, the firm projects that CoStar can generate EBITDA of $1.35 billion in 2026.
Citizens noted CoStar’s continued commitment to its 2028 and 2030 financial goals. According to the firm, this provides a clear deadline for the company to make a decision on the Homes.com business. Citizens concluded that it wants to be positioned for when CoStar’s profitability improves, and it believes this could come suddenly.
Costar Group Inc is a provider of information, analytics, and marketing services to the commercial real estate industry. The company is based in Arlington, Virginia, and serves customers across North America and Europe. Its brands include Apartments.com, Homes.com, LoopNet, and Matterport.
4. Live Nation Entertainment Inc (NYSE:LYV)
Third Point Equity Stake: $245.8 Million
Number of Hedge Fund Holders: 69
Stock Upside Potential: 14.20%
Market Cap: $40.1 Billion
Live Nation Entertainment Inc (NYSE:LYV) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. Live Nation stock has gained roughly 24% over the past six months, and analysts see it rising further.
On May 6, Guggenheim lifted its price target on Live Nation shares to $197 from $192 while keeping a Buy rating on the stock. The updated price target indicates a substantial upside potential to the stock’s current price of around $168.
Guggenheim based its renewed bullish view on Live Nation’s strong Q1 2026 results and a robust outlook for full-year 2026. In Q1, Live Nation’s revenue rose 12% YoY to $3.8 billion. The company posted an adjusted operating income of $371 million, reflecting an increase of 9% YoY.
Live Nation CEO Michael Rapino said 2026 was off to a strong start. Rapino revealed that more than 85% of Live Nation’s large-venue shows for the year are already booked, and more than 107 million tickets have been sold year-to-date, an increase of 11%.
Live Nation exited Q1 with $9.1 billion in cash and cash equivalents. The company added to its cash position in April, raising €610 million through a debt offering.
Live Nation says it’s on pace to grow its adjusted operating income by double-digits in 2026. Guggenheim boosted its 2026 adjusted operating income outlook for Live Nation to $2.73 billion from $2.67 billion.
California-based Live Nation Entertainment Inc is the global leader in live entertainment and ticketing. It promotes concerts, hosts live events, manages ticketing, and operates venues. Its subsidiary brands include the namesake Live Nation and Ticketmaster.
3. Brookfield Corp (NYSE:BN)
Third Point Equity Stake: $284.5 Million
Number of Hedge Fund Holders: 46
Stock Upside Potential: 27.72%
Market Cap: $99.4 Billion
Brookfield Corp (NYSE:BN) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. While Brookfield Corp shares are up only a modest 15% over the past year, the Street sees the shares popping nearly 30% over the next 12 months.
On May 11, Brookfield announced that it’s investing $500 million in a newly formed unit of the ChatGPT maker OpenAI. The unit is called OpenAI Deployment Company, and its purpose is to help accelerate the adoption of OpenAI’s software by large enterprises.
This unit is designed to address deployment bottlenecks and help businesses realize AI-driven productivity as they transition from AI pilots.
Brookfield itself has deployed AI applications across its portfolio and is already seeing productivity gains, according to Anuj Ranjan, head of Brookfield’s private equity business. Ranjan also commented that AI will be a defining productivity driver “across the backbone of the global economy.”
Through the deployment unit, OpenAI will embed its AI specialists into organizations. These specialists will work with business leaders and various teams to identify areas where AI can make the greatest impact. Also, OpenAI is acquiring AI consulting firm Tomoro to expand its deployment unit by bringing more deployment specialists.
Canada-based Brookfield Corp is a multinational alternative investment management company. It manages a diverse portfolio of assets for its clients, who include institutional and individual investors. Its asset portfolio features real estate, infrastructure, private equity, and credit.
2. Somnigroup International Inc (NYSE:SGI)
Third Point Equity Stake: $303.6 Million
Number of Hedge Fund Holders: 72
Stock Upside Potential: 48.63%
Market Cap: $13.7 Billion
Somnigroup International Inc (NYSE:SGI) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. The Street expects the stock to pop nearly 50% from its current level.
On May 8, Raymond maintained a Strong Buy rating on Somnigroup stock but lowered its price target on the shares to $95 from $105. The firm pointed to the mattress company’s mixed Q1 2026 results for the price target revision.
Somnigroup delivered Q1 EPS of $0.59, above the $0.58 that analysts expected. However, revenue of $1.8 billion slightly fell short of the $1.83 billion that the Street was anticipating despite increasing 12.3% YoY.
Looking ahead, Somnigroup reaffirmed its full-year 2026 EPS guidance of between $3.00 and $3.40. Raymond noted adjustments that support Somnigroup’s maintained 2026 EPS guidance despite a softer revenue outlook. The firm highlighted around a $20 million reduction in the company’s 2026 advertising spend, as well as an expected $10 million in extra cost synergies. Additionally, the firm noted that Somnigroup stands to benefit from pricing actions in the back half of the year.
Somnigroup International Inc manufactures and sells bedding products. Its portfolio includes mattresses, pillows, and accessories. The company operates through multiple brands, including Tempur, Stearns & Foster, Sealy Posturepedic, and Mattress Firm.
1. Union Pacific Corp (NYSE:UNP)
Third Point Equity Stake: $418.7 Million
Number of Hedge Fund Holders: 105
Stock Upside Potential: 12.06%
Market Cap: $158 Billion
Union Pacific Corp (NYSE:UNP) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. This railroad stock has gained roughly 20% over the past six months, and Street forecasts show it has more room to rise.
Union Pacific Corp and Norfolk Southern Corp (NYSE:NSC) want to merge, but they face opposition from their rival, Canadian National Railway (CN). On May 11, CN called on regulators to reject Union Pacific’s acquisition of Norfolk Southern. It outlined several reasons for its opposition to the merger, including that it fails to address competition concerns as required.
According to CN, the amended merger application that Union Pacific submitted only addresses one issue out of the three that the regulator pointed out. Additionally, CN said that the pricing program that the merger parties have proposed to preserve competition falls short of addressing the regulator’s concerns.
However, Union Pacific and Norfolk Southern insist that their merger is good for the industry. In the amended application, the companies said their combined railroads would deliver a faster, more reliable service and save shippers roughly $3.5 billion annually.
If approved, the Union Pacific-Norfolk Southern merger will result in America’s first transcontinental railroad with more than 50,000 miles of track network. Union Pacific hopes to close the transaction in early 2027.
Nebraska-based Union Pacific Corp is a railroad operator supporting freight shipping, logistics operations, and railroad transportation. It operates more than 32,000 miles of rail track network that links major US ports to Mexico gateways. Founded in 1862, Union Pacific Corp’s operations cover 23 states.
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