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. (NYSE:SPOT) 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. (NYSE:SPOT) 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 (NYSE:CMG) 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.
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