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.
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 (NASDAQ:LPLA) 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 (NYSE:RKT) 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 (NYSE:RKT) 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 (NYSE:MTZ) 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.
While we acknowledge the potential of MTZ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MTZ and that has 100x upside potential, check out our report about the cheapest AI stock.
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