In this article, we will take a look at the 10 Best Stocks to Buy Now for a $1 Million Portfolio.
According to a Bloomberg report published in February, Bloomberg asked some wealth advisers where they would invest $1 million in the current market environment. One adviser pointed to what were described as relatively boring companies, specifically high-quality businesses with stable cash flows in sectors such as healthcare and pharmaceuticals. Other advisers continued to favor AI as a major investment theme, though some preferred less obvious opportunities or companies where demand trends are easier to track.
Emerging markets, which have recently attracted strong investor inflows, were also highlighted by one adviser. Another pointed to private-market investments tied to sports ventures and lower-middle-market companies. The advisers also discussed how they would spend a $1 million windfall outside investing.
Sinead Colton Grant, Chief Investment Officer at BNY Wealth, said investors should remain selective in U.S. equities, especially in AI-related sectors. She highlighted memory companies as potential beneficiaries of rising AI demand, pointing to supply constraints and increasing demand from data centers and cloud providers. Grant added that the trend could evolve into a long-term memory “super-cycle.”
Grant also described sports investing as an attractive diversification opportunity for family offices. She pointed to opportunities across established franchises as well as emerging leagues, including women’s basketball and soccer. She added that market volatility is likely to continue, though strong earnings growth still supports a constructive outlook for 2026. At the same time, she said she currently sees stronger investment opportunities in developed and emerging markets outside the United States.
Given this, we will take a look at some of the best stocks for a $1 million portfolio.
Stock market data. Photo by Photo by Alesia Kozik
Our Methodology:
For this list, we reviewed several trusted media sources and identified the broader consensus on stocks for a $1 million portfolio. Most of these sources favored a mix of technology stocks, stable dividend payers, and defensive companies to balance long-term growth with steady income. Finally, we picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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).
10. Houlihan Lokey, Inc. (NYSE:HLI)
Number of Hedge Fund Holders: 36
On May 7, UBS lowered its price recommendation on Houlihan Lokey, Inc. (NYSE:HLI) to $160 from $163. It reiterated a Neutral rating on the shares.
The move came a day after Houlihan Lokey reported earnings for fiscal 2026, which ended March 31, 2026. The company said annual revenue rose to $2.62 billion, up from $2.39 billion in the prior year. Chief Executive Officer Scott Adelson said fiscal 2026 turned into another record year for the firm despite a difficult external backdrop. He said the performance reflected the strength and diversification of Houlihan Lokey’s business model. Adelson also pointed to some uncertainty heading into fiscal 2027. Even so, he said the company remained optimistic about the outlook for all three of its business segments.
Looking at the segment results, Corporate Finance revenue increased 14% from fiscal 2025. Financial Restructuring revenue slipped 3%, while Financial and Valuation Advisory revenue climbed 8%.
Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank that focuses on mergers and acquisitions, capital solutions, financial restructuring, and valuation advisory services. The company operates through three business segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.
9. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 48
On May 4, Bernstein analyst Douglas Harned lowered the firm’s price recommendation on L3Harris Technologies, Inc. (NYSE:LHX) to $405 from $435. It reiterated an Outperform rating on the shares. The firm pointed to the company’s first-quarter results, reported on April 30. L3Harris posted earnings per share of $2.72, ahead of the consensus estimate of $2.53. Revenue came in at $5.7 billion, also above expectations of $5.4 billion.
During the company’s Q1 2026 earnings call, Christopher Kubasik said L3Harris had earlier agreed to sell a 60% stake in its Space Propulsion & Power Systems business.
He also said the company announced and completed a partnership that included a $1 billion investment from the Department of War. In addition, Kubasik noted that L3Harris had confidentially filed a Form S-1 with the SEC to take its Missile Solutions segment public. Kubasik further stated that the company’s backlog had nearly doubled to more than $40 billion.
He added that the total still did not include another $25 billion in orders connected to the Munitions Acceleration Council programs, which remain under negotiation.
L3Harris Technologies, Inc. (NYSE:LHX) provides end-to-end technology solutions across the space, air, land, sea, and cyber domains in support of national security efforts. The company operates through four segments: Space & Airborne Systems (SAS), Integrated Mission Systems (IMS), Communication Systems (CS), and Aerojet Rocketdyne (AR).
8. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 52
On May 7, Susquehanna analyst Mehdi Hosseini raised the firm’s price recommendation on Astera Labs, Inc. (NASDAQ:ALAB) to $230 from $155. It reiterated a Neutral rating on the shares. The firm said Astera Labs reported first-quarter results and second-quarter guidance above consensus estimates. Susquehanna noted that the company continues to diversify its product revenue while gaining more connectivity content per AI rack.
The same day, Morgan Stanley analyst Joseph Moore raised the firm’s price target on Astera Labs to $240 from $210 and kept an Overweight rating on the stock. Moore said Astera is executing at a high level, with Scorpio helping drive near-term growth. He added that the company is benefiting from rising content per XPU, early leadership in PCIe Gen 6, and future opportunities tied to optical and custom solutions. According to the analyst, Astera “remains well positioned for sustained AI infrastructure growth.”
Astera Labs, Inc. (NASDAQ:ALAB) designs and delivers semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform combines semiconductor technology, microcontrollers, sensors, and software to improve performance, scalability, and data management.
7. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 60
On May 1, Baird lowered its price recommendation on Cardinal Health, Inc. (NYSE:CAH) to $248 from $257. It reiterated an Outperform rating on the shares. The firm updated its model following the company’s first-quarter results and also raised its 2027 forecast.
A day earlier, on April 30, BofA lowered its price goal on Cardinal Health to $240 from $260 to reflect lower peer multiples. It kept a Buy rating on the stock. BofA said Cardinal Health reported mixed-to-positive fiscal third-quarter results and raised its fiscal 2026 EPS guidance. The firm noted that the increase was driven by below-the-line items and continued strength in the Pharma and Other segments. The firm also argued that the higher guidance could help ease investor concerns about a possible slowdown in industry growth.
During the company’s fiscal Q3 2026 earnings call, CFO Aaron Alt said Cardinal Health was raising its full-year fiscal 2026 non-GAAP EPS guidance to a range of $10.70 to $10.80. Alt also stated that the company had lowered its expected full-year non-GAAP effective tax rate to about 19%, compared with its earlier outlook of 21% to 23%.
In addition, Alt noted that Cardinal Health had raised and narrowed its full-year adjusted free cash flow guidance to between $3.3 billion and $3.7 billion. The prior range was $3 billion to $3.5 billion.
Cardinal Health, Inc. (NYSE:CAH) is one of the three largest pharmaceutical wholesalers in the United States. The company sources and distributes branded, generic, and specialty pharmaceutical products to retail pharmacy chains, independent pharmacies, mail-order pharmacies, hospital networks, and healthcare providers.
6. Marathon Petroleum Corporation (NYSE:MPC)
Number of Hedge Fund Holders: 64
On May 8, Goldman Sachs analyst Neil Mehta raised the firm’s price recommendation on Marathon Petroleum Corporation (NYSE:MPC) to $291 from $264. It reiterated a Buy rating on the shares. In a research note, Mehta said the firm remains constructive on Marathon Petroleum because of its consistent execution, strong balance sheet, and attractive capital return profile supported by Midstream distributions. The analyst also pointed to potential upside from tighter PADD 5 market conditions and higher jet fuel prices. He added that investors could also see benefits from strategic updates tied to the El Paso yield improvement project and increased jet production at the Garyville refinery.
During the company’s Q1 2026 earnings call, President, CEO & Chairman of the Board Maryann Mannen said Marathon Petroleum invested nearly $330 million in its Refining & Marketing business during the quarter. He noted that several near-term projects are focused on increasing jet fuel optionality. Mannen also said the company brought online more than 30,000 barrels per day of additional jet production capacity at its Garyville refinery in March.
He further stated that Marathon Petroleum returned more than $1 billion to shareholders during the first quarter and announced an additional $5 billion share repurchase authorization.
Marathon Petroleum Corporation (NYSE:MPC) is an integrated downstream energy company. Its business segments include Refining & Marketing, Midstream, and Renewable Diesel.
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