On December 22, Scott Wren, chief global equity strategist at Wells Fargo Investment Institute, joined CNBC’s ‘Squawk on the Street’ to express optimism regarding accelerating earnings alongside moderating inflation. He identified a 2.8% CPI target for the next year and noted that if this projection is incorrect, inflation is likely to drift even lower over the coming years. He characterized the combination of modest growth and moderating inflation as a favorable setup for risk assets in the new year.
Wren explained that his firm has used both broad risk additions and internal sector rotations. While they took advantage of a market pullback in early April, they have more recently focused on shifting away from heavy concentrations in technology. Wren also indicated a continued preference for US markets over international ones. Although he views emerging markets as a potentially cheaper way to play technology and AI, he remains neutral on developed international and emerging markets for the time being. He stated that if he had his ‘druthers,’ he would stick with large-cap and mid-cap stocks over other options. Wren clarified that while the firm maintains exposure to international markets and is looking for potential entry points to increase that exposure, he does not believe the current moment is the right time to move away from the US large-cap bias.
That being said, we’re here with a list of the 10 hottest large-cap stocks of 2025.
Our Methodology
We sifted through the Finviz stock screener to compile a list of large-cap stocks that were trading between $10 billion and $200 billion, and had high year-to-date performances (at least 200%). We then selected 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of their year-to-date performance. We have also added the hedge fund sentiment for each stock, as of Q3 2025, which was sourced from Insider Monkey’s database.
Note: All data was sourced on December 29.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Hottest Large-Cap Stocks of 2025
10. Robinhood Markets Inc. (NASDAQ:HOOD)
Market Capitalization as of December 29: $105.52 billion
Number of Hedge Fund Holders: 77
Year-to-Date Performance as of December 29: 215.83%
Robinhood Markets Inc. (NASDAQ:HOOD) is one of the hottest large-cap stocks of 2025. On December 29, Needham lowered the firm’s price target on Robinhood to $135 from $145 with a Buy rating on the shares. This sentiment was posted as the firm reduced its projections and price targets for the cryptocurrency sector, anticipating a prolonged slump in trading volume over the next few quarters. Needham noted that even if prices have bottomed out, retail participation is unlikely to recover until market momentum significantly improves.
However, earlier on December 22, Morgan Stanley raised the firm’s price target on Robinhood to $147 from $146 and kept an Equal Weight rating on the shares. According to the firm, strong transaction levels across exchanges and brokerages during Q4 suggest a slight upside to current forecasts. Consequently, the analyst is increasing Q4 EPS estimates by an average of 5%, which brings the firm’s projections in line with the broader market consensus.
Additionally, Barclays analyst Benjamin Budish also increased the price target for Robinhood Markets Inc. (NASDAQ:HOOD) to $171, up from $168, on December 12, while maintaining an Overweight rating. This adjustment followed a broader 2026 strategic review of the financial services sector. Budish expects a favorable environment in the coming year for wealth brokers and alternative asset managers, but he remains cautious regarding exchanges and traditional asset managers, citing a more unpredictable outlook for those sub-sectors.
Robinhood Markets Inc. (NASDAQ:HOOD) operates a financial services platform in the US. Its platform allows users to invest in stocks, ETFs, American depository receipts, options, gold, and cryptocurrencies.
9. Guardant Health Inc. (NASDAQ:GH)
Market Capitalization as of December 29: $13.18 billion
Number of Hedge Fund Holders: 50
Year-to-Date Performance as of December 29: 233.29%
Guardant Health Inc. (NASDAQ:GH) is one of the hottest large-cap stocks of 2025. On December 22, Canaccord raised the firm’s price target on Guardant Health to $125 from $100 with a Buy rating on the shares. The firm expects the life science sector to maintain its current upward trend well into 2026. Guardant Health remains Canaccord’s top recommendation, as the firm believes that the stock offers the best balance of limited downside and strong growth potential compared to its peers.
Mizuho also raised the firm’s price target on Guardant Health Inc. (NASDAQ:GH) on December 17 to $120 from $100 and maintained an Outperform rating on the shares. As part of its 2026 outlook, the firm updated its price targets within the medical devices and diagnostics sector. While valuations have returned to near two-year highs following Q3 2025 earnings, the firm suggests that there is room for further multiple expansion. This growth is contingent on healthcare emerging as the preferred defensive play while market capital continues to rotate through volatile AI and cryptocurrency mega-trades.
On December 15, Bank of America also raised the firm’s price target on Guardant Health to $120 from $100 and kept a Buy rating on the shares. This decision was made as BofA is revising its price targets across the Life Sciences and Diagnostic Tools sector as part of a 2026 outlook. The firm anticipates that current industry headwinds will subside, leading to a normalized market environment by 2026. The firm believes that the primary catalyst for growth will be a resurgence in Biopharma spending, prompting BofA to prioritize companies with significant exposure to R&D.
Guardant Health Inc. (NASDAQ:GH) is a precision oncology company that provides blood and tissue tests and data sets in the US and internationally.
