In this piece, we discuss the 10 Most Profitable Blue Chip Stocks to Buy According to Hedge Funds.
Strong U.S. corporate earnings have driven the stock market’s record run, a backdrop that makes blue chip profitability especially relevant right now.
In a report dated May 6, 2026, Reuters said that, more than two-thirds through the first-quarter reporting season at that time, S&P 500 companies were on track for their strongest quarterly earnings growth in more than four years, with earnings expected to have jumped 28.2% from a year earlier, the highest pace since the fourth quarter of 2021. Analysts’ estimates for future 12-month U.S. earnings had risen by over 10% since the start of the year, according to LSEG Datastream, and full-year 2026 earnings were projected to climb 22.6%.
Massive AI-related spending remained a central driver. Five AI hyperscalers were expected to spend $751 billion on capital expenditures in 2026, according to Goldman Sachs, and companies benefiting from AI investment saw first-quarter earnings rise 50%, Deutsche Bank said.
On June 3, 2026, Reuters added that this AI-driven rally has left broader indexes more dependent on technology than ever. The S&P 500 technology sector now makes up more than 39% of the index’s market capitalization, its highest on record and above the level reached during the 2000 Internet bubble, with the tech sector now accounting for more than a quarter of trailing 12-month net income among S&P 500 members.
With that context in mind, we will now jump to our list of the most profitable blue chip stocks hedge funds are buying.
Our Methodology
To curate our list for this article, we used screeners to identify stocks with a net income (profit) margin exceeding 30%, then narrowed the list to companies that have consistently delivered strong profitability over the past decade. We further limited the list to companies with market capitalizations above $100 billion, excluding smaller companies despite their potentially higher profit margins.
Finally, we ensured that the selected stocks have meaningful popularity among elite hedge funds. For that, we relied on Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds as of Q1 2026. Our final list is ranked in ascending order based on the number of hedge funds holding bullish positions in each stock.
Note: All data sourced on June 10, 2026.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 131
JPMorgan Chase & Co. (NYSE:JPM) carries a profit margin of 31.50% and net income of $57.05 billion (FY25), securing its place on our list of the most profitable blue chip stocks to buy according to hedge funds, with analysts seeing 7.50% upside for the stock. That financial strength comes alongside a legal win for the bank and fresh commentary on the health of the American consumer.
On June 10, 2026, Reuters reported that JPMorgan Chase & Co. (NYSE:JPM), along with Barclays and Fifth Third, won the dismissal of a lawsuit brought by investors over the collapse of subprime auto lender Tricolor. U.S. District Judge Jed Rakoff in Manhattan threw out the case, with reasoning to follow. Holders of more than $270 million in Tricolor asset-backed notes had accused the banks of ignoring warning signs while financing and securitizing Tricolor’s auto loans. The banks argued the investors had alleged negligence at most, not intent to defraud. All three banks have reported nine-figure losses tied to Tricolor, which filed for liquidation in September.
Meanwhile, on June 9, 2026, Reuters reported that Marianne Lake, CEO of JPMorgan’s consumer and community banking division, said JPMorgan Chase & Co. (NYSE:JPM) is closely watching consumer health amid persistent inflation concerns. Speaking at the Morgan Stanley U.S. Financials Conference, Lake said consumers remain resilient and spending solid, though a small group is seeing wages fail to keep pace with inflation.
She added that cash buffers have normalized from pandemic-era levels, reducing resilience to future shocks, but said JPMorgan Chase & Co. (NYSE:JPM) still expects 2026 loan growth to exceed the industry average.
JPMorgan Chase & Co. (NYSE:JPM) is a global financial services company. It offers retail banking, investment banking, asset management, and credit services to consumers, businesses, and large institutional clients. The company operates through the JPMorgan and Chase brands.
9. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
With a profit margin of 34.99% and net income of $20.64 billion (FY25), Eli Lilly and Company (NYSE:LLY) ranks among the most profitable blue chip stocks to buy according to hedge funds. Meanwhile, analysts see 9.20% upside for the stock. That outlook comes during a particularly active stretch of regulatory and clinical news for Lilly’s drug pipeline.
On June 9, 2026, the FDA approved a new maintenance dosing regimen for EBGLYSS (lebrikizumab-lbkz), allowing a single 250 mg injection every eight weeks for adults and children 12 and older weighing at least 88 pounds with moderate-to-severe atopic dermatitis. EBGLYSS was already approved for once-monthly maintenance dosing, and the new option gives patients as few as six maintenance injections per year.
That update followed a wave of diabetes and obesity data presented at the ADA 86th Scientific Sessions.
On June 8, 2026, Eli Lilly and Company (NYSE:LLY) reported that Foundayo (orforglipron) outperformed oral semaglutide on A1C reduction and weight loss in the ACHIEVE-3 trial, with similar gains shown in ACHIEVE-2 and ACHIEVE-5. A day earlier, Lilly said Foundayo produced significant weight loss across all stages of menopause in post-hoc analyses of the ATTAIN-1 and ATTAIN-2 trials. Additionally, on June 6, 2026, Eli Lilly and Company (NYSE:LLY) reported full data from retatrutide’s TRIUMPH-1 obesity study and TRANSCEND-T2D-1 study in type 2 diabetes, showing substantial weight loss alongside improvements in knee osteoarthritis pain, sleep apnea, and A1C levels.
Following those updates, Jefferies raised its price target on Eli Lilly and Company (NYSE:LLY) to $1,350 from $1,330 and kept a “Buy” rating. The firm said some safety observations were manageable and that retatrutide’s overall profile would be difficult to beat in a modern large-scale global obesity Phase 3 trial.
Eli Lilly and Company (NYSE:LLY) is a healthcare company that develops human pharmaceutical products across cardiometabolic health, oncology, and immunology.
