In this article, we will look at the 10 Most Profitable S&P 500 Stocks to Buy Now.
Profitability has moved back to the center of the market conversation. After a stretch where narratives were driven by multiple expansions and AI-linked optimism, attention has started to shift toward companies that can consistently generate earnings regardless of the macro backdrop. That shift is showing up in how investors talk about resilience, not just revenue growth, but margins, return profiles, and the ability to compound profits over time.
Institutional investors have been framing this shift through the lens of quality. Fidelity Investments, for instance, highlights the “expected potential for future profitability,” pointing to how forward-looking earnings power remains a key differentiator. Invesco similarly emphasizes companies that “exhibit profitability” and deliver “consistent earnings,” reinforcing the idea that consistency matters as much as growth. J.P. Morgan Asset Management notes that “profitability offsets valuations,” suggesting that elevated multiples can still hold if earnings remain strong. Meanwhile, Janus Henderson Investors points to “quality earnings growth” as a “main driver of stock market returns,” tying long-term performance directly to companies that can keep compounding profits.
Against a backdrop where profitability is no longer just a metric but has now become a necessary filter, we’ll take a look at the 10 Most Profitable S&P 500 Stocks to Buy Now.
Our Methodology
We used screeners to identify S&P 500 stocks that have an ROE of at least 15% and a net profit margin of at least 20%. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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. Amgen Inc. (NASDAQ:AMGN)
On March 19, 2026, Wells Fargo raised the price target on Amgen Inc. (NASDAQ:AMGN) to $390 from $375 and maintained an Equal Weight rating. The firm highlighted emerging therapies such as CD20, BAFF/APRIL, and next-generation complement inhibitors as drivers that could expand the generalized myasthenia gravis market more than threefold over the next decade, with potential to reach $15B in U.S. sales and $20B globally by 2036. Wells Fargo said Amgen, alongside peers like Vertex and Regeneron, could benefit from this expansion, with upside to current Street expectations.
On March 10, 2026, Jefferies initiated coverage on Amgen with a Hold rating and a $350 price target, noting the stock has gained about 35% over the past six months. Jefferies said strong commercial execution and easing regulatory concerns have supported the move, leaving shares appearing fairly valued at current levels.
Last month, Amgen reported Q4 adjusted EPS of $5.29, above the $4.76 consensus estimate, on revenue of $9.9B versus $9.45B expected. CEO Robert Bradway said the company delivered “strong performance” in 2025, with double-digit growth in both revenue and earnings, adding that Amgen is entering 2026 with momentum across its portfolio and a focus on advancing new therapies.
Amgen Inc. (NASDAQ:AMGN) develops and commercializes therapeutics across a range of disease areas globally.
9. Broadcom Inc. (NASDAQ:AVGO)
On March 19, 2026, Broadcom Inc. (NASDAQ:AVGO) announced it is shipping what it described as the first end-to-end Post-Quantum Cryptography-safe in-flight network encryption solution. The company said more than 120,000 Emulex SecureHBAs have already been deployed on OEM server platforms, with Everpure now integrating the technology into its FlashArray systems to complete the full-stack solution. Broadcom noted that the platform enables encryption of data across Fibre Channel networks and is designed to protect against “harvest now, decrypt later” threats as AI workloads move into production environments.
On March 11, 2026, Broadcom also introduced its 3nm 400G/lane optical PAM-4 DSP, the Taurus BCM83640, designed for 1.6T transceivers. The company said the device delivers higher bandwidth density and efficiency, enabling transceiver manufacturers to produce lower-power solutions for AI-driven data center demand.
Earlier in the month, Morgan Stanley raised its price target on Broadcom to $470 from $462 and maintained an Overweight rating following a strong quarter. The firm said AI continues to drive upside while easing margin concerns, and stronger networking performance improves long-term visibility, with additional upside expected as ASIC programs scale.
Broadcom Inc. (NASDAQ:AVGO) develops semiconductor and infrastructure software solutions serving data center, networking, and enterprise markets.
8. CF Industries Holdings, Inc. (NYSE:CF)
On March 18, 2026, BofA raised the price target on CF Industries Holdings, Inc. (NYSE:CF) to $103 from $86 and maintained an Underperform rating, citing stronger FY26 profit expectations but warning the fertilizer cycle could prove “sticky.” The firm said it updated its fertilizer pricing outlook to reflect recent market developments.
On the same day, BMO Capital raised its price target on CF Industries Holdings, Inc. (NYSE:CF) to $140 from $115 and maintained an Outperform rating, noting that elevated prices for nitrogen, phosphate, sulfur, and methanol may persist in the near term before easing over the next year. BMO added that current spot prices remain below prior peaks, though the market could still face additional supply shocks.
Meanwhile, Mizuho analyst Edlain Rodriguez downgraded CF Industries Holdings, Inc. (NYSE:CF) to Underperform from Neutral and raised the price target to $100 from $95, pointing to the sharp rally in fertilizer stocks and saying the impact of higher oil and fertilizer prices tied to the Middle East conflict may already be reflected. Mizuho added that nitrogen price strength may not be sustained and could decline once conditions normalize.
CF Industries Holdings, Inc. (NYSE:CF) produces and distributes nitrogen-based fertilizers, including ammonia, across global agricultural markets.
7. CSX Corporation (NASDAQ:CSX)
On March 19, 2026, Evercore ISI downgraded CSX Corporation (NASDAQ:CSX) to In Line from Outperform and raised its price target to $41 from $40. Evercore said that while the company could still deliver industry-leading EPS growth over the next two years, much of the upside appears already reflected in the stock following a 51% rebound from its 52-week low and a 9.35% gain year-to-date.
On March 16, 2026, CSX Corporation (NASDAQ:CSX) announced a new group of properties designated under its CSX Select Site program, with 21 sites across 10 states receiving gold, silver, or bronze ratings. The company said the program identifies rail-served locations suited for industrial development, noting that only about 6% of the more than 1,110 sites it serves qualify for the designation.
Earlier in March, Jefferies raised its price target on CSX Corporation (NASDAQ:CSX) to $50 from $42 and maintained a Buy rating, describing transportation infrastructure as “core HALO exposures,” or assets that are difficult to replicate and less vulnerable to disruption. The firm said these characteristics support long-term value in rail networks.
CSX Corporation (NASDAQ:CSX) provides rail-based freight transportation services across the United States and Canada.
6. Mastercard Incorporated (NYSE:MA)
On March 19, 2026, BNP Paribas upgraded Mastercard Incorporated (NYSE:MA) to Outperform from Neutral previously with a $600 price target.
On March 17, 2026, Mastercard Incorporated (MA) announced a definitive agreement to acquire BVNK for up to $1.8B, including $300M in contingent payments. The company said the transaction will expand its capabilities in digital assets and cross-border value movement, with closing expected before year-end, subject to regulatory approvals. Chief Product Officer Jorn Lambert said the deal supports efforts to bring “tokenized money to the real world,” adding that integrating on-chain rails will enhance transaction speed and programmability across its network.
On March 13, 2026, Tigress Financial raised its price target on Mastercard Incorporated (MA) to $735 from $730 previously and maintained a Strong Buy rating, citing the company’s positioning in the ongoing shift from cash to electronic payments. The firm said the recent pullback presents a “major buying opportunity.”
Mastercard Incorporated (NYSE:MA) provides payment processing and financial transaction services globally.
While we acknowledge the potential of MA 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 MA and that has 100x upside potential, check out our report about the cheapest AI stock.
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