In this article, we will take a look at the most profitable US stocks to buy.
Investing in the stock market can be both exciting and challenging, particularly when the investor has to identify a stock that not only generates healthy margins and delivers strong returns but also sustains its growth momentum. For many, focusing on profitability is a critical strategy, as it highlights the company’s operational strength, competitive moat, and resilience in turbulent market conditions.
As we enter 2026, investors are eager to learn how the year will unfold. An article by Bloomberg, titled “Here’s (Almost) Everything Wall Street Expects in 2026,” published on January 2, notes that all the firms are now acknowledging the risks associated with the artificial intelligence boom. Yet, few recommend stepping back from what they describe as a “revolutionary” technology. The article goes on to cite JPMorgan Wealth Management, which says,
“The biggest risk, to us, is not having exposure to this transformational technology.”
The article highlights that the constraints on the outlook remain the same: geopolitical tensions, trade barriers, and a softening U.S. labor market, the latter a key concern for BCA Research, the most bearish firm highlighted in the article. However, with the AI boom accelerating, easing monetary policy expectations, and solid backing from initiatives such as President Donald Trump’s ‘One Big Beautiful Bill Act’ and Germany’s fiscal stimulus, market sentiment favors global expansion.
With this outlook in mind, we have compiled a list of the most profitable USA giants to invest in.
A stock market graph. Photo by energepic.com
Our methodology
To compile our list of the 10 most profitable US stocks to buy, we used the Stock Analysis screener to filter for US stocks with a market capitalization of more than $2 billion that reported operating and net profit margins over 20%. From this pool, we shortlisted the top 10 stocks with the highest trailing twelve-month (TTM) net income. These are then ranked in ascending order according to their net income. We also included data on hedge fund holdings in these companies based on Insider Monkey’s database, as of Q3 2025.
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. Wells Fargo & Company (NYSE:WFC)
Net Income (TTM): $19.97 billion
Operating Margin (TTM): 33.72%
Number of Hedge Fund holdings: 76
On January 7, BofA Securities increased its price target on Wells Fargo & Company (NYSE:WFC) to $107 from $100 with an unchanged ‘Buy’ rating on the stock. Ebrahim Poonawala, an analyst at the firm, pointed out that the company’s current valuation is discounted relative to its peers, offering an attractive risk/reward profile.
BofA Securities suggested this valuation gap could narrow in the times ahead if the company’s management achieves superior revenue growth, backed by massive franchise investments already made, while maintaining profitability. The firm also highlighted that growing confidence in execution would enable investors to pay a premium for Wells Fargo & Company (NYSE:WFC) over some other leading regional banks, noting the bank’s scale advantage and what it describes as “best-in-class execution” under the leadership of CEO Charlie Scharf.
Earlier on January 6, Baird downgraded Wells Fargo & Company (NYSE:WFC) to Underperform from Neutral and set a price target of $90, which is slightly above the lowest 1-year price target on the street. Despite the company’s solid business model, the firm believes that market sentiment has become overly optimistic, with the stock trading at nearly 13.5 times projected EPS for 2026.
Wells Fargo & Company (NYSE:WFC), headquartered in San Francisco, is a financial services company incorporated in 1852. With four main segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management, the company considers satisfying the clients’ financial needs as its mission.
9. Broadcom Inc. (NASDAQ:AVGO)
Net Income (TTM): $23.13 billion
Operating Margin (TTM): 31.76%
Number of Hedge Fund holdings: 183
On January 12, Broadcom Inc. (NASDAQ:AVGO) announced the issuance of $4.5 billion in senior notes, according to the latest U.S. Securities and Exchange Commission filing. The company plans to utilize the net proceeds to fund general corporate operations and to repay existing loans.
Earlier on January 9, Stacy Rasgon, an analyst at Bernstein, reaffirmed an ‘Outperform’ rating on Broadcom Inc. (NASDAQ:AVGO) with a price target of $475. This reaffirmation follows a meeting with the company’s leadership, which sought to reassure investors about intensifying competition in the artificial intelligence market. According to the analyst report, investors have raised concerns in recent months about emerging challenges to the company’s AI-dominant position, including rising competition and customer-owned tooling (COT).
After a session with the company’s executive named Charlie, Bernstein emerged with “more conviction than ever” that these worries are “hugely overblown” and that Broadcom Inc. (NASDAQ:AVGO)’s leadership position in the ASIC (Application-Specific Integrated Circuit) appears secure in times ahead.
Broadcom Inc. (NASDAQ:AVGO), headquartered in Palo Alto, California, is a developer and supplier of semiconductor devices and infrastructure software solutions. Founded in 1961, the company operates in two segments: Semiconductor Solutions and Infrastructure Software.
