In this article, we’ll look at 11 Best Entertainment Stocks to Buy According to Wall Street.
Entertainment stocks are back in the conversation as investors look beyond the narrow list of sectors that defined much of the past two years. With earnings growth becoming more concentrated and multiples under closer scrutiny, areas tied to digital engagement, streaming, gaming, and media platforms are being reassessed through a profitability and margin lens. Communication services, the sector that houses many entertainment names, has quietly delivered strong performance, and Wall Street is increasingly focusing on which companies can translate audience scale into durable earnings.
Fidelity notes that “Communication services stocks are tracking to be the best performing sector in 2025 thanks mostly to the AI trade, and the evolution of AI is expected to remain the most important driver for this sector in 2026.” The firm’s analyst adds that “Gaming is an example of an AI-related investment theme that I believe is particularly compelling,” pointing out that “AI is transforming the development and quality of these games, enhancing design and offering more personalized player experiences.”
BNY Investments echoes the profitability angle, writing that “communication services margins are now higher,” which it says reflects “a structural shift toward more efficient, high-margin business models driven by innovation, scale and automation.” When scale, automation, and AI converge inside content and distribution ecosystems, operating leverage tends to follow.
With asset managers leaning bullish on communication services and digital engagement themes, we’ll look at 11 Best Entertainment Stocks to Buy According to Wall Street.
Our Methodology
To identify the 11 Best Entertainment Stocks to Buy According to Wall Street, we used the Finviz screener to generate a list of entertainment stocks with a market capitalization of at least $2 billion. We then used the CNN analyst ratings compilation to determine the median upside for each stock as of February 16, 2026. We then ranked the 11 stocks according to their upside potential. We have also included the number of hedge funds that hold the stock 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).
11. Live Nation Entertainment, Inc. (NYSE:LYV)
Potential upside: 7.41%
Number of Hedge Fund Holders: 61
On February 12, 2026, Roth Capital lowered its price target on Live Nation Entertainment, Inc. (NYSE:LYV) to $174 from $176 and maintained a Buy rating. The firm said capital has been flowing into businesses viewed as resistant to AI disruption, such as live events, and noted that reduced concerns around a worst-case outcome in the DOJ antitrust lawsuit have helped renew investor interest. Roth added that sustained momentum will depend on management guiding to double-digit operating income growth in 2026.
On February 3, 2026, Live Nation announced an agreement to acquire ForumNet Group from Bastogi S.p.A., with the transaction expected to close in April 2026, subject to customary conditions. The deal centers on Unipol Forum, a major live music and sports arena that hosts approximately 2 million fans annually and has featured global and Italian artists, as well as serving as home to the Armani Olimpia Milano basketball team and a venue for figure and short track speed skating at the 2026 Winter Olympics. Live Nation said it plans to invest in upgrades to enhance the fan experience, improve artist and production facilities, and implement sustainability initiatives aimed at reducing carbon emissions. The transaction also includes Teatro Repower and the management of the open-air venue Carroponte.
Live Nation Entertainment, Inc. (NYSE:LYV) operates a global live entertainment business through its Concerts, Ticketing, and Sponsorship & Advertising segments.
10. Sphere Entertainment Co. (NYSE:SPHR)
Potential upside: 11.50%
Number of Hedge Fund Holders: 1
On February 13, 2026, Morgan Stanley raised its price target on Sphere Entertainment Co. (NYSE:SPHR) to $135 from $105 and maintained an Overweight rating, citing stronger-than-expected results from The Wizard of Oz. The firm said the performance lifts its estimates for the Las Vegas Sphere and increases its confidence in incorporating additional Sphere venues into its base case.
That same day, Goldman Sachs increased its price target to $126 from $108 and kept a Buy rating, saying its medium- to long-term thesis remains intact. The firm pointed to sustained demand for live entertainment, growing interest in additional Las Vegas Sphere venues, and expanding content and advertising partnerships. Goldman identified key catalysts for 2026 and beyond, including the performance of The Wizard of Oz, new residencies, multiyear sponsorships, and future franchise or intellectual property launches. Also on February 13, BTIG raised its price target to $127 from $110 and maintained a Buy rating, calling the quarter excellent as The Wizard of Oz exceeded pricing assumptions and supported higher financial contribution expectations.
Sphere reported fourth-quarter revenue of $394.28 million on February 12, 2026, above the $377.6 million consensus estimate. Executive Chairman and CEO James Dolan said the results validate the business model and highlighted plans to expand the global footprint, including projects in Abu Dhabi and National Harbor.
Sphere Entertainment Co. (NYSE:SPHR) operates as a live entertainment and media company through its Sphere and MSG Networks segments.
