In this article, we will take a look at the most profitable stocks in each sector so far in 2026.
In a changing market landscape, investors are increasingly focused on profits and returns. Amid growth narratives and speculative bets, some companies across all sectors remain committed to fundamentals, including strong top-line growth, robust margins, and earnings growth.
Markets are once again on edge as traders note the developments around the opening of the Strait of Hormuz. A Reuters article on April 7 reported that UBS Global Wealth Management lowered its S&P 500 target for the year, suggesting that a continued rise in oil prices could weigh on U.S. economic growth and inflation. Since the war with Iran started on February 28, the benchmark index has declined nearly 3.9%. This fall stems from geopolitical risks and rising oil prices, pushing investors to step back from equities.
According to UBS, the Middle East conflict will ease in the coming weeks, allowing energy flows to resume slowly, Reuters noted. However, bringing oil production back to pre-conflict levels will take time due to infrastructure damage, the firm added.
Despite the index target cut, UBS reaffirmed an “attractive” view on U.S. equities and maintained its S&P 500 earnings per share forecast for 2026 at $310. As stated by the firm,
“As the negative effects of the war begin to fade, we expect stocks to be buoyed by a combination of still solid profit growth, a Fed that remains broadly supportive even if policy easing is delayed, and the continued adoption and monetization of AI.”
Keeping this outlook in mind, we have compiled a list of the most profitable stocks in each sector so far in 2026.
A technical stock market chart. Photo by Energepic from Pexels
Our Methodology
For this article, we looked at stocks that have been most profitable for investors from a share-price return perspective. We filtered for companies with a market capitalization of over $2 billion and a year-to-date price change of more than 20%. We then shortlisted the stocks with the highest YTD price change for each sector. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks were then ranked according to the number of hedge fund holdings.
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).
11. Almonty Industries Inc. (NASDAQ:ALM)
Number of Hedge Fund holdings: N/A
Sector: Basic Materials
YTD Return: 96.29%
Almonty Industries Inc. (NASDAQ:ALM) is among the most profitable stocks in each sector so far in 2026. On March 20, TheFly reported that B. Riley lifted the price target on Almonty Industries Inc. (NASDAQ:ALM) to $23 from $17 and maintained a Buy rating. Forecasts have been revised to better reflect the Sangdong Tungsten Mine commissioning and an improved APT pricing backdrop after the fourth-quarter earnings report, the analyst said, adding that the prices climbed to nearly $2,250/MTU and the long-term deck increased to $800/MTU.
On the same day, Oppenheimer also elevated the price target on Almonty Industries Inc. (NASDAQ:ALM) from $16 to $19 and reiterated an Outperform rating after Q4 results. Back on March 16, the company announced the successful completion of Phase 1 commissioning at its Sangdong Mine. The processing plan has an annual capacity of approximately 640K tons of ore, the firm said.
According to Alliance Global, Almonty Industries Inc. (NASDAQ:ALM) is the “primary avenue for investors to gain exposure to tungsten prices going forward,” as it is the leader in the tungsten market. The firm boosted the price target on the company to $19.25, up from $14, and reaffirmed a Buy rating on March 20.
Almonty Industries Inc. (NASDAQ:ALM) is a Canadian company that mines and ships tungsten concentrates, while exploring for tin and tungsten deposits. The company has 100% interests in projects and mines based in Canada, Korea, Portugal, Spain, and the United States.
10. Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS)
Number of Hedge Fund holdings: 17
Sector: Utilities
YTD Return: 31.58%
Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS) is among the 11 most profitable stocks in each sector so far in 2026. As of March 6, Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS) is a consensus buy among 93% of the analysts covering the stock. The 1-year median price target of $31.08 reflects an upside potential of mere 2.68%. On March 19, Jefferies started coverage with a Buy rating and a price target of $36.60, being one of the firms bullish on the company.
The firm believes that Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS) has the potential to enhance operational efficiency and accelerate water and sewage coverage under favorable regulatory conditions. That said, Jefferies expects the company’s regulatory asset base to climb 70% by 2029.
As stated by analyst Alejandro Demichelis,
“We launch on Brazil’s largest water utility Sabesp at Buy with a US$36.6/BRL190 PT. While the stock has performed well YTD, to us the market still under-appreciates its scope to ramp up operational efficiencies and water/sewage coverage under supportive regulation.”
Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS) is a Brazilian company that provides basic and environmental sanitation services. Founded in 1954, the company offers treated water and sewage services.
