In this article, we will look at the 12 Best Stocks to Buy in 2026 for Beginners.
On January 14, Macro Risk Advisors’ John Kolovos appeared on CNBC’s ‘Closing Bell’ to talk about the base case for equity markets. His base case for the S&P 500 this year is around the 7600 or so level, but this year, according to him, is more about getting the rotations and the risk management right. He also expressed worry associated with the mid-term elections, and the volatility they tend to bring with them.
READ ALSO: 13 Best Long Term Growth Stocks to Buy According to Hedge Funds and 10 Best Affordable Stocks Under $30.
Talking about expectations of some kind of downside chop weakness in the middle chunk of the year, Kolovos thinks it may happen sooner rather than later, and may be the early part of the first quarter, going up to 15%-16%, even a little bit more. The trends then push up a bit higher, testing 6900. However, he added that we just can’t break those December lows, because if they are broken, that translates to starting the topping process at that point.
With these trends in view, let’s look at the best stocks to buy in 2026 for beginners.
Our Methodology
We sifted through holdings of blue chip ETFs, wide moat ETFs, and quality ETFs to compile a list of the best stocks for beginners that analysts are bullish on. We then selected the top 12 with the highest number of hedge fund holders as of Q3 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on January 16.
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).
12 Best Stocks to Buy in 2026 for Beginners
12. Oracle Corporation (NYSE:ORCL)
Analyst Upside: 20.96%
Number of Hedge Fund Holders: 140
Oracle Corporation (NYSE:ORCL) is one of the best stocks to buy in 2026 for beginners. On January 14, KeyBanc reiterated a Buy rating on Oracle Corporation (NYSE:ORCL) and set a price target of $300. The rating update came the same day Oracle Corporation (NYSE:ORCL) announced the signing of a new cloud agreement with the UK Ministry of Defence (MoD), allowing the MoD to rapidly transition legacy technology systems to Oracle Cloud Infrastructure (OCI). The agreement supports the Ministry’s modernization goals, effective use of critical data to bolster the national security of the region, and adoption of new AI capabilities.
The cloud agreement between Oracle Corporation (NYSE:ORCL) and MoD allows access to OCI to support the modernisation and consolidation of legacy systems. Jason Rees, senior vice president of Technology Engineering, Oracle EMEA, stated that the migration of work loads to Oracle Cloud Infrastructure would allow the sophisticated use of data and AI to bolster national security for the UK without complicated and costly rewrites, with OCI’s in-built security and AI solutions offering a strong foundation for improved decision making, faster innovation, and mission-ready capabilities.
Oracle Corporation (NYSE:ORCL) provides products and services addressing aspects of corporate IT environments, including applications and infrastructure technologies. The company’s operations are divided into the following business segments: Cloud and License, Hardware, and Services.
11. Capital One Financial Corporation (NYSE:COF)
Analyst Upside: 20.96%
Number of Hedge Fund Holders: 140
Capital One Financial Corporation (NYSE:COF) is one of the best stocks to buy in 2026 for beginners. The stock received rating updates from RBC Capital and JPMorgan on January 12. RBC Capital lifted the price target on Capital One Financial Corporation (NYSE:COF) to $275 from $255 and maintained a Sector Perform rating on the shares.
The update came as part of a broader research note previewing Q4 for Consumer Finance names, with the firm telling investors that it anticipates stable fundamentals with consumers continually exhibiting resilience in a solid and potentially improving macro environment. The firm expects seasonal tailwinds to drive positive sequential loan growth in the quarter, and anticipates “modest improvements in core credit metrics”.
The same day, JPMorgan also raised the price target on Capital One Financial Corporation (NYSE:COF) to $256 from $237 and reiterated a Neutral rating, adjusting the ratings and price targets in the consumer finance group as part of a Q4 preview. The firm informed investors in a research note that the group is experiencing increased near-term volatility due to President Trump’s requirement that issuers limit interest rates on credit cards to 10% for one year. If implemented, this rate reduction “would fundamentally reshape the card industry, substantially reducing profitability for issuers and access to credit for consumers”, according to JPMorgan.
The firm views Trump’s post as a “high-severity, low-probability risk likely subject to significant legal challenges” and believes that a defensive position continues to be warranted in the consumer finance sector amid this backdrop.
Capital One Financial Corporation (NYSE:COF) is a financial holding company that provides financial products and services, with its operations divided into the following segments: Credit Card, Consumer Banking, and Commercial Banking.
