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.
10. Mastercard Incorporated (NYSE:MA)
Analyst Upside: 20.96%
Number of Hedge Fund Holders: 140
Mastercard Incorporated (NYSE:MA) is one of the best stocks to buy in 2026 for beginners. The stock has received several rating updates from analysts since the beginning of the year. On January 13, Citi reiterated a Buy rating on Mastercard Incorporated (NYSE:MA) and set a price target of $735.
The same day, Mastercard Incorporated (NYSE:MA) was upgraded to Buy from Neutral by Compass Point, with the firm lifting the price target to $735 from $620. It told investors that it is inclined towards the networks over all other payment companies going into 2026, and that the sector is “finding a bottom” that is likely to materialize after the fiscal Q4 earnings reports. Compass Point anticipates a rebound in stocks after the fiscal Q4 results, and expects “superior” net revenue growth for Mastercard Incorporated (NYSE:MA), stating that its multiple is too low.
In another development, TD Cowen lifted the price target on Mastercard Incorporated (NYSE:MA) to $668 from $654 on January 12 and reiterated a Buy rating on the shares. The rating update came as part of a fiscal Q4 preview, with the firm telling investors that it believes Mastercard Incorporated’s (NYSE:MA) fundamental backdrop “remains steady with resilience in consumer spend.”
Mastercard Incorporated (NYSE:MA) is a technology company that provides payment solutions for developing and implementing debit, credit, prepaid, commercial, and payment programs via its brands. Its portfolio includes Mastercard, Cirrus, and Maestro. The company also offers intelligence and cyber solutions.
9. UnitedHealth Group Incorporated (NYSE:UNH)
Analyst Upside: 20.96%
Number of Hedge Fund Holders: 140
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best stocks to buy in 2026 for beginners. UnitedHealth Group Incorporated (NYSE:UNH) announced on January 14 the launch of its Rural Payment Acceleration Pilot, which is an initiative specialized to support independent rural hospitals facing financial challenges.
The pilot aims to expedite Medicare Advantage payment timelines by 50%, from less than 30 days to less than 15 days on average, over the next six months. It would also deliver immediate cash-flow relief and support the sustainability of these significant rural hospitals. The independent rural hospitals were selected by UnitedHealth Group Incorporated (NYSE:UNH) through criteria focused on maximizing impact and guiding future rural-focused solutions.
In another development, Reuters reported on January 12 that according to a U.S. Senate committee report released the same day, UnitedHealth Group Incorporated (NYSE:UNH) used “aggressive” risk-adjustment coding tactics to raise the U.S. government reimbursement for patients who were enrolled in its Medicare Advantage healthcare plans.
The report in question was from Senator Chuck Grassley, chair of the Senate’s judiciary committee, and stated that UnitedHealth Group Incorporated (NYSE:UNH) submitted more diagnosis codes and diagnoses compared to any other Medicare Advantage organization, which resulted in inflated government payments related to the poor health of its patients in comparison to any of its peers. It added that:
“After a review of the records, this report provides evidence that shows UnitedHealth Group has turned risk adjustment into a major profit centered strategy, which was not the original intent of the program.”
Reuters further reported that the report was based on more than 50,000 pages of the company’s documents, which included internal training materials, policies, and software documents. However, a UnitedHealth Group Incorporated (NYSE:UNH) spokesperson disagreed with the report’s stipulations in an emailed statement, saying:
“Our programs comply with applicable (government regulatory) requirements and have, through government audits, demonstrated sustained adherence to regulatory standards.”
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments.
8. Uber Technologies, Inc. (NYSE:UBER)
Analyst Upside: 30.90%
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is one of the best stocks to buy in 2026 for beginners. Several reputable firms have released bullish rating updates for Uber Technologies, Inc. (NYSE:UBER) since the beginning of 2026.
On January 14, Uber Technologies, Inc. (NYSE:UBER) was initiated with an Outperform rating by BNP Paribas with a price target of $108. The firm told investors that it considers the company to be “a mobility and delivery winner” despite the fear of autonomous vehicles disintermediating the business in the long-term.
Uber Technologies, Inc. (NYSE:UBER) also received bullish outlooks from Mizuho Securities and Wells Fargo on January 9 and January 8, respectively. Mizuho maintained a Buy rating on the stock and set a price target of $130, and Wells Fargo reiterated a Buy rating on Uber Technologies, Inc. (NYSE:UBER) and set a $122 price target.
In addition to Mizuho and Wells Fargo, Jefferies and BofA also reaffirmed a Buy rating on Uber Technologies, Inc. (NYSE:UBER) on January 6, with Jefferies maintaining a $120 price target and BofA reiterating a price target of $119. Jefferies anticipates durable Mobility growth and progress in the company’s AV partnerships, which support its bullish outlook.
Uber Technologies, Inc. (NYSE:UBER) operates as a technology platform that offers ride services and merchant delivery service providers for food, groceries, meal preparation, and other delivery services. The company’s operations are divided into Delivery, Mobility, and Freight. The Delivery segment allows users to order food, while the Mobility segment provides access to Mobility Drivers who provide rides in various vehicles. The Freight segment connects Carriers and Shippers.
7. Netflix, Inc. (NASDAQ:NFLX)
Analyst Upside: 48.77%
Number of Hedge Fund Holders: 154
Netflix, Inc. (NASDAQ:NFLX) is one of the best stocks to buy in 2026 for beginners. On January 16, KeyBanc cut the price target on Netflix, Inc. (NASDAQ:NFLX) to $110 from $139 and maintained an Overweight rating on the shares, with uncertainty around the Warner Bros. Discovery deal expected to be one of the factors creating near-term overhangs to the price-to-earnings multiple. The company also received a rating update from Wedbush on January 15, which cut the price target on the stock to $115 from $140 and maintained an Outperform rating.
In another development, BMO Capital reaffirmed a Buy rating on Netflix, Inc. (NASDAQ:NFLX) on January 14 and set a price target of $143.00. The firm cited several factors that overshadow near-term headline risks for the company, as well as the investor sentiment shrouded in uncertainty surrounding its proposed acquisition of Warner Bros and worries about slower growth in 2026.
The firm highlighted that even if the acquisition deal falls through, Netflix, Inc. (NASDAQ:NFLX) would receive a sizable break-up fee, which would meaningfully offset its content spending. It added that despite the above mentioned concerns, the company’s underlying operating trends remain healthy, with the firm’s model remaining unchanged and expecting around mid-teens revenue growth into 2025, which might ease only modestly in 2026.
Despite Netflix, Inc.’s (NASDAQ:NFLX) considerable planned content investments, BMO Capital sees potential for operating margin expansion over the upcoming several years, supported in part by efficiency gains, including from AI.
Netflix, Inc. (NASDAQ:NFLX) provides entertainment services through paid memberships in around 190 countries worldwide. It acquires, produces, and licenses content for streaming, including original programming.
6. Visa Inc. (NYSE:V)
Analyst Upside: 25.44%
Number of Hedge Fund Holders: 179
Visa Inc. (NYSE:V) is one of the best stocks to buy in 2026 for beginners. On January 13, Citi reaffirmed a Buy rating on Visa Inc. (NYSE:V) and set a price target of $450.00. The same day, Bank of America Securities reaffirmed a Buy rating on the stock and set a price target of $382.
The rating updates came the same day Visa Inc. (NYSE:V) released its Global Economic Outlook for 2026, stating that although headline growth remains steady at 2.7%, fundamental transformation is occurring in the global economy, driven by factors such as evolving trade networks, AI adoption, and shifting investment patterns.
Visa Inc. (NYSE:V) also received bullish outlooks from Wolfe Research and Bernstein on January 8. Wolfe Research reaffirmed a Buy rating on the stock with a price target of $430, while Bernstein also maintained a Buy rating on Visa Inc. (NYSE:V) and set a price target of $450.
However, Monness, Crespi, Hardt & Co., Inc. reiterated a Hold rating on Visa Inc. (NYSE:V) on January 5 and set a price target of $330.00. In a separate development, Visa Inc. (NYSE:V) and Fiserv, Inc. announced on December 22 a strategic collaboration to enable Visa Intelligent Commerce and deploy Trusted Agent Protocol across the latter’s interoperable agentic ecosystem.
The collaboration would allow merchants to take part in the rapidly evolving domain of Agentic AI, with the combination of Fiserv’s extensive merchant network with Visa Inc.’s (NYSE:V) authentication and agentic commerce capabilities allowing the two companies to deliver the infrastructure and trust essential for merchants to thrive in a backdrop of increasingly automated commerce.
Visa Inc. (NYSE:V) provides digital payment services. It offers credit cards, debit cards, prepaid products, global automated teller machines, and commercial payment solutions.
5. Broadcom Inc. (NASDAQ:AVGO)
Analyst Upside: 34.37%
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the best stocks to buy in 2026 for beginners. Wells Fargo upgraded Broadcom Inc. (NASDAQ:AVGO) to Overweight from Equal Weight on January 15 and set a price target of $430.
In a separate development, KeyBanc reiterated a Buy rating on Broadcom Inc. (NASDAQ:AVGO) on January 12 and set a price target of $500. Broadcom Inc. (NASDAQ:AVGO) also received a rating update from Mizuho on January 9, which lifted the price target on the stock to $480 from $450 while keeping an Outperform rating on the shares. The firm told investors that it adjusted the price targets in the semiconductors and semiconductor capital equipment group to reflect its 2026 outlook.
While the firm sees continued upside for the group in 2026, primarily due to “attractive valuations”, it does believe that they would be more modest than 2025. Broadcom Inc. (NASDAQ:AVGO) ranks among the firm’s top picks for 2026. Mizuho considers AI accelerators, wafer fab equipment, Optical, and memory to be the top sectors for 2026, and is maintaining a cautious outlook on EVs, autos, and analog, along with computers and handsets.
In another development, Goldman Sachs analysts added Broadcom Inc. (NASDAQ:AVGO) to their US Conviction List on January 5 and maintained a Buy rating on the stock with a $450 price target. The addition came as part of the firm’s monthly update, with the firm stating that Broadcom Inc.’s (NASDAQ:AVGO) “dominant” position in the enterprise networking silicon is expected to drive market share gains in customer silicon processors for the major hyperscalers in the US.
Broadcom Inc. (NASDAQ:AVGO) is a leading multinational technology company specializing in semiconductor and infrastructure software products.
4. NVIDIA Corporation (NASDAQ:NVDA)
Analyst Upside: 33.70%
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the best stocks to buy in 2026 for beginners. On January 16, Jefferies lifted the price target on NVIDIA Corporation (NASDAQ:NVDA) to $275 from $250 and reiterated a Buy rating, telling investors that the stock “remains pretty cheap”, trading at mid-teens multiple to its bottom-up implied calendar year 2027 estimate.
Separately, J.P. Morgan reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) without assigning a price target on January 13. The firm highlighted the $1 billion co-innovation partnership with Eli Lilly, along with the broader shift in pharma towards AI “factories”, stating that they support the view that NVIDIA Corporation’s (NASDAQ:NVDA) GPU infrastructure is becoming pivotal to modern drug discovery and is supporting durable demand, which is a notable factor supporting a positive long-term outlook on the stock.
The firm also cited the company’s expanding strategic role in life sciences and healthcare, and highlighted its full-stack approach as a significant operating leverage driver. This spans AI “factories”, chips, software frameworks, and domain-specific models, primarily because the same core platforms are reusable across several verticals and applications.
J.P. Morgan further stated that NVIDIA Corporation’s (NASDAQ:NVDA) robotics, integrated simulation, and edge-compute stack is allowing the automation of laboratories in healthcare, potentially slashing costs by orders of magnitude and boosting throughput. The same day, Wells Fargo also reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) and set a $265 price target.
NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and other multimedia software. It operates in the Compute & Networking and Graphics Processing Unit (GPU) segments.
3. Meta Platforms, Inc. (NASDAQ:META)
Analyst Upside: 32.89%
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the best stocks to buy in 2026 for beginners. On January 14, Wedbush reiterated a Buy rating on Meta Platforms, Inc. (NASDAQ:META) and set a price target of $880.
In a separate development, Reuters reported on January 12 that Meta Platforms, Inc. (NASDAQ:META) announced its “Meta Compute” initiative, aimed at building AI infrastructure and overseeing the company’s global fleet of data centers and supplier partnerships with the ultimate goal of superintelligence. Meta Platforms, Inc. (NASDAQ:META) CEO Mark Zuckerberg stated on Monday that the company’s head of global infrastructure Santosh Janardhan and Daniel Gross would co-lead the new initiative and would collaborate closely with the recently appointed President and Vice Chairman, Dina Powell McCormick.
Zuckerberg stated in a post on Threads that Meta Platforms, Inc. (NASDAQ:META) plans to build “tens of gigawatts this decade, and hundreds of gigawatts or more over time” in a pursuit to build data centers that support the ambitious frontier AI and personal superintelligence projects.
Meta Platforms, Inc. (NASDAQ:META) builds technological products that allow people to share, connect, grow businesses, and find communities. These products help people connect through personal computers, mobile devices, virtual reality (VR), mixed reality (MR) headsets, and wearables.
2. Microsoft Corporation (NASDAQ:MSFT)
Analyst Upside: 38.18%
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks to buy in 2026 for beginners. Morgan Stanley reaffirmed a Buy rating on Microsoft Corporation (NASDAQ:MSFT) on January 14 and set a price target of $650. In a separate development, Microsoft Corporation (NASDAQ:MSFT) unveiled an initiative on January 13 to limit data center power costs and its effect on the general population, along with the impacts of water use at its U.S. data centers, stating that it would pay utility rates that are high enough to cover its power costs. The company also plans to work with local utilities for the expansion of supply, where and when needed, for its data centers.
In addition, Microsoft Corporation (NASDAQ:MSFT) pledged to replenish more water than the amount consumed by its data centers, adding that it will start publishing information detailing water use in each data center region in the United States, alongside its progress on replenishment. Brad Smith, Microsoft Corporation (NASDAQ:MSFT) Vice Chair and President, Brad Smith, said in a statement:
“Especially when tech companies are so profitable, it’s both unfair and politically unrealistic for our industry to ask the public to shoulder added electricity costs for AI.”
Reuters reported the same day that Microsoft Corporation (NASDAQ:MSFT) did not respond to a request regarding the financial details of its initiative.
Microsoft Corporation (NASDAQ:MSFT) develops and supports services, software, devices, and solutions. It operates through the Intelligent Cloud, Productivity and Business Processes, and More Personal Computing segments.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Analyst Upside: 25.94%
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best stocks to buy in 2026 for beginners. On January 15, Raymond James cut the price target on Amazon.com, Inc. (NASDAQ:AMZN) to $260 from $275 and maintained an Outperform rating on the shares, telling investors that the Q4 outlook appears positive due to favorable ad checks, strong holiday trends, and beatable AWS expectations, with the AI narrative likely to take the lead as the primary driver of stock performance next year.
Amazon.com, Inc. (NASDAQ:AMZN) also received a rating update from Evercore ISI on January 14, with the firm reaffirming a Buy rating on the stock with a $335 price target. TD Cowen also released a rating update for the stock on January 13, raising the price target to $315 from $300 and maintaining a Buy rating.
Reviewing its latest U.S. ad buyer survey, the firm told investors that Amazon.com, Inc.’s (NASDAQ:AMZN) advertising business is entering a new and powerful phase, with the survey results showing that over 60% of advertisers already using Amazon expect to raise spending in 2026. TD Cowen also cited the significant role of AI in allowing advertisers build and run more effective ads, stating that GenAI tools are allowing increased ad optimization, which in turn can lead to higher spending over time.
The firm expects Amazon.com, Inc.’s (NASDAQ:AMZN) advertising revenue to rise from around $68 billion in 2025 to nearly $142 billion by 2030, which translates to an annual growth rate of around 16%. TD Cowen also anticipates the company’s share of global digital advertising outside China to grow steadily over the period, further supporting the optimistic outlook.
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology company that provides online retail shopping services. It operates through the North America, International, and Amazon Web Services (AWS) segments. Its AWS segment covers global sales of storage, computers, databases, and other services for government agencies, academic institutions, startups, and enterprises.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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