On January 17, Ryan Detrick of Carson Group joined CNBC’s ‘Closing Bell Overtime’ to talk about why he thinks the bull market still has room to run. Detrick noted that the year has had a strong start characterized by a significant rotation into sectors beyond tech. He observed that while tech recently underperformed, small caps did well, though he cautioned that small caps experienced several head fakes in the past. Despite this uncertainty, Detrick emphasized that the current environment is a healthy and global bull market with high participation, as evidenced by various advance-decline lines on the NYSE and S&P 500 hitting all-time highs.
He also highlighted that no one talks about mid caps, even though they have also been hitting all-time highs. He suggested that investors who believe the Fed would cut rates more this year might want more small-cap exposure, but his firm’s general stance is to own a little bit of everything. Detrick also pointed out that if the Fed does not cut rates, it likely indicates a stronger economy. However, he admitted that a lack of rate cuts would probably mean small and mid caps do not perform as well. He introduced the theme of the S&P 500 equal weight as a major story for the year and noted that it can outperform the broader index even when tech drags the market down.
That being said, we’re here with a list of the 12 best US stocks to buy and hold in 2026.
Our Methodology
We used the Finviz stock screener to compile a list of US stocks that had an expected EPS growth rate of at least 20%. We then selected 12 stocks that were the most popular among elite hedge funds and had at least 5% upside potential. The stocks are ranked in ascending order by the number of hedge funds with stakes in them as of Q3 2025.
Note: All data was sourced on January 23.
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 US Stocks to Buy and Hold in 2026
12. DraftKings Inc. (NASDAQ:DKNG)
Average Upside Potential: 50.15%
Number of Hedge Fund Holders: 68
DraftKings Inc. (NASDAQ:DKNG) is one of the best US stocks to buy and hold in 2026. On January 16, Morgan Stanley raised its price target on DraftKings to $53 from $50 with an Overweight rating. In a 2026 outlook report, the firm noted that the gaming, lodging, and leisure sectors saw sluggish growth throughout 2025. The few bright spots were concentrated among businesses catering to an older demographic. For 2026, Morgan Stanley anticipates similar fundamental performance, though the firm expects rising interest rates to shift consumer spending away from services and toward goods.
On January 14, Wells Fargo upgraded DraftKings Inc. (NASDAQ:DKNG) from Equal Weight to Overweight, raising the price target from $31 to $49 as part of a 2026 digital gaming industry outlook. The firm remains optimistic about the sector’s long-term growth and projects substantial profit increases for 2026; however, Wells Fargo particularly highlighted DraftKings for its superior near-term potential.
A day before the Wells Fargo rating, Truist increased its price target for DraftKings from $43 to $45 while maintaining a Buy rating in a 2026 preview of the US Gaming sector. The adjustment comes after a volatile 2025, where macroeconomic concerns and fears surrounding prediction market disruption weighed on gaming stocks despite their steady underlying fundamentals. For 2026, the firm expects land-based gaming to remain stable, though a full recovery in the Las Vegas market remains uncertain.
DraftKings Inc. (NASDAQ:DKNG) operates as a digital sports entertainment and gaming company in the US and internationally. It also offers DraftKings marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFTs on the marketplace.
11. Ciena Corporation (NYSE:CIEN)
Average Upside Potential: 11.29%
Number of Hedge Fund Holders: 70
Ciena Corporation (NYSE:CIEN) is one of the best US stocks to buy and hold in 2026. On January 20, Bank of America analyst Tal Liani downgraded Ciena to Neutral from Buy with an unchanged price target of $260. Although there is potential for further revenue growth, the firm is prioritizing caution due to downside risks such as peaking backlog levels, inflated expectations, and a steep valuation following Ciena’s 200% stock surge over the past year.
In Q4 2025, Ciena Corporation (NYSE:CIEN) achieved $1.35 billion in revenue, which was a 20% year-over-year increase, while quarterly EPS surged 69% to $0.91. This strong finish pushed full-year revenue to a record $4.77 billion, with a total annual EPS of $2.64, a 45% increase from 2024. The company also secured a record $7.8 billion in annual orders, resulting in a massive $5 billion backlog, of which $3.8 billion is composed of hardware and software.
The company’s growth was fueled by diverse segments, particularly those supporting AI infrastructure and cloud scaling. The Routing and Switching business grew by 49% year-over-year, while Global Services increased by 25%. The Interconnect portfolio generated over $168 million in revenue for fiscal 2025, and the Blue Planet division contributed $115 million. Additionally, Ciena expanded its optical market share by two points year-to-date, driven by accelerating demand from cloud providers.
Ciena Corporation (NYSE:CIEN) is a network technology company that provides hardware, software, and services for various network operators in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and India.
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