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.
10. DexCom Inc. (NASDAQ:DXCM)
Average Upside Potential: 16.66%
Number of Hedge Fund Holders: 71
DexCom Inc. (NASDAQ:DXCM) is one of the best US stocks to buy and hold in 2026. On January 12, Barclays downgraded DexCom to Underweight from Equal Weight with a price target of $71, which was brought down from $80. The firm anticipated that intensifying competition within Dexcom’s primary insulin-intensive segments throughout 2026 and 2027 would limit the stock’s valuation multiple and hinder its performance in the near-to-medium term.
On January 9, Bernstein adjusted its outlook for DexCom, increasing the price target to $86 from $84 while maintaining an Outperform rating. This update came as US healthcare stocks showed signs of recovery following a significant low point in September 2025. The firm noted that as the macroeconomic and policy uncertainties that hampered the sector throughout 2025 begin to clear, healthcare equities are well-positioned for a stronger performance in 2026.
Furthermore, on January 7, RBC Capital analyst Shagun Singh Chadha maintained a Buy rating on DexCom Inc. (NASDAQ:DXCM) while setting a price target of $85.
DexCom Inc. (NASDAQ:DXCM) is a medical device company that focuses on the design, development, and commercialization of CGM (continuous glucose monitoring) systems in the US and internationally.
9. Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY)
Average Upside Potential: 38.97%
Number of Hedge Fund Holders: 72
Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) is one of the best US stocks to buy and hold in 2026. On January 20, Wells Fargo adjusted its outlook on Alnylam Pharmaceuticals, lowering the price target to $376 from $479 while maintaining an Equal Weight rating. While the firm increased its 2026 revenue estimates for Amvuttra by 6%, it expressed concern over rising costs. Specifically, the firm expects R&D expenses to climb to ~30% of total revenue between 2026 and 2030. This reinvestment is projected to compress operating margins to roughly 30%.
On the same day, RBC Capital reduced its price target for Alnylam to $465 from $500 while maintaining an Outperform rating. This adjustment followed a meeting with the company’s management team to discuss the 2026 net product revenue outlook. Management addressed recent performance for Amvuttra, explaining that a soft November resulted from a few one-off factors, which were followed by an impressive December.
Earlier on January 12, Needham increased its price target for Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) from $520 to $529 with a Buy rating following the company’s Q4 2025 pre-announcement and the release of its 2026 financial outlook.
Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) discovers, develops, and commercializes therapeutics based on ribonucleic acid interference.
8. Reddit Inc. (NYSE:RDDT)
Average Upside Potential: 14.67%
Number of Hedge Fund Holders: 80
Reddit Inc. (NYSE:RDDT) is one of the best US stocks to buy and hold in 2026. On January 20, Deutsche Bank analyst Benjamin Black raised its price target on Reddit to $285 from $255 while maintaining a Buy rating.
Earlier on January 13, Morgan Stanley increased its price target for Reddit from $250 to $265 while maintaining an Overweight rating, as part of a broader outlook on the North American internet sector. The firm predicts that 2026 will mirror 2025’s trends, with investors favoring companies that achieve significant ROIC through GenAI and GPU-enabled technologies. While Reddit is positioned to benefit from these themes, Morgan Stanley warns that sectors facing high disruption uncertainty will likely continue to trade at lower valuation multiples.
A day before this, Wells Fargo increased its price target for Reddit to $207, up from $186, while maintaining an Equal Weight rating. The firm anticipates a strong Q4 2025 performance and solid Q1 2026 guidance driven by steady execution. While app traffic remains weak, the firm expects a new onboarding process to boost logged-in DAUs. Looking ahead, Wells Fargo identifies 2026 as a pivotal year due to the growth of AI search and the renewal of major data licensing agreements.
Reddit Inc. (NYSE:RDDT) operates a digital community in the US and internationally.
7. Coupang Inc. (NYSE:CPNG)
Average Upside Potential: 65.08%
Number of Hedge Fund Holders: 83
Coupang Inc. (NYSE:CPNG) is one of the best US stocks to buy and hold in 2026. On January 12, Nomura downgraded Coupang to Neutral from Buy, with a price target of $22, down from $30. While the November 30 data breach was initially expected to cause only a brief decline in share price, the company is now contending with intensifying regulatory pressure in South Korea. Nomura warned that the country’s FTC has signaled aggressive administrative action, leading the firm to slash its 2026 EPS forecast by 95%, dropping it to just $0.03. This revision accounts for the costs of a large-scale consumer compensation package and a projected fine of up to $900 million.
In Q3 2025, Coupang Inc. (NYSE:CPNG) announced consolidated revenue of $9.3 billion, which was an 18% year-over-year increase. The company’s net income reached $95 million, resulting in diluted EPS of $0.05. The Product Commerce segment remained the primary engine of growth, generating $8 billion in revenue, which was a 16% increase. This performance was driven by a 10% increase in active customers, now totaling 24.7 million, and a 5% increase in net revenue per active customer to $323. In contrast, the Developing Offerings segment, which includes newer initiatives like Coupang Eats and international expansion into Taiwan, saw rapid revenue growth of 32% to reach $1.3 billion.
The company continues to invest heavily in logistics and customer adoption in Taiwan. Management indicated that Taiwan is exceeding expectations, with customer behaviors mirroring the early successful stages seen in the Korean market.
Coupang Inc. (NYSE:CPNG), together with its subsidiaries, owns and operates a retail business through its mobile applications and internet websites in South Korea and internationally.
6. DoorDash Inc. (NASDAQ:DASH)
Average Upside Potential: 35.12%
Number of Hedge Fund Holders: 91
DoorDash Inc. (NASDAQ:DASH) is one of the best US stocks to buy and hold in 2026. On January 20, KeyBanc lowered its price target on DoorDash to $275 from $280 with an Overweight rating. KeyBanc raised its 2026 EBITDA estimates across the mobility and delivery sector following a survey that showed rising adoption rates for ridesharing, food, and grocery services.
The firm highlighted that DoorDash is capturing market share in both food and grocery delivery while expanding its DashPass subscriber base. Ultimately, while the firm views the current industry environment as favorable, it is lowering the price targets for a conservative valuation approach.
Earlier on January 14, BNP Paribas initiated coverage of DoorDash Inc. (NASDAQ:DASH) with an Outperform rating and a $280 price target, identifying the company as a key player within the food delivery sector. The firm acknowledged that while DoorDash’s current valuation is elevated, the company is well-positioned for growth through consistent operational execution. The firm’s optimistic outlook is driven by three main factors: increasing order frequency among US users, successful international expansion, and a steady improvement in profit margins.
DoorDash Inc. (NASDAQ:DASH), together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the US and internationally.
5. Vertiv Holdings Co. (NYSE:VRT)
Average Upside Potential: 11.79%
Number of Hedge Fund Holders: 102
Vertiv Holdings Co. (NYSE:VRT) is one of the best US stocks to buy and hold in 2026. On January 16, JPMorgan analyst Stephen Tusa lowered its price target on Vertiv to $225 from $230 while keeping an Overweight rating. In its Q4 earnings preview for the electrical equipment and multi-industry sector, JPMorgan revised its stock ratings and price targets. The firm expressed a strong preference for growth-oriented companies both leading into and following the quarterly reports.
A day before this rating, RBC Capital increased its price target for Vertiv to $200 from $196 while maintaining an Outperform rating ahead of Q4 2025 earnings season for the multi-industry sector. The firm expressed a constructive outlook heading into 2026, citing strong multi-year secular drivers, large-scale megaprojects, and continued momentum in the data center market. The firm also noted that the sector’s relative valuation remains attractive.
However, RBC highlighted a two-speed economy within the industry: while data center growth remains robust at mid-teen percentages or higher, most other industrial segments are struggling with sluggish and uneven demand, growing at low-single digits at best. Despite these broader industrial headwinds, the firm remains bullish on Vertiv due to long-term tailwinds in electrification, reshoring, energy storage, and the ongoing energy transition.
Vertiv Holdings Co. (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
4. The Boeing Company (NYSE:BA)
Average Upside Potential: 6.09%
Number of Hedge Fund Holders: 106
The Boeing Company (NYSE:BA) is one of the best US stocks to buy and hold in 2026. On January 15, Susquehanna raised the price target on Boeing to $280 from $255 and maintained a Positive rating. In a Q4 earnings preview, Susquehanna raised price targets across the aerospace and defense sector, citing a favorable fundamental environment. The firm highlighted a bullish medium-term outlook for commercial aerospace, defense, and the aftermarket as the primary driver for the increases.
On the same day, Bernstein updated the outlook on The Boeing Company (NYSE:BA), raising the price target to $298 from the previous $277. The firm also maintained its Outperform rating on the shares, signaling continued confidence in the company’s performance.
Furthermore, Bernstein designated Boeing as its top Aerospace & Defense pick for 2026. This top-tier ranking is based on the firm’s growing conviction regarding the company’s specific growth path and its potential to lead the sector throughout the year.
The Boeing Company (NYSE:BA), together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide.
3. Carvana Co. (NYSE:CVNA)
Average Upside Potential: 5.64%
Number of Hedge Fund Holders: 109
Carvana Co. (NYSE:CVNA) is one of the best US stocks to buy and hold in 2026. On January 21, Barclays analyst John Babcock raised the firm’s price target on Carvana to $530 from $465 and kept an Overweight rating. As part of its Q4 outlook, the firm updated its targets for the auto retail sector, generally lowering estimates due to sluggish new vehicle sales. Despite these pressures on unit volume, recent industry checks point to strong continued momentum in the used vehicle market.
Earlier on January 15, BTIG increased its price target for Carvana Co. (NYSE:CVNA) to $535 from $450, while maintaining a Buy rating. This update follows a survey of nearly 2,000 consumers regarding their attitudes toward purchasing used vehicles entirely online and their specific views on Carvana.
The firm highlighted that the findings were overwhelmingly positive across all primary metrics. At an industry-wide level, the data showed that consumer openness to fully online car purchases grew 1.5x between June and December. BTIG estimates this shift alone expands Carvana’s serviceable market by 3.5 million to 4 million units.
Carvana Co. (NYSE:CVNA), together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the US.
2. Eli Lilly and Company (NYSE:LLY)
Average Upside Potential: 12.75%
Number of Hedge Fund Holders: 114
Eli Lilly and Company (NYSE:LLY) is one of the best US stocks to buy and hold in 2026. On January 20, Eli Lilly received FDA Breakthrough Therapy designation for sofetabart mipitecan. This status applies to the treatment of adults with platinum-resistant ovarian, fallopian tube, or primary peritoneal cancer whose disease has progressed despite prior therapies. Following positive Phase 1a/b data, this designation is expected to accelerate development timelines and increase regulatory engagement, significantly boosting the visibility of Lilly’s oncology pipeline.
In other news, earlier on January 12, Nvidia (NASDAQ:NVDA) and Eli Lilly and Company (NYSE:LLY) announced a massive joint venture to build a new research laboratory in the San Francisco Bay Area. The two companies committed to spending $1 billion over the next 5 years on the facility. The partnership follows Eli Lilly’s previous initiative to build a supercomputer using over 1,000 Grace Blackwell AI chips.
The new laboratory will use Nvidia’s latest generation of Vera Rubin AI chips to power advanced research. Researchers from both companies will work side-by-side at the facility, the specific location of which is scheduled to be announced in March this year. The goal is to generate high-quality data to train specialized biotech AI models, which drugmakers hope will reduce the time required to design, discover, and bring new treatments to market.
Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals in the US, Europe, China, Japan, and internationally.
1. Netflix Inc. (NASDAQ:NFLX)
Average Upside Potential: 33.53%
Number of Hedge Fund Holders: 154
Netflix Inc. (NASDAQ:NFLX) is one of the best US stocks to buy and hold in 2026. On January 21, Needham lowered the price target on Netflix to $120 from $150 but maintained a Buy rating. Following Q4 2025 results, the firm noted that the company’s 2026 guidance is distracted by $275 million in projected legal and regulatory expenses, which are expected to dampen margins and free cash flow. Still, Needham recommends buying on weakness due to a robust 2026 content lineup and improved retention among its 325 million global subscribers (23 million year-over-year increase).
On the same day, Deutsche Bank updated the outlook on Netflix Inc. (NASDAQ:NFLX) following its Q4 2025 earnings report. The price target for the shares was raised to $98 from $95 with a Hold rating. The firm described the company’s Q4 results as strong but clarified that the operating income outlook is currently being impacted by costs related to a deal with Warner Bros.
Earlier on January 16, KeyBanc lowered its target to $110 from $139 while keeping an Overweight rating. This adjustment reflected concerns that the uncertainty regarding the Warner Bros. Discovery deal could negatively impact the stock’s price-to-earnings multiple in the short term.
Netflix Inc. (NASDAQ:NFLX) provides entertainment services worldwide. The company offers TV series, documentaries, feature films, games, and live programming across various genres and languages.
While we acknowledge the potential of NFLX 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 NFLX and that has 100x upside potential, check out our report about this cheapest AI stock.
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