12 Most Profitable American Stocks to Buy in 2026

In this article, we are going to discuss the 12 most profitable American stocks to buy in 2026.

The S&P 500, which is widely considered the premium benchmark for the broader American stock market, has surged by 9.52% since the beginning of 2026, broadly driven by the AI-driven rally and developments around the Iran conflict.

That said, the star performer so far this year has been the energy sector, supported by the soaring oil prices amid the US-Iran war. While a peace deal has been announced and global crude prices have fallen to a 4-month low, analysts don’t expect to see gas prices at pre-war levels until 2027, as it will take months for global oil inventories to recover. However, the sudden crash in oil prices should help ease inflation concerns and lift investor sentiment.

As a result, Wells Fargo raised its year-end 2026 target for the S&P 500 to 7,950 on June 16, implying a YoY growth of over 16% for the benchmark index. The brokerage cited stronger corporate earnings, easing macroeconomic risks following the interim deal between the US and Iran, and a recent market selloff that has reset investor sentiment for the target boost.

Moreover, Wells lifted its S&P 500 earnings per share ​forecast from $315 to $340 for 2026, while also raising its EPS target from $365 to $390 for the next year.

With that said, here are the Most Profitable American Stocks to Buy Now.

Photo by Dan Dennis on Unsplash

Our Methodology 

To collect data for this article, we referred to screeners to identify US-based companies that had a net profit margin of over 20%, as of the most recent quarter. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Most Profitable American Stocks to Invest in.

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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

12. Seagate Technology Holdings plc (NASDAQ:STX)

Net Profit Margin: 21.60%

Seagate Technology Holdings plc (NASDAQ:STX) is a leader in mass-capacity data storage. The company has delivered more than four billion terabytes of capacity over the past four decades.

On June 15, Morgan Stanley upped its price target on Seagate Technology Holdings plc (NASDAQ:STX) from $767 to $1,035, while keeping an ‘Overweight’ rating on the shares. The target boost indicates a slight upside of over 1% from the current levels.

According to Morgan Stanley, its recent Asian market checks over the last three weeks clearly indicate that the hard disk drive (HDD) cycle is lasting longer than previously projected. The firm believes that HDD shortages are likely to persist through at least 2028. The findings also indicate that HDD pricing is strengthening clearly and significantly.

Seagate Technology Holdings plc (NASDAQ:STX) is expecting its June quarter revenue to be around $3.45 billion, plus or minus $100 million, while its adjusted EPS is projected at $5, plus or minus $0.20. Meanwhile, the company is targeting an operating margin in the lower 40% range. Moreover, Seagate remains confident in increasing its annual revenue growth target from the low to mid-teens to a minimum of 20% over the next few years.

Sands Capital Management, LLC stated the following regarding Seagate Technology Holdings plc (NASDAQ:STX) in its Q1 2026 investor letter:

“We initiated positions in Seagate Technology Holdings plc (NASDAQ:STX) and Lam Research and believe both businesses will play a key role in this transition. As a provider of hard disk drives, we expect Seagate Technology to benefit from limited capacity and potential price increases for solid state memory, which we expect may exceed current expectations. The hard disk drive market is a duopoly with limited risk of Chinese competition and Seagate is the clear industry leader in both share and technology.

Seagate Technology is a global leader in mass-capacity data storage. The company has built its position over decades of innovation and industry consolidation, emerging as one of two scaled providers in the global storage market, with a focus on high-capacity nearline hard disk drives that serve cloud service providers and enterprise data centers. Its Mozaic platform uses heat assisted magnetic recording to increase storage density, enabling a significantly lower cost per byte than flash alternatives and reinforcing hard drives as the preferred solution for large-scale data storage. Demand for storage is rising rapidly, driven by AI-related workloads that generate and retain large volumes of data, including generative and agentic applications that require long-context processing. We believe this growth in data creation is likely to outpace near-term supply, creating a favorable industry backdrop. In our view, a constrained supply environment, combined with sustained demand, should support volume growth and stable to improving pricing, positioning Seagate to benefit from durable trends tied to cloud computing and AI-driven data expansion.”

11. Johnson & Johnson (NYSE:JNJ)

Net Profit Margin: 21.83%

Johnson & Johnson (NYSE:JNJ) and its subsidiaries develop, manufacture, and sell a broad range of healthcare products, giving the company a presence across multiple areas of the healthcare industry. The company’s dividend remains one of its biggest attractions for income-focused investors.

Johnson & Johnson (NYSE:JNJ) announced on June 15 that it would invest over $1 billion to build a contact lens manufacturing facility in Jacksonville, Florida. Scheduled to be fully operational in 2028, the plant will add manufacturing, packaging, and distribution capacity for the company’s market-leading Acuvue contact lenses. The investment includes the construction of a distribution facility, plus the installation of manufacturing and packaging technologies.

The investment in Jacksonville is part of Johnson & Johnson’s previously announced plan to invest $55 billion in US manufacturing, R&D, and technology, through early 2029. The company had already invested around $12 billion under the expansion plan by the end of 2025.

Joaquin Duato, Chairman and CEO of Johnson & Johnson, commented:

“This investment reinforces our long-standing conviction that advanced manufacturing in the United States is essential to delivering innovative, high quality healthcare solutions to patients at home and around the world. By further strengthening our Vision operations in Jacksonville with next-generation manufacturing, packaging and distribution capabilities, we are enhancing the resilience of our U.S. supply chain while helping more people see better and live better. This commitment reflects the confidence we have in our people, our technology, and our more than 40-year legacy of advancing eye health globally.”

Guinness Global Equity Income Fund stated the following regarding Johnson & Johnson (NYSE:JNJ) in its Q1 2026 investor letter:

“Johnson & Johnson (NYSE:JNJ) was the Fund’s top-performing stock in Q1 2026, rising 18.7% as markets gained confidence that the company has been effectively replacing revenues of Stelara, a drug that accounted for more than 10% of sales at its peak, but ‘loss of exclusivity’ led to numerous biosimilar launches in 2025. That confidence was fuelled by a very solid earnings print with which the firm reported full-year sales growth of 6%, despite a 7.5 percentage point headwind from Stelara’s loss of exclusivity. Organic sales growth accelerated significantly, rising from 3.7% in Q3 (and 2.4% in Q2) to 7.9% in Q4. Performance was broad-based, with strong momentum across a number of key drugs within the firm’s pharma division, with Tremfya (Crohn’s disease) and Darzalex (Myeloma) the stand-outs. Alone, these drugs were able to provide $4.2bn in sales growth, nearly fully offsetting the $4.3bn decline from Stelara. The remaining drugs in the pharma portfolio were able to grow another $3.6bn, a 6% contribution to the overall growth of the pharma division. MedTech was similarly encouraging, with sales ahead of consensus by 40 basis points and strength across Orthopaedics (recently spun out), Surgery, and Vision, supported by the firm’s recent Shockwave acquisition. Importantly, management reiterated solid 2026 guidance at 5.9% (at the mid-point), and reiterated confidence in achieving the upper end of its 5-7% long-term sales growth target, with a credible path to double-digit growth later in the decade, benefitting from the roll-off of patent cliff headwinds…” (Click here to read the full text)

10. Oracle Corporation (NYSE:ORCL)

Net Profit Margin: 25.30%

Oracle Corporation (NYSE:ORCL) is a global leader in AI, delivering the cloud infrastructure, data, and applications that organizations across the world trust to successfully achieve business outcomes at scale.

On June 11, BMO Capital analyst Keith Bachman lifted the firm’s price target on Oracle Corporation (NYSE:ORCL) from $200 to $220, while maintaining an ‘Outperform’ rating on the shares. The revised target reflects an upside of over 6% from the current levels.

Oracle Corporation (NYSE:ORCL) delivered a record quarter in Q4, driven by strength in both its cloud infrastructure and cloud apps business. Although cloud-related margins may remain under pressure in the near-term, BMO Capital expects the company’s earnings to move higher in FY 2027, supported by the lower operating costs.

Oracle reiterated its previous revenue guidance of $90 billion for FY 2027, while it raised its adjusted earnings forecasts to $8.05 per share, marking a growth of 18% from last year. This compares to Wall Street estimates of $8.01 per share in earnings and $88.9 billion in revenue. Moreover, the cloud computing firm remains confident in delivering on its long-term financial targets, including a plus 31% revenue CAGR and a plus 28% EPS CAGR through the fiscal year 2030.

9. Philip Morris International Inc. (NYSE:PM)

Net Profit Margin: 27.94%

Philip Morris International Inc. (NYSE:PM) operates as a global tobacco company. Its products include cigarettes and smoke-free alternatives. Its smoke-free business also covers wellness and healthcare products, along with consumer accessories such as lighters and matches.

On June 11, Philip Morris International Inc. (NYSE:PM) declared a quarterly dividend of $1.47 per share. The dividend is payable on July 20 to shareholders as of the June 25 record. The company has grown its annual payout every year since becoming a public company in 2008, representing a total increase of 219.6%, or a compound annual growth rate of 7.1%. PM currently boasts an impressive annual dividend yield of 3.23%, putting it among the 12 Best Dividend Stocks to Invest In According to Hedge Funds.

With smoking rates down every year, Philip Morris International Inc. (NYSE:PM) is rapidly transforming itself from a legacy cigarette company to a high-margin consumer staples compounder driven by next-gen nicotine products. The tobacco giant’s smoke-free products now represent around 41% of its revenue, with gross margins near 69.5%. Moreover, the contribution from alternative products like IQOS and ZYN has effectively doubled, indicating a structural mix shift rather than a cyclical improvement.

8. Marvell Technology, Inc. (NASDAQ:MRVL)

Net Profit Margin: 28.99%

Marvell Technology, Inc. (NASDAQ:MRVL) designs custom silicon tailored for any application and offers the industry’s most comprehensive portfolio of interconnects and network switch products. From custom compute to rack, row, data center, campus, and multi-campus connectivity, the company enables the world’s most advanced AI infrastructure.

On June 12, B. Riley analyst Craig Ellis lifted the firm’s price target on Marvell Technology, Inc. (NASDAQ:MRVL) from $240 to $345, while maintaining a ‘Buy’ rating on the shares. The revised target reflects an upside of over 11% from the current price level.

Marvell Technology, Inc. (NASDAQ:MRVL) recently announced Dan Durn as its new CEO, with the appointment set to take effect on June 15. Moreover, the company reaffirmed its guidance for the second quarter, projecting its revenue to grow by double digits sequentially.

A key catalyst for Marvell is its deepening collaboration with Nvidia, with Jensen Huang even recently touting it as the next trillion-dollar company. The firm is also set to join the prestigious S&P 500 on June 22, becoming the latest semiconductor company to be added to the benchmark.

However, B. Riley noted that MRVL is currently trading at elevated valuation levels, since it has already surged by almost 220% so far this year.

7. Texas Instruments Incorporated (NASDAQ:TXN)

Net Profit Margin: 29.11%

Next on our list of the Most Profitable American Stocks is Texas Instruments Incorporated (NASDAQ:TXN). The company designs, manufactures, and sells analog and embedded semiconductors that are the essential building blocks of electronic systems.

On June 15, Citi boosted its price recommendation on Texas Instruments Incorporated (NASDAQ:TXN) from $280 to $345 and maintained its ‘Buy’ rating on the shares. The revised target represents an upside of over 10% from the current levels.

According to Citi, the move is driven by the recent product price hikes and a strengthening recovery in the analog semiconductor market, supported by the soaring demand from data centers. The analyst firm expects Texas Instruments to grow its share in data center power starting in the second half of this year.

Similarly, earlier on June 9, Wells Fargo also raised its price target on Texas Instruments Incorporated (NASDAQ:TXN) by $40, while reiterating an ‘Equal Weight’ rating on the shares (read more details here).

Guinness Global Innovators, an investment management company, stated the following regarding Texas Instruments Incorporated (NASDAQ:TXN) in its Q1 2026 investor letter:

“Texas Instruments Incorporated (NASDAQ:TXN) was among the Fund’s stronger performers over the period, driven by results that signalled improving end-market trends following a period of sluggish sales caused by a cyclical downturn. The company reported fourth quarter revenue growth of 10% year-on-year, in line with expectations, alongside better-than-expected free cash flow and guidance that was modestly ahead of seasonal trends. Importantly, results pointed to a broadening recovery. The data centre segment grew c.70% year-on-year for FY25, emerging as a credible growth driver for the company. Industrial revenues returned to modest growth on a year-on-year basis, suggesting early signs of stabilisation after a prolonged downturn, while automotive also improved, rising 8%. Alongside this, management highlighted improving order trends and stabilising inventories, with Q1 guidance implying sequential growth despite seasonally softer demand, reinforcing confidence that an upturn is imminent…” (Click here to read the full text)

6. Applied Materials, Inc. (NASDAQ:AMAT)

Net Profit Margin: 29.31%

Applied Materials, Inc. (NASDAQ:AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world.

On June 10, UBS analyst Timothy Arcuri upped the firm’s price recommendation on Applied Materials, Inc. (NASDAQ:AMAT) from $515 to $570, while maintaining a ‘Buy’ rating on the shares.

Similarly, a day later, Barclays also raised its price target on Applied Materials, Inc. (NASDAQ:AMAT) by $90 and kept an ‘Overweight’ rating on the shares (read more details here).

Applied Materials delivered record revenue and earnings, along with its highest gross margin in more than 25 years, in the second quarter of 2026. The company expects its semiconductor equipment business to grow more than 30% and the semiconductor equipment business more than 20% this calendar year. AMAT is targeting a revenue of $8.95 billion, plus or minus $500 million, and adjusted EPS of $3.36, plus or minus $0.20, for the third quarter.

Guinness Global Innovators, an investment management company, stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q1 2026 investor letter:

“Applied Materials, Inc. (NASDAQ:AMAT) was the Fund’s top performer in the quarter thanks to an excellent quarterly earnings print. Results and forward commentary pointed to a clear inflection in growth beginning in the second half of FY 2026, highlighting the firm’s significant exposure and leading role in the global AI infrastructure build-out. Applied Materials is the broadest player in front-end, process control and advanced packaging manufacturing and remains well positioned to capture share as chipmakers invest in the full range of semiconductor manufacturing processes. Although headline revenue declined 2.1% year-on-year due to difficult comparators as a result of China normalisation and lumpy orders from Taiwan Semiconductor Manufacturing, this was comfortably ahead of expectations and at the top end of management guidance. Adjusted earnings per share were flat year-on-year but also beat consensus, supported by stronger-than-expected revenue and solid margin execution. Importantly, underlying demand trends were notably stronger than the headline numbers suggest.

Management’s commentary highlighted that AI was approaching a “tipping point” where the race for higher performance and energy efficiency is funnelling unprecedented investment into leading-edge logic, high-bandwidth memory, and advanced packaging – all areas where Applied Materials maintains a process equipment leadership position. Despite management indicating that the first half will remain relatively soft, a meaningful inflection is expected in the second half, with equipment sales projected to grow more than 20% in 2026. This implies the potential for second-half systems revenue growth of roughly 30-40% year-on-year, bringing Applied Materials’ growth outlook broadly in line with peers such as KLA and Lam Research, which are also held within the Fund. Management’s decidedly upbeat tone was underpinned by a sharp acceleration in customer orders, particularly in leading-edge foundry/logic and DRAM, but even more encouraging was the outlook. Capacity is effectively sold out for 2026, providing unusually strong visibility for a business with historically short lead times. To prepare for this demand, the company has nearly doubled its system manufacturing capacity over the past few years and proactively increased its inventory by nearly $500 million year-on-year to support 2026–2027.”

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