On December 17, CNBC reported that Daniel Gerard from State Street Global Markets appeared on Squawk Box Asia. He talked about investment ideas in the market and said that it is still too early to move away from the tech trade. Gerard also pointed out that energy stocks might be “something to watch,” as some see them as undervalued right now.
In other news, on December 19, Bloomberg reported that there is optimism for the Santa Rally from Goldman and Citadel Securities. Since 1928, the S&P 500 has climbed in the final two weeks of December 75% of the time, with an average gain of 1.3%. This is based on data compiled by Citadel Securities.
Longer-term concerns about AI investments and high valuations continue. However, positive views on the strong economy and corporate profits keep investor confidence strong. According to Susquehanna International Group, traders are buying bullish options on chipmakers and large-cap tech stocks. Retail investors are also eagerly buying US stocks.
Goldman Sachs Group Inc.’s trading desk team, including Gail Hafif, told clients in a note:
“Barring any major shocks, it will be hard to fight the overwhelmingly positive seasonal period we are entering and the cleaner positioning set-up.”
With that in mind, let’s take a look at the 14 best large-cap stocks to invest in now.
Our Methodology
To compile our list of the 14 best large-cap stocks to invest in now, we used the Finviz stock screener to look for stocks with a market capitalization between $10 billion and $200 billion as of December 18, 2025. We sorted our results based on market capitalization and picked the top 50 stocks. Next, we focused on the top 14 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds. Finally, the 14 best large-cap stocks to invest in were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2025.
Why do we care about what hedge funds do? 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).
14 Best Large Cap Stocks to Invest In Now
14. Intuit Inc. (NASDAQ:INTU)
Market Capitalization: $186.13 Billion
Number of Hedge Fund Holders: 96
Intuit Inc. (NASDAQ:INTU) is one of the best large-cap stocks to invest in now. On December 15, TipRanks reported that DBS analyst Andy Yu reiterated a Buy rating on Intuit Inc. (NASDAQ:INTU) and maintained the price target of $875.
On December 16, TipRanks reported that Siti Panigrahi from Mizuho Securities reaffirmed a Buy rating on Intuit Inc. (NASDAQ:INTU) and kept the firm’s price target at $875.
Also on December 16, BMO Capital Markets shared that it believes 2026 could be a recovery year for application and vertical software stocks. The research firm expects AI use cases to move into production and offer growth clarity.
BMO Capital Markets picks Intuit Inc. (NASDAQ:INTU) as its top large-cap pick. This recommendation comes ahead of what the research firm sees as a “second consecutive solid tax season.”
The firm pointed out that vertical software companies deal with less intense AI debate when compared to application software companies. BMO Capital Markets noted that many such companies have delivered strong results as they exit 2025, which could be a signal for upside in estimates. The research firm also believes construction workflow digitalization is set for progress with vendors rolling out new AI capabilities.
For 2026, BMO Capital Markets forecasts the momentum in merger and acquisition activity to continue. The firm pointed out that more than 40% of companies in its coverage faced acquisition interest or activist investor pressure for strategic evaluations in 2025. BMO believes that “back office” software is especially likely to experience consolidation.
Intuit Inc. (NASDAQ:INTU) is an American multinational financial technology and business software company that offers a wide range of products and services.
13. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Market Capitalization: $199.19 Billion
Number of Hedge Fund Holders: 99
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the best large-cap stocks to invest in now. On December 18, TipRanks reported that Truist increased its price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) from $620 to $650 and maintained its Buy rating on the stock.
This update comes as part of a broader research note previewing 2026 for MedTech. Truist has a more positive outlook on the MedTech industry heading into 2026 based on a more attractive relative sector valuation. However, the firm’s analyst also noted that there is a possibility of it being a “source” rather than a destination for new healthcare investments. Truist pointed out that it likes stocks with 2026 catalysts that can support sustainable revenue growth or out-of-favor near-term stories.
Earlier, on December 17, TipRanks reported that RBC Capital analyst Shagun Singh also increased the price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) from $625 to $650 and maintained an Outperform rating.
This was part of a broader research note previewing 2026 for Medical Supplies & Devices. RBC Capital expects a year of positive momentum because of strong sector fundamentals supported by aging populations, improving global healthcare access, and innovation. The research firm noted that Intuitive Surgical, Inc. (NASDAQ:ISRG) is hearing good feedback on the da Vinci 5 (dV5) system, including better precision, imaging, ergonomics, and integration. All of these are boosting efficiency.
Intuitive Surgical, Inc. (NASDAQ:ISRG) is an American medical device and technology company that designs and manufactures robotic-assisted surgical systems for physicians and hospitals to make surgery less invasive.
