This article looks at the 14 Best S&P 500 Stocks to Buy Now.
The broad market index fell 1.16% on Wednesday to close at 6,721.43. The dip marked the fourth successive day of decline, amid the ongoing AI infrastructure selloff.
The downturn has been sparked by reports of a prominent Oracle investor exiting from one of its data center projects. Investors have also been displeased with Broadcom’s recent quarterly earnings, in which management cited AI sales squeezing margins.
Brian Mulberry, client portfolio manager at Zacks Investment Management, was quoted as saying the following by CNBC on the selloff:
“We definitely have seen a pretty clear rotation from large-cap growth into large-cap value, and what we’re really seeing is, I think, people positioning themselves in a more defensive posture for what’s going to happen next year. The real question that’s being asked is, ‘Who is going to monetize these very large investments in AI?’”
Despite the four-day losing streak, the S&P 500 is up 14.28% for the year, as of the close of December 17, putting it on course for a third successive year of double-digit gains.
Earlier this month, the Financial Times reported that it had surveyed nine major investment banks on their forecasts for next year. The survey results indicated a 10% gain in the broad market index over the next 12 months, with all banks anticipating that the S&P 500 Index will surpass 7,500 in 2026.
With that said, let’s now look at the best S&P 500 stocks to buy now heading into 2026.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
Our Methodology
We used screeners to identify S&P 500 Index stocks with mild to strong positive analyst sentiment and positive upside potential as of December 17. We then shortlisted the top 14 companies that had the highest number of hedge fund investors having a stake in them, based on Insider Monkey’s database of prominent hedge funds as of Q3 2025. Finally, we ranked them in ascending order based on the number of hedge funds holding positions.
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).
14 Best S&P 500 Stocks to Buy Now
14. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 121
Thermo Fisher Scientific Inc. (NYSE:TMO) is among the 14 Best S&P 500 Stocks to Buy Now. As of the close of business on December 17, Wall Street analysts have a consensus Strong Buy rating on the stock, with a one-year average share price target of $640.30, representing an upside of 12%.
Recent analyst updates include Wells Fargo lifting its price target on the stock to $675 from $635 on December 15, citing increased clarity about the U.S. government’s policies on the pharmaceutical industry, coupled with future growth projections suggesting an upside.
The firm believes the situation is ripe for companies selling tools and equipment, and has kept its Overweight rating on the stock.
This followed Citigroup’s update on Thermo Fisher Scientific Inc. (NYSE:TMO) on December 11, when it upgraded the stock’s rating to Buy from Neutral and hiked its price target to $660 from $580.
The revision by Citi analyst Patrick Donnelly was part of the firm’s broader analysis for stocks in the tools and diagnostics segment heading into 2026. The firm believes ongoing onshoring trends and increased pharmaceutical spending will benefit the company.
Thermo Fisher Scientific Inc. (NYSE:TMO) is a leading provider of life sciences solutions, laboratory products, diagnostics, analytical instruments, and biopharma services. The stock has had modest returns in 2025, gaining 8% year-to-date.
13. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is among the 14 Best S&P 500 Stocks to Buy Now. On December 16, Barclays maintained its Overweight rating on the stock with a price target of $310.
Earlier on December 11, RBC Capital cut its price target on the stock to $250 from $310 while keeping a Sector Perform rating.
The adjustment followed the company’s mixed financial performance during the second quarter of fiscal 2026, as reported on December 10. While its diluted EPS of $2.26 beat estimates of $1.64 per share, Oracle’s reported revenue, adjusted operating income, and Remaining Performance Obligations (RPO) missed Wall Street’s expectations.
The Austin, Texas-based company’s revenue growth and earnings forecast for the third quarter also fell shy of analysts’ estimates. Moreover, Oracle Corporation (NYSE:ORCL) expects its capital expenditure for the full year to be $15 billion higher than initially projected after the first quarter.
In his research note to investors, the RBC analyst noted that growth in cloud revenue and RPO was offset by negative free cash flow and increased capital expenditures. He also said that investors were now looking towards efficient capital utilisation instead of revenue growth. The analyst added that any future stable share price upside would now depend on the company showing capital efficiency, credible free cash flow recovery, and sustained margins.
As of the close of business on December 17, Wall Street analysts have a consensus Moderate Buy rating for the stock, with a one-year average share price target of $308.87, representing an upside of 67%.
Oracle Corporation (NYSE:ORCL) provides enterprise software, cloud computing, and database management systems, helping businesses manage data, applications, and IT infrastructure.
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