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.
12. Capital One Financial Corporation (NYSE:COF)
Number of Hedge Fund Holders: 129
Capital One Financial Corporation (NYSE:COF) is among the 14 Best S&P 500 Stocks to Buy Now. On December 15, BofA Securities raised its price target on the stock to $268 from $248 while maintaining a Buy rating.
The revision comes after the bank holding company released credit metrics for November, which reflect continued strong performance throughout the latter half of the year.
Earlier in the day, TD Cowen analyst Moshe Orenbuch also reiterated a Buy rating on the stock with a share price target of $261.
These updates follow Wolfe Research’s initiation of coverage on the stock on December 8, with an Outperform rating and a share price target of $270, citing the company’s higher returns.
Wolfe analyst Darrin Peller told investors that if the bank continues to bolster its returns and earnings, it should command a higher multiple than in the past.
As of the close of business on December 17, Wall Street analysts have a consensus Moderate Buy rating on Capital One Financial Corporation (NYSE:COF), with a one-year average share price target of $260.17, implying a 9% upside.
Capital One Financial Corporation (NYSE:COF) is the holding company for Capital One Bank. It provides a range of financial products and services to customers, businesses, and other clients across multiple channels.
11. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 136
Mastercard Incorporated (NYSE:MA) 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 $685.25, representing an upside of 20%.
Recent analyst updates include Oppenheimer’s Rayna Kumar reiterating a Buy rating on the stock with a share price target of $683 on December 10.
On the same day, Evercore ISI raised its price target on Mastercard Incorporated (NYSE:MA) to $610 from $600 while maintaining an In Line rating on the shares. The firm also said that it was including the company in its ‘Tactical Outperform’ List.
Oppenheimer and Evercore ISI’s updates followed HSBC’s adjustment on the stock on December 8, when it upgraded the stock’s rating to Buy from Hold and hiked its share price target to $633 from $598, citing the company’s valuation and strong financial position.
In other news, on December 9, the company declared a quarterly cash dividend of $0.87, representing a 14% increase from the last dividend. It is scheduled to be paid on February 9, 2026, to all shareholders of its Class A and B stock as of the close on January 9, 2026.
Mastercard Incorporated (NYSE:MA) is a payment card services company that provides financial services to individual consumers, merchants, small and large businesses, and governments by facilitating electronic funds transfers.
10. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is among the 14 Best S&P 500 Stocks to Buy Now. On December 11, Jefferies analyst John Colantuoni reiterated a Buy rating on the stock with a share price target of $120.
Earlier in the month, on December 3, Arete Research upgraded the stock’s rating to Buy from Neutral and lifted its price target to $125 from $82, citing heightened competition in the autonomous vehicles space.
In a research note to investors, the Arete analyst stated that, currently, only Tesla is able to build cost-friendly autonomous vehicles at scale, with other providers posing no real threat.
Moreover, the firm highlighted Uber Technologies, Inc. (NYSE:UBER)’s large customer base comprising high-income consumers who earn over $100,000 a year, resulting in reduced consumer spending risk for the ride-hailing company compared to other players in the sector.
As of the close of business on December 17, Wall Street analysts have a Strong Buy rating on the stock, with a one-year average share price target of $115.92, representing an upside of 42%.
Uber Technologies, Inc. (NYSE:UBER) is an American transportation company that provides ride-hailing services, food delivery, courier services, and freight facilities.
9. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 154
Netflix, Inc. (NASDAQ:NFLX) is among the 14 Best S&P 500 Stocks to Buy Now. On December 15, Wolfe Research lowered its price target on the stock to $121 from $139, while maintaining an Outperform rating on the shares.
The revision came as part of the firm’s broader adjustment in the sector for 2026. While Wolfe is bullish on the entertainment and music group with an Overweight rating, it has downgraded its outlook for the telecom and cable segment to Market Weight, citing weak performance metrics towards the latter half of this year with ‘no relief’ in sight.
This follows Jefferies’ update on Netflix, Inc. (NASDAQ:NFLX) on December 11, when analyst James Heaney lowered his price target on the streaming giant to $134 from $150, while keeping a Buy rating on the shares.
In its ‘2026 Internet Playbook’, the firm recommended investors to be ‘selective’ about internet stocks, given the likelihood of margin pressures from increased spending. Moreover, Jefferies also warned that ongoing concerns related to artificial intelligence could hinder share price appreciation.
As of the close of business on December 17, Wall Street analysts have a Moderate Buy rating on the stock, with a one-year average share price target of $133.27, representing a 42% upside.
Netflix, Inc. (NASDAQ:NFLX) is a global entertainment company offering TV series, documentaries, movies, and games across multiple languages and genres.
8. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is among the 14 Best S&P 500 Stocks to Buy Now. On December 15, JPMorgan analyst Samik Chatterjee maintained an Overweight rating on the stock with a share price target of $305, a reaffirmation of an earlier update on October 31.
The adjustment follows Citi analyst Atif Malik lifting his price target on the iPhone-maker to $330 from $315 on December 9, while keeping a Buy rating on the shares.
Citi sees an uptick in iPhone sales during the coming quarters, as it believes several old users of the smartphone, especially those who have iPhone 12 and 13, are due for an upgrade. Considering this factor, Citi said it was raising its earnings estimates for the company.
Earlier in the month, on December 5, CLSA also hiked its price target on Apple Inc. (NASDAQ:AAPL) to $330 from $265, while keeping an earlier Outperform rating, citing a surge in iPhone sales, which is expected to drive revenue and earnings growth in FY26-27.
As of the close of business on December 17, Wall Street analysts have a Moderate Buy rating on the stock, with a one-year average share price target of $298.72, implying a 9% upside.
In other news, according to a report from The Information on Tuesday, Apple is planning to expand its iPhone product line to include seven variants by 2027.
Apple Inc. (NASDAQ:AAPL) is known for its consumer electronics, software, and other related products. Its premium line of products, which includes the iPhone, iPad, Mac computers, and a range of other accessories, has earned the company widespread acclaim and customer loyalty.
7. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 179
Visa Inc. (NYSE:V) 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 $401.26, representing an upside of 16%.
On December 15, TD Cowen analyst Bryan Bergin reiterated a Buy rating on the stock with a target price of $416.
This followed BofA’s update on December 11, when it upgraded Visa Inc. (NYSE:V)’s rating to Buy from Neutral, with a share price target of $382. Analyst Mihir Bhatia described the digital payments company as a ‘premier business’. The firm sees upside in the stock given its recent weakness, citing stablecoins as a favorable opportunity.
Earlier on December 8, in a research note to investors, HSBC said it was upgrading Visa Inc. (NYSE:V) to Buy from Hold and lifting its price target on the stock to $389 from $335. The firm cited the company’s financial strength and valuation as the reason behind the adjustment.
According to TipRanks, HSBC praised the company’s solid financial model and noted how its value-added services could further expand and drive future growth.
Visa Inc. (NYSE:V) is a payment technology company that facilitates electronic transactions worldwide. The stock has had modest returns so far in 2025, gaining 10% year-to-date.
6. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is among the 14 Best S&P 500 Stocks to Buy Now. On December 15, UBS analyst Timothy Arcuri raised the stock’s price target to $475 from $472 while maintaining a Buy rating.
The stock is down 13% over the past week amid a major selloff following its fourth-quarter 2025 earnings call on December 11, during which management noted that increased AI sales were pressuring margins. Moreover, investors were left disappointed that the company did not share its AI revenue forecast for the coming year.
According to TipRanks, the UBS analyst told investors in a research note that discussions with management suggest the plunge is an overreaction, and that comments on AI semiconductor revenue reflect anticipation of a strong showing in fiscal 2026.
Shares have slumped despite Broadcom Inc. (NASDAQ:AVGO) reporting strong results for the quarter and beating estimates for both revenue and profit. The chipmaker posted a revenue of $18.02 billion in Q4, up 28% year-over-year and above expectations of $17.49 billion. Diluted EPS stood at $1.95, comfortably surpassing estimates of $1.87 per share.
As of the close of business on December 17, Wall Street analysts have a Strong Buy rating on the stock with a one-year average share price target of $462.30, representing an upside of 36%.
Broadcom Inc. (NASDAQ:AVGO) is a leading developer, manufacturer, and supplier of semiconductor and infrastructure software products. The stock has returned 42% year-to-date.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is among the 14 Best S&P 500 Stocks to Buy Now. On December 17, Morgan Stanley analyst Joseph Moore maintained a Buy rating on the stock with a share price target of $250.
This is a reaffirmation of the firm’s earlier update on the chipmaker on December 1, when it lifted the price target on the stock to $250 from $235. Moore projects NVDA to continue benefiting from AI momentum and to hold its dominant market share. CNBC quoted the analyst as saying the following in a research note to investors:
“We continue to see NVIDIA maintaining dominant market share, as threats are becoming overstated, though we aren’t sure exactly what will turn sentiment around. Customers’ biggest anxiety for the next 12 months is their ability to procure enough NVIDIA products generally, and Vera Rubin specifically.”
Earlier in the week, on December 15, Bernstein’s Stacy Ragson reiterated the firm’s Outperform rating on NVIDIA Corporation (NASDAQ:NVDA) and set a price target of $275.
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 $258.97, representing an upside of 46%.
In other news, Reuters reported on Wednesday that the company had resolved a U.S. lawsuit with Valeo. The automotive supplier sued Nvidia in 2023, alleging that a former Valeo employee hired by the chipmaker had stolen confidential trade secrets related to driving assistance systems. The case was scheduled for trial in January.
NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company. It is the go-to company for firms looking for GPUs and semiconductors as they increase spending on artificial intelligence.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is among the 14 Best S&P 500 Stocks to Buy Now. According to a Reuters report on Wednesday, Google is working with Meta to make its AI chips better suited to running PyTorch, in a bid to challenge Nvidia’s dominance in the market.
The initiative, called TorchTPU, aims to position Google’s Tensor Processing Units (TPUs) as an alternative to the chipmaker’s Graphics Processing Units (GPUs) by ensuring compatibility with clients who have built their AI infrastructure on PyTorch. The Meta-built open source project has become one of the most widely used tools for developers.
Alphabet Inc. (NASDAQ:GOOGL) had for years reserved a major chunk of the TPUs for internal use. However, the tech giant had been discussing with Meta over the possibility of the latter using more TPUs, said the report.
In other news, on December 16, Bloomberg reported that self-driving car company Waymo was in talks to generate $15 billion in capital. It plans on raising the additional funds from external investors and its parent Alphabet Inc. (NASDAQ:GOOGL), which could help value the business at around $110 billion.
Alphabet Inc. (NASDAQ:GOOGL) owns several notable platforms such as Google Search, Google Maps, Gmail, and YouTube. The company is also known for pioneering work and research in cloud computing, quantum computing, and artificial intelligence.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is among the 14 Best S&P 500 Stocks to Buy Now. On Wednesday, RBC Capital analyst Brad Erickson reiterated the firm’s Outperform rating on the stock with a price target of $810.
The update follows Morgan Stanley’s December 11 adjustment to the stock, when it lowered the price target to $750 from $820 while maintaining an earlier Overweight rating.
Analyst Brian Nowak told investors that, despite being bullish on Meta Platforms, Inc. (NASDAQ:META) heading into 2026, the firm was slashing its earnings estimates for fiscal 2026 and 2026 by around 8% each, considering projections of increased operating expenses.
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 $830.73, representing an upside of 28%.
In other news, the Financial Times reported on Thursday that Meta Platforms, Inc. (NASDAQ:META)’s chief AI scientist, Yann LeCun, who will be leaving the company at the end of this year, has held discussions to raise €500 million for his new startup, which would value the firm at around €3 billion before its launch.
The British daily newspaper reported that the new startup will be called Advanced Machine Intelligence Labs and that Meta is expected to form a ‘partnership’ with the business.
Meta Platforms, Inc. (NASDAQ:META) is one of the world’s largest technology companies. It operates several popular social media platforms, including Facebook, WhatsApp, Instagram, and Threads.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) 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 $632.22, representing an upside of 33%.
Recent analyst updates include Morgan Stanley analyst Keith Weiss reiterating a Buy rating on the stock on December 17 with a share price target of $650.
This followed Phillip Securities’ adjustment on December 14, when it lowered its price target on the stock to $540 from $550 and maintained an Accumulate rating on the shares. According to TipRanks, the firm told investors that the tech giant was ‘aggressively’ into cloud and AI infrastructure.
Earlier in the month, on December 4, DA Davidson maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) with a target price of $650. The firm’s analyst Gil Luria noted how the strategic partnership with OpenAI will help the company maintain its ‘fastest growing hyperscaler’ status.
This month, Microsoft announced up to $23 billion in new AI investments, of which $17.5 billion would go into establishing a significant cloud computing presence in India over the next four years, while $5.42 billion would be spent in Canada on AI partnerships and cloud capacity.
Microsoft Corporation (NASDAQ:MSFT) is a technology company best known for its operating systems and software products.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is among the 14 Best S&P 500 Stocks to Buy Now. On December 17, Wells Fargo analyst Ken Gawrelski maintained an Overweight rating on the stock with a price target of $295. This is a reaffirmation of the firm’s earlier update on December 2.
This follows BMO Capital’s adjustment a day earlier when it lifted the price target on the stock to $304 from $300, while keeping an Outperform rating on the shares. The firm said it had conversations with two former AWS employees, with the discussions providing insights into increased cloud commitments, which became the basis for the revision.
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 $296.12, representing an upside of 33%.
In other news, press reports on Wednesday said that Amazon.com, Inc. (NASDAQ:AMZN) is in negotiations with OpenAI over a potential $10 billion investment that could see an agreement to use its AI chips. However, sources familiar with the matter described the talks as ‘fluid’ at this point.
The reports come at a time when the ChatGPT maker is preparing for an IPO as early as the second half of next year. If the deal goes through, the company could be valued at over $500 billion, reported Reuters.
Amazon.com, Inc. (NASDAQ:AMZN) engages in e-commerce, online advertising, cloud computing, artificial intelligence, and digital streaming.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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