14 Hedge Fund Favorites with Strong Setup in 2026

In this piece, we discuss the 14 Hedge Fund Favorites with Strong Setup in 2026.

As of March 30, 2026, the case for hedge fund favorites with a good setup in 2026 is being shaped by how institutional investors are positioned relative to policy changes, inflationary concerns, and sector-specific strength.

Based on a Reuters report, U.S. stocks remained under pressure as investors continued to assess the growing Middle East conflict, President Donald Trump’s conflicting messaging about Iran, and the economic consequences of rising oil prices.

At the same time, Federal Reserve Chairman Jerome Powell indicated that inflationary expectations over the long term appear to be holding up despite the energy price shock and that the Fed has yet to decide how to respond to the latest developments. Reuters added that, in contrast to the two cuts anticipated prior to the start of the war, money markets have now priced out any Federal Reserve easing this year. At the same time, borrowing costs have surged across major markets.

Furthermore, Reuters cautioned that a deeper correction in equities could be triggered if the conflict in Iran drags on.

With such a backdrop, the case for the hedge fund favorites is strengthening because 2026 is increasingly looking like a year in which policy-driven market exposure, rather than market momentum, could play a significant role in defining the most stable setups. These companies possess strong fundamentals that will help them better navigate higher energy costs, weaker sentiment, and market volatility.

With this background in mind, we will now discuss the 14 hedge fund favorites with a strong setup in 2026.

Methodology

To curate our list of the hedge fund favorites with a strong setup in 2026, we scanned Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds as of Q4 2025. From that list, we picked the top stocks favored by hedge funds, which also carry substantial upside potential. Finally, we ranked the stocks in ascending order based on the number of bullish hedge funds.

Note: All data was extracted on April 3, 2026.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

14. JPMorgan Chase & Co. (NYSE:JPM)

JPMorgan Chase & Co. (NYSE:JPM) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

Recently, analysts at Piper Sandler discussed the company’s outlook.

Amid weaker earnings forecasts and lower bank equity valuations, the firm cut its price target for the stock. Piper Sandler lowered its price target for JPMorgan Chase & Co. (NYSE:JPM) to $325 from $345 on March 30, 2026, while maintaining an “Overweight” rating.

Overall, the investment firm maintained a cautious stance on the company’s outlook, reducing its 2026 EPS estimate to $21.65 from $22.58 and its 2027 forecast to $23.04 from $23.17.

This development followed Wells Fargo’s March 11, 2026, statement that JPMorgan Chase & Co. (NYSE:JPM) was writing down the value of collateral associated with private credit loans tied to software.

The firm stated that it does not anticipate any losses for the company and maintained that JPMorgan Chase & Co. (NYSE:JPM) is still in a strong position to manage underlying collateral. Wells Fargo’s analysts believe that large, diversified banks are well-positioned to absorb private credit exposure in the current climate. The firm maintains an “Overweight” rating on the stock with a $350 price target.

The two updates reflect analyst confidence in JPMorgan Chase & Co. (NYSE:JPM)’s balance sheet strength and risk management framework despite growing concerns about valuation and earnings forecasts.

JPMorgan Chase & Co. (NYSE:JPM), a diversified global financial services company, offers investment banking, consumer banking, commercial lending, and asset management. The company’s operations span capital markets, payments, and wealth management worldwide.

13. Tesla, Inc. (NASDAQ:TSLA)

Tesla, Inc. (NASDAQ:TSLA) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

As of April 3, 2026, despite mixed overall analyst sentiment on Tesla, Inc. (NASDAQ:TSLA), the consensus price target of $460.00 indicates a potential upside of 27.57%. This indicates that Wall Street continues to monitor significant long-term potential around the company amid divided near-term concerns surrounding the stock’s valuation.

A major part of the longer-term case for Tesla, Inc. (NASDAQ:TSLA) is linked to products other than automobiles.

On March 16, 2026, Goldman Sachs analyst Mark Delaney stated that Tesla is making headway on hardware development for its Optimus humanoid robot. The company had previously listed the hand and forearm as some of the project’s toughest engineering problems. As it strives for eventual scale, Tesla, Inc. (NASDAQ:TSLA) stated that it is content with the rate of development and is prioritizing capability, dependability, and manufacturability.

The research also emphasized Tesla, Inc. (NASDAQ:TSLA)’s approach of leveraging off-the-shelf components for commoditized products like cameras, while building many essential components internally to safeguard intellectual property and enhance product capacity and scalability. Optimus relies heavily on artificial intelligence and model training in addition to hardware, particularly when it comes to converting observed human motion into useful robotic movement.

Tesla, Inc. (NASDAQ:TSLA) is a developer, manufacturer, designer, lessor, and seller of electric vehicles and energy generation and storage systems. The company operates across China, the United States, and globally. It operates through the Automotive and Energy Generation and Storage segments.

12. Eli Lilly and Company (NYSE:LLY)

Eli Lilly and Company (NYSE:LLY) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

On March 30, 2026, Guggenheim updated its model ahead of the first-quarter data and lowered the firm’s price target for Eli Lilly and Company (NYSE:LLY) from $1,168 to $1,163, while keeping a “Buy” rating. The update came in anticipation of the company’s Q1 2026 results.

This update coincides with ongoing analyst attention toward Eli Lilly and Company (NYSE:LLY)’s positioning in the rapidly expanding oral obesity market.

RBC Capital reaffirmed its “Outperform” rating and $1,250 price target for the stock on March 16, 2026. The firm highlighted that the updated 44-week Phase 2 ACCESS II data for Structure Therapeutics’ aleniglipron appear similar to Eli Lilly and Company (NYSE:LLY)’s Phase 2 data for orforglipron, with no visibly superior profile.

According to the investment firm, the data contribute to the competitive debate about oral obesity therapies and may indicate the emergence of a new competitor for market share.

However, Eli Lilly and Company (NYSE:LLY)’s own catalyst remains the firm’s primary focus, with orforglipron’s April 10, 2026, PDUFA date and potential launch expected to be the more significant driver of the stock.

Eli Lilly and Company (NYSE:LLY) is a healthcare company that specializes in human pharmaceutical products and offers cardiometabolic health & oncology products.

11. Micron Technology, Inc. (NASDAQ:MU)

Micron Technology, Inc. (NASDAQ:MU) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

As of April 3, 2026, over 90% of covering analysts keep positive ratings on Micron Technology, Inc. (NASDAQ:MU), making the company one of Wall Street’s strongest analyst setups. Growing confidence in the longevity of the memory upcycle, and Micron’s leverage on AI-driven demand, continue to drive the 50% upside based on the analyst consensus.

On March 16, 2026, RBC Capital increased its price target for Micron Technology, Inc. (NASDAQ:MU) from $425 to $525 while keeping an “Outperform” rating, supporting overall optimism. The firm stated that its base case assumes prices will continue to rise through this year amid ongoing pricing strength. RBC anticipates that DDR cost will eventually level off, but tailwinds related to HBM pricing and content will be key drivers through 2027.

Additionally, RBC emphasized the Rubin Ultra platform as a roughly 3.5x increase in memory content per system, which could boost the company’s revenue per unit. The firm also stated that structural demand drivers, such as HBM and DDR/eSSD demand in data centers, are significantly more important in this cycle and may support further multiple expansion if the upcycle can be sustained.

Micron Technology, Inc. (NASDAQ:MU) provides memory and storage solutions sold into cloud server, enterprise, graphics, networking, smartphones, mobile devices, automotive, industrial, and consumer markets, among others.

10. UnitedHealth Group Incorporated (NYSE:UNH)

UnitedHealth Group Incorporated (NYSE:UNH) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

As of April 3, 2026, Wall Street has a constructive view on UnitedHealth Group Incorporated (NYSE:UNH), with 75% of covering analysts rating the stock bullishly, and a consensus price target of $355.00, implying a potential upside of roughly 30%. This is a positive backdrop for UNH and suggests that investors and analysts alike still recognize UnitedHealth Group for its growth initiatives outside of its main insurance operations.

One such growth initiative was announced on March 16, 2026, when UnitedHealth Group Incorporated (NYSE:UNH) announced a national rollout of its UnitedHealthcare Doula Support offering to eligible employer-sponsored health plans.

The rollout will follow a phased approach, with national availability anticipated by January 1, 2027, thereby expanding access for 7.2 million UnitedHealthcare members and covering 220,000 annual deliveries.

The UnitedHealthcare Doula Support offering aims to provide personalized support to pregnant women, helping improve the birth experience and support after giving birth through a combination of physical, emotional, and educational support, in person or virtually, depending on the company’s plan design. With this development, there could be a positive impact on birth outcomes, such as reduced preterm births, cesarean sections, breastfeeding initiation, and post-delivery anxiety and depression. The update reflects UnitedHealth Group Incorporated’s (NYSE:UNH) deeper push into maternal health and whole-person care.

UnitedHealth Group Incorporated (NYSE:UNH), a diversified healthcare company, spans insurance, care delivery, pharmacy benefits, software, and analytics. Its UnitedHealthcare and Optum franchises support coordinated care, cost management, and data-driven services.

9. Netflix, Inc. (NASDAQ:NFLX)

Netflix, Inc. (NASDAQ:NFLX) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

As of March 27, 2026, Oppenheimer maintained its “Outperform” rating and raised its price target to $135 (from $125) for Netflix, Inc. (NASDAQ:NFLX). The firm’s bullish stance reflects the company’s price increases in the U.S. and Canada, resulting in better revenue growth. With the company raising prices after 15 months, analysts cited the company’s dominance in the streaming market.

After the Warner Bros. Discovery-Paramount merger, Oppenheimer claimed that Netflix has greater flexibility to focus on content and that its ability to retain subscribers supports industry-low churn, thereby improving its content moat.

This comes amid Netflix, Inc. (NASDAQ:NFLX)’s apparent willingness to make more significant investments in AI technologies for filmmaking.

Bloomberg revealed on March 12, 2026, that Netflix would acquire InterPositive, an AI filmmaking firm, for up to $600 million, with a portion of the payment contingent on performance goals. According to Ben Affleck, the agreement implies that Netflix, Inc. (NASDAQ:NFLX) wants to deploy AI in content creation more quickly, while leveraging technology as a tool for filmmakers rather than a replacement.

Netflix, Inc. (NASDAQ:NFLX) is a global entertainment company that offers a subscription-based streaming service featuring TV shows, movies, documentaries, and games.

8. Uber Technologies, Inc. (NYSE:UBER)

Uber Technologies, Inc. (NYSE:UBER) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

On March 30, 2026, Wells Fargo reduced its price target for Uber Technologies, Inc. (NYSE:UBER) from $100 to $95 while keeping an “Overweight” rating. This indicates a slightly more cautious assessment of the stock, even if Wells Fargo maintained its broader thesis.

According to Wells Fargo, driverless cars are still a major part of the investment narrative, but any significant impact on Uber’s fundamentals is more likely to occur in 2027 and later. Uber Technologies, Inc. (NYSE:UBER)’s continued aggressive investment approach and weather-related disruptions partially offset the firm’s positive operating trends in the near term.

On March 12, 2026, Bernstein SocGen Group reaffirmed its “Outperform” rating and $110.00 price target in response to Uber Technologies, Inc. (NYSE:UBER)’s multi-year partnership with Zoox that day, further bolstering the longer-term autonomous vehicle theme.

Beginning in Las Vegas in the summer of 2026 and extending to Los Angeles by the middle of 2027, the agreement will introduce specially designed autonomous vehicles to Uber’s network.

Uber Technologies, Inc. (NYSE:UBER) is a global technology platform that primarily operates as a ride-hailing service, connecting users with drivers through a smartphone app. It facilitates personal mobility (ridesharing), food delivery (Uber Eats), and freight transport. Uber also invests in autonomous vehicles and future transportation solutions.

7. Mastercard Incorporated (NYSE:MA)

Mastercard Incorporated (NYSE:MA) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

As of April 3, 2026, over 90% of covering analysts remain bullish on the stock, with the consensus price target of $665 implying a roughly 35% upside. Mastercard Incorporated (NYSE:MA) entered late March with Wall Street’s support for its new push into crypto infrastructure.

In an effort to connect fiat rails with on-chain payments, the company decided to purchase stablecoin infrastructure provider BVNK on March 17, 2026, for up to $1.8 billion, including $300 million in contingent payments.

With digital currency payments surpassing at least $350 billion in volume in 2025, Mastercard Incorporated (NYSE:MA) aims to leverage BVNK’s technology, which facilitates payments across key blockchain networks in more than 130 countries, enhancing the company’s capacity to link stablecoins, tokenized deposits, and traditional currencies. The agreement, which expands Mastercard Incorporated’s (NYSE:MA) broader blockchain plan, is expected to close before the end of 2026.

Previously, on March 5, 2026, Bank of America resumed coverage of the stock with a “Buy” rating, highlighting Mastercard Incorporated (NYSE:MA) as one of the best risk-adjusted opportunities in the payments industry. This is due to the card network providers’ steady earnings, stable fees, robust cash flow, and exposure to the expansion of cross-border and digital commerce.

Mastercard Incorporated (NYSE:MA) is a global technology company in the payments industry that acts as a fast, secure network connecting consumers, financial institutions (banks), merchants, governments, and businesses. It does not issue cards, extend credit, or set rates for consumers; instead, it processes transactions and provides value-added services.

6. Apple Inc. (NASDAQ:AAPL)

Apple Inc. (NASDAQ:AAPL) earns a place on our list of the 14 hedge fund favorites with strong setup in 2026.

As of April 3, 2026, roughly 70% of covering analysts maintain bullish ratings on Apple Inc., and the consensus price target of $300.00 implies over 17% upside.

On March 18, 2026, Bernstein SocGen Group reaffirmed its “Outperform” rating and $340 price target for Apple Inc. (NASDAQ:AAPL).

Comparing it to Samsung’s 2009–2013 strategy, which saw Samsung increase its global smartphone share from 4% to 32% in Q3 2013, Bernstein emphasized Apple Inc. (NASDAQ:AAPL)’s recent product launches as a strategy to widen portfolio price bands, driving share gains at the low end while raising prices at the high end to maintain margins. Although Samsung eventually lost market share to Chinese manufacturers, the firm said the stickiness of Apple’s iOS ecosystem will help it sustain long-term market share.

Bernstein projected a 12% increase in fiscal 2027 EPS from share gains, split equally between hardware and services, assuming Apple Inc. (NASDAQ:AAPL) captures 10% of Chinese manufacturers’ smartphone market share amid their supply issues. Some noteworthy product developments include the introduction of the $549 AirPods Max 2, the App Store cost reduction in China from 30% to 25%, and plans for a foldable iPhone.

Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets consumer electronics, software, and online services. It also offers services such as iCloud, Apple Music, Apple TV+, and the App Store.

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