On January 16, Carol Schleif, BMO private wealth chief market strategist, joined CNBC’s ‘Squawk Box’ to discuss the latest market trends. Schleif observed that earnings have performed well despite a rocky backdrop and political challenges aimed at the financial services industry. She highlighted positive economic themes and noted that consumers and companies remain resilient. Regarding her outlook for the S&P 500, she suggested it could reach the 7,700 level. This target represents a 10% to 12% increase from the previous year’s close. She clarified that she does not expect valuations to expand and even sees potential downward pressure there. Instead, she believes the market’s progress will be driven by the ability to generate solid growth in an environment of lower inflation than the previous year.
Earlier on December 22, Scott Wren, chief global equity strategist at Wells Fargo Investment Institute, joined CNBC’s ‘Squawk on the Street’ to highlight his preference for sticking with larger- and mid-cap US stocks over international stocks in a global bull market. Wren shared that, while the firm had been focused almost entirely on the US for the last 4 or 5 years, it moved to a neutral stance on developed international and emerging markets about a year ago. He described emerging markets as a cheaper way to gain exposure to tech and AI. Despite this, Wren emphasized that his preference is to stick with US large-cap and mid-cap stocks. While the firm maintains international exposure and is looking for opportunities to increase it, he does not believe the current moment is the right time to do so.
That being said, we’re here with a list of the 15 best large cap value stocks to buy in 2026.
Our Methodology
We used the Finviz stock screener to compile a list of large-cap value stocks trading between $10 billion and $200 billion and with a forward P/E ratio under 15. We then selected 15 stocks that were the most popular among elite hedge funds, had at least 5% upside potential, and received favorable analyst views. The stocks are ranked in ascending order by the number of hedge funds with stakes in them as of Q3 2025.
Note: All data was sourced on January 19.
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).
15 Best Large Cap Value Stocks to Buy in 2026
15. Webster Financial Corporation (NYSE:WBS)
Average Upside Potential: 16.23%
Number of Hedge Fund Holders: 52
Webster Financial Corporation (NYSE:WBS) is one of the best large cap value stocks to buy in 2026. On January 12, RBC Capital raised its price target on Webster Financial to $72 from $70 and maintained an Outperform rating. In its Q4 2025 earnings preview, RBC Capital updated its regional bank price targets while maintaining a constructive stance on the sector’s fundamentals. The firm expects a stable outlook compared to Q3, driven by improvements in loan volume and revenue growth.
On January 9, Truist also increased its price target for Webster Financial Corporation (NYSE:WBS) to $72, up from the previous target of $67, while maintaining a Buy rating. This adjustment came just ahead of the banking earnings season.
Truist suggested that small- to mid-sized regional banks are well-positioned to recover after underperforming large banks in 2025. Potential drivers for this growth include a steepening yield curve, the restart of share buybacks, and organic expansion. Additionally, the current attractive valuation gaps compared to larger peers could help these regional banks regain their previous market standing.
Webster Financial Corporation (NYSE:WBS) operates as the bank holding company for Webster Bank, National Association, which provides a range of financial products and services to businesses, individuals, and families in the US.
14. First Horizon Corporation (NYSE:FHN)
Average Upside Potential: 16.09%
Number of Hedge Fund Holders: 52
First Horizon Corporation (NYSE:FHN) is one of the best large cap value stocks to buy in 2026. On January 16, DA Davidson analyst Peter Winter raised the firm’s price target on First Horizon to $27 from $25 with a Neutral rating. DA Davidson is leaning into a positive 2026 outlook for the company after a strong finish to Q4 2025. The firm sees revenue climbing by as much as 7% due to steady loan growth. Because the company is keeping its expenses in check, its operating leverage is expected to more than triple from 2025 levels.
On the same day, TD Cowen increased its price target on First Horizon to $27 from $26 with a Hold rating. The firm updated its financial model in response to Q4 2025 results and future guidance. The update highlights improved lending performance, specifically driven by strong growth in Commercial & Industrial loans.
Additionally, Stephens increased its price target for First Horizon Corporation (NYSE:FHN) to $29 from $28 while maintaining an Overweight rating. This revision followed a post-earnings analysis in which the firm raised its operating EPS estimates for the 2026 and 2027 fiscal years.
First Horizon Corporation (NYSE:FHN) operates as the bank holding company for First Horizon Bank, which provides a range of financial services. It operates through the Regional Banking, Specialty Banking, and Corporate segments.
