In this article, we will talk about the 15 Best S&P 500 Stocks to Look For in 2026.
On January 19, Reuters reported that shares of U.S. tech giants plunged in Europe on Monday following President Donald Trump’s threat to impose higher tariffs on European countries linked to the U.S.’ pursuit of Greenland. The news was a negative sign for investors, as stock markets fell across Asia as well. Alphabet’s shares listed in Frankfurt dropped 2.4%, while Nvidia and Microsoft shares fell 2.2%, respectively.
The U.S. dollar also took a hit from this news. Trump has threatened European countries with tariffs as low as 10% starting on February 1, rising to 25% on June 1. Francesca Fornasari, head of currency solutions at Insight Investment, said,
I’m sure that there are a lot of people who are fairly aghast at what happened over the weekend and probably thinking about how they hold their assets.
Fornasari further added that the U.S. dollar could move lower, but it is supported by a strong economy and established securities.
Markets have a modest reaction to Trump’s threat. Analysts believe it is a sign that markets think Trump will end up de-escalating, as he had done previously, reported Reuters. Leonard Kwan, fixed income portfolio manager at T Rowe Price, said:
For the most part, so far, it would appear to be more noise than signal at this point.
In 2025, the S&P 500 returned nearly 17.90%, marking the third consecutive year of double-digit and above-average gains. The Magnificent Seven, which includes Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, contributed the most to the index, with an average total return of 21.90%, accounting for almost 40% of the S&P 500’s overall performance. Wall Street remains positive on the S&P 500 and expects yet another year of double-digit returns, with an average expectation of a gain of 16% for 2026.
With that, let’s take a look at the 15 Best S&P 500 Stocks to Look For in 2026.
Photo by Pascal Bernardon on Unsplash
Our Methodology
To create the list of 15 best S&P 500 stocks to look for, we first shortlisted the top 30 S&P 500 companies widely held by hedge funds, have favorable analyst opinions, and have a positive upside. From this pool, we ranked the 15 best S&P 500 stocks based on the number of hedge funds holding stakes in them. The hedge fund sentiment data for each stock were sourced from Insider Monkey’s database as of Q3 2025.
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).
Note: All the data is as of market close on January 19, 2026.
15. JPMorgan Chase & Co. (NYSE:JPM)
Market Capitalization: $850.62 Billion
Number of Hedge Fund Holders: 120
JPMorgan Chase & Co. (NYSE:JPM) is one of the best S&P 500 stocks to look for in 2026.
On January 14, Evercore ISI analyst Glenn Schorr reaffirmed his Buy rating on JPMorgan Chase & Co. (NYSE:JPM) and maintained the price target at $350. The analyst reiterated his Buy rating following the Q4 2025 earnings call. Schorr asked management about the stablecoin regulatory risk and deposit dynamics, to which management replied that the issue applies to the entire banking sector.
JPMorgan Chase added 1.7 million net new checking accounts, 10.4 million new card accounts, and record households in wealth management in 2025. The company reiterated that expectations for consumer deposit growth in 2026 have been revised lower from previous guidance, now expected to be below 6% for the year.
In other news, President Donald Trump on January 17 said that he will sue JPMorgan Chase & Co. (NYSE:JPM) for ‘incorrectly and inappropriately debanking’ the president after the January 6 protests. President Trump denied the Wall Street Journal report that said he offered JPM CEO Jamie Dimon the position of Fed chair. The President stated:
This statement is totally untrue; there was never such an offer, and, in fact, I’ll be suing JPMorgan Chase over the next two weeks for incorrectly and inappropriately DEBANKING me after the January 6th Protest.
JPMorgan Chase & Co. (NYSE:JPM) is one of the largest financial companies in the world. The company operates through three segments, including Consumer & Community Banking, Commercial & Investment Banking, and Asset & Wealth Management.
14. Tesla, Inc. (NASDAQ:TSLA)
Market Capitalization: $1.45 Trillion
Number of Hedge Fund Holders: 120
Tesla, Inc. (NASDAQ:TSLA) is one of the best S&P 500 stocks to look for in 2026.
Tesla, Inc. (NASDAQ:TSLA) could be a beneficiary of a new development in which Canada agreed to the removal of 100% tariffs on Chinese-made EVs, according to Reuters. On January 19, Reuters reported that Canada is lowering the EV-import tariff to 6.1% from 100% as part of trade deal normalization with China.
As per the deal, Canada will allow the import of over 49,000 EVs annually from China, with the quota rising to 70,000 within five years. With Tesla’s strong presence in Canada, it could be a great deal for the EV maker. The company already has 39 stores across the country, and an existing logistics setup is a plus. Since Tesla’s largest factory is in Shanghai, it is planning to build a Canada-specific version of the Model Y.
Tesla’s exports were on hold as tariffs rose in 2024. The new deal could allow the company to resume operations with China-based shipments in Canada.
Tesla, Inc. (NASDAQ:TSLA) is a leading EV maker and also designs, develops, and manufactures energy generation and storage systems. The company operates through two segments: Automotive and Energy Generation and Storage.
13. Oracle Corporation (NYSE:ORCL)
Market Capitalization: $549.02 Billion
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the best S&P 500 stocks to look for in 2026.
On January 19, new research from Information Services Group, Inc. (NASDAQ:III) found that U.S. enterprises are increasingly adopting Oracle Cloud Infrastructure (OCI). These companies are moving to Oracle as part of a broader shift toward multicloud strategies powered by data, AI, and the need for better business agility. Bill Huber, the partner at ISG Digital Transformation and Cost Optimization, said:
Large U.S. enterprises are engaging with multiple cloud providers to realize their digital transformation goals. Many data-driven companies find that Oracle’s broad portfolio of applications and cloud resources meets their increasingly complex requirements.
The report finds that Oracle has transformed into a leading cloud platform and services provider from being a conventional software vendor. Enterprises are using OCI for its performance, flexible deployment options, and lower costs as they integrate it with cloud platforms, including AWS, Google Cloud, and Microsoft Azure. This makes OCI the fourth-largest hyperscale cloud platform provider in the U.S., according to the report.
Oracle Corporation (NYSE:ORCL) is a leading software provider that addresses enterprise information systems. The company’s OCI includes various service offerings and provides the broadest and deepest suite of AI-powered cloud applications.
12. Berkshire Hathaway Inc. (NYSE:BRK-B)
Market Capitalization: $1.07 Trillion
Number of Hedge Fund Holders: 128
Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the best S&P 500 stocks to look for in 2026.
On January 13, Berkshire Hathaway Specialty Insurance (BHSI), a subsidiary of Berkshire Hathaway’s National Indemnity group of insurance companies, announced the launch of Executive First D&O Liability+ offering in the United Kingdom. This is an enhanced directors’ and officers’ liability insurance product. This product is specifically introduced for large commercial and financial organizations trading on U.S. exchanges. The Head of Commercial Management Liability UK, Thomas Harris, said:
We believe this enhanced wording, alongside our Preferred Counsel Program, D&O Loss Prevention Services, and Securities Claim Inquiry Costs coverage, demonstrates a true partnership approach centered on customer service, product innovation, and generating best-in-class outcomes for U.S.-listed companies.
The latest insurance features broader and simplified coverage designed to modern risk exposures and expanded Side A protection that focuses on asset and liberty proceeding costs and deprivation of asset expenses, reputational, mitigation costs, and excess protection for independent directors. The executive liability program is part of Berkshire Hathaway Specialty Insurance (BHSI), which also includes pension trustee liability, complex risk profiles, and other offerings among the wider liability insurance suite.
Berkshire Hathaway Inc. (NYSE:BRK-B) is a holding firm that operates through its subsidiaries. The company engages in the insurance, freight rail transportation, and utility businesses.
11. Mastercard Incorporated (NYSE:MA)
Market Capitalization: $487.70 Billion
Number of Hedge Fund Holders: 136
Mastercard Incorporated (NYSE:MA) is one of the best S&P 500 stocks to look for in 2026.
On January 12, TheFly reported that Compass Point lifted Mastercard Incorporated (NYSE:MA) from Neutral to Buy, raising the price target from $620 to $735. Dominick Gabriele from Compass believes the sector is ‘finding a bottom’ that is likely to materialize after the Q4 2025 earnings reports. Gabriele remains more positive on the networks than all other payment companies heading into 2026. The analyst expects stocks in this space to rebound after the Q4 results. For Mastercard, he believes that the stock’s multiple is very low. Additionally, he expects the company to experience ‘superior’ net revenue growth.
In other news, on January 8, JPMorgan noted that Chase is set to become the new issuer of Apple Card, while Mastercard will continue to operate the payment network for Apple Card, per TheFly. Apple Card users will continue to access Mastercard’s global acceptance and benefits.
Mastercard Incorporated (NYSE:MA) is a financial technology company that offers transaction processing and other payment-related products and services. The company uses its payment processing technology across its debit, credit, prepaid, and commercial cards, as well as its other programs.
10. UnitedHealth Group Incorporated (NYSE:UNH)
Market Capitalization: $299.85 Billion
Number of Hedge Fund Holders: 140
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best S&P 500 stocks to look for in 2026.
On January 15, Mizuho Securities reiterated its Buy rating on UnitedHealth Group Incorporated (NYSE:UNH), keeping the price target at $430. TheFly reported that Mizuho expects the upcoming release of the Medicare Advantage 2027 Advance Notice, a Proposal Rule that will detail major policy changes in 2027 and beyond, to be a positive driver for UnitedHealth Group.
Ann Hynes from Mizuho pointed out that an additional positive rate increase will raise investor confidence in the margin recovery buildup across the managed care industry. Hynes believes this to be a major catalyst for stocks such as UNH. The analyst noted that Wall Street is expecting a 5% rate increase and believes a 5% or higher increase will be positive for managed care firms. The analyst expects rate growth in the 9-10% range, similar to the final 2026 rate announcement.
UnitedHealth Group Incorporated (NYSE:UNH) is a leading healthcare company operating through four segments, including UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.
9. Netflix, Inc. (NASDAQ:NFLX)
Market Capitalization: $372.88 Billion
Number of Hedge Fund Holders: 154
Netflix, Inc. (NASDAQ:NFLX) is one of the best S&P 500 stocks to look for in 2026.
Netflix, Inc. (NASDAQ:NFLX) reported its Q4 2025 earnings after the market close on January 20. While the Q4 results were strong, the 2026 guidance was seen as slightly softer than street expectations. There were downward price target revisions across almost all firms covering it, including Bernstein and Goldman Sachs, who lowered their targets by 8%-10%.
Going into the results, analysts had mixed feelings on the streaming giant following Paramount’s counteroffer of $108.40 billion for Warner Bros. Discovery, while Netflix already has a deal finalized at $82.70 billion. As per Reuters, Warner Bros.’s board rejected Paramount’s offer and favored Netflix’s bid due to stronger financing and lower debt risk. Paramount’s bid could have been a risky leveraged buyout, added the board members.
On January 16, TheFly reported that KeyBanc downgraded the price target on Netflix, Inc. (NASDAQ:NFLX) from $139 to $110, keeping its Overweight rating on the stock. KeyBanc analyst Justin Patterson lowered the price target on NFLX following uncertainty around the Warner Bros. Discovery deal and concerns about lapping 2025’s content slate, creating near-term overhangs on the P/E multiple, Patterson highlighted. However, the analyst expects 2026 guidance in line with revenue and potentially softer on operating margin. Patterson believes that this might create near-term volatility, but he still sees long-term monetization and margin catalysts as intact.
Netflix, Inc. (NASDAQ:NFLX) operates the world’s leading OTT platform and creates content such as movies, documentaries, and TV series across various genres and languages.
8. Apple Inc. (NASDAQ:AAPL)
Market Capitalization: $3.77 Trillion
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is one of the best S&P 500 stocks to look for in 2026.
On January 12, Reuters reported that Apple Inc. (NASDAQ:AAPL) led the smartphone market with a 20% share worldwide. Apple’s iPhone 17 series had strong sales and gained demand in emerging and mid-sized markets, according to Counterpoint analyst Varun Mishra. The promising sign for Apple is that it reclaimed its top spot in China’s smartphone market after iPhone shipments soared 28% during Q4 2025. The rebound suggests that there is still robust demand for premium phones, as per Counterpoint Research.
Overall, smartphone shipments increased 2% year over year in 2025, driven by higher demand and economic momentum in emerging markets. However, Counterpoint expects global smartphone demand to soften in 2026 due to chip shortages and rising component costs, as chipmakers move towards AI datacenters over handsets, added Tarun Pathak, research director at Counterpoint.
Apple Inc. (NASDAQ:AAPL) is a tech giant that designs, manufactures, and sells smartphones, personal computers, wearables, and accessories worldwide.
7. Visa Inc. (NYSE:V)
Market Capitalization: $633.58 Billion
Number of Hedge Fund Holders: 179
Visa Inc. (NYSE:V) is one of the best S&P 500 stocks to look for in 2026.
On January 15, Visa Inc. (NYSE:V) announced that it has enabled Apple Pay support for Chinese Visa cardholders. Eligible customers from the partnering Chinese banks will be allowed to add their Visa cards to Apple Pay and make payments at global merchants that offer Visa payment services. This will cover in-store contactless transactions, in-app purchases, and online purchases.
The banks that will be offering Apple Pay to their users include Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, Bank of Communications, China Merchants Bank, China CITIC Bank, Ping An Bank, and Industrial Bank. Visa is also working with some other banks to add to its Apple Pay network, such as Shanghai Pudong Development Bank, China Construction Bank, China Minsheng Bank, and China Everbright Bank. Visa Mainland China general manager Yin Xiaolong said:
As global digital payments develop rapidly, consumers increasingly expect mobile payment solutions that are smartphone-based and interoperable. Upholding our long‑standing commitment to the Chinese market and to our cardholders, Visa is increasing its investments in data and payment security, launching tokenisation services, and taking the lead in enabling their use in cross‑border scenarios.
Visa is focused on its strategy to expand digital payments for Chinese consumers, with transactions secured via Apple Pay authentication methods.
Visa Inc. (NYSE:V) is one of the leading payment technology companies with global operations. The company offers debit, credit, and prepaid cards to consumers. Visa operates VisaNet, a transaction-processing network that enables the authorization, clearing, and settlement of payment transactions.
6. Broadcom Inc. (NASDAQ:AVGO)
Market Capitalization: $1.67 Trillion
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the best S&P 500 stocks to look for in 2026.
On January 14, Cathie Wood loaded in on Broadcom Inc. (NASDAQ:AVGO) stock, adding over 143,000 AVGO shares across its ARKK and ARKW ETFs. The move came as AVGO shares dipped over 4% during the day’s trading session. Wood bought 143,089 AVGO shares worth $50.74 million.
Analysts also remain bullish on Broadcom, with 92% out the total 53 analysts covering AVGO rating the stock a Buy. Over the last year, as of January 15, AVGO shares have soared over 50%. With analysts’ median price target of $461, AVGO has an upside potential of over 32.50%.
On January 15, Jefferies retained its Buy rating on Broadcom Inc. (NASDAQ:AVGO), naming the stock as its Top Pick in the group. Blayne Curtis from Jefferies kept the price target on AVGO at $500, projecting the company’s EPS to surpass $19 per share for the CY2028, reported TheFly.
Broadcom Inc. (NASDAQ:AVGO) is a leading designer and developer of semiconductor devices and infrastructure software solutions. Broadcom operates through its Semiconductor Solutions and Infrastructure Software segments.
5. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $4.53 Trillion
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the best S&P 500 stocks to look for in 2026.
On January 15, Jefferies raised its price target on NVIDIA Corporation (NASDAQ:NVDA) from $250 to $275, according to TheFly. Blayne Curtis at Jefferies raised the price target on the AI chipmaker and maintained a Buy rating on the stock.
Curtis lifted the target as NVIDIA introduced its Accelerator builds and corresponding models, which now extend to 2028, as per TheFly. The analyst believes that Nvidia “remains pretty cheap,” trading at mid-teens multiple to its bottom-up multiple implied in the CY2027 estimate.
In other news, on December 15, the Department of Commerce announced that the U.S. and Taiwan reached a trade agreement to invest in chips in the U.S. Taiwanese tech companies will invest at least $250 billion in production capacity in the U.S., with the Taiwanese government assuring the total investment in credit for these companies. This is great news for AI companies such as Nvidia, which heavily rely on Taiwanese chipmaker TSMC. In addition, the U.S. government will limit “reciprocal” tariffs on Taiwan to 15% from 20%, as part of the trade agreement.
Commerce Secretary Howard Lutnick told CNBC that TSMC has already bought land and plans to expand in Arizona as part of the trade agreement. Talking to CNBC’s Brian Sullivan in an interview, Lutnick said:
They just bought hundreds of acres adjacent to their property. I’ll let them go through with their board and give them time.
NVIDIA Corporation (NASDAQ:NVDA) is a leading AI firm that offers computing infrastructure, including graphics, compute, and networking solutions. NVIDIA is most famous for its graphics processing units.
4. Alphabet Inc. (NASDAQ:GOOGL)
Market Capitalization: $3.99 Trillion
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the best S&P 500 stocks to look for in 2026.
On January 15, Alphabet Inc.’s (NASDAQ:GOOGL) Google recently awarded three new long-term power purchase agreements (PPAs) to Clearway Energy Group, Inc. (NYSE:CWEN), as reported by Clearway Energy. This development is part of Clearway’s 2025 plan, which includes three projects in states including Missouri, Texas, and West Virginia. These projects total approximately 1.17 GW of carbon-free energy projects.
As per the latest agreement with Google, Clearway will provide carbon-free energy to domestic grids to assist Google’s data centers in SPP, ERCOT, and PJM. This agreement has a lifespan of 20 years, which will help in driving economic growth across local communities. These projects represent a combined total investment of $2.4 billion in reliable energy infrastructure. The construction on these projects is expected to begin in 2026, with the initial sites estimated to go live in 2027 and 2028.
In other news, on January 13, TheFly reported that John Blackledge from TD Cowen raised the price target on Alphabet Inc. (NASDAQ:GOOGL) from $350 to $355. Blackledge pointed out that Google Search offers the highest return on investment and best measurement. The analyst believes Google will retain its leadership in worldwide digital advertising, according to its latest advertising buyer survey.
Alphabet Inc. (NASDAQ:GOOGL) provides a range of products and platforms worldwide, including its eponymous search engine. The company operates through Google Services, Google Cloud, and Other Bets segments.
3. Meta Platforms, Inc. (NASDAQ:META)
Market Capitalization: $1.56 Trillion
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the best S&P 500 stocks to look for in 2026.
On January 13, TheFly reported that TD Cowen lifted the price target on Meta Platforms, Inc. (NASDAQ:META) from $810 to $820, keeping the Buy rating on the stock. TD Cowen’s analyst John Blackledge increased the price target on META following its advertising buyer survey from its Q4 2025 preview.
TD Cowen’s Ad buyer survey forecasts Meta’s social media platforms, Facebook and Instagram, will increase their global digital advertising share from 30% to 34% through 2030, driven by share gains.
In other news, on January 12, Bloomberg reported that Meta Platforms and EssilorLuxottica are in talks to potentially double production capacity for Meta smart glasses. According to the report, Meta has suggested increasing annual production capacity to 20 million units or more by the end of 2026. Demand for the Ray-Ban Meta frames is high, as both companies aim to increase supply. The two companies have also discussed establishing the capability to produce over 30 million units, should demand warrant such a move, the Bloomberg report added.
Meta Platforms, Inc. (NASDAQ:META) operates through two segments: Reality Labs and Family of Apps. The company connects people through its social media applications and is engaged in the development of virtual reality and mixed reality headsets, augmented reality, and wearables.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.42 Trillion
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the best S&P 500 stocks to look for in 2026.
On January 12, Reuters reported that President Donald Trump said Microsoft Corporation (NASDAQ:MSFT) will make notable changes to ensure that Americans do not pay for higher electricity consumption due to data centers. In a social media post on Monday, Trump said:
I never want Americans to pay higher Electricity bills because of Data Centers. Therefore, my Administration is working with major American Technology Companies to secure their commitment to the American People, and we will have much to announce in the coming weeks.
In response, on January 13, Microsoft Corporation (NASDAQ:MSFT) revealed a “Community-First AI Infrastructure” policy. Microsoft ensured that the community would not bear the full cost of electricity consumption and grid expansion associated with its data centers. Microsoft’s Vice Chair and President, Brad Smith, said:
We believe that it’s both unfair and politically unrealistic for our industry to ask the public to shoulder added electricity costs for AI.
The International Energy Agency (IEA) estimates the U.S. datacenter electricity demand to more than triple by 2035. This means that the demand will grow from 200 terawatt-hours to 640 terawatt-hours per year. The rising demand for data centers, along with the rapid electrification of manufacturing and other sectors of the economy, will drive up electricity costs.
Microsoft has pledged to cover its data center electricity costs, along with limited use of water. The company remains focused on its AI infrastructure and is committed to working with local utilities to plan and estimate its projected power requirements in advance.
Microsoft Corporation (NASDAQ:MSFT) is a leading provider of AI software and services. The company develops and supports software, services, devices, and solutions globally.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization: $2.55 Trillion
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best S&P 500 stocks to look for in 2026.
On January 13, TheFly reported that TD Cowen increased the price target on Amazon.com, Inc. (NASDAQ:AMZN) from $300 to $315. John Blackledge at TD Cowen maintained a Buy rating while raising the price target on AMZN.
Blackledge raised the price target on the e-commerce giant following its advertising buyer survey as part of a fourth-quarter 2025 preview, reported TheFly. TD Cowen’s annual Ad buyer survey indicates a positive outlook for Amazon’s Ad business. The analyst points out that Amazon is expected to be among the largest share gainers for Ad budgets. Over 60% of Amazon advertisers expect to increase spend in 2026, according to TD Cowen’s survey.
At the same time, Josh Beck from Raymond James believes Q4 2025 is positive, with strong holiday trends, favorable ad checks, and beatable AWS expectations, per TheFly. Beck believes that the AI narrative will be the major driver for AMZN stock performance in 2026.
Amazon.com, Inc. (NASDAQ:AMZN) is the largest e-commerce company in the world, along with diversified business operations through its subsidiaries. The company engages in retail sales of consumer products, advertising, and subscriptions online. Amazon is also the largest cloud service provider globally through its Amazon Web Services (AWS).
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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