In this article, we will take a look at the 5 Best Fortune 500 Stocks to Buy According to Analysts. For a deeper discussion and analysis, please refer to the 10 Best Fortune 500 Stocks to Buy According to Analysts.
Photo by Viacheslav Bublyk on Unsplash
5. Cardinal Health, Inc. (NYSE:CAH)
Upside Potential as of May 3: 27.02%
Cardinal Health, Inc. (NYSE:CAH) is a distributor of pharmaceuticals and specialty products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; a provider of performance and data solutions; and a global manufacturer and distributor of medical and laboratory products.
On May 1, TD Cowen upped its price target on Cardinal Health, Inc. (NYSE:CAH) from $251 to $255, while keeping a ‘Buy’ rating on the shares. The revised target, which indicates an upside of 30% from the current price levels, comes after the analyst company updated its model following Cardinal’s quarterly report.
Cardinal Health, Inc. (NYSE:CAH) reported its Q3 results on April 30, with its adjusted earnings of $3.17 per share beating estimates by $0.38. However, the company’s revenue of almost $61 billion fell short of expectations by $1.3 billion, despite a YoY growth of 11%. Cardinal’s Pharmaceutical revenue growth was hurt by Inflation Reduction Act-related changes that impacted the wholesale acquisition costs of drugs.
Notably, Cardinal Health, Inc. (NYSE:CAH) raised its full-year 2026 adjusted EPS target to $10.70 to $10.80 per share, up from its previous forecast of $10.15 to $10.35 and the analyst consensus of $10.31 per share.
4. General Motors Company (NYSE:GM)
Upside Potential as of May 3: 28.02%
General Motors Company (NYSE:GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide.
On April 29, TD Cowen bumped up its target on General Motors Company (NYSE:GM) from $122 to $126, while keeping a ‘Buy’ rating on the shares. The target boost, which indicates an upside of over 66% from the current price levels, comes as the analyst firm updated its model following a solid Q1 report by the US carmaker. GM remains a top pick at TD Cowen.
General Motors Company (NYSE:GM) reported strong results for its Q1 2026 on April 28, with the company beating estimates in both earnings and revenue despite a fast-changing geopolitical and regulatory backdrop that is reshaping the industry. The Detroit automaker also raised its profit outlook for FY 2026, now expecting a core profit of $13.5 billion to $15.5 billion, up from $13 billion to $15 billion previously.
The $500 million raise matches the amount that the company expects to recover from refunds tied to a U.S. Supreme Court ruling that struck down some of President Trump’s tariffs. Notably, GM’s higher profit guidance comes despite the rising costs amid the US-Iran war.
3. Microsoft Corporation (NASDAQ:MSFT)
Upside Potential as of May 3: 33.31%
Microsoft Corporation (NASDAQ:MSFT) is engaged in developing and marketing software, services, and hardware that deliver new opportunities, greater convenience, and enhanced value to people’s lives.
On April 30, Deutsche Bank trimmed its price target on Microsoft Corporation (NASDAQ:MSFT) from $575 to $550, but kept its ‘Buy’ rating on the shares. The lowered target still reflects an upside of almost 33% from the current price levels. The analyst sees Microsoft’s recent Q3 2026 report as “very solid”, with the company checking “all the right boxes” and delivering accelerating AI growth.
Microsoft Corporation (NASDAQ:MSFT) exceeded revenue and earnings expectations in its Q3 report on April 29. The company grew its revenue by 18% YoY to $82.8 billion, powered by the continued strength of Microsoft Cloud, which exceeded $54 billion in revenue, up 29% YoY.
Microsoft Corporation (NASDAQ:MSFT) expects the revenue for its Azure and other cloud services business to grow between 39% and 40% in constant currency in Q4. Meanwhile, total revenue is targeted in the range of $86.7 billion and $87.8 billion, indicating a growth of 13% to 15%. Moreover, the company expects to spend $190 billion this calendar year.
2. Spotify Technology S.A. (NYSE:SPOT)
Upside Potential as of May 3: 33.63%
Spotify Technology S.A. (NYSE:SPOT) is the world’s most popular audio streaming subscription service with 751 million users, including 290 million subscribers, in 184 markets.
On April 30, UBS analyst Batya Levi lowered the firm’s price target on Spotify Technology S.A. (NYSE:SPOT) from $760 to $735, but maintained a ‘Buy’ rating on the shares. The reduced target still reflects an upside potential of more than 66% from the current price levels.
The target cut comes despite Spotify Technology S.A. (NYSE:SPOT) reporting better-than-expected results for its Q1 on April 28, topping expectations in both revenue and earnings. The company posted a record operating income of €715 million during the quarter, beating estimates of € 681.6 million, driven by the lower payroll taxes.
However, Spotify Technology S.A. (NYSE:SPOT) came under pressure after the company’s Q1 report was overshadowed by its disappointing outlook for premium subscriber growth for the second quarter. The company expects premium subscribers to increase to 299 million in Q2, falling short of estimates of 302 million.
Baron Capital, an investment management company, stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its Q1 2026 investor letter:
“Global digital music streaming platform Spotify Technology S.A. (NYSE:SPOT) declined by 16.6% in the first quarter and detracted 72 bps from performance as investors were concerned about the impact AI music could have on the conversion of free subscribers to paying subscribers as well as how it could impact time on the platform. In addition, further concerns about the timing of price increases and resulting margin expansion also frustrated investors. However, the company continues to institute price increases across multiple regions and complete negotiations with major record labels. User growth remains strong, growing at a double-digit rate with high engagement and low churn even with price increases. The company remains on a path to increase gross margins through its high-margin artist promotions marketplace, growing podcast contribution, and ongoing investments in advertising where revenue growth is expected to accelerate this year. We continue to view Spotify as a long-term winner in music streaming with potential to reach 1 billion-plus subscribers by 2030.”
1. Meta Platforms, Inc. (NASDAQ:META)
Upside Potential as of May 3: 35.52%
Topping our list of the Best Large Cap Stocks According to Analysts is Meta Platforms, Inc. (NASDAQ:META). The company engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) headsets, and AI glasses. Its core business includes platforms like Facebook, Instagram, WhatsApp, and Messenger.
On April 30, Evercore ISI analyst Mark Mahaney bumped up the firm’s price target on Meta Platforms, Inc. (NASDAQ:META) from $900 to $930, while maintaining an ‘Outperform’ rating on the shares. The target increase, which reflects a significant upside of over 52% from the current price levels, comes as the analyst touts Meta as still the “best ad revenue growth story” following the company’s Q1 results.
Meta Platforms, Inc. (NASDAQ:META) reported better-than-expected results for its first quarter on April 29. However, the stock still took a hit after the company projected 2026 capital expenditure in the range of $125 billion and $145 billion, up from its prior forecast of $115 billion to $135 billion. The figures also exceeded analysts’ expectations and dampened investor sentiment, as this massive spending push may create some near-term drag on earnings. Meta Platforms, Inc. (NASDAQ:META) grew its revenue by 33% YoY to $56.3 billion in Q1. The company now expects its Q2 total revenue to be in the range of $58 billion to $61 billion.
While we acknowledge the potential of META as an investment, 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 META and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Blue Chip Stocks to Invest In According to Billionaires and 10 Best Fortune 500 Dividend Stocks to Invest In Right Now
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center