5 Best Large Cap Stocks to Buy in 2026 According to Billionaire Dan Loeb

2. Somnigroup International Inc (NYSE:SGI)

Third Point Equity Stake: $303.6 Million

Number of Hedge Fund Holders: 72

Stock Upside Potential: 48.63%

Market Cap: $13.7 Billion

Somnigroup International Inc (NYSE:SGI) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. The Street expects the stock to pop nearly 50% from its current level.

On May 8, Raymond maintained a Strong Buy rating on Somnigroup stock but lowered its price target on the shares to $95 from $105. The firm pointed to the mattress company’s mixed Q1 2026 results for the price target revision.

Somnigroup delivered Q1 EPS of $0.59, above the $0.58 that analysts expected. However, revenue of $1.8 billion slightly fell short of the $1.83 billion that the Street was anticipating despite increasing 12.3% YoY.

Looking ahead, Somnigroup reaffirmed its full-year 2026 EPS guidance of between $3.00 and $3.40. Raymond noted adjustments that support Somnigroup’s maintained 2026 EPS guidance despite a softer revenue outlook. The firm highlighted around a $20 million reduction in the company’s 2026 advertising spend, as well as an expected $10 million in extra cost synergies. Additionally, the firm noted that Somnigroup stands to benefit from pricing actions in the back half of the year.

Somnigroup International Inc (NYSE:SGI) manufactures and sells bedding products. Its portfolio includes mattresses, pillows, and accessories. The company operates through multiple brands, including Tempur, Stearns & Foster, Sealy Posturepedic, and Mattress Firm.