In this article, we will list the 5 Best Large Cap Stocks to Buy in 2026 According to Billionaire Dan Loeb. Please visit 10 Best Large Cap Stocks to Buy in 2026 According to Billionaire Dan Loeb if you would like to see the extended list and the methodology behind it.
5. Costar Group Inc (NASDAQ:CSGP)
Third Point Equity Stake: $212.8 Million
Number of Hedge Fund Holders: 56
Stock Upside Potential: 52.41%
Market Cap: $13.2 Billion
Costar Group Inc (NASDAQ:CSGP) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. The Street sees the stock gaining more than 50% over the next 12 months.
On April 29, Citizens reiterated a Market Outperform rating on CoStar stock but lowered its price target on the shares to $44 from $73. According to Citizens, CoStar’s portfolio of businesses is generally high quality, but the company needs to do something about its Homes.com brand.
Dan Loeb of Third Point
Homes.com is the company’s residential real estate marketplace. At the end of Q1 2026, CoStar said Homes.com had 35,000 members, up 200% compared to the same period a year ago.
Citizens expects CoStar to rationalize its Homes.com brand. The firm believes that CoStar will reduce its investment in this business rather than increase it. Without the Homes.com business, the firm projects that CoStar can generate EBITDA of $1.35 billion in 2026.
Citizens noted CoStar’s continued commitment to its 2028 and 2030 financial goals. According to the firm, this provides a clear deadline for the company to make a decision on the Homes.com business. Citizens concluded that it wants to be positioned for when CoStar’s profitability improves, and it believes this could come suddenly.
Costar Group Inc (NASDAQ:CSGP) is a provider of information, analytics, and marketing services to the commercial real estate industry. The company is based in Arlington, Virginia, and serves customers across North America and Europe. Its brands include Apartments.com, Homes.com, LoopNet, and Matterport.
4. Live Nation Entertainment Inc (NYSE:LYV)
Third Point Equity Stake: $245.8 Million
Number of Hedge Fund Holders: 69
Stock Upside Potential: 14.20%
Market Cap: $40.1 Billion
Live Nation Entertainment Inc (NYSE:LYV) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. Live Nation stock has gained roughly 24% over the past six months, and analysts see it rising further.
On May 6, Guggenheim lifted its price target on Live Nation shares to $197 from $192 while keeping a Buy rating on the stock. The updated price target indicates a substantial upside potential to the stock’s current price of around $168.
Guggenheim based its renewed bullish view on Live Nation’s strong Q1 2026 results and a robust outlook for full-year 2026. In Q1, Live Nation’s revenue rose 12% YoY to $3.8 billion. The company posted an adjusted operating income of $371 million, reflecting an increase of 9% YoY.
Live Nation CEO Michael Rapino said 2026 was off to a strong start. Rapino revealed that more than 85% of Live Nation’s large-venue shows for the year are already booked, and more than 107 million tickets have been sold year-to-date, an increase of 11%.
Live Nation exited Q1 with $9.1 billion in cash and cash equivalents. The company added to its cash position in April, raising €610 million through a debt offering.
Live Nation says it’s on pace to grow its adjusted operating income by double-digits in 2026. Guggenheim boosted its 2026 adjusted operating income outlook for Live Nation to $2.73 billion from $2.67 billion.
California-based Live Nation Entertainment Inc (NYSE:LYV) is the global leader in live entertainment and ticketing. It promotes concerts, hosts live events, manages ticketing, and operates venues. Its subsidiary brands include the namesake Live Nation and Ticketmaster.
3. Brookfield Corp (NYSE:BN)
Third Point Equity Stake: $284.5 Million
Number of Hedge Fund Holders: 46
Stock Upside Potential: 27.72%
Market Cap: $99.4 Billion
Brookfield Corp (NYSE:BN) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. While Brookfield Corp (NYSE:BN) shares are up only a modest 15% over the past year, the Street sees the shares popping nearly 30% over the next 12 months.
On May 11, Brookfield announced that it’s investing $500 million in a newly formed unit of the ChatGPT maker OpenAI. The unit is called OpenAI Deployment Company, and its purpose is to help accelerate the adoption of OpenAI’s software by large enterprises.
This unit is designed to address deployment bottlenecks and help businesses realize AI-driven productivity as they transition from AI pilots.
Brookfield itself has deployed AI applications across its portfolio and is already seeing productivity gains, according to Anuj Ranjan, head of Brookfield’s private equity business. Ranjan also commented that AI will be a defining productivity driver “across the backbone of the global economy.”
Through the deployment unit, OpenAI will embed its AI specialists into organizations. These specialists will work with business leaders and various teams to identify areas where AI can make the greatest impact. Also, OpenAI is acquiring AI consulting firm Tomoro to expand its deployment unit by bringing more deployment specialists.
Canada-based Brookfield Corp (NYSE:BN) is a multinational alternative investment management company. It manages a diverse portfolio of assets for its clients, who include institutional and individual investors. Its asset portfolio features real estate, infrastructure, private equity, and credit.
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.
1. Union Pacific Corp (NYSE:UNP)
Third Point Equity Stake: $418.7 Million
Number of Hedge Fund Holders: 105
Stock Upside Potential: 12.06%
Market Cap: $158 Billion
Union Pacific Corp (NYSE:UNP) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. This railroad stock has gained roughly 20% over the past six months, and Street forecasts show it has more room to rise.
Union Pacific Corp (NYSE:UNP) and Norfolk Southern Corp (NYSE:NSC) want to merge, but they face opposition from their rival, Canadian National Railway (CN). On May 11, CN called on regulators to reject Union Pacific’s acquisition of Norfolk Southern. It outlined several reasons for its opposition to the merger, including that it fails to address competition concerns as required.
According to CN, the amended merger application that Union Pacific submitted only addresses one issue out of the three that the regulator pointed out. Additionally, CN said that the pricing program that the merger parties have proposed to preserve competition falls short of addressing the regulator’s concerns.
However, Union Pacific and Norfolk Southern insist that their merger is good for the industry. In the amended application, the companies said their combined railroads would deliver a faster, more reliable service and save shippers roughly $3.5 billion annually.
If approved, the Union Pacific-Norfolk Southern merger will result in America’s first transcontinental railroad with more than 50,000 miles of track network. Union Pacific hopes to close the transaction in early 2027.
Nebraska-based Union Pacific Corp (NYSE:UNP) is a railroad operator supporting freight shipping, logistics operations, and railroad transportation. It operates more than 32,000 miles of rail track network that links major US ports to Mexico gateways. Founded in 1862, Union Pacific Corp’s operations cover 23 states.
While we acknowledge the potential of UNP 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 UNP and that has 100x upside potential, check out our report about the cheapest AI stock.
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