In this article, we will take a look at the best holding company stocks to buy according to analysts.
In a market where volatility is the new norm, investors are prioritising stability without sacrificing growth. Investing in holding companies is one way to pursue this. By definition, a holding company does not directly produce goods or services; instead, it holds assets through investments in or ownership of operating companies, as Scotiabank explains.
Recent U.S. market insights indicate a mixed but constructive macroeconomic backdrop. As outlined in Morningstar’s “December 2025 US Stock Market Outlook: Where We See Investment Opportunities” publication, dated December 3, the US equity market was trading roughly 3% below the composite fair value estimates for over 700 stocks covered by Morningstar, as of November 28.
Morningstar’s chief US market strategist, David Sekera, notes that as 2025 ends and 2026 approaches, the market remains focused on “the size and duration of the ongoing artificial intelligence arms race and buildout boom.” The author further highlights that companies with “no economic moat” are overvalued, noting that over time they will not generate returns above their capital costs.
In light of this, we have compiled a list of the best holding company stocks to buy that benefit from diversified earnings streams.
Image by Sergei Tokmakov, Esq. from Pixabay
Our Methodology
For this article, we have sifted through the leading holding company stocks from various sources. We then shortlisted the seven companies with an upside potential of at least 15-20% and ranked them in ascending order. We also included data on hedge fund holdings in these companies based on 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).
7. Liberty Global Ltd. (NASDAQ:LBTYA)
Upside Potential as of December 12, 2025: 15.6%
Number of Hedge Fund Holders: 32
As of December 12, Liberty Global Ltd. (NASDAQ:LBTYA) has mixed analyst sentiment, with slightly more than 40% of analysts covering the stock assigning a Buy rating and the remainder holding a cautious view. The gap between the high and consensus low price targets is also wide: the consensus 1-year median price target implies nearly 16% upside, while the high price target implies over 212% upside, and the lowest price target implies an 11% downside.
The company is currently focusing on reducing operational expenses, disposing of non-core assets, and reshaping its corporate model to unlock shareholder value. The uncertainty over the success of these initiatives has kept analysts sceptical.
On December 2, Citi analyst Carl Murdock-Smith maintained his Neutral rating on Liberty Global Ltd. (NASDAQ:LBTYA) and advised investors to wait and watch for further clarity from the company’s efforts to simplify its corporate structure. However, Murdock-Smith raised the price target to $13 from $11, citing higher earnings estimates after accounting for lower costs.
As of October 30, 2025, the company had reported $300 million in non-core asset disposals year-to-date and aims to complete $500-$750 million in additional disposals.
A day after Citi’s update, UBS analyst Polo Tang also increased his price target on Liberty Global Ltd. (NASDAQ:LBTYA) from $11.80 to $12.60, but reiterated his Neutral rating.
Liberty Global plc (NASDAQ:LBTYA) is a telecommunications holding company focused on broadband, video, and mobile communications businesses in Europe. It owns and manages interests in operating companies and joint ventures, including Virgin Media O2 in the UK and VodafoneZiggo in the Netherlands.
6. Reinsurance Group of America Inc. (NYSE:RGA)
Upside Potential as of December 15, 2025: 16.2%
Number of Hedge Fund Holders: 41
On December 15, Bob Huang, an analyst at Morgan Stanley, lifted the price target on Reinsurance Group of America Inc. (NYSE:RGA) to $208 from $195, while keeping an ‘Equal Weight’ rating, according to TheFly. This reflects a potential upside of about 2% relative to the current price.
As the analyst tells investors, lower interest rates and a stable equity market will provide the foundation for the broader macroeconomic environment. He further adds that the upcoming year should see “similar fundamental trends as 2025.”
On December 1, 2025, Reinsurance Group of America Inc.’s Executive Vice President & Chief Investment Officer, Leslie Barbi, announced her intention to retire from the company effective April 15, 2026. Leslie, who joined the company in 2020, has led the global investment team of approximately 250 professionals across North America, EMEA, and Asia.
As per the company’s recent guidance, Reinsurance Group of America, Incorporated (NYSE:RGA) expects the Equitable transaction to contribute to pre-tax income in 2026. With a 20%-30% total shareholder return, the company remains confident in its intermediate-term financial outlook and anticipates acceleration in its healthcare excess segment. Reaffirming the targets, CFO Axel André said,
“We’re very confident about our targets and we would not be changing our run rates or expectations based on one or two quarters’ worth of volatility.”
Reinsurance Group of America, Incorporated (NYSE:RGA) is a Missouri-based provider of reinsurance and financial solutions. Founded in 1973, the company offers individual and group life and health insurance products, as well as asset-intensive and financial reinsurance products.
5. Booking Holdings Inc. (NASDAQ:BKNG)
Upside Potential as of December 12, 2025: 17.9%
Number of Hedge Fund Holders: 95
On December 11, John Colantuoni, an analyst at Jefferies, reaffirmed a ‘Hold’ rating on Booking Holdings Inc. (NASDAQ:BKNG), while keeping a price target of $5,800, which suggests an upside potential of about 9%.
Separately, on November 24, Jake Fuller from BTIG maintained a ‘Buy’ rating on Booking Holdings Inc. (NASDAQ:BKNG) with a $6,250 price target. On the same day, BNP Paribas Exane initiated coverage of the company with an ‘Outperform’ rating and a $6,100 price target, implying nearly 15% upside. The firm noted the company’s top-tier margin profile and huge user base as growth catalysts that position it well to sustain investments in growth initiatives.
According to BNP Paribas Exane, Booking Holdings Inc. (NASDAQ:BKNG) is expected to experience an expansion of its market share in global travel and accommodation (excluding China) from 3.6% in 2024 to 4.1% by 2027. Additionally, the firm highlighted key strategic investment areas for the company, particularly global market share gains, U.S.-focused expansion, and AI projects.
Overall, Booking Holdings Inc. (NASDAQ:BKNG) has a ‘Buy’ or equivalent rating from 76% of analysts covering the stock as of December 12. With a median price target of $6,250, the stock has approximately 17.9% upside potential from its current price.
Booking Holdings Inc. (NASDAQ:BKNG) is a Connecticut-based provider of travel and restaurant reservations and related services through online and traditional platforms. Founded in 1997, the company operates platforms such as Booking.com, Priceline, Agoda, and KAYAK.
4. Brookfield Asset Management Ltd. (NYSE:BAM)
Upside Potential as of December 12, 2025: 22.2%
Number of Hedge Fund Holders: 29
According to TheFly, UBS initiated coverage of Brookfield Asset Management Ltd. (NYSE:BAM) on December 11, with a ‘Neutral’ rating and a price target of $59, which suggests an upside potential of about 10% from the current level. Although views on valuations and consensus expectations are mixed, the firm noted that sector fundamentals across 20 U.S. asset managers and brokers appear solid.
On December 9, Reuters reported that Brookfield Asset Management Ltd. (NYSE:BAM) and Qai, an AI company owned by Qatar’s sovereign wealth fund, had formed a $20 billion joint venture. This partnership aims to develop artificial intelligence infrastructure in Qatar, positioning it as a top AI hub in the Middle East and select international markets.
Additionally, the venture will establish an integrated computing center that enhances regional access to high-performance computing capabilities and facilitates the deployment of AI technology across key sectors. Through its recently disclosed Artificial Intelligence Infrastructure Fund, which aims to invest $100 billion globally, Brookfield Asset Management Ltd. (NYSE:BAM) will invest alongside Qai.
As expressed by Bruce Flatt, CEO of Brookfield Asset Management Ltd. (NYSE:BAM),
“We are thrilled to assist Qatar in establishing this investment in next-generation AI and digital infrastructure alongside Qai. As our inaugural AI infrastructure investment in the Middle East, this partnership combines Qatar’s strategic vision with Brookfield’s global expertise.”
TheFly reports that both entities will inject capital and operating expertise to support the country’s acceleration of the digital and AI ecosystem. What’s even more interesting is that the Government of Qatar will assist in providing skills and supply chain support, which are needed to drive the adoption of AI throughout Qatar.
Brookfield Asset Management Ltd. (NYSE:BAM) is a New York-based private equity firm that engages in acquisitions and growth capital investments. Founded in 2022, the company focuses on renewable power and transition, as well as infrastructure sectors.
3. Jefferies Financial Group Inc. (NYSE:JEF)
Upside Potential as of December 12: 22.6%
Number of Hedge Fund Holders: 46
As reported by TheFly, Oppenheimer lifted its price target on Jefferies Financial Group Inc. (NYSE:JEF) to $97 from $81 on December 11, while maintaining an ‘Outperform’ rating. This upward shift in outlook, reflecting an upside potential of roughly 56%, comes ahead of the company’s fiscal Q4 report.
According to the firm, the company’s “strong growth trajectory remains in place” for the upcoming two years, 2026 and 2027. It expects JEF to “completely impair its $113M investment in the Point Bonita Funds,” which reduces the EPS guidance for the quarter to 80c. The firm believes that the “rebound in mergers and underwriting activity” will serve as the catalyst for the company’s growth.
On the same day, Michael Brown from UBS initiated coverage of Jefferies Financial Group Inc. (NYSE:JEF) with a ‘Buy’ rating and a price target of $76, which suggests an upside potential of approximately 23%. As cited by TheFly, the analyst noted “strong sector fundamentals across 20 U.S. asset managers and brokers despite more mixed views on valuations and consensus expectations.”
Overall, Jefferies Financial Group Inc. (NYSE:JEF) has a ‘Buy’ rating from four of the six analysts covering the stock. With a median price target of $76, the company has 22.58% upside potential.
Jefferies Financial Group Inc. (NYSE:JEF) is a New York-based company operating as an investment banking and capital markets firm. Founded in 1962, the company operates in two segments: Investment Banking and Capital Markets, and Asset Management.
2. Formula One Group (NASDAQ:FWONA)
Upside Potential as of December 12, 2025: 27.3%
Number of Hedge Fund Holders: 27
As of December 12, Formula One Group (NASDAQ:FWONA) has a rating of ‘Buy’ or equivalent from 78% of the analysts covering the stock. With a median price target of $110, the stock has an upside potential of 27.30% from the current price.
On December 2, David Karnovsky, an analyst at JPMorgan, lifted the price target on Formula One Group (NASDAQ:FWONA) to $122 from $120, while keeping an ‘Overweight’ rating on the stock. The firm is “incrementally positive” on the company’s post-2026 growth trajectory after the investor day. JPMorgan believes the “F1 ecosystem appears to be very healthy.”
Earlier on November 25, Benchmark reaffirmed its ‘Buy’ rating for Formula One Group (NASDAQ:FWONA) and $110.00 price target for 2026. This followed the Las Vegas Grand Prix race, Investor Day, and Formula 1 Business Summit. The firm pointed to the comments from Liberty Media CEO Derek Chang, who highlighted that Apple is poised to be “quite active” in bidding for global Formula 1 rights.
Benchmark is quite positive on the upcoming F1 movie, which it calls “the biggest sports movie ever,” and is “inevitably positioned to transition to a major franchise.” Rising F1 sponsorship activity, mainly involving CAA and global partners, will impact Formula One Group (NASDAQ:FWONA) positively.
Formula One Group (NASDAQ:FWONA) is a Colorado-based company specializing in the motorsports business in the United States and the United Kingdom. Incorporated in 1950, the company has commercial rights for the FIA Formula One World Championship.
1. OneSpaWorld Holdings Limited (NASDAQ:OSW)
Upside Potential as of December 12, 2025: 32.0%
Number of Hedge Fund Holders: 19
On December 9, Stifel reaffirmed its ‘Buy’ rating on OneSpaWorld Holdings Limited (NASDAQ:OSW) with a price target of $27, which suggests an upside potential of about 32%. This optimism follows meetings with the company’s leadership.
According to the firm, ongoing spending and utilization metrics suggest that consumer demand for spa services from OneSpaWorld Holdings Limited (NASDAQ:OSW) remains “consistent/stable” and that the company is able to attract customers without additional promotional activity. Stifel highlights that the recent worry regarding the oversupply of cruise capacity in the Caribbean will not materially affect the company.
Additionally, OneSpaWorld Holdings Limited (NASDAQ:OSW) shares have dipped roughly 15% from their post-earnings high at the end of October, Stifel notes, adding that it follows cruise operators, despite solid financials that should safeguard it from industry headwinds.
The research firm believes that, with the company’s leverage below 1.0x, liquidity exceeding $80 million, and substantial cash reserves, the market is underestimating OneSpaWorld Holdings Limited (NASDAQ:OSW)’s capital return prospects at the current price.
Overall, OneSpaWorld Holdings Limited (NASDAQ:OSW) has a “Buy” or equivalent rating from all five analysts covering the stock as of December 12. While the target price ranges from $24 to $28, the median target of $27 implies 32.03% upside from the current price.
OneSpaWorld Holdings Limited (NASDAQ:OSW) is a Bahamas-based company operating health and wellness centers. Founded in 2017, the company also offers health, wellness, fitness, and beauty-related products.
While we acknowledge the potential of OSW 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 OSW and that has 100x upside potential, check out our report about this cheapest AI stock.
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