As we enter 2026 and investors weigh their options, a common question is: What are the top American companies to buy and hold? AI remains a top theme. AI stocks started 2026 on a positive note, with many stocks recovering from their retracements in the last week of 2025. Speaking with Schwab Network, Senior Markets Correspondent Kevin Green noted that AI storage names like Micron and chipmakers led by Nvidia are expected to continue performing strongly in 2026. He stated:
I think for 2026 it’s going to be two things. Obviously, the memory players are doing a phenomenal job, at least so far. If you’re looking at some of their valuations, they’re obviously stretched but the market can push this higher if demand is going to continue to ramp up.
He noted that more and more data centers are seeking higher throughput and performance, which are constrained by the amount of memory that can be fed into them at a time. The availability of higher-bandwidth memory should increase spending on this component of data centers, thereby driving higher demand.
Other analysts are looking at sector rotation. Speaking to CNBC on December 30, analyst Devin Ryan of Citizens JMP identified the banking sector as an obvious choice for 2026. He sees regional banks as a better play for investors, even though many still haven’t forgotten the 2023 regional banking crisis. On the sector, he further stated:
There’s a few ways we can play this. One is deregulation, and the ability for banks to utilize capital and generate better returns on that capital.
Ultimately, investors choose the risks they want to take. As in previous years, the US stock market should continue to lead the world in investor interest, so identifying the top American companies to buy and hold in 2026 remains the most important question for investors.
With that, let’s explore our selection of the 8 best American stocks to buy and hold in 2026.
Our Methodology
To identify the 8 Best American Stocks to Buy and Hold in 2026, we used Insider Monkey’s Q3 hedge fund database to pick the most popular U.S.-based stocks among hedge funds. We then shortlisted stocks with positive upside potential and at least 10% expected revenue growth in 2026. The stocks were then ranked in ascending order of the number of hedge funds holding stakes in them.
Why do we care about what hedge funds do? 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 pricing data is as of market close on January 2, 2026.
8. Tesla Inc. (NASDAQ:TSLA)
Potential Upside: 4.2%
Expected 2026 Revenue Growth: 14.4%
Number of Hedge Fund Holders: 120
Wedbush analyst Dan Ives has released an update on Tesla Inc. (NASDAQ:TSLA) stock after the EV maker announced its delivery figures for the full year 2025. While the delivery numbers weren’t impressive, the analyst was upbeat, calling them a step in the right direction.
In Q4, Tesla delivered 418,227 vehicles while producing 434,358. In the whole calendar year, 1,654,667 vehicles were produced, and 1,636,129 were delivered to customers. Ives believes that Tesla has some work to do to make a comeback in the vehicle delivery area, especially after the loss of the $7,500 tax credit and multiple headwinds in Europe.
Going forward, he believes robotics and autonomous driving will drive the company’s bull thesis, even if the vehicle delivery numbers continue to underwhelm:
”We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…”
Ives calls CyberCab the golden goose when it comes to unlocking Tesla’s AI potential and valuation. For now, he has a $600 price target with an Outperform rating on the stock.
Tesla Inc. (NASDAQ:TSLA) is a household name when it comes to Electric vehicles, but the company does much more than sell cars. Its portfolio includes energy generation, storage, and robotics. It is headquartered in Austin, Texas.
7. Capital One Financial Corp (NYSE:COF)
Potential Upside: 8.18%
Expected 2026 Revenue Growth: 18.2%
Number of Hedge Fund Holders: 129
On January 2, Keefe, Bruyette & Woods raised its target price on Capital One Financial Corp (NYSE:COF) stock from $260 to $290. Three days before that, Citi also raised its target price from $290 to $310. The $310 target price is the highest among all analysts, as per the 26 analyst ratings compiled by CNN.
This bullish sentiment has been witnessed across some major funds as well. In its filing on January 1, Allspring Global Investments more than doubled its shareholding in the company, bringing it to a total of 496,245 shares. While the exact reason for increasing their holding wasn’t disclosed, it is likely the acquisition of Discover, carried out earlier in the year, which is expected to deliver $1.5 billion in synergies to the business.
There is also some clarity on the litigation front, as COF has simplified its proposed settlement regarding the allegedly misleading interest-rate advertisement for its Capital One 360 Savings accounts. The company has proposed that all of the $425 million be distributed as direct payments to the lawsuit participants. Previously, $125 million of this was suggested to be distributed as a future interest fund. The preliminary court approval is set for January 12, with a final approval likely in April this year.
Capital One Financial Corp (NYSE:COF) is the largest credit card issuer in the US by loan volume. It is a diversified financial holding company that was originally spun off from Signet Financial in 1994 and is now headquartered in McLean, Virginia.
