In this article, we will look at the 9 Most Profitable Large Cap Stocks to Invest in Now.
On March 30, James Stanley, senior strategist at StoneX, released his Q2 2026 US indices outlook. He noted that the second quarter 2026 outlook resembles a lot to last year in many ways. Last year, the market was making new lows due to the tariff situation, but President Trump gained control of the situation, and the widely known Trump Always Chickens Out (TACO) trade came into play to take markets higher after April lows.
This time, the market is faced with the geo-political concerns, and James Stanley questions whether the President has enough control over the situation to stop the market from further declines. Stanley noted that earlier in his 2026 outlook, he pointed out that the market needs a pullback to continue the bullish run. He notes that the geopolitical uncertainties have finally presented that pullback. Therefore, Stanley maintains his bullish view on the market and calls the sell-off a buying opportunity for the long-term.
With that, let’s take a look at the 9 Most Profitable Large Cap Stocks to Invest in Now.
Our Methodology
To compile the list of 9 Most Profitable Large Cap Stocks to Invest in Now, we used the Stock Analysis stock screener, WSJ, and Insider Monkey’s Q3 2025 database. Using the screener, we aggregated a list of large-cap stocks (market cap between $10 billion and $200 billion) . Out of these stocks, we shortlisted the ones with more than $10 billion in net income (TTM) and more than 10% net profit margins (TTM). We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
9 Most Profitable Large Cap Stocks to Invest in Now
9. Banco Santander, S.A. (NYSE:SAN)
Number of Hedge Fund Holders: 18
Banco Santander, S.A. (NYSE:SAN) is one of the Most Profitable Large Cap Stocks to Invest in Now. On March 23, Morgan Stanley analyst Alvaro Serrano upgraded Banco Santander, S.A. (NYSE:SAN) from Equal Weight to Overweight, while maintaining a price target of EUR 12.10.
The analyst noted replacing Societe Generale with Banco Santander as its top European Bank pick. The firm said in a research note that they expect a more defensive stance within European banks, and a rating upgrade suggests that the firm believes that it is better positioned to withstand the macro uncertainty. The analyst expects earnings to remain, supported by net interest income tailwinds from higher or sticky interest rates and a higher savings rate.
Separately, on March 27, Banco Santander, S.A. (NYSE:SAN) noted that it expects 2026 net profit to top €14.1 billion from 2025, driven by strong Q1 results. Moreover, the company expects continued customer base and revenue growth, while the costs are expected to drop year-over-year, thereby boosting efficiency by around 2.5%. The bank maintained revenue growth targets of mid-single-digit growth in 2026.
Banco Santander (NYSE:SAN) is a Spain-based company that operates as a retail and commercial bank. Its segments are scattered across Continental Europe, the United Kingdom, Latin America, and the United States.
8. The Toronto-Dominion Bank (NYSE:TD)
Number of Hedge Fund Holders: 28
The Toronto-Dominion Bank (NYSE:TD) is one of the Most Profitable Large Cap Stocks to Invest in Now. On March 10, Jefferies released a research note highlighting Canadian banks’, including The Toronto-Dominion Bank (NYSE:TD), leadership in AI adoption. The firm maintains a Hold rating on the stock.
Jefferies noted that Canadian banks have already started to see early returns from AI Adoption and project further efficiency gains. The firm cited Evident AI’s 2025 index, which highlights that Canadian banks take the top 30 positions internationally in AI Adoption. The firm believes that AI can result in 50 to 75 basis point incremental efficiency improvements over the coming years, with over 130 basis points of upside not yet in consensus estimates.
Regarding The Toronto-Dominion Bank (NYSE:TD), the firm noted that the bank targets a $500 million improvement in revenue and expense, driven by AI and automation. This tops Jefferies’ estimates. On the other hand, the Royal Bank of Canada aims for $700 million to $1 billion in enterprise value by 2027.
The Toronto-Dominion Bank (NYSE:TD) provided financial products and services. Its operations are divided into the following segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, Wholesale Banking, and Corporate segment.
7. British American Tobacco p.l.c. (NYSE:BTI)
Number of Hedge Fund Holders: 40
British American Tobacco p.l.c. (NYSE:BTI) is one of the Most Profitable Large Cap Stocks to Invest in Now. On March 13, Fitch Ratings upgraded its long-term Issuer Default Rating on British American Tobacco p.l.c. (NYSE:BTI) from BBB+ to A-. The firm maintained its stable outlook and removed the company from Under Criteria Observations.
The rating firm noted that they expect the company’s annual post-dividend free cash flow to be around GBP 1.8 billion and GBP 2.4 billion from 2026 to 2028. This is expected to be driven by low to mid-single digit organic revenue growth, while EBITDA margins are expected to rise to 48% by 2028, from 47% in 2025. The firm noted that EBITDA margin expansion will be driven by double-digit NGP growth, which reached GBP 442 million in 2025, reflecting 80% year-over-year growth.
Moreover, the company announced GBP 1.3 billion in 2026 share buybacks, while Fitch expects around GBP 3.2 billion more share buybacks in 2027 to 2028. The rating firm noted that the updated rating places British American Tobacco p.l.c. (NYSE:BTI) one position below Philip Morris’ rating.
British American Tobacco (NYSE:BTI) provides tobacco and nicotine products to consumers in the US, Europe, Latin America, Canada, the Asia-Pacific, the Middle East, Central Asia, Caucasus, and Africa.
6. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 55
Novo Nordisk A/S (NYSE:NVO) is one of the Most Profitable Large Cap Stocks to Invest in Now. On March 30, BMO Capital reiterated a Market Perform rating on Novo Nordisk A/S (NYSE:NVO) with a $45 price target.
The firm noted that the rating is based on strong momentum from the Wegovy pill launch and several other underappreciated growth drivers. However, BMO also flagged some technical overstatements and industry-wide growth risks, which led to a Neutral rating.
The firm noted the Wegovy pill launch to be strong and in line with expectations. However, the firm pointed out that the script‑growth numbers may be slightly inflated because IQVIA’s capture rate of prescriptions has increased to about 60%, up from roughly 50% at the very start of the launch.
Moreover, BMO also highlighted Novo’s recent partnership with HIMS and noted the deal to be incrementally positive for Novo product uptake. Following the collaboration, HIMS has stopped promoting compounded GLP‑1s and is now aligning with Novo, which helps address some compounding‑related channel‑dilution concerns. You can read more about the deal here.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company that develops, manufactures, and markets medicines for serious chronic diseases. It is a leader in diabetes care (including insulin and Ozempic), obesity management (Wegovy), haemophilia care, and rare endocrine disorders.
While we acknowledge the potential of NVO 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 NVO and that has 100x upside potential, check out our report about the cheapest AI stock.
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