Insider Monkey·2026-01-20 19:01Market Trends - Earnings have performed well despite political challenges in the financial services industry, indicating resilience among consumers and companies [1] - The S&P 500 is projected to reach 7,700, representing a 10% to 12% increase from the previous year's close, although no expansion in valuations is expected [1] Investment Preferences - Preference for larger- and mid-cap US stocks over international stocks in a global bull market, with a neutral stance on developed international and emerging markets [2] - Emerging markets are viewed as a cheaper way to gain exposure to technology and AI, but the current moment is not seen as the right time for increased international exposure [2] Stock Recommendations - Webster Financial Corporation (NYSE:WBS) is highlighted as a top large-cap value stock for 2026, with an average upside potential of 16.23% and 52 hedge fund holders [7] - RBC Capital raised its price target for Webster Financial to $72 from $70, maintaining an Outperform rating, citing improvements in loan volume and revenue growth [8] - First Horizon Corporation (NYSE:FHN) is also recommended, with an average upside potential of 16.09% and 52 hedge fund holders, and a price target increase to $27 from $25 by DA Davidson [12] - Strong revenue growth of up to 7% is anticipated for First Horizon due to steady loan growth and improved lending performance [12][13]