In this article, we discuss the 10 best spring stocks to buy now.
Spring is upon the United States stock market yet again. During this time, a particular set of stocks, mostly concentrated in the energy and financial sector, tend to outperform their peers. This performance is influenced by a combination of seasonal patterns, economic cycles, and investor behaviors. For example, seasonal demand plays a significant role in the energy sector performance. As winter ends, the demand for heating oil decreases, but this is often offset by preparations for the summer driving season. Refineries ramp up production of gasoline to meet the anticipated increase in travel during the warmer months. This transition can lead to higher crude oil prices and, consequently, bolster the performance of energy stocks.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, the financial sector’s performance in spring is closely tied to economic activity. Spring often brings increased consumer spending, as individuals receive tax refunds and engage in activities such as home buying and renovations. This uptick in spending can lead to higher loan demand and increased transaction volumes for banks and financial institutions, thereby boosting their revenues. Additionally, businesses often finalize budgets and initiate new projects in the spring, leading to increased demand for corporate financing and advisory services. Investment banks may see a rise in deal-making activities, mergers, and acquisitions during this period, contributing to improved performance in the financial sector.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
The companies in the following list of the best spring stocks to buy now are gathered from the finance and energy sectors, traditionally the strongest performing sectors during the spring, and then ranked based on hedge fund sentiment. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Best Spring Stocks To Buy Now
10. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 62
American Express Company (NYSE:AXP) provides payments and travel-related services. In earnings of the fourth fiscal quarter, the company reported net income of $2.2 billion, or $3.04 per share, compared to $1.9 billion, or $2.62 per share, a year ago, underscoring improved earnings growth and profitability. Last year, in October, the company acquired UBS’s 50% stake in Swisscard, making it the sole owner of the credit card provider. This acquisition allowed American Express to strengthen its foothold in the Swiss market and integrate Credit Suisse customers into its existing credit card platform.
9. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 66
ConocoPhillips (NYSE:COP) is a multinational corporation engaged in hydrocarbon exploration and production. On October 31, the company reported third-quarter 2024 earnings per share of $1.76 and adjusted earnings per share of $1.78, which reflects stable earnings performance with slight improvements in core operations. The firm achieved a production level of 1.92 million barrels of oil equivalent per day (boepd) during the quarter, marking a 6% increase compared to the same period in the previous year. This growth was primarily driven by enhanced output in the Permian and Eagle Ford basins. Total revenue for the quarter was $13.6 billion, a decrease from $14.9 billion in the third quarter of 2023.
8. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 72
Wells Fargo & Company (NYSE:WFC) is a diversified financial services company that provides banking, investment, mortgage, and consumer and commercial finance products and services. In the fourth quarter results for 2024, the company reported a net income increase of 13%, driven by higher asset-based fees due to improved market valuations. Noninterest expense increased by 9% due to higher revenue-related compensation expense, partially offset by the impact of efficiency initiatives. The firm has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past twenty-five years. These payouts have registered constant growth over the past three years.
7. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 74
The Charles Schwab Corporation (NYSE:SCHW) provides wealth management and other financial services. In the fourth quarter earnings, the company added $115 billion in core net new assets, bringing asset gathering for the year to $367 billion – a 4.3% annualized growth rate. This 20% annual increase in net new assets reflects the company’s ongoing progress following the Ameritrade integration. On January 22, Wells Fargo analyst Michael Brown upgraded the stock to Overweight from Equal Weight. In an investor note, the analyst forecast that the bear case was weakening as major key production indicators inflected to the positive. The analyst raised his price target on the stock to $93 from $89. His 2025 EPS estimate increased to $4.15 from $3.82, and his 2026 EPS estimate rose to $5.15 from $4.81.
6. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
Exxon Mobil Corporation (NYSE:XOM) operates as an integrated oil and gas company. In earnings for the fourth quarter of 2024, the company reported earnings of $7.6 billion, or $1.72 per share (assuming dilution), with cash flow from operating activities of $12.2 billion and free cash flow of $8 billion, which signals strong profitability and solid cash generation. Darren Woods, the CEO of the firm, highlighted recently that his firm had achieved earnings of $34 billion in 2024, marking its third-highest result in the past decade despite softer market conditions. Woods emphasized significant growth in Guyana, where production reached a record 650,000 barrels per day. He reiterated that production is expected to grow to 2.3 million barrels per day by 2030, supported by 40 reservoirs.
5. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 88
Citigroup Inc. (NYSE:C) is a financial services holding company that provides various financial products and services to consumers, corporations, governments, and institutions. In the earnings of the fourth quarter, the company showed strong financial performance with net income of $2.9 billion, or $1.34 per diluted share, on revenues of $19.6 billion. In December last year, the firm extended its 37-year partnership with American Airlines for another decade. Starting in 2026, the company will issue the AAdvantage co-branded cards in the US, enhancing value for both AAdvantage and Citi cardholders.
4. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 90
PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. In the third quarter of 2024, the company reported net revenues of $7.8 billion, a 6% increase, reflecting solid growth in key operational areas supported by consistent demand and effective market strategies. In November last year, the company introduced an Innovative Money Pooling Feature, helping customers collect and manage funds for group purchases. Rolling out globally across the US, Germany, Italy and Spain, this innovation gives customers the ability to set up a pool in the PayPal app or online, invite friends and family to contribute, track group contributions, and transfer funds to their PayPal balance to spend or withdraw.
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 98
Bank of America Corporation (NYSE:BAC) provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments. In its fourth-quarter earnings, the company reported a total revenue of $25.3 billion, a 15% increase driven by growth in asset management, investment banking fees, and sales and trading revenue. On January 10, the company announced that its Consumer Investments business had surpassed $500 billion in client assets, marking a more than 10-fold increase since its inception a decade ago. This includes nearly 4 million client accounts with Merrill Edge Self-Directed and Merrill Guided Investing, built on Merrill’s industry-leading technology and investment offerings.
2. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 105
JPMorgan Chase & Co. (NYSE:JPM) operates as a financial services company worldwide. In the fourth quarter of 2024, the company reported revenue of $42.8 billion and managed revenue of $43.7 billion, showing healthy demand and operational efficiency across its revenue-generating activities. Bloomberg reported on January 31 that JPMorgan plans to deliver $4 billion worth of gold bullion to New York this month, ahead of Donald Trump’s anticipated trade tariffs. As the world’s largest bullion dealer, JPMorgan will deliver 30 million troy ounces of gold to meet February contract expirations.
1. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 131
Mastercard Incorporated (NYSE:MA) is a technology company that provides transaction processing and other payment-related products and services. In December last year, the company completed its $2.65 billion acquisition of Recorded Future, a threat intelligence firm, which would strengthen its fraud protection capabilities in response to the growing prevalence of online commerce and AI. According to preliminary insights from Mastercard SpendingPulse, US retail sales, excluding automotive, increased 3.8% year-over-year from November 1 through December 24. These strong retail sales suggest economic stability, positive business performance, and potential revenue growth for major retailers.
While we acknowledge the potential of Mastercard Incorporated (NYSE:MA) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Mastercard Incorporated (NYSE:MA) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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