In this article, we will look at the 10 Best Stocks That Will Always Grow.
The Looming Risk of a Recession in the US
Threats of an impending recession are looming over the stock market due to Trump’s tariffs and macroeconomic uncertainty. According to CNBC’s quarterly CFO Council Survey for Q1 2025, a majority of chief financial officers are of the opinion that the economy is likely to fall into a recession in H2 2025. The CFOs said that they were generally “pessimistic” about the overall state of the American economy, and expressed uncertainty about the stock market.
The survey also showed that 95% of the CFOs claimed that their ability to make business decisions is being affected by policy, and a significant number said that although the Trump administration is “delivering on promises,” the government’s dealing with such matters is proving disruptive, extreme, and too chaotic. This is causing considerable difficulty to businesses looking to effectively navigate the present challenges. Therefore, around 60% of the CFOs opined that they expect a recession to materialize in H2 2025; another 15% said that it may appear in 2026.
CNBC reported on April 16 that Fed Chair Jerome Powell announced the day before that the central bank may be caught at the crossroads of supporting economic growth and controlling inflation. He said that although he anticipates lower growth and increased inflation, it is uncertain where the Fed will need to focus its attention. In prepared remarks before the Economic Club of Chicago, he said:
“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension. If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.”
Powell also did not give any indication of where interest rates could be headed, but remarked that:
“For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
READ ALSO: 15 Best Blue Chip Stocks to Buy According to Billionaires and 11 Best Retail Stocks to Buy Right Now.
Are the Stagflation Risks Real?
On April 17, Joyce Chang, JPMorgan chair of global research, appeared on CNBC’s ‘Closing Bell Overtime’ to talk about Powell’s latest comments and the looming risk of recession. She was of the opinion that the risk of the recession is hovering over the stock market even with Trump’s 90-day tariff delays at around 60%.
Chang said that PCE inflation is coming towards 4% over the next year, with growth flat at the end of the year. While a recession is not imminent, as some of the hard data is still looking relatively healthy, with higher inflation, flat growth, and still very high fiscal deficits, one has to highlight that the stagflation risks are very real. The uncertainty would continue and is highly unlikely to be over after 90 days.
Since current and future market conditions reflect volatility and uncertainty, let’s examine the 10 best stocks that might always grow, even in an economic downturn.
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Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 recession-proof stocks with a 10-year revenue growth rate of 8%-15% and chose the top 10 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.
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).
10 Best Stocks That Will Always Grow
10. Albertsons Companies, Inc. (NYSE:ACI)
Number of Hedge Fund Holders: 70
Albertsons Companies, Inc. (NYSE:ACI) is a US-based food and drug retailer. It has over 2,269 stores across 34 states and the District of Columbia under 20 banners, including Star Market, Shaw’s, Albertsons, Kings Food Markets, United Supermarkets, Haggen, Kings Food Markets, Acme, Carrs, and more. The company takes the tenth spot on our list of the best stocks that will always grow.
Albertsons Companies, Inc. (NYSE:ACI) reported strong financial performance across all metrics, with 2024 results ahead of its expectations and guidance. Its e-commerce sector underwent a notable 24% growth for both fiscal Q4 and 2024, with first-party sales significantly surpassing third-party growth. Its loyalty membership also underwent a significant growth of over 15% year-over-year, reaching more than 45 million members. Total revenue grew by 10% over 2023, above the company’s upper single-digit longer-term forecast. Its adjusted EBITDA grew 18% in 2024, while its adjusted net EBITDA margin of 41% expanded more than 300 basis points.
These trends reflect the inherent leverage in Albertsons Companies, Inc.’s (NYSE:ACI) software model, ranking it tenth on our list of the best stocks that will always grow. The company’s cash flow generation also remains strong, with cash flow from operating activities reaching $359 million in 2024, more than double the previous year. In a report released on April 16, Steven Shemesh from RBC Capital maintained a Buy rating on Albertsons Companies, Inc. (NYSE:ACI) and set a $23.00 price target.
Longleaf Partners Fund stated the following regarding Albertsons Companies, Inc. (NYSE:ACI) in its Q1 2025 investor letter:
“Albertsons Companies, Inc. (NYSE:ACI) – US grocery retailer Albertsons was a contributor for the quarter. Albertsons was a new purchase in 2024, after we had followed the company and its predecessors for years. In an otherwise turbulent quarter, Albertsons stands out as a stable business that remains undervalued because it had fallen off the radar during a protracted deal process with Kroger that ultimately failed. The company should grow at a moderate pace and has plenty of financial firepower to repurchase shares, all while it has multiple strategic options (such as unlocking its real estate value and/or selling non-core markets) to realize value per share.”
9. Elevance Health, Inc. (NYSE:ELV)
Number of Hedge Fund Holders: 73
Elevance Health, Inc. (NYSE:ELV) is a health company that operates through the following segments: Health Benefits, CarelonRx, Carelon Services, and Corporate and Other. The Health Benefits segment offers a range of health plans and services, while the CarelonRx segment manages pharmacy services. The Carelon Services segment offers various healthcare-related services by integrating behavioral, physical, pharmacy, and social services.
On April 21, Truist Financial analyst Jailendra Singh reiterated a Buy rating on Elevance Health, Inc. (NYSE:ELV). Leerink Partners analyst Whit Mayo also reiterated a Buy rating on the company on April 18, setting a price target of $463.00. The analyst expressed confidence in the company’s full-year estimates, which remain unaffected despite the ongoing investor concerns regarding Medicaid margin recovery and cost trends.
The company also has solid operations. Its operating revenue rose $2.5 billion, or 6%, to $45.0 billion compared to the prior-year quarter while operating income for the year reached $175.2 billion, up $5.0 billion, or 3%. This growth was attributed to higher premium yields in Elevance Health, Inc.’s (NYSE:ELV) Health Benefits segment, growth in CarelonRx product revenue, and acquisitions undertaken in 2024.
Artisan Select Equity Fund also expressed bullish sentiments for the stock, stating that its challenges are expected to be temporary. Rates of Medicaid services are anticipated to move up over the coming 12 to 18 months, supporting the recovery of the company’s margins. It stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its Q4 2024 investor letter:
“Elevance Health, Inc. (NYSE:ELV) took a couple of blows this quarter. First, it warned that its Medicaid earnings would come in below expectations this year. The Medicaid business has been in the spotlight as a result of COVID-19. Medicaid rolls filled up during the pandemic, but then rolls started to come down as enrollees lost eligibility when the economy began normalizing. This has made estimating the severity and health trends of the remaining population difficult. So far this year, cost trends have been much worse than expected and are out of line with Elevance’s approved rate structure. Margins in the Medicaid business, therefore, will be down this year, and overall profits are likely to be flat. We believe this is a temporary situation. State Medicaid programs are legally required to pay actuarially sound rates to the providers of Medicaid services, such as Elevance. Rates are expected, therefore, to move upward over the next 12 to 18 months, restoring Elevance’s margins to a more normal level.
The second issue for Elevance is investor sentiment. A mentally deranged young man murdered top executive of United Healthcare, the largest health insurer in the country. This led to an Internet frenzy of vicious, inaccurate and, frankly, deplorable criticisms of health insurance companies and their executives. Negative and controversial headlines tend to hurt share prices. This was true of Elevance’s stock in the aftermath of this heinous crime. The share price has fallen to extremely attractive levels, trading currently at about 11X earnings. We added to our position during this weakness.”
8. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 74
CVS Health Corporation (NYSE:CVS) is a health solutions company that operates in four segments: healthcare benefits, health services, pharmacy & consumer wellness, and corporate/other. Apart from being a prominent pharmacy chain, the company is one of the largest health insurers in the United States through its Aetna subsidiary’s operations, ranking it eighth on our list of the top stocks that will always grow.
On April 15, Morgan Stanley raised the firm’s price target on CVS Health Corporation (NYSE:CVS) to $80 from $68, keeping an Overweight rating on the shares. Baird also raised the company’s price target to $71 from $51 on the same day, keeping a Neutral rating on the shares.
The company recently conducted key management changes, which may be acting as a catalyst for the stock. Based on year-to-date results through February, CVS Health Corporation (NYSE:CVS) announced that it anticipates financial results to meet or exceed the guidance it previously issued for 2025. Its total revenue for fiscal Q4 2024 also increased to $97.7 billion, reflecting a 4.2% growth compared to the prior year and bringing optimism to its operations. The ongoing changes in the company’s management and operations are thus expected to bring it back on track.
Patient Capital Management also expressed bullish sentiments on the stock, saying that CVS Health Corporation (NYSE:CVS) has a diverse and attractive asset combination, including a pharmacy-benefits manager, healthcare benefits business, at-home primary care, and in-home evaluation business. It said the following in its Q4 2024 investor letter:
“CVS Health Corporation (NYSE:CVS) struggled throughout the year following a number of disappointments related to their Medicare Advantage business. While this had a negative impact on the near-term financials, the issues are well understood, and changes are already being made for the 2025 program. We see a clear pathway to improving margins throughout 2025 in all areas of the business. Furthermore, the company has upgraded their management team promoting David Joyner to CEO and hiring former UnitedHealth Group executive Steven Nelson to run the managed care business. On a longer-term basis, we continue to think CVS has an attractive combination of assets owning a healthcare benefits business (Aetna), a pharmacy-benefits manager (Caremark), an in-home evaluation business (Signify Health) and in-home primary care business (Oak Street Health) supporting the industry transition to a value-based care model. As the company works to implement the turnaround, the company has an attractive dividend yield of 5.8%.”
7. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 85
AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions.
In a report released on April 17, Vamil Divan from Guggenheim maintained a Buy rating on AbbVie Inc. (NYSE:ABBV) and set a price target of $214.00. Analysts are optimistic about AbbVie Inc.’s (NYSE:ABBV) growth, primarily because of its two blockbuster drugs, Skyrizi and Rinvoq, two of its top three sellers in 2024. These drugs, which target dermatology, rheumatology, psoriatic diseases, and inflammatory bowel disorders, are projected to exceed $27 billion in annual sales by 2027.
AbbVie Inc. (NYSE:ABBV) is poised for growth this year since Humira’s patent expiration, with analyst seeing record sales this year and the next. Since revenue growth is bouncing back, the market anticipates a 12% annualized earnings growth in the next 3-5 years, shedding a positive light on the company’s operations and ranking it seventh on our list of the 10 best stocks that will always grow. AbbVie Inc. (NYSE:ABBV) also announced a dividend increase of 5.8%, effective February 2025, continuing its trend of increasing dividends for 12 consecutive years.
6. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 88
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including hematology, oncology, cardiovascular, immunology, and neuroscience.
Leerink Partners analyst David Risinger maintained a Buy rating on Bristol-Myers Squibb Company (NYSE:BMY) on April 14. Bristol-Myers Squibb Company (NYSE:BMY) surpassed analyst estimates with its fiscal Q4 2024 and full year 2024 earnings, reporting an EPS of $1.67 that outperformed the expected $1.46. Revenue for fiscal Q4 2024 rose to $12.3 billion, exceeding the expected $11.57 billion and reflecting its strong operations.
The company has also exhibited strong dividend growth performance, maintaining dividend payments for 35 consecutive years with eighth consecutive years of increases. Its free cash flow is a significant metric for investors, as it totaled $13.9 billion last year, considerably more than the $4.9 billion it paid out in dividends. Bristol-Myers Squibb Company (NYSE:BMY) is thus in a position to weather a potential slowdown in its operations without affecting its dividend, even repaying its debt in the long term through this buffer.
The company also has a strong drug portfolio and robust pipeline due to acquisitions and partnerships, forming the base of a wide economic moat and ranking sixth on our list of the top stocks to buy that will always grow.
5. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 95
Intuitive Surgical, Inc. (NASDAQ:ISRG) has an elaborate ecosystem of services and products that provides robotic-assisted surgical solutions and invasive care, ranking it fifth on our list of the stocks that will always grow. Its products include the Ion Endoluminal and the Da Vinci Surgical systems.
In a report released on April 15, Matt Miksic from Barclays maintained a Buy rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) and set a price target of $684.00. In another report released on April 14, BTIG analyst Ryan Zimmerman also maintained a Buy rating on the company with a $560.00 price target of $560.00. Patrick Wood from Morgan Stanley also expressed bullish sentiments for the company, opining that growth in its general surgery segment is more diversified than expected, which presents an attractive entry point for investors in conjunction with the recent stock pullback and supports the buy rating.
Intuitive Surgical, Inc. (NASDAQ:ISRG) also recently announced the FDA approval of its fully wristed SP SureForm 45 stapler for use with its da Vinci SP surgical system. Intuitive Surgical, Inc. (NASDAQ:ISRG) thus holds a significant position in the surgical robotics market due to its continuous innovations. According to Grand View Research, the market is expected to grow at a compound annual growth rate of 9.5% until 2030. By then, the global market is anticipated to be worth around $7.4 billion, up from $4.3 billion last year, which is expected to fare well for the company.
4. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 96
Costco Wholesale Corporation (NASDAQ:COST) operates membership-only big box warehouse club stores and is one of the most popular department stores in the US. It offers its customers elaborate offerings, including food, beverage, groceries, and more.
Despite weakening consumer sentiment and macroeconomic uncertainty brought about by Trump’s tariffs, Costco Wholesale Corporation (NASDAQ:COST) delivered strong comparable sales in fiscal Q2 2025, rising 9.1%. This highlights the strong consumer demand for the company’s products even with inflation, ranking it fourth on our list of the best stocks to invest in right now. Its e-commerce sales reflected similar trends by growing 22.2%, corroborating its market standing and consumer popularity.
On April 16, Costco Wholesale Corporation (NASDAQ:COST) announced that its boards of directors approved a quarterly dividend increase from $1.16 to $1.30 per share, or $5.20 on an annualized basis. Costco Wholesale Corporation (NASDAQ:COST) is also continually expanding its operations. It ended fiscal Q2 2025 with 897 warehouses. Last year, it added 29 stores, expanding its store base by roughly 3%.
3. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 100
Thermo Fisher Scientific Inc. (NYSE:TMO) provides analytical instruments, reagents, equipment, software, and other services for analysis, research, diagnostics, and discovery. It operates through the Analytical Instruments, Life Sciences Solutions, Laboratory Products and Services, and Specialty Diagnostics segments.
In a report released on April 18, Puneet Souda from Leerink Partners maintained a Buy rating on Thermo Fisher Scientific Inc. (NYSE:TMO) and set a price target of $625.00. Eve Burstein from Bernstein also maintained a Buy rating on the company on April 16, setting a $585.00 price target.
Looking towards 2025, the company anticipates adjusted earnings between $23.10 and $23.50 per share, which coincides with analyst estimates. It holds a significant market position, and allows its investors long-term growth free of threats and risks associated with dependency on breakthrough drugs and expiring patents. Over 80% Thermo Fisher Scientific Inc.’s (NYSE:TMO) revenue comes from recurring sources, reflecting its stable business model and ranking it third on our list of the best stocks to buy.
Thermo Fisher Scientific Inc. (NYSE:TMO) also has a strong dividend yield, retunring $4.6 billion to shareholders through dividends and buybacks in 2024. Its median price target of $420.63 implies a 54.65% upside from current levels. Analysts are bullish on the stock due to its recent strategic acquisition of SOLV’s Purification and Filtration business, valued at $4.1 billion. The acquisition is anticipated to boost Thermo Fisher Scientific Inc.’s (NYSE:TMO) standing in the bioprocessing sector, especially in filtration, aligning with its long-term growth strategy.
2. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 115
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies. Investors are bullish on Eli Lilly and Company (NYSE:LLY) due to its in-demand GLP-1 drugs, used to treat diabetes and obesity, which are still in their early growth stages, and the company’s strong financials.
On April 21, Evan Seigerman, an analyst from BMO Capital, maintained a Buy rating on the company with a $900.00 price target. The analyst opined that Eli Lilly and Company’s (NYSE:LLY) strong position in the pharmaceutical industry supports this buy rating. The company is also preparing for the launch of Orforglipron, which is a promising medication for obesity and type 2 diabetes and brings a positive light to its future operations. The company is ready to satisfy market demand with a notable inventory build-up. The analyst said that this preparation, combined with an anticipated high gross margin, points towards considerable revenue potential for the product.
Eli Lilly and Company (NYSE:LLY) also decided to strategically manufacture the drug’s active pharmaceutical ingredient in the US, relieving it from tariff-related pressures and bolstering its market position. The analyst further remarked that the company has a robust pipeline and a strong oncology franchise, which is expected to support sustained growth and the overall positive outlook for its financial performance. Eli Lilly and Company (NYSE:LLY) is the second best stock that will always grow.
Aristotle Atlantic Partners, LLC highlighted LLY in its Q4 2024 investor letter. Here is what the firm said:
“Eli Lilly and Company (NYSE:LLY) contributed to performance in the fourth quarter. While shares underperformed, our underweight position versus the benchmark resulted in a positive contribution to relative returns. Lilly shares were weak following an uncharacteristic third-quarter earnings miss driven by softer-than-expected sales of its blockbuster diabetes and obesity drugs. The company blamed this partly on wholesaler destocking. Lilly reinforced its view that end demand for the drugs remains strong”.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments, which have solid operations.
Despite the current challenges faced by the company, TD Cowen analyst Ryan Langston has maintained a bullish stance on UnitedHealth Group Incorporated (NYSE:UNH), giving a Buy rating on April 22. While the company is experiencing headwinds, such as falling EPS estimates for 2025 and 2026 due to lower-than-expected coding in Optum Health and unanticipated trends in Medicare Advantage, the analyst expects margin recovery by 2026. Improving coding trends and favorable rate adjustments are anticipated to support this recovery.
In addition, UnitedHealth Group Incorporated’s (NYSE:UNH) consolidated revenue guidance remains strong even after a downward adjustment in Optum Health’s revenue outlook, as the UHC and Rx segments are exceeding initial expectations. The analyst also justifies the Buy rating with management’s optimism to address the present issues within the year, potentially paving the way for recovery in 2026.
Vulcan Value Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH), a company that we have owned several times in the past, is the largest health insurer in the United States. UnitedHealth Group also owns Optum, which is a rapidly growing healthcare services company. The environment for the health insurance business remains positive as growth in healthcare spending, driven by chronic diseases and an aging population, will continue to outpace overall economic growth. The insurance business benefits from powerful network effects as more members attract more providers and vice versa, which reinforces United’s value proposition and bargaining power with each side of the network. We respect UnitedHealth Group’s management team and have been very pleased with their long-term vision and execution.”
Overall, UNH ranks first among the 10 best stocks that will always grow. While we acknowledge the potential of such stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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