In this article, we will look at the 10 Best Strong Buy Stocks To Buy Right Now.
Fears of a slowing economy have hit stocks recently, along with concerns that Trump’s tariffs will raise prices for consumers and lead to more inflation. These trends pose questions about whether the market broadening, which some experts have predicted, can really happen. On February 28, Sara Naison-Tarajano, Goldman Sachs Private Wealth global head of capital markets, appeared on CNBC’s ‘Closing Bell’ to discuss her growth outlook. She believed that the broadening of the market will take place, and the market is already seeing it. Considering the broadening versus the Mag 7, this year’s outperformance is pretty dramatic. If we look at what the last two years have been like combined, the returns of the Mag 7 were over 200%, while those of the rest of the market were only 31%. Therefore, the market is definitely seeing the trend materialize, and Tarajano believes it is going to continue.
She said the market is currently all about tariffs, growth, consumers, wavering, and several other factors. Among all, it is definitely about uncertainty, which in turn affects the markets and the consumers. We are seeing policy uncertainty around tariffs, geopolitical uncertainty around the Middle East and Ukraine, and some degree of regulatory uncertainty in terms of not knowing what the path will be in the future for this administration in the back half of the year. This uncertainty is coupled with the fact that we are coming off two incredible years of equity market returns. In addition, the back half of February tends to be historically weak anyway. All of these trends are coming together to create some market volatility, and it is to be expected.
READ ALSO: 11 Best Pharma Stocks to Buy According to Hedge Funds and 10 Cheap Gold Stocks to Invest In Right Now.
Could H2 Be Better in 2025?
Tarajano further said that she was and is still thinking that the first half of the year could be a bit dicey and the second half, which may see tax cuts and the impacts of deregulation, would see more deals done and more IPOs, resulting in a smoother H2. However, she said she reserved the right to revise her views based on how the policies come out. Shedding further light on the situation, she opined that the tariffs are a significant part of the base case and will be an essential part of what happens to inflation, which in turn has a broader impact on the economy. Talking about the base case, she said we will see a 4% increase in the effective tariff rate, which only has a 40 basis point impact on core PCE, a 20 basis point impact on GDP, and more. If the base case persists, we can make it through this first half.
There haven’t been many opportunities if you haven’t been long in the stock market to get involved with what the market has done over the last two years. Therefore, a bit of a clearing out is necessary, and the hope, if we can stay on track, is that the second half will be better.
From a strategic asset allocation perspective, she said that she still favors overweight US. The logic behind it is her firm’s GDP expectations, close to 2.5%, and earnings growth. There is no question that there’s been some tactical opportunity overseas, with Europe and China expected to perform better. While it is cheap, it is so for a reason, as the GDP expectations in Europe are 70 basis points. While these trends and expectations are interesting from a tactical trade perspective, it is essential to be thoughtful about international asset allocations when taking a strategic asset allocation perspective.
With these trends in view, let’s look at the 10 best strong stocks to buy right now.
A man in black suit holding a tablet looks at stock market data on a monitor. Photo by Tima Miroshnichenko on Pexels
Our Methodology
We used Finviz and Tipranks to make a list of 35 strong buy stocks. We then selected the top 10 stocks with the highest analyst upside potential as of March 12, 2025. We also added the number of hedge fund holders for each stock as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside potential.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Strong Buy Stocks To Buy Right Now
10. Thermo Fisher Scientific Inc. (NYSE:TMO)
Analyst Upside: 30.10%
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.
Thermo Fisher Scientific Inc. (NYSE:TMO) holds a competitive market position due to its leadership in life sciences, long-term customer relationships, and high switching expenses. Its consumables and equipment are especially useful in drug development. The company expects to continue its consistent growth, and management forecasts high-single-digit revenue growth in the coming years.
In addition, the company is on a solid growth trajectory and reported $11.4 billion in revenue in fiscal Q4 2024, reflecting a 5% year-over-year growth. Its strong cash position further bolsters its standing, as it generated over $7.3 billion in free cash flow in fiscal 2024. Thermo Fisher Scientific Inc. (NYSE:TMO) also has a strong dividend yield, with seven consecutive years of growth. It outperformed the sector median of two years by 250%, reflecting its ability to return value to its shareholders.
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.
9. Microsoft Corporation (NASDAQ:MSFT)
Analyst Upside: 30.46%
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is a technology company and the largest software producer in the world in terms of revenue. It develops and supports services, software, devices, and solutions. It operates through the Intelligent Cloud, Productivity and Business Processes, and More Personal Computing segments. The company sells its products through OEMs, distributors, resellers, and directly through digital marketplaces, online, and retail stores.
The company reported $69.6 billion in revenue in fiscal Q2 2025, up 12%. Its gross margin dollars grew 13% and 12% in constant currency while operating income increased 17% and 16% in constant currency. Earnings per share also experienced a 10% growth, reaching $3.23. These strong results were attributed to the strong demand for Microsoft Corporation’s (NASDAQ:MSFT) cloud and AI offerings.
Its median price target of $383.27 implies an upside of 30.46% from current levels. On March 13, DA Davidson upgraded Microsoft Corporation (NASDAQ:MSFT) to Buy from Neutral with a $450 price target. The company ranks ninth on our list of the 10 best strong buy stocks to buy right now.
8. UnitedHealth Group Incorporated (NYSE:UNH)
Analyst Upside: 31.48%
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. UnitedHealthCare, its insurance division, added millions of customers during fiscal 2024 and is continuing to expand its operations. Its OptumHealth division grew revenues to around $105 billion in fiscal 2024 and is expected to touch $117 billion in fiscal 2025.
UnitedHealth Group Incorporated (NYSE:UNH) employed around $17 billion in growth capital in fiscal 2024 to strengthen its capabilities and returned over $16 billion to shareholders through share repurchases and dividends. It expects cash flow from operations to reach $33 billion in fiscal 2025, or 1.2 times net income.
The company’s value proposition is resonating with consumers and provider partners, state customers, and undertaking expansion proposals. It is focusing on providing consumer stability and sustainable value, and anticipates growth of up to 800,000 people in individual, group and special needs offerings. UnitedHealth Group Incorporated (NYSE:UNH) recently authorized payment of a cash dividend of $2.10 per share, payable on March 18, 2025, to all shareholders of its common stock as of March 10, 2025.
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.”
7. Alphabet Inc. (NASDAQ:GOOG)
Analyst Upside: 32.02%
Number of Hedge Fund Holders: 174
Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube. Alphabet Inc. (NASDAQ:GOOG) has sound operations. Fiscal Q4 2024 showed a 12% growth in overall revenue and a 12.5% growth in search revenue. YouTube grew by 13.8%, while revenue from Google Cloud rose by around 30% to $12 billion.
The company announced it would invest $75 billion in capex this year, up from $53 billion in 2024. Its stock has risen nearly 150% over the last five years, including around 45% growth since OpenAI released GPT-4o in May 2023. Investors expect Alphabet Inc.’s (NASDAQ:GOOG) stock to continue on a positive growth trajectory due to its investments in AI. Google Cloud is another significant growth driver for the company. Even though it makes only 12% of company revenue, it rose 31% yearly, bringing a positive light to its operations.
Merion Road Capital Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG): We have held GOOG for a long time (since 2018) on the basis of its immense business quality paired with an undemanding valuation, improving treatment of minority shareholders, and multiple options for value creation. Recently we have seen Alphabet bashed for losing the AI race to now heralded for its progress. I remain excited about their prospects with several near-term, mid-term, and long-term tailwinds. Near-term, Google Cloud continues its rapid growth and their latest large language model, Gemini 2.0, appears to have made significant progress to better serve consumer needs and improve GOOG’s other product offerings. Mid-term, Waymo is on the cusp of becoming a real value driver for the company; there are abundant articles discussing Waymo stealing share from the ride-share economy and launching in new geographies. Long-term, GOOG’s recently announced quantum computing chip positions it well for a future (many, many years away) where computing process are fundamentally different than today. All of these options are embedded in a company that already has an established and dominant earnings stream.”
6. The Walt Disney Company (NYSE:DIS)
Analyst Upside: 33.84%
Number of Hedge Fund Holders: 108
The Walt Disney Company (NYSE:DIS) is a diversified global entertainment company that operates in the Entertainment, Sports, and Experiences segments. Its Entertainment segment manages global episodic content and film production and distribution activities. The Sports segment encompasses sports-focused global television and direct-to-consumer (DTC) video streaming content, while the Experiences segment includes Parks and Experiences and Consumer Products.
The Walt Disney Company (NYSE:DIS) exceeded expectations in its fiscal Q1 2025 earnings, posting earnings per share of $1.76 compared to analysts’ estimates of $1.43. Revenue also surpassed the forecasted $24.55 billion. Fiscal Q1 2025 marked the second consecutive profitable quarter for the company’s entertainment streaming segment, which includes Disney+ and Hulu. It generated $293 million in operating income and $6.07 billion in revenue, marking a 9% year-over-year increase.
Analysts’ profit targets for The Walt Disney Company (NYSE:DIS) have been growing for this fiscal year as well as the next. Analysts estimate the company to earn $5.49 a share this fiscal year and $6.15 a share in fiscal 2026, reflecting confidence in its operations. The company ranks sixth on our list of the 10 best strong stocks to buy right now.
5. Bank of America Corporation (NYSE:BAC)
Analyst Upside: 35.20%
Number of Hedge Fund Holders: 113
Bank of America Corporation (NYSE:BAC) is a bank and financial holding company that operates in the Consumer Banking, Global Wealth and Investment Management (GWIM), Global Banking, and Global Markets segments. The company boasts a wide economic moat and reliable competitive market advantages that reduce its chances of operation disruption. Bank of America Corporation (NYSE:BAC) also has a massive scale, generating $102 billion in revenue in 2024 and ending the year with $3.3 trillion in assets.
The company also has solid operations. Its fiscal Q4 2024 revenue surpassed expectations, reflecting a 15.2% year-over-year increase and outperforming analyst projections by $170 million. Net income also more than doubled to $6.7 billion. In addition, 2024 marked Bank of America Corporation’s (NYSE:BAC) sixth consecutive year of growth, expanding its consumer banking segment by adding 213,000 new checking accounts.
Investor confidence in the company is also high. This is corroborated by Citadel Investment Group’s significant stake increase, which increased its holdings by 338% in Q4 2024. Diamond Hill Large Cap Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q2 2024 investor letter:
“Other top contributors in Q2 included Bank of America Corporation (NYSE:BAC) and Extra Space Storage. Shares of financial services company Bank of America rose in the quarter as it looks increasingly likely net interest income will inflect and begin growing again in 2024’s back half and into 2025.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
Analyst Upside: 37.27%
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology company that offers online retail shopping services. It operates through the North America, International, and Amazon Web Services (AWS) segments. AWS’s segment covers global sales of storage, computers, databases, and other services for government agencies, academic institutions, startups, and enterprises.
Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce standing lends it a significant competitive advantage, as it holds nearly 38% of all e-commerce sales in the US. According to the Boston Consulting Group, e-commerce is expected to continue growing as a percentage of retail sales, reaching around 41% of global retail sales by 2027. This is anticipated to prove substantially beneficial for Amazon.com, Inc. (NASDAQ:AMZN).
The company is also investing heavily in AI. Its capital expenditures (capex) for 2025 are anticipated to be around $100 billion, a majority of which would go to AI. The company also said that falling AI inference expenses would fuel increased AI infrastructure spending. It ranks fourth on our list of the 10 best strong buy stocks to buy now.
Ariel Appreciation Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“During the quarter, we initiated three new investments, each in companies we have followed closely for a considerable time. At various points, we viewed them as missed opportunities; however, our experience with Mr. Market has taught us that patience often creates inevitable entry points. This quarter, some exciting opportunities presented themselves. The three investments are Amazon.com, Inc. (NASDAQ:AMZN), Diageo (NYSE: DEO), and Uber (NASDAQ: UBER). We will discuss each in detail below.
Amazon is one of the most widely followed companies in the world. While the “Magnificent 7” (of which Amazon is a key member) is often seen as a runaway freight train, we were able to purchase Amazon shares at prices last seen in 2021—three years ago. How is this possible if the “Mag7″ has been so dominant? We believe it largely reflects the increasing prevalence of narratives driving market sentiment…” (Click here to read the full text)
3. ServiceNow, Inc. (NYSE:NOW)
Analyst Upside: 43.76%
Number of Hedge Fund Holders: 110
ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.
The company recently announced a major acquisition of Moveworks, a privately held AI solutions developer, to bolster its AI capabilities. ServiceNow, Inc. (NYSE:NOW) reported that it would combine its native AI technology with Moveworks’ front-end AI assistant and search technology. This $2.85 billion acquisition will help the company compete in agentic AI, which is AI able to perform tasks with some degree of autonomy.
Moveworks’ sophisticated AI agent technology will allow ServiceNow, Inc. (NYSE:NOW) to develop a universal AI assistant specializing in boosting employee engagement by providing rapid responses to questions and automating routine tasks. The transaction is anticipated to conclude in the latter half of 2025, positioning ServiceNow, Inc. (NYSE:NOW) as one of the best strong buy stocks to buy right now. Polen Focus Growth Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q4 2024 investor letter:
“Similar to last quarter, ServiceNow, Inc. (NYSE:NOW) was a top relative contributor, a testament to the consistent, high-level execution they’ve demonstrated over the past several years. The company’s latest earnings report highlighted across-the-board strength, with better-than-expected results across key metrics such as renewal rates, subscription growth, average contract value growth per $1M+ customer, etc. This is a company on offense, attacking a large and growing addressable market and positioning it for a long growth runway—especially considering their early success at integrating GenAI capabilities, which should only drive increasing workflow efficiencies for customers in the years ahead.
We trimmed our positions in UnitedHealth Group, Amazon, ServiceNow, and Gartner during the quarter. ServiceNow and Gartner were valuation-related trims. With ServiceNow, we still expect 20%+ revenue and earnings growth for the foreseeable future. Still, the strong stock price performance has reduced the future return potential somewhat, and we used the proceeds to add to our Eli Lilly position.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Analyst Upside: 44.90%
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or a part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.
Demand for the company’s services is one of the primary reasons investors are bullish on the stock. It has plans to grow its capital expenditures (capex) to between $38 billion and $42 billion in 2025, which translates to an annual growth of 28% to 41%. It reported a 39% growth in its fiscal Q4 2024 revenue in the company’s local currency, New Taiwan dollars. It also reported a 57% EPS growth, exceeding analyst estimates in both measures. Its high-performance computing (HPC) platform, which includes AI chips, grew by 19%, accounting for around 53% of the total company revenue.
The company’s management estimates a revenue of $25 billion to $25.8 billion for fiscal Q1 2025. This translates to a 33% to 37% year-over-year growth, exceeding analyst estimates and reflecting continued optimism in its operations. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also pays a dividend, unlike most companies in the semiconductor industry. Its dividend has grown by about 67% over the last 5 years. Wedgewood Partners stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was another top contributor to performance during the quarter and for the year. The Company’s earnings growth dramatically accelerated compared to last year as the Company’s wafer fabrication and packaging volumes soared in 2024. In addition, the Company customer prices rebounded in the face of more normalized capital expenditures. The Company maintains a near-monopoly in the fabrication of nearly every new AI accelerator brought to market over the past two years. They continue investing tens of billions to build and 7ill future capacity with orders for what seems to be insatiable hyperscale demand for accelerated computing. The stock ended the year trading at a consensus forward earnings multiple that is several points lower than large-cap growth benchmarks, despite the Company’s dominant position in the most important industry that is driving one of the largest technological shifts in a generation.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Analyst Upside: 52.11%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and other multimedia software. It operates in the Compute & Networking and Graphics Processing Unit (GPU) segments.
NVIDIA Corporation (NASDAQ:NVDA) reported a record full-year revenue of $130.5 billion for fiscal 2025, up 114% from last year. Non-GAAP diluted EPS was $2.99, increasing 130% from a year ago. Fiscal Q4 2025 marked another record quarter for the company, with a revenue of $39.3 billion, up 12% sequentially and 78% year on year. These trends highlight the company’s continued profitability. It expects to continue this profitability in the future, supported by products based on its new Blackwell GPU architecture.
Columbia Threadneedle Global Technology Growth Strategy expressed bullish sentiments regarding the company in its Q4 2024 investor letter, especially because it is on schedule to satisfy the substantial demand for its new product, Blackwell, which will enter the market next year. NVIDIA Corporation (NASDAQ:NVDA) further holds a competitive market position due to its ownership of all the significant evolving AI data center pieces. Here is what Columbia Threadneedle Global Technology Growth Strategy said about the company:
“NVIDIA Corporation (NASDAQ:NVDA) continued to outperform the market during the fourth quarter. The technology giant and top position in the fund delivered on sky-high expectations during the quarter and reported quarterly expectations that exceeded expectations. The red-hot company provided forward-looking expectations which were regarded as slightly lackluster as compared to prior quarters that smashed expectations. While the stock did churn a bit in the quarter, the AI giant remains top of mind for investors, especially as the company is on pace to satisfy the ‘staggering’ demand for its new product, Blackwell, which is poised to enter the market over the next year. The company’s position of owning all the major pieces of the evolving AI data center enables it to strengthen its competitive position and to define the technology roadmap for generations to come.”
Overall, NVDA ranks first among the 10 best strong buy stocks to buy right now. While we acknowledge the potential of strong buy 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. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
