In this article, we will look at the 11 Best Extremely Profitable Stocks to Buy According to Analysts.
Fed’s Response to Inflation and Growth Challenges
We recently covered 10 Best Stocks to Buy Now For the Long Term, where we talked about the market outlook amidst the tariff situation and uncertainty. Here’s a piece from the article:
While the S&P 500 is hovering near correction territory, marking five years since its COVID-19 drawdown. Wyne noted that the risks appear evenly distributed between bullish and bearish outlooks. On one hand, the bears argue that softer economic data and rising consumer inflation expectations could worsen with tariff escalations, potentially leading to stagflation. On the other hand, bulls counter that weak sentiment data does not necessarily reflect hard economic indicators such as employment and retail sales, which remain robust. Wyne highlighted that bulls point out that long-term inflation expectations are still anchored near the Fed’s target, mitigating risks of a wage spiral. He pointed out that historically speaking, investing during sentiment troughs has yielded strong returns in subsequent months.
Lastly, closing his market outlook with some investment advice, Wyne suggests that balancing risks by maintaining strategic asset allocation might be a viable strategy. He added that investors should use equities for long-term capital appreciation and fixed income for hedging during slowdowns. In addition, tactical adjustments can help capitalize on emerging opportunities while adding resilience through assets like gold and infrastructure investments. Wyne stressed that despite market volatility since the COVID-19 drawdown, the S&P 500 has risen over 150%, which underscores the importance of staying invested through uncertainties.
Despite the market volatility, the Federal Reserve has decided to wait and see during the March 2025 Federal Open Market Committee meeting. On March 20, Cristina Dwyer, an analyst at J.P. Morgan Wealth Management, commented on the Federal Reserve’s decision to maintain the federal funds rate at 4.5%. She emphasized that this decision reflects the Fed’s cautious approach in light of a resilient economy and moderating inflation trends. While inflation remains above the Fed’s 2% target, core consumer prices have decelerated significantly over the past year, signaling progress in controlling price pressures. Dwyer noted that this steady economic backdrop allows the Fed to adopt a “wait-and-see” strategy, while carefully monitoring the effects of recent policy changes and external factors before making further adjustments.
Dwyer also highlighted the Fed’s decision to slow quantitative tightening by reducing its monthly cap on US Treasury redemptions from $25 billion to $5 billion starting in April. This move aligns with the broader efforts to balance monetary policy normalization without disrupting financial markets. However, she pointed out that uncertainty remains high due to recent tariff policies, which have contributed to elevated inflation projections for 2025.
For investors, Dwyer underscored the importance of reassessing portfolios in light of these developments. She advised ensuring diversification and alignment with long-term financial goals, as economic uncertainty persists and interest rate adjustments are expected later in the year. Despite weaker economic projections in the Summary of Economic Projections, such as lower GDP growth and higher unemployment forecasts, Dwyer noted that the Fed remains optimistic about continued economic expansion within a resilient macroeconomic environment.
With that let’s take a look at the 11 best extremely profitable stocks to buy according to analysts.
An investor analyzing the performance of the Midstream/Energy stocks at a trading desk.
Our Methodology
To curate the list of 11 best extremely profitable stocks to buy according to analysts we used Finviz stock screener, CNN, and Morningstar. Using the screener we aggregated a list of stocks with more than 30% TTM net profit margins and analyst upside potential of at least 20%. Next, we cross-checked the TTM net profit margin for each stock from Morningstar and analyst upside potential from CNN. Lastly, we ranked these stocks in ascending order of analysts’ average projected upside potential. We have also added hedge funds’ sentiment around each stock. Please note that the data was recorded on March 21, 2025.
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).
11 Best Extremely Profitable Stocks to Buy According to Analysts
11. Prologis, Inc. (NYSE:PLD)
TTM Net Profit Margin: 48.14%
Number of Hedge Fund Holders: 55
Analyst Upside Potential: 22.22%
Prologis, Inc. (NYSE:PLD) is one of the global leaders in logistics real estate, which operates as a fully integrated real estate company. It operates through two main business segments including Real Estate Operations and Strategic Capital. The company specializes in leasing modern logistics facilities to a diverse client base, including businesses focused on retail, online fulfillment, and third-party logistics.
On February 20, Morgan Stanley analyst Ronald Kamdem maintained a Buy rating on the stock with a price target of $133. His positive outlook is driven by the company’s strategic leadership transition. Kamdem sees Dan Letter’s promotion to CEO as a well-planned move that ensures continuity in the company’s strategy, while Hamid Moghadam’s shift to executive chairman provides ongoing stability and strategic guidance.
During the fiscal fourth quarter of 2024, Prologis, Inc. (NYSE:PLD) delivered strong performance. It signed over 60 million square feet of leases, a company record, reflecting strong demand across customer profiles, size requirements, and markets. Management noted that full-year results indicate an 8.4% growth year-over-year, placing the company in the 86th percentile of all REITs. With a strong net profit margin of more than 48% Prologis, Inc. (NYSE:PLD) ranks as the best extremely profitable stocks to buy according to analysts.
Carillon Eagle Growth & Income Fund stated the following regarding Prologis, Inc. (NYSE:PLD) in its Q4 2024 investor letter:
“Prologis, Inc. (NYSE:PLD) detracted from performance because of ongoing challenges facing industrial real estate investment trusts more broadly. The company reported solid results for the third quarter, but the industrial space remains oversupplied — though the problem is abating — and clients chose to delay leasing decisions until aft er the U.S. presidential election.”
10. BlackRock, Inc. (NYSE:BLK)
TTM Net Profit Margin: 31.91%
Number of Hedge Fund Holders: 53
Analyst Upside Potential: 23.43%
BlackRock, Inc. (NYSE:BLK) is an international investment management company and one of the largest asset managers in the world, with around $11.55 trillion in assets under management as of 2024. The company operates in 30 countries with clients in over 100 nations providing a range of investment and technology services to institutional and retail clients.
During the fiscal 2024, BlackRock, Inc. (NYSE:BLK) achieved record net inflows of $641 billion, contributing to a total of $11.6 trillion in assets under management. The company also experienced a 14% increase in annual revenue, surpassing $20 billion, driven by organic base fee growth, strategic acquisitions, and higher performance fees. Moreover, the operating income grew by 21%, demonstrating operational efficiency and strategic success. Looking ahead, the company is focusing on expanding into high-growth segments such as private markets and technology to maintain organic growth above its 5% target. As a result of robust results, On February 18, Craig Siegenthaler from Bank of America Securities maintained a Buy rating on the stock. It is one of the best extremely profitable stocks to buy according to analysts.
The London Company Large Cap Strategy stated the following regarding BlackRock, Inc. (NYSE:BLK) in its Q3 2024 investor letter:
“BlackRock, Inc. (NYSE:BLK) – Shares of BLK rallied during 3Q as organic growth improved sequentially. Our long-term view of BLK has not changed. In the near-term, strong equity market performance is supportive of AUM and fee growth, and, visibility on declining interest rates is a potential tailwind to the fixed income ETF business. We continue to view BLK as a long-term share gainer with a broad spectrum of solutions, and we appreciate the strong balance sheet and steady capital return.”
9. Brookfield Asset Management Ltd. (NYSE:BAM)
TTM Net Profit Margin: 112.24%
Number of Hedge Fund Holders: 21
Analyst Upside Potential: 25.15%
Brookfield Asset Management Ltd. (NYSE:BAM) is a leading international alternative asset manager that focuses on long-term investments in real assets and essential service businesses. The company manages nearly $800 billion in assets on behalf of over 2,000 institutional clients worldwide.
On March 18, Nik Priebe from CIBC maintained a Buy rating on the stock, with a price target of $70. The company achieved significant milestones in fiscal 2024. Brookfield Asset Management Ltd. (NYSE:BAM) raised over $135 billion throughout the year, including a record $29 billion in organic fundraising during Q4. This contributed to an 18% annual growth in fee-bearing capital, which reached $539 billion.
Moreover, Madison Mid Cap Fund in its Q4 2024 investor letter mentioned Brookfield Asset Management Ltd. (NYSE:BAM) to be one of the top contributors for the quarter. The fund noted that the company can attract significant allocations which positions it as a proven winner in the industry. It does so by leveraging its robust track record and diversified offerings to maintain momentum in capital raising. It is one of the best extremely profitable stocks to buy according to analysts.
Madison Mid Cap Fund stated the following regarding Brookfield Asset Management Ltd. (NYSE:BAM) in its Q4 2024 investor letter:
“The top five contributors for the quarter were Liberty Formula One, Arista Networks, Copart, Brookfield Asset Management, and Lithia Motors. Shares in Brookfield Asset Management Ltd. (NYSE:BAM) advanced nicely as the firm continues to raise funds at a robust clip, showing that despite some slowdown in the overall appetite for alternative investment asset classes, the proven winners can still attract their share of allocations.”
8. Microsoft Corporation (NASDAQ:MSFT)
TTM Net Profit Margin: 35.43%
Number of Hedge Fund Holders: 317
Analyst Upside Potential: 27.79%
Microsoft Corporation (NASDAQ:MSFT) is a global technology company that operates through three key segments including Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. It provides a range of software, services, and devices for individuals and organizations.
Columbia Seligman Global Technology Fund in its Q4 2024 investor letter mentioned that they maintained an underweight position in Microsoft Corporation (NASDAQ:MSFT) during the fourth quarter of 2024, which proved beneficial due to a decline in the company’s share price. Moreover, recently Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on the stock. The analyst believes that the company’s AI leadership has been enhanced by its integration of OpenAI’s ChatGPT into its products. During the fiscal second quarter of 2025, the company reported a revenue of $69.6 billion reflecting a 12% increase year-over-year. In addition the operating income also grew 17% during the same time to reach $31.7 billion. Microsoft 365 Commercial products and cloud services were a key contributor as it grew by 15% driven by Microsoft 365 Commercial cloud revenue. It is one of the best extremely profitable stocks to buy according to analysts.
Columbia Seligman Global Technology Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:
“Within software, the fund maintained an underweight position to Microsoft Corporation (NASDAQ:MSFT), which proved beneficial as share price for the company fell during the fourth quarter. Microsoft’s outlook for its Azure business came down slightly, which hampered the stock price at times during the quarter and, combined with losses on the Open AI business, led to a disappointing end to 2024. The company has guided its capital expenditure spending up slightly and investors continue to wait for additional monetization from the company’s large commitment to AI infrastructure spending. The fund continued to hold an overweight allocation to Oracle as we believe Oracle is positioned to be a major beneficiary of the AI rollout and has the potential to compete with other large cloud providers, such as Amazon, Alphabet and Microsoft. Oracle shares moved lower during the quarter and the stock suffered its worst day of the year in December, as the company narrowly underperformed analysts’ average estimates. Oracle’s business model remains strong as demand for computer power that can handle AI is increasing and the company’s revenues from its cloud infrastructure unit moved higher year over year.”
7. Meta Platforms, Inc. (NASDAQ:META)
TTM Net Profit Margin: 37.91%
Number of Hedge Fund Holders: 262
Analyst Upside Potential: 29.98%
Meta Platforms, Inc. (NASDAQ:META) is a leading American technology conglomerate that focuses on building technologies that facilitate social connections, community building, and business growth. On March 21, Ross Sandler from Barclays maintained a Buy rating on the stock, with a price target of $705.
The company is positioned for a transformative year in 2025, focusing on significant advancements in artificial intelligence, virtual reality, and social media platforms. The company aims to establish Meta AI as the leading personalized AI assistant, targeting over 1 billion users globally. During fiscal 2024, Meta Platforms, Inc. (NASDAQ:META) collectively reached over 3.3 billion daily active users by the end of 2024, with the Threads app rapidly growing with 320 million monthly active users. During the year the company generated $164.5 billion in revenue, primarily driven by advertisements on its family of apps.
Looking ahead, Meta Platforms, Inc. (NASDAQ:META) sees first-quarter 2025 revenue to be around $39.5 billion to $41.8 billion, reflecting 8% to 15% year-over-year growth. It is one of the best extremely profitable stocks to buy according to analysts.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
TTM Net Profit Margin: 40.51%
Number of Hedge Fund Holders: 186
Analyst Upside Potential: 44.24%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading Taiwan-based company specializing in semiconductor manufacturing services. It is one of the world’s largest dedicated independent semiconductor foundry, producing integrated circuits for various clients.
On March 7, Brad Lin, an analyst at Bank of America Securities, maintained a Buy rating on the stock with a price target of $265. The analyst noted that the company has decided to increase its US investment to $165 billion. In addition it has also decided to construct three new fabrication plants along with two advanced packaging facilities and a R&D center. These steps are expected to strengthen Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) market leadership and generate significant economic benefits. Moreover, the expansion aligns with US policy goals to localize semiconductor production, reducing exposure to geopolitical tensions and tariffs while enhancing supply chain security. Lin also highlighted that key customers like Apple, NVIDIA, and AMD, among others rely on the company’s advanced manufacturing capabilities. These partnerships ensure strong demand for its cutting-edge AI and smartphone chips. Lastly, a strong net profit margin along with encouraging analyst upside potential makes it one of the best extremely profitable stocks to buy according to analysts.
Parnassus Growth Equity Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) leading position in AI chip production continued to boost investor sentiment on the stock. During the year, moves by several large technology companies to increase their AI investments underscored demand for TSMC’s chips and supported the stock’s rise.”
5. Arista Networks Inc (NYSE:ANET)
TTM Net Profit Margin: 40.73%
Number of Hedge Fund Holders: 78
Analyst Upside Potential: 47.94%
Arista Networks Inc (NYSE:ANET) is a leading provider of data-driven networking solutions designed for large data centers, campus environments, and routing applications. The company specializes in delivering high-performance networking platforms that emphasize availability, agility, automation, analytics, and security through its advanced network operating stack.
On March 5, UBS upgraded the company from Neutral to Buy with a revised price target of $115, up from $112. The analyst cited strong growth in data center capital expenditures, which is expected to increase at an annual rate of 25% through 2027. Additionally, UBS highlighted positive trends in the company’s key metrics including purchase commitments, deferred revenue, and finished goods inventory. This suggests that Arista Networks Inc’s (NYSE:ANET) 2025 revenue guidance of 17% growth may be overly conservative. UBS views the current share levels as presenting an attractive risk/reward opportunity. It is one of the best extremely profitable stocks to buy according to analysts.
Giverny Capital Asset Management stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:
“I trimmed Arista Networks Inc (NYSE:ANET) as it grew beyond 10% weight in the portfolio thanks to its continued outperformance. Arista has been on a tear in January and if our clients are lucky I will leave Arista alone for a while! The market appears to see that Artificial Intelligence data centers are going to require robust investment in networking equipment, and Arista is the leader in that sector.”
4. NVIDIA Corporation (NASDAQ:NVDA)
TTM Net Profit Margin: 55.85%
Number of Hedge Fund Holders: 223
Analyst Upside Potential: 48.68%
NVIDIA Corporation (NASDAQ:NVDA) is a leading American multinational technology company that specializes in designing and producing graphics processing units, system-on-a-chip solutions, and artificial intelligence hardware and software. On March 21, Mizuho Securities analyst Vijay Rakesh maintained a Buy rating on the stock with a price target of $168.
The analyst noted that NVIDIA Corporation’s (NASDAQ:NVDA) advancements in AI accelerators, such as the Hopper platform and Blackwell B100/200 GPUs, are driving significant opportunities. Rakesh projects data center revenues to grow substantially, potentially reaching $280 billion by 2027, with NVIDIA maintaining its leadership in AI hardware. Moreover, Rakesh also likes the product innovation of the company. For instance, the introduction of cutting-edge products like the Rubin 3nm GPU and Vera CPU, featuring advanced capabilities like HBM4 support and enhanced networking, is expected to act as growth catalysts. As a result of these innovations, Rakesh has raised NVIDIA Corporation’s (NASDAQ:NVDA) fiscal 2025 revenue estimates to $120.4 billion and fiscal 2026 estimates to $159.6 billion, reflecting confidence in its growth trajectory. Moreover, the company has been able to maintain net profit margins of 55.85%, thereby making it one of the best extremely profitable stocks to buy according to analysts.
Parnassus Growth Equity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) continued to lead the market for graphics processing units and semiconductor chips needed to power AI applications. Because our position in the stock is an underweight relative to the nearly 12% of the benchmark it now represents, it was a relative detractor for the year.”
3. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
TTM Net Profit Margin: 31.07%
Number of Hedge Fund Holders: 68
Analyst Upside Potential: 49.59%
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company focused on inventing, developing, manufacturing, and commercializing medicines for serious diseases. The company utilizes proprietary technologies like VelociSuite, to produce optimized human antibodies and bispecific antibodies. Its marketed products include EYLEA, Dupixent, Libtayo, Kevzara, and others.
On March 14, Evan Seigerman, an analyst from BMO Capital, maintained a Buy rating on the stock with a price target of $903. Seigerman views the recent court decision regarding the Eylea biosimilar case as a modest setback but believes it does not overshadow Regeneron’s long-term growth potential. He is particularly optimistic about Regeneron Pharmaceuticals, Inc.’s (NASDAQ:REGN) robust pipeline, especially in oncology and other therapeutic areas. Moreover, he also believes that the upcoming data releases for products like itepekimab in COPD and fianlimab in NSCLC/melanoma are expected to drive growth. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the best extremely profitable stocks to buy according to analysts.
Amalthea Fund stated the following regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q3 2024 investor letter:
“Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) – the biggest loser in the book by absolute dollars. Regeneron is a large position for us. We wrote the position up in June 2021 letter. The stock has almost doubled since the original write-up, but it is down on the month. Allow some time for an explanation There are two ways of looking at Regeneron. The sum-of-the-parts way and the platform way.
Regeneron has 11 approved drugs but two comprise most of the cash flows. The two are Eylea and Dupixent.
Eylea is a VEGF drug that is injected into patients’ eyes and stops macular degeneration (the main cause of blindness in old people). The drug stops capillaries growing in the retina…” (Click here to read the full text)
2. Novo Nordisk A/S (NYSE:NVO)
TTM Net Profit Margin: 34.78%
Number of Hedge Fund Holders: 64
Analyst Upside Potential: 58.76%
Novo Nordisk A/S (NYSE:NVO) is a leading global healthcare company that specializes in diabetes care and other chronic diseases such as obesity, hemophilia, and growth hormone disorders. It operates through two main business segments including Diabetes and Obesity Care and Biopharmaceuticals.
On March 11, Evan Seigerman from BMO Capital maintained a Buy rating on the stock with a price target of $105. The analyst noted that the company’s existing products have shown robust performance, reinforcing confidence in their current market position. The company’s deep knowledge in this sector positions it well to handle competitive pressures and capitalize on new opportunities. Notably, Novo Nordisk A/S (NYSE:NVO) is working on advanced treatments like CagriSema, which aim to improve existing therapies.
In addition, Novo Nordisk A/S (NYSE:NVO) achieved remarkable financial performance in 2024, driven by strong demand for its diabetes and obesity treatments, particularly semaglutide-based drugs like Wegovy and Ozempic. It grew its revenue by 25% to DKK 290.4 billion ($40.5 billion), with Q4 revenue increasing by 30% year-over-year. Semaglutide-based drugs contributed significantly, generating DKK 186 billion ($24.9 billion), which accounted for 60% of total sales. It is one of the best extremely profitable stocks to buy according to analysts.
Burke Wealth Management stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its Q4 2024 investor letter:
“Novo Nordisk A/S (NYSE:NVO): Shares of Novo-Nordisk were under consistent pressure during the fourth quarter, first following the nomination of Robert F. Kennedy Jr. to head the Department of Health and Human Services and second following the release of Phase III results of its Cagri-Sema obesity drug. Regarding RFK’s nomination, we are going to wait until he is confirmed and sets an agenda before we leap to the conclusion that he is going to somehow eliminate one of the most popular and important drug classes (GLP-1s) in the country…
1. AppLovin Corporation (NASDAQ:APP)
TTM Net Profit Margin: 33.55%
Number of Hedge Fund Holders: 95
Analyst Upside Potential: 76.73%
AppLovin Corporation (NASDAQ:APP) is a technology company that offers AI-powered advertising solutions and software platforms to help businesses reach, monetize, and grow their global audiences. On March 13, Analyst Jason Bazinet from Citi maintained a Buy rating on the stock with a price target of $600.
The analyst noted that despite competitive overlaps with platforms like Meta, AppLovin Corporation’s (NASDAQ:APP) tools have continued to be effective, as evidenced by sustained client usage. This demonstrates the company’s ability to generate incremental sales for its clients. Moreover, the company has onboarded approximately 600 eCommerce customers, with 80% scaling their spending. It is also actively pursuing international expansion and enhancing its AdTech solutions for eCommerce, which is expected to catch up with its established mobile gaming ad model.
During the fiscal fourth quarter of 2024, the company grew its advertising revenue by 73%, which resulted in total revenue growing by 44% year-over-year. Moreover, the company has been able to maintain net profit margins of more than 33% thereby making it the best extremely profitable stock to buy according to analysts.
ClearBridge Mid Cap Strategy stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q4 2024 investor letter:
“Stock selection in IT was the greatest contributor to performance on strength in AppLovin Corporation (NASDAQ:APP) and Marvell. AppLovin is the world’s leading mobile game and app advertising platform, providing software for marketing and monetization, powered by its proprietary AI targeting engine Axon. We see opportunity for AppLovin to continue to expand and grow its share of the market for mobile app marketing at a time when mobile gaming ad spend is recovering from a higher-rate-driven trough. We also see the potential for the company to expand its addressable market to include e-commerce advertising, around which initial forays have been encouraging. With strong incremental margins and management keeping expenses controlled, the company should be able to drive significant free cash flow growth as revenue continues to scale.”
While we acknowledge the potential of AppLovin Corporation (NASDAQ:APP) to grow, 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 APP 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.
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