Big name stocks refer to well-known companies that are widely recognized and have a significant presence in the stock market. These companies are often industry leaders and are included in major stock indices such as the S&P 500, Dow Jones Industrial Average, or Nasdaq Composite. These companies are characterized by their large market capitalizations, stable financial performance, and strong brand recognition.
In an interview on January 22, Dave Sekera, US Market Strategist at Morningstar, provided a detailed outlook for large-cap stocks in 2025. Sekera highlighted that the performance of large-cap stocks in 2024 was particularly strong, driven by several key factors. The explosive demand for artificial intelligence (AI) hardware and platforms, especially in the first half of 2024, significantly boosted the performance of large-cap tech stocks. Additionally, the US economy remained resilient, with faster-than-expected growth, which supported the performance of large-cap stocks. The Federal Reserve’s easing of monetary policy also played a crucial role in driving the market higher.
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However, Sekera noted that the rate of monetary policy easing is now slowing, and the market is pricing in fewer rate cuts this year than originally projected. This, combined with sticky inflation and a rise in long-term interest rates, suggests that the tailwinds that supported large-cap stocks in 2024 are beginning to recede.
Furthermore, Sekera pointed out that the concentration of market returns in 2024 was notable, with 10 stocks accounting for 58% of the market gain, despite representing only 30% of the market capitalization. This concentration is less than the 67% peak in June 2024, indicating a broadening of returns in the second half of the year. Despite this broadening, many of these large-cap stocks, particularly those tied to AI, are now trading at significant premiums. Sekera advised investors to be cautious, as very few of these large-cap stocks are currently undervalued, with most trading at 2-star or 1-star ratings, indicating they are overvalued.
Big name stocks remain a compelling investment choice, offering stability, strong financial performance, and long-term growth potential. With that in context, let’s take a look at the 12 best big name stocks to invest in now.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
Our Methodology
To compile our list of the 12 best big name stocks to invest in now, we used Finviz and Yahoo stock screeners to identify well-known, large-cap companies, that have a significant presence in the United States stock market. We then used Insider Monkey’s Hedge Fund database to rank 12 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? 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).
12 Best Big Name Stocks to Invest in Now
12. The Progressive Corporation (NYSE:PGR)
Number of Hedge Fund Holdings: 95
The Progressive Corporation (NYSE:PGR) is one of the largest and most successful insurance providers in the United States. The company has a rich history of delivering competitive insurance products and is known for its direct-to-consumer approach and pioneering tools, such as usage-based insurance programs.
The Progressive Corporation (NYSE:PGR) is making significant investments in marketing and advertising to fuel its growth. The company has achieved strong returns on its media spending and is maintaining a cost per sale below target acquisition costs. This efficiency has enabled the company to expand its customer base through both its app and agency channels. By leveraging advanced segmentation capabilities, the company is targeting high-quality customers and improving retention rates. The company is also using data and analytics to gain deeper insights into customer behavior and preferences to tailor its marketing strategies to specific segments and enhance the impact of its advertising efforts.
In addition, The Progressive Corporation (NYSE:PGR) is focused on expanding its product portfolio and entering new markets. The company has experienced substantial growth in its commercial lines business and aims to capitalize on this success by introducing new products and services designed to meet the needs of small businesses and entrepreneurs. Furthermore, The Progressive Corporation (NYSE:PGR) is investing in its technology platform and is emphasizing the development of new digital channels and tools to enhance customer interactions and improve convenience.
11. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holdings: 97
Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company, primarily serving markets across the United States. The company delivers energy solutions to residential, commercial, and industrial customers. Vistra Corp. (NYSE:VST) is also making strides in renewable energy and battery storage projects, aligning with clean energy goals.
Vistra Corp. (NYSE:VST) is actively pursuing various opportunities to grow its business, with a focus on expanding its presence in the energy market. One key area of growth is in the development of new energy projects, including solar and storage initiatives. The company has announced several new projects, including a solar project for Amazon and Microsoft, and is committed to executing on its existing project pipeline.
Vistra Corp. (NYSE:VST) sees significant opportunities in the data center space and is in discussions with several data center developers and operators about potential partnerships, including co-location deals at its existing sites and the development of new generation capacity to support data center load. The company’s nuclear and gas sites are of particular interest to data center operators due to their reliability and potential for long-term power purchase agreements. The company believes that its ability to offer a range of energy solutions, including renewable energy and energy storage, will be attractive to data center operators looking to reduce their carbon footprint and ensure a reliable energy supply.
10. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holdings: 98
Bank of America Corporation (NYSE:BAC) is one of the largest financial institutions in the world that provides a wide range of banking, investing, and financial services to individuals, businesses, and governments. Through its flagship Merrill investment arm, the company serves high-net-worth individuals with wealth management services. The bank has a strong presence in the United States and a significant global footprint.
Bank of America Corporation (NYSE:BAC) has been working to grow its consumer banking business, with a focus on increasing deposits, improving customer engagement, and expanding its product and service offerings. The company has seen success in this area, with deposit growth accelerating in recent quarters, and customer satisfaction scores reaching record highs. Bank of America Corporation (NYSE:BAC) has also been investing in its wealth management business, with a focus on expanding its advisory services, and assets under management.
Looking ahead, Bank of America Corporation (NYSE:BAC) is well-positioned to continue driving growth and expansion. The bank’s management team has outlined a clear strategy for growth, with a focus on investing in digital capabilities, expanding financial services offerings, and enhancing the customer experience.
9. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holdings: 99
Tesla, Inc. (NASDAQ:TSLA) is a pioneering American electric vehicle and clean energy company that has been at the forefront of the sustainable energy revolution. The company is one of the leading players in the global automotive and energy industries and has been continuously innovating and expanding its product lines to include electric vehicles, energy storage products, and robotics.
Tesla, Inc. (NASDAQ:TSLA) is investing in autonomous driving technology, with the goal of launching a robotaxi service. The company is developing dedicated autonomous vehicles, such as the Cybercab, which will be designed for ride-hailing and taxi services. By leveraging advanced autonomous driving technology, the company aims to create a network of self-driving vehicles that can operate safely and efficiently, reducing the need for human intervention and increasing transportation efficiency. Tesla, Inc. (NASDAQ:TSLA) is also committed to making electric vehicles more affordable and accessible. To achieve this, the company is working on developing cheaper models, reducing production costs, and improving manufacturing efficiency.
Tesla, Inc. (NASDAQ:TSLA) is also investing in artificial intelligence (AI) and energy solutions. The company’s AI team is working on developing advanced algorithms and machine learning models to optimize energy consumption and predict energy demand. Tesla, Inc. (NASDAQ:TSLA) is also expanding its energy storage businesses, with a focus on creating integrated energy solutions for homes, businesses, and utilities.
8. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holdings: 105
JPMorgan Chase & Co. (NYSE:JPM) is a global financial services firm with a rich history dating back to 1877. The company has a diverse range of businesses, including consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management. JPMorgan Chase & Co. (NYSE:JPM) operates in over 100 markets and is one of the largest and most well-established financial institutions in the world. The firm operates two divisions, Chase for retail banking and J.P. Morgan for investment banking.
JPMorgan Chase & Co. (NYSE:JPM) is actively pursuing various strategies to acquire new clients, expand its customer base, and drive overall growth in the company. One key area of focus is on acquiring new card accounts to increase its market share in the credit card industry. To achieve this, JPMorgan Chase & Co. (NYSE:JPM) is investing in targeted marketing campaigns, enhancing its digital application and onboarding processes to make it easier for new customers to sign up for its cards. The company is also offering competitive rewards and benefits programs.
JPMorgan Chase & Co. (NYSE:JPM) is also focused on expanding its consumer banking business, with an emphasis on attracting new customers to its deposit products, such as checking and savings accounts. The firm is leveraging its extensive branch and ATM network, as well as its online and mobile banking platforms, to reach new customers and provide them with a seamless and convenient banking experience. The firm is also offering competitive interest rates and terms on its deposit products, as well as new features and services, such as personalized financial planning and investment advice, to help attract and retain new customers.
7. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holdings: 106
Eli Lilly and Company (NYSE:LLY) is a pharmaceutical giant known for its groundbreaking research and development in treatments for diabetes, cancer, and neurological disorders. The company’s recent success with its incretin portfolio, including tirzepatide and orforglipron, has positioned it for significant growth in the coming years.
Eli Lilly and Company (NYSE:LLY) is committed to fully realizing the potential of its incretin portfolio, which has shown tremendous promise in treating obesity and related metabolic disorders. The company is also investing heavily in the development of new formulations and indications, including the oral medication orforglipron, which is expected to launch in the near future. Additionally, Eli Lilly and Company (NYSE:LLY) is working to expand access to its existing medications, such as tirzepatide, through improved pricing and reimbursement strategies. The company has a strong pipeline of follow-on products, including the triple-acting retatrutide.
While the incretin portfolio is a key driver of growth for Eli Lilly and Company (NYSE:LLY), the company is also focused on diversifying its business through strategic investments in other therapeutic areas. Eli Lilly and Company (NYSE:LLY) has a strong presence in oncology, immunology, and neuroscience, and is investing in new technologies and partnerships to drive innovation in these areas. The company is also exploring opportunities in emerging fields such as gene therapy and regenerative medicine, with the goal of creating new treatment options for patients with serious diseases.
6. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holdings: 112
UnitedHealth Group Incorporated (NYSE:UNH) is a diversified company offering insurance services through UnitedHealthcare and data-driven health solutions via Optum. The company is one of the largest healthcare providers in the U.S. and serves individual policyholders, employers, and healthcare providers.
UnitedHealth Group Incorporated (NYSE:UNH) is focusing on expanding its value-based care offerings. The company believes that value-based care is foundational to improving the health system and is working to lead the transition to a more sustainable and effective care model. Through its Optum Health business, UnitedHealth Group Incorporated (NYSE:UNH) is deepening its presence in existing markets and expanding into new geographies and services. The company is also investing in digital technologies and data analytics to enhance the consumer experience and improve health outcomes.
Another key area of focus for UnitedHealth Group Incorporated (NYSE:UNH) is its pharmacy benefits management (PBM) business, Optum Rx. The company is committed to making prescription medications more affordable and accessible for consumers. To achieve this, UnitedHealth Group Incorporated (NYSE:UNH) is working to educate policymakers and the public about the importance of PBMs in negotiating lower drug prices and promoting transparency in the pharmaceutical supply chain.
UnitedHealth Group Incorporated (NYSE:UNH) is leveraging data analytics, artificial intelligence, and digital technologies to enhance the consumer experience, improve health outcomes, and reduce costs. Through its Optum Insight business, UnitedHealth Group Incorporated (NYSE:UNH) is providing data-driven insights and solutions to healthcare providers, payers, and life sciences companies to help them make better decisions and improve the quality and efficiency of care.
5. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holdings: 120
Berkshire Hathaway Inc. (NYSE:BRK-B) is a multinational conglomerate that operates a diverse portfolio of businesses in various sectors, including insurance, freight rail transportation, utilities, manufacturing, retail, and more. The company is led by renowned investor and CEO Warren Buffett. Berkshire Hathaway Inc. (NYSE:BRK-B) has grown into one of the largest and most successful companies in the world.
Berkshire Hathaway Inc.’s (NYSE:BRK-B) diversified portfolio, comprising a range of businesses and industries, helps to mitigate risks and ensure that the company remains resilient in the face of economic uncertainty. Berkshire Hathaway Inc. (NYSE:BRK-B) is taking a cautious approach to investing, with around $325 billion in cash, to capitalize on potential investment opportunities that may arise in the future. This cash pile is also a deliberate strategy, driven by Buffett’s concerns about geopolitical risks, particularly the potential for a Chinese invasion of Taiwan, which could lead to a global economic depression.
In addition to its cash reserves, Berkshire Hathaway Inc. (NYSE:BRK-B) is actively managing its portfolio to optimize returns. The company has recently initiated stakes in Domino’s Pizza and Pool Corp., while reducing its holdings in Apple, Bank of America, and other companies. This portfolio rebalancing is a strategic move to minimize exposure to overvalued assets and maximize returns from undervalued ones. Berkshire Hathaway Inc.’s (NYSE:BRK-B) investment strategy is guided by a long-term perspective and focuses on quality companies with strong fundamentals and growth potential.
4. Visa Inc. (NYSE:V)
Number of Hedge Fund Holdings: 165
Visa Inc. (NYSE:V) is a global leader in digital payments and connects consumers, businesses, financial institutions, and governments across more than 200 countries and territories. The company operates the world’s most advanced payment network, facilitating trillions of dollars in transactions each year. Visa Inc.’s (NYSE:V) cutting-edge solutions and robust infrastructure support a variety of payment methods, ranging from traditional credit and debit cards to emerging technologies such as account-to-account (A2A) payments and digital wallets.
Visa Inc. (NYSE:V) is committed to driving innovation and making strategic investments to remain at the forefront of the rapidly evolving payments industry. The company has introduced Visa A2A, a solution designed for account-to-account transactions, with an initial focus on bill payments in the UK. Additionally, Visa Protect for A2A payments, which received the Juniper Research Platinum Award for Fraud and Security Innovation, is set to be piloted on 10 new networks in 2025. Visa Inc. (NYSE:V) is also advancing its flexible credentials initiative, enabling multiple payment options through a single Visa credential, with hundreds of issuers preparing for launches in 2025.
Visa Inc. (NYSE:V) is also investing in value-added services, such as marketing and consulting services, to drive growth. These services help merchants and financial institutions to better understand their customers and improve their payment experiences. By providing these services, Visa Inc. (NYSE:V) aims to deepen its relationships with its clients and drive revenue growth.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holdings: 202
Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, is a global technology conglomerate with a diverse portfolio of innovative businesses. The company is known for pioneering work in search, advertising, cloud computing, and artificial intelligence (AI).
Alphabet Inc. (NASDAQ:GOOGL) is prioritizing the development and integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies. The company is making significant investments in its AI platform, Gemini, which powers various applications and services, including search, advertising, and cloud computing. Through Gemini, Alphabet Inc. (NASDAQ:GOOGL) seeks to transform technology interactions, making them more intuitive and user-friendly. Additionally, the company is leveraging AI to enhance its advertising business by introducing innovative ad formats and platforms that utilize machine learning to deliver more targeted and engaging user experiences.
Beyond its AI initiatives, Alphabet Inc. (NASDAQ:GOOGL) is focusing on the growth of its cloud computing division, Google Cloud. The company is investing in the development of new cloud-based services and platforms, such as its AI-driven cloud platform, Vertex, and its advanced data analytics solution, BigQuery.
Moreover, Alphabet Inc. (NASDAQ:GOOGL) is exploring the autonomous vehicle sector through its subsidiary, Waymo. Waymo has achieved notable advancements in autonomous driving technology and has established partnerships with major automotive companies, including Uber and Hyundai, to expand its reach and capabilities.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holdings: 279
Microsoft Corporation (NASDAQ:MSFT) is a global leader in technology that offers software, hardware, and cloud-based solutions to individuals and businesses around the world. The company has evolved from being a traditional software provider into a comprehensive technology innovator, driving digital transformation and advancements across various industries.
Microsoft Corporation (NASDAQ:MSFT) is making substantial investments in its cloud computing platform, Azure, and is experiencing robust demand for Azure services, particularly in the field of AI. To meet this demand, Microsoft Corporation (NASDAQ:MSFT) is expanding Azure’s capacity by constructing new data centers in multiple regions, including Brazil, Italy, Mexico, and Sweden. This global expansion will enhance the company’s ability to serve its customers and address the rising need for cloud computing solutions. Additionally, Microsoft Corporation (NASDAQ:MSFT) is innovating across its technology stack to optimize AI workloads, offering a wide range of AI accelerators, including its proprietary Maia 100, as well as advanced GPUs from AMD and NVIDIA.
A critical area of focus for Microsoft Corporation (NASDAQ:MSFT) is the development of AI-powered products and services. The company is advancing its Productivity and Business Processes segment, which includes Office 365, LinkedIn, and Dynamics 365. Recently, Microsoft Corporation (NASDAQ:MSFT) introduced 365 Copilot, an AI-powered assistant, into productivity tools such as Word, Excel, and Outlook, which significantly enhanced user engagement and business value.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holdings: 286
Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest e-commerce platform and a leader in cloud computing through Amazon Web Services (AWS). The company caters to individual consumers, small businesses, and large enterprises. Amazon.com, Inc.’s (NASDAQ:AMZN) diverse offerings range from online retail and Prime streaming to AWS solutions for businesses.
Amazon.com, Inc. (NASDAQ:AMZN) is enhancing its advertising capabilities with new offerings, including Prime Video advertising and Generative AI-powered creative tools, which are expected to drive future growth. For consumers, the company has launched AI-powered shopping assistants like Rufus, which is now available in multiple countries and provides personalized recommendations and real-time pricing insights. Furthermore, Amazon.com, Inc. (NASDAQ:AMZN) is upgrading Alexa with new foundational AI models and incorporating artificial intelligence into its devices, including the latest Kindle Scribe. In Amazon Web Services (AWS), the company has maintained a competitive edge by introducing nearly twice as many machine learning and Generative AI features as its competitors in the past 18 months.
Amazon.com, Inc. (NASDAQ:AMZN) is also focusing on enhancing customer experience and improving operational efficiency. Within its retail segment, the company has introduced initiatives such as unlimited grocery delivery from Whole Foods Market, Amazon Fresh, and other grocery partners for $9.99 per month, alongside fuel discounts of $0.10 per gallon at select U.S. stations. To further streamline delivery times and reduce costs, Amazon.com, Inc. (NASDAQ:AMZN) has restructured its fulfillment network to enable more efficient distribution of inventory across regional centers.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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