In this article, we discuss the 12 best global stocks to buy according to hedge funds.
The United States has long been a magnet for global businesses seeking to tap into its robust economy and dynamic financial markets. Several key economic policies and initiatives have been instrumental in encouraging these enterprises to remain active participants in US stock markets. The US offers the world’s largest consumer market, with a Gross Domestic Product (GDP) of $25 trillion and a population of 335 million. Household spending accounts for nearly a third of global consumption, making it an attractive destination for businesses aiming to expand their market reach. The regulatory environment is conducive to starting and operating a business, ensuring that companies, regardless of origin, compete on an even playing field. This transparency and predictability in the legal system bolster investor confidence and encourage sustained engagement in US stock markets.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
To further promote foreign direct investment (FDI), the US Department of Commerce launched the SelectUSA program. Since its inception, SelectUSA has facilitated more than $250 billion in investments, leading to the creation or retention of over 230,000 jobs. By providing actionable information and serving as a liaison between investors and economic development organizations, SelectUSA plays a pivotal role in attracting and retaining global businesses in the US market. The US has also implemented tax reforms aimed at creating a more business-friendly environment. The country continues to invest in infrastructure and technological innovation, providing businesses with the necessary tools and resources to thrive.
Access to cutting-edge technology, a skilled workforce, and a culture of innovation fosters an environment where companies can grow and remain competitive. Despite these advantages, global businesses must navigate challenges such as economic and political uncertainties. Recent reports indicate a shift in investment preferences, with some investors reconsidering their concentrated investments in US markets due to factors like stretched valuations and geopolitical tensions. For instance, a significant reduction in US stock holdings has been observed, with nearly 90% of investors viewing US equities as overvalued, per a recent Reuters report. This trend underscores the importance of continuous policy evaluation to maintain the attractiveness of US stock markets.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
The companies that have large businesses and are primarily based outside the United States were shortlisted. They were then ranked according to hedge fund sentiment. The top twelve were selected for this list. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Best Global Stocks to Buy According to Hedge Funds
12. Scorpio Tankers Inc. (NYSE:STNG)
Number of Hedge Fund Holders: 32
Scorpio Tankers Inc. (NYSE:STNG) is a provider of marine transportation of petroleum products worldwide. In the third quarter of 2024, the company reported adjusted net income of $87.7 million, with basic earnings per share of $1.83 and diluted earnings per share of $1.75. As per the third quarter of 2024, the company paid a quarterly dividend of $0.40 per share. The firm has a strong history of dividend performance, with 2 consecutive years of dividend growth—71.32% higher than the sector average of 1.2 years. It has maintained 11 consecutive years of dividend payments, outperforming the sector by 208.23%, compared to the sector average of 3.6 years. For the fourth quarter of 2024, the company had a net income of $68.6 million, or $1.48 basic and $1.43 diluted earnings per share.
11. Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 33
Novartis AG (NYSE:NVS) manufactures pharmaceutical and consumer healthcare products. For the fiscal year 2024, net sales reached $50.3 billion, reflecting an 11% increase (12% at constant currency), driven primarily by a 14-percentage-point contribution from volume growth. In mid-December, BioAge and Novartis announced their partnership on the discovery of new therapeutic targets for the treatment of age-related diseases and conditions. Under this agreement, BioAge will receive $20 million as an upfront payment and will be able to receive up to $530 million in milestones. In February, The Wall Street Journal reported that Novartis CEO Vas Narasimhan was taking a highly selective approach toward potential acquisitions in the obesity treatment sector. The firm is actively scouting for next-generation obesity drug candidates to expand its portfolio and capitalize on emerging market opportunities.
10. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 54
Shell plc (NYSE:SHEL) is a British multinational oil and gas company headquartered in London, England. In the fourth quarter of 2024, cash flow from operating activities was $13.2 billion, primarily driven by Adjusted EBITDA and working capital inflows of $2.4 billion. In February, Shell awarded a $70 million contract to Noble for the use of its semi-submersible rig, Noble Developer, in the Americas. The 180-day contract, including mobilization and demobilization, will begin in the third quarter of 2026. Shell has emphasized its confidence in Noble’s focus on ensuring safety and efficiency as part of the deal.
9. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 55
AstraZeneca PLC (NASDAQ:AZN) manufactures and sells pharmaceutical and medical products. For the fiscal year 2024, total revenue increased by 21% to $54,073 million, driven by a 19% rise in product sales, continued growth in partnered medicines (alliance revenue), and the achievement of sales-based milestones (collaboration revenue). In February, the company received a recommendation for approval from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) for its drug Imfinzi (durvalumab) as a treatment for adults with limited-stage small cell lung cancer (LS-SCLC). In addition to improving OS, Imfinzi also showed a 24% reduction in the risk of disease progression or death, extending progression-free survival (PFS) to a median of 16.6 months, compared to 9.2 months for placebo.
8. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 64
Shopify Inc. (NYSE:SHOP) is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. As per the latest earnings, fourth-quarter revenue grew by 31% with a free cash flow margin of 22%, while full-year revenue increased by 26% with an 18% free cash flow margin. Shopify surpassed $1 trillion in cumulative GMV processed, with Shop Pay usage growing to 38% of GPV in 2024, up from 33% in 2023. The company anticipates the first quarter of the 2025 revenue growth in the mid-20% range year-over-year, with gross profit dollars growing at a slightly lower rate. Free cash flow margin for Q1 is expected in the mid-teens, up from 12% in the first quarter of the prior year.
7. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 64
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company with more than 95 years of innovation and leadership in diabetes care. The company reported sales in North American operations increased by 30% in the Danish kroner (30% at CER), and sales in International Operations increased by 17% in the Danish kroner (19% at CER) for the fiscal year 2024. In January, the company announced positive results from a phase 1b/2a trial of amycretin, a once-weekly GLP-1 and amylin receptor agonist. The trial evaluated the drug’s safety, tolerability, pharmacokinetics, and effectiveness in 125 participants with overweight or obesity problems.
6. Linde plc (NASDAQ:LIN)
Number of Hedge Fund Holders: 70
Linde plc (NASDAQ:LIN) is an industrial gas and engineering company. For the fiscal year 2024, sales totaled $33 billion, remaining flat compared to 2023; however, underlying sales grew 2% due to price increases and steady volumes. Operating profit reached $8.6 billion, while adjusted operating profit totaled $9.7 billion, reflecting a 7% increase compared to the previous year. The operating profit margin stood at 26.2%, and the adjusted operating profit margin was 29.5%, an improvement of 190 basis points compared to the previous year. In February, the company announced that it secured a record number of new small on-site projects for the supply of nitrogen and oxygen for the fifth successive year. During 2024, the company signed 59 new long-term agreements for which it will build, own and operate 64 plants at customer sites.
5. Canadian Pacific Kansas City Limited (NYSE:CP)
Number of Hedge Fund Holders: 74
Canadian Pacific Kansas City Limited (NYSE:CP) owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. In the fourth quarter of 2024, revenues increased by 3% to $3.9 billion from $3.8 billion in the fourth quarter of the previous year. In February, the company announced that it had reached a tentative four-year agreement with the United Steelworkers (USW) covering clerical and intermodal employees in Canada. In the same month, the company officially opened the Patrick J. Ottensmeyer International Railway Bridge with a ceremonial ribbon cutting over the Rio Grande. The $100 million bridge, named after the final KCS president and CEO, who passed away in July 2024, is the only railroad bridge connecting Laredo, Texas, and Nuevo Laredo, Tamaulipas.
4. PDD Holdings Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 85
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that owns and operates a portfolio of businesses. Total revenues in the third quarter of 2024 reached $14,157.9 million, marking a 44% increase from $9,809.2 million in the same period of the prior year. In February, media reports indicated that PDD Holdings was facing significant headwinds, including regulatory scrutiny in China, global trade uncertainties, and intensified competition from Amazon’s new Haul service. The US government has recently ended the ‘de minimis’ trade exemption, which previously allowed packages valued under $800 to enter the country duty-free. This exemption was heavily utilized by companies like Temu and Shein to offer low-cost products to US consumers.
3. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 86
ASML Holding N.V. (NASDAQ:ASML) is a global innovator in the semiconductor industry. The company reported €28.3 billion in total net sales and €7.6 billion in net income in the fiscal year 2024. In February, the company announced that it would no longer publish its closely-watched quarterly new order bookings in its financial reports. In January, Reuters reported that the Dutch government has recently aligned its export controls with US measures, imposing stricter regulations on the export of certain advanced chip making equipment produced by companies like ASML. Starting in April 2025, ASML will be required to obtain licenses from the Dutch government for exporting specific high-end lithography machines, including some Deep Ultraviolet (DUV) systems.
2. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) provides fundamental technology infrastructure services to merchants, brands, retailers and businesses to market, sell and operate using the Internet. The company posted revenue of $33,701 million in the third quarter of 2024, reflecting a 5% year-over-year growth driven by steady market demand and strategic business expansions. In January, Alibaba introduced the Qwen 2.5-Max AI model, which it claims surpasses DeepSeek’s V3 model. Alibaba’s long-term investments in AI, including the development of generative AI tools for e-commerce, position the company for growth in cloud services and global expansion. In February, Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, announced the official launch of its first cloud region in Mexico, marking a significant milestone in its commitment to accelerating Mexico’s digital transformation and fostering innovation across Latin America.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. As per the fourth quarter, revenue grew by 38.8% year-over-year, while net income and diluted EPS saw a significant increase of 57%. In February, media reports indicated that the company is taking an extremely cautious approach to ensure it complies with new US export restrictions on China’s chip sector. TSM has told its Chinese customers using 16-nanometer or better technology that it won’t complete their orders unless they use chip packaging services from US-approved suppliers.
While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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