In this article, we will take a look at the 14 best holding company stocks to buy right now.
The Treasury Yield Market
The treasury yield has been moving towards its lowest point in a month following a comment from the Treasury Secretary, Scott Besson. The secretary suggested that the new administration is focused on the 10-year treasury and its yield, rather than the Fed cutting interest rates. On February 6, Ed Mills, Managing Director at Raymond James, appeared in an interview on Yahoo Finance to discuss his outlook on the market amid new economic, political, and tax policies.
Mills reiterated a very important factor raised in the Secretary’s speech the day before, suggesting that the Trump tax cuts from 2017 were to be made permanent, adding $4 trillion to debt and deficit over the coming 10 years. He added that the policies also desire to cut tips and social security taxes, now bringing the total debt and deficit to $5 trillion. Mills suggested that the debt and deficit were so huge that it would be extremely challenging for the government to keep the “long end of the curve down.”
Why Value Investing is the Way to Go
In another interview on March 5 on Yahoo Finance, Michael Sonnenfeldt, founder and chairman at TIGER 21, shared his market thesis amid changing macroeconomic and political trends. He shared that while turmoil and confusion are encapsulating the market, his clients remain very strong, emphasizing his inclination towards value investing. He also added that his members are finding significant value in private equity and the private real estate industry.
He suggested that while a lot of indicators in the market point towards a possible rotation from growth into value, he remains cautious about the changing conditions, reiterating that it is currently very challenging to find value in the market environment. Sonnenfeldt added that focusing on the fundamentals of equities is of crucial importance at the moment, rather than company momentum, amid volatile economic and political conditions. He shed light on his member’s buying strategy, which happens to be entirely focused on the basics of a stock, emphasizing that others should follow suit.
While some stocks pose a risk due to the current market conditions, some stocks, especially those with strong fundamentals and long-standing businesses, offer greater protection and certainty. That said, let’s take a look at the 14 best holding company stocks to buy right now.
A senior executive looking up at a large boardroom filled with the stocks their company manages.
Our Methodology
To come up with the 14 best holding company stocks to buy right now, we went over similar rankings on the internet and compiled an initial list of 20 stocks. We then examined the hedge fund sentiment around every stock and picked the most popular ones. Our list is in ascending order of the number of hedge funds, as of Q4 2024.
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).
14 Best Holding Company Stocks To Buy Right Now
14. HSBC Holdings plc (NYSE:HSBC)
Number of Hedge Fund Holders: 21
HSBC Holdings plc (NYSE:HSBC) is a financial services company that ranks 14th on our list of the best holding company stocks to buy right now. The company services millions of customers across the globe through its four businesses. Some of its services include personal banking, business banking, corporate and institutional banking, and private banking. The financial organization serves nearly 41 million customers across 60 markets across the globe supported by 220,000 full-time employees globally. As of September 30, 2024, HSBC Holdings plc (NYSE:HSBC) had almost $3.1 billion in assets. In an impressive feat, the company received 33 prizes in the Euromoney Awards for Excellence 2024.
On February 5, Nick Lord, an analyst at Morgan Stanley, maintained a buy rating on HSBC Holdings plc (NYSE:HSBC) with a price target of HK$84.60. The analyst gave a buy rating based on the company’s recent financial statements and upward revisions to its revenue estimates. In addition to that, the forecast for fees and other income for the fiscal years 2025 and 2026 has been revised, explaining investors’ shared optimism in the stock. On the flip side, estimates for costs have been revised downwards, pointing to operational efficiencies and increased profitability. Lord also eyes strong shareholder returns in the future years, emphasizing his buy rating on the stock.
13. American International Group, Inc. (NYSE:AIG)
Number of Hedge Fund Holders: 48
American International Group, Inc. (NYSE:AIG) is a finance and insurance group prominent in the commercial and personal insurance lines segment. The company serves customers in 190 countries and jurisdictions through its wide range of operations and network partners. Some of its subsidiaries include American General Life Insurance Co., AIG Property Casualty Inc., AIG American General, and American Life Insurance Company, to name a few.
In the fourth quarter of 2024, the company generated $6.1 billion in net premiums written for its general insurance segment, up by 6% year-over-year. In addition to that, for the three months ended 2024, American International Group, Inc. (NYSE:AIG) generated $898 million in net income attributable to shareholders and $1.31 billion in net investment income. Similarly, for the 12 months ended December 31, 2024, AIG logged $4.25 billion in net investment income.
On February 14, analyst firm, Keefe Bruyette raised AIG’s price target from $87 to $90, keeping an outperform rating on the stock. The analyst is bullish on American International Group, Inc. (NYSE:AIG) because of its sustained underwriting margin progress that is expected to generate solid results for the company over the next 12 months.
12. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 64
Morgan Stanley (NYSE:MS) is an investment banking company that is also one of the best holding company stocks to buy right now. The company helps businesses, individuals, and institutions manage their wealth and achieve their financial goals. MS offers wealth management services, investment management services, investment banking, sustainable investing, and sales and trading services. Morgan Stanley’s (NYSE:MS) wealth management business is one of the fastest-growing businesses with more than 16 million clients across all its business channels.
In the fiscal year 2024, Morgan Stanley (NYSE:MS) generated net revenues worth $61.8 billion and net income worth $13.4 billion, reaffirming the company’s position in the industry. Its wealth management segment generated $28.4 billion in net revenues, reflecting the company’s performance in asset management and transactional revenues. Its investment management segment generated $5.9 billion in net revenues, which was primarily driven by asset management revenues. In an impressive feat, Morgan Stanley (NYSE:MS) saw a 25% increase in revenue in its investment banking segment, a 35% increase in its fixed income segment, and a 51% increase in its equity segment during the fourth quarter of 2024.
In addition to that, Morgan Stanley (NYSE:MS) also demonstrated a solid capital position, having repurchased $0.8 billion of its outstanding common stock during the fourth quarter and $3.3 billion for the complete fiscal year, as part of its extensive share repurchase program. Overall, MS has a large financial ecosystem with offices in 42 countries, explaining its financial performance and significance among customers.
11. The PNC Financial Services Group, Inc. (NYSE:PNC)
Number of Hedge Fund Holders: 67
The PNC Financial Services Group, Inc. (NYSE:PNC) is a diversified financial services company. It is engaged in retail banking, including residential mortgage, corporate and institutional banking, and asset management. The company operates through three segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group.
The PNC Financial Services Group, Inc. (NYSE:PNC) is investing around $500 million to open 100 new branches and renovate another 200 locations. This is an extension of PNC’s earlier plan, which was laid out in early 2024, to spend $1 billion in opening 100 new locations and renovating 1,200 others through 2028. The company’s major development is to enhance its offerings and provide its clients with convenient, in-person access to financial experts.
The PNC Financial Services Group, Inc. (NYSE:PNC) continues to perform remarkably well. In FY2024, it delivered a record revenue driven by 6% growth in its fee income business. The company expects its revenue to grow approximately 6% in 2025, driven by strong demand for its card and treasury business. In 2024, the company returned $3 billion of capital to shareholders through dividends and share buybacks, showing strong capital management.
10. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 81
The Goldman Sachs Group, Inc. (NYSE:GS) is an investment banking company known for its banking, securities, asset, and wealth management services. It operates in Asset & Wealth Management, Global Banking & Markets, and Platform Solutions segments.
The Goldman Sachs Group, Inc. (NYSE:GS) posted remarkable results in FY2024, with revenue growing by 15% year-over-year to $52.2 billion. The company’s profit margin of 26% soared by 17% from a year ago, driven by higher revenue. The company increased the percentage of first-lien positions in its portfolio to 96.3% in 2024, improving its portfolio security. In addition to that, Goldman Sachs has announced a new dividend structure with a base of $0.32 per share and supplemental variable distributions.
On February 19, Wells Fargo analyst Mike Mayo upgraded the price target on GS shares, up from $680 per share to $720 per share, and kept an Overweight rating. Mayo has raised its EPS estimates for GS, indicating better-expected margins in all three business lines.
9. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders: 86
United Airlines Holdings, Inc. (NASDAQ:UAL) ranks 9th on our list of the best holding company stocks to buy right now. The publicly traded airline holding company specializes in the transportation of people and cargo across borders in North America. The company provides a myriad of air travel services such as passenger flights and cargo transport. Every year, the company manages to fly 140 million people to over 300 destinations across six continents. Beyond its expansive network and company infrastructure, United Airlines Holdings, Inc. (NASDAQ:UAL) is also committed to the environment and takes pride in giving back to the community.
On the financial front, United Airlines Holdings, Inc. (NASDAQ:UAL) displayed top-tier performance in the fourth quarter of 2024. The company ended the year with $4.2 billion in pre-tax earnings for fiscal 2024 and $3.1 billion in net income. Similarly, in the final quarter of 2024, the company generated $1.3 billion in pre-tax earnings and $1 billion in net income. Throughout the year, UAL also posed a solid liquidity situation, generating $9.4 billion in operating cash flow and $3.4 billion in free cash flow.
In an impressive feat, in 2024, United Airlines Holdings, Inc. (NASDAQ:UAL) set a company record for the highest number of customers carried in a year, at 174 million with an average of 4,340 daily flights. In addition to that, the company also signed an agreement with SpaceX to bring Starlink’s Wi-Fi service to more than 1,000 of its airline mainline and regional aircraft. This service will provide fast internet to passengers and significantly improve the customer experience. This explains why hedge funds are bullish on the stock.
8. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 91
The Charles Schwab Corporation (NYSE:SCHW) is a financial services company that offers commercial banking, investment management services, wealth management, consulting, brokerage services, and retirement services. As per its latest update in December 2024, the company serves 36.2 million accounts with full-service investing and banking services across the globe. In addition to that, as of December 2024, SCHW had $10.31 trillion in client assets. Some of its subsidiaries include Charles Schwab Asset Management, OptionsXpress, Charles Schwab Trust Bank, and Family Wealth Alliance, LLC, to name a few.
In the fourth quarter of 2024, the company generated net income worth $1.8 billion and added $114.8 billion in core net new assets. In addition to that, The Charles Schwab Corporation (NYSE:SCHW) witnessed a 20% hike in its revenue compared to the fourth quarter of 2023. Similarly, new brokerage account openings increased by 23% year-over-year to 1.1 million, with active accounts reaching 36.5 million. In an impressive feat, its managed investing solutions segment recorded net inflows of $15 billion, bringing the full-year total to $55 billion.
7. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 96
Wells Fargo & Company (NYSE:WFC) ranks seventh on our list of the best holding company stocks to buy right now. The financial services company provides a wide range of financial services to all types of customers. Some of its services include bank accounts, loans, mortgages, investment management, and other banking services. In the fourth quarter of 2024, the company generated $20.4 billion in revenue and $5.08 billion in net income. An impressive feat was that the company saw an 11% increase in non-interest income due to improved results from its venture capital investments. Similarly, Wells Fargo & Company (NYSE:WFC) also saw a 12% decline in non-interest expense. Its wealth and investment management segment posted record results, increasing revenue by 8%.
On January 20, Glenn Thum, an analyst at Phillip Securities, maintained a buy rating on Wells Fargo & Company (NYSE:WFC) with a price target of $85. He maintained a buy rating on the stock because of the company’s sound financial performance and strategic initiatives. The company reported solid earnings in the fourth quarter of 2024, largely meeting expectations. In addition to that, Thum highlighted that the company increased its dividend by 14% year-over-year and delivered shareholder value. The company maintains a positive outlook for 2025, expecting significant growth in net interest income. Similarly, on January 16, Bank of America Securities assigned a buy rating to the stock with a price target of $86.
6. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 98
Johnson & Johnson (NYSE:JNJ) is a healthcare and pharmaceutical company committed to excelling in innovative medicine and MedTech. The company has been operational for more than 135 years and now boasts a family of 130,000 employees focused on serving people with complex diseases using innovative medicine and technology. Some of its key therapeutic areas include Oncology, Immunology, Neuroscience, Cardiopulmonary, and Specialty ophthalmology. Johnson & Johnson (NYSE:JNJ) also has stakes in several subsidiaries including Janssen Pharmaceuticals, Ethicon Inc., Abiomed, and Johnson & Johnson Vision, to name a few.
On February 3, Vamil Divan, an analyst at Guggenheim, raised his price target on JNJ from $162 to $166, keeping a neutral rating on the stock. The decision came after JNJ released earnings for the fourth quarter of 2024, largely meeting expectations. The analyst firm is particularly drawn to see how its pipeline and execution in oncology, neuroscience, and immunology play out. In addition to that, Divan is also looking forward to seeing how JNJ sustains its mid-single-digit growth expectations while dealing with immediate headwinds.
In the fiscal year 2024, Johnson & Johnson (NYSE:JNJ) generated $88.8 billion in revenue, up by 4.3%. Its Innovative Medicine Worldwide segment logged $57 billion and its World MedTech segment logged $31.9 billion in sales. According to the company, 2024 was quite a transformational year for JNJ, marking strong growth in its medicine portfolio and acceleration in innovative discoveries.
5. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 101
Citigroup Inc. (NYSE:C) is a financial services holding company that ranks 5th on our list of the best holding company stocks to buy right now. The company provides various financial products and services to consumers, corporations, the government, and institutions. Citigroup Inc. (NYSE:C) offers a variety of services such as personal banking, wealth management, global banking, and treasury and trade solutions to name a few. In the fourth quarter of 2024, the company generated revenue worth $19.6 billion and net income worth $2.9 billion. In fiscal 2024, the company logged $81.1 billion in revenue and $12.7 billion in net income, up from $78.5 billion and $9.2 billion in 2023.
Citigroup Inc. (NYSE:C) delivered exceptional results throughout the year, exceeding its guidance range. In addition to that, the company returned $7 billion in capital to common shareholders and announced a $20 billion repurchase program. 2024 was a remarkable year for the company in terms of achieving operational efficiency. During the year, Citigroup posted positive operating leverage, reaped benefits from its organization simplification efforts, and appointed a new banking leadership.
4. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 113
Bank of America Corporation (NYSE:BAC) is one of the biggest financial institutions in the United States that serves individuals, small to medium-sized businesses, large entities, and the government. The company offers a complete banking experience with supporting services such as investment management, risk management products, and other financial products and services. In the fourth quarter of 2024, the company generated $6.7 billion in net income, with its consumer banking segment making most of it at $2.8 billion, followed by its global banking segment at $2.1 billion. In addition to that, during the quarter, Bank of America Corporation (NYSE:BAC) logged $14.4 billion in net interest income, up by 3% from the fourth quarter of 2023.
Similarly, during the fiscal year 2024, BAC generated $101.9 billion in revenue, up from $98.6 billion during the same quarter in the previous year. The total net income generated during the year was worth $27.1 billion, up from $26.5 billion in the fourth quarter of 2023. In an impressive feat, Bank of America Corporation (NYSE:BAC) saw consumer investment assets reaching $518 billion, up by 22%. The company boasts a solid financial position, allowing it to return $21 billion of capital to shareholders in 2024. Bank of America Corporation (NYSE:BAC) expects to carry momentum in 2025 amid a solid economic backdrop and a supporting regulatory environment.
3. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 123
JPMorgan Chase & Co. (NYSE:JPM) is a financial services company that serves millions of customers across 100 global markets under its JP Morgan and Chase brands. As of December 31, 2024, the company had $4 trillion in assets and $345 billion in stockholders’ equity. JPM specializes in investment banking and financial services for all types of customers in the commercial and business sectors.
During the fourth quarter of 2024, the company reported $42.8 billion in revenue and $43.7 billion in managed revenue. By the end of the quarter, JPMorgan Chase & Co. (NYSE:JPM) had $4 trillion in assets under management and client assets worth $5.9 trillion, up by 18% year-over-year each. In the fiscal year 2025, the company expects to generate net interest income worth $94 billion (market dependent).
On February 7, Mike Mayo, an analyst at Wells Fargo, maintained a buy rating on the stock and set a price target of $300. Mayo gave a buy rating to JPM because of its robust market share growth and unmatched performance in the financials sector. The analyst also suggests that JPMorgan Chase & Co. (NYSE:JPM) is set to benefit from favorable regulatory changes. Similarly, on February 5, analyst firm, Evercore ISI also maintained a buy rating on the stock and set a price target of $273.
2. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 131
Berkshire Hathaway Inc. (NYSE:BRK-B) ranks second on our list of the best holding company stocks to buy right now. The company has several businesses in the financial, insurance, and other sectors. Its insurance business, GEICO, is particularly referred to as one of the best insurance companies in the United States. Some of its other businesses include Berkshire Hathaway Automotive, Berkshire Hathaway Speciality Insurance, and Berkshire Hathaway Energy Company, to name a few.
Berkshire Hathaway Inc. (NYSE:BRK-B) had another stellar year in 2024, with operating profit reaching $47.44 billion, up 27% from $37.35 billion in 2023. The company’s insurance underwriting operating profit was $9.02 billion and its insurance investment operating profit was $13.67 billion.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOGL) is one of the largest technology companies in the world with a suite of products and services for personal, commercial, and business use. Some of its products include Google Search, Google Maps, Gmail, Google Play, and YouTube to name a few. In the fourth quarter of 2024, the company grew its revenue by 12% to $96.5 billion. Its Google Services segment made up for most of the revenue, generating $84.1 billion during the quarter, up by 10%. The company attributed its growth to AI and growing momentum across other crucial aspects of the business.
In January, Alphabet Inc. (NASDAQ:GOOGL) introduced several AI advancements, enhancing its position in the space. The company made AI more accessible to a wider audience. In addition to that, the company also released Gemini 2.0 Flash, which is much faster and more capable than its predecessors. GOOGL also expanded Gemini’s capabilities to images, files, and YouTube videos, giving users greater opportunities and benefits. In an impressive feat, Alphabet Inc. (NASDAQ:GOOGL) revealed new tools and initiatives to improve the role of AI in education, automotive, and retail. Overall, the company expects to invest nearly $75 billion in capital expenditures in 2025, accelerating its advancements and progress in artificial intelligence.
While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that certain 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 GOOGL 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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