This article will look at the best 15 stocks with buy ratings that hedge funds back immensely.
The U.S. stock market has been in chaos ever since President Trump announced his intent to increase tariffs on the U.S.’s trading partners. On April 2, 2025, the President officially presented the new tariff rates, calling them reciprocal tariffs. Since the presentation, the value of the U.S. stock market has started plunging. Though these tariffs have led to bloodbaths in many exchanges across the globe, the impact is heavy in the U.S. market where it originated.
China, one of the largest trading partners of the U.S., retaliated against the new tariff by slapping a 34% levy on U.S. goods, thus igniting a global trade war. The result? A $9 trillion wipeout in U.S. equity markets, according to CNBC. Experts are calling it the worst weekly performance since the COVID-19 crash.
READ ALSO: Friday’s 10 Worst Performing Stocks.
Retail investors are scrambling for the exits to protect their investments. However, hedge funds are quietly loading up on bargains. Analysts are perceiving an opportunity in the turmoil, and institutional investors are using the downturns to pepper their portfolios with high-conviction stocks at fire-sale prices. Right now, their buy lists are flashing green. They do not back the stocks unquestioningly, however, they look at the fundamentals, pricing power, and growth trends of the stocks to estimate their ability to outlast the storm.
If there is one thing we can learn from history, it is that markets often make their most significant rebounds after their steepest declines. When discussing the significance of virtues like patience and calmness in an investor during turmoil, a billionaire investor quoted a 19th-century poem: “If you can keep your head when all about you are losing theirs… yours is the Earth and everything in it.” His point? Panic is expensive. On the other hand, opportunity can be priceless when accumulating institutional interest signals to investors where to look.
This brings us to the heart of our article today. Combining hedge fund filings, analyst upgrades, and real-time market data, we have uncovered 15 stocks with Buy ratings, which could potentially refine your portfolio. Top hedge funds are piling into these stocks, making them more appealing to investors interested in generating income.
But don’t just take our word for it. History has given us a few examples to consider before making investment decisions. For instance, the 2020 pandemic crash is a prime example of how hedge fund portfolios can be better performers than the market index. Following the crash, hedge fund-backed stocks outperformed the market indexes by 14% in 2021. It indicates that institutional conviction can be louder than the market’s noise.
With that said, are you ready to see which stocks are cut? Let’s dive in. Stay with us as we unveil our top 15 stocks with Buy ratings, garnering the attention of hedge funds. The top 5 may surprise you.
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Our Methodology
We put together our list of 15 stocks by primarily considering the Buy ratings of the stocks. Our list included only those stocks with a strong Buy rating, as we see it as a crucial component for investors to make informed decisions. Another factor we considered was the hedge fund sentiment toward these stocks, according to Insider Monkey’s Q4 2024 database. It indicated the level of institutional interest in the stock. The value of hedge funds has also been used to rank the stocks on our list, with the top stock having the highest value of hedge funds.
Additionally, we filtered our list by excluding stocks with negative earnings per share (EPS) over the past five years. We regarded those stocks with a positive EPS since it reflects consistency in profitability. All the data used in the article were taken from financial databases and analyst reports, with all information current as of April 5, 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).
15. Trimble Inc. (NASDAQ:TRMB)
No. of Hedge Funds: 42
Value of the hedge funds: $2.54 billion
A Colorado-based company, Trimble Inc. (NASDAQ:TRMB) delivers hardware and software for positioning, modeling, and data analytics. The company covers various sectors, including agriculture, construction, geospatial, and transportation. Its technology integrates GNSS, lasers, optics, and AI to improve field productivity. The company survives the market competition by distinguishing itself from its peers using connected cloud platforms and end-to-end automation solutions.
With 42 hedge funds committing $2.54 billion to the company, investor confidence in Trimble Inc. (NASDAQ:TRMB) remains strong. The company saw a revenue of $983 million, which surpassed its mid-point guidance. During the fourth quarter, the company also recorded a historically high gross margin of 71.7%. Additionally, the $1 billion increase in share repurchase authorization, announced by the company, primarily gained high confidence for the stock. For the full year 2025, the company expects to record revenue between $3,370 million and $3,470 million, supported by the newly acquired global transportation telematics business units by Platform Science.
Trimble Inc. (NASDAQ:TRMB)’s 24.53% EPS growth over five years signals the company’s technological edge in the market. Analysts are also backing the stock with a Strong Buy rating, reflecting optimism in the company’s future potential. It is one of the best stocks with Buy ratings.
14. Clean Harbors, Inc. (NYSE:CLH)
No. of Hedge Funds: 44
Value of the hedge funds: $1.03 billion
Clean Harbors, Inc. (NYSE:CLH), headquartered in Massachusetts, is a leading provider of environmental, energy, and industrial services across North America. The company specializes in hazardous waste management, emergency spill response, and recycling services. In addition to government agencies, the company serves industrial clients as well. The extensive network of treatment facilities and incinerators gives the company a competitive edge over its peers. The company has an effective regulatory compliance and environmental services model, which allows it to capitalize on increasing environmental regulations.
With 44 hedge funds investing $1.03 billion, Clean Harbors, Inc. (NYSE:CLH) has garnered the confidence of institutional investors. The company reports a revenue growth of 11% in 2024. Specifically, the Environmental Services segment revenue has increased by 9%, contributing to total revenue growth. With increased efficiency, the company launched its new incinerator in Kimball, Nebraska, before the estimated time. It led to a 12% increase in North American capacity. For 2025, Clean Harbors expects a 6% year-over-year increase in its EBITDA, reaching between $1.15 billion and $1.21 billion.
Known for its leadership in environmental services, Clean Harbors, Inc. (NYSE:CLH) has increased its EPS by 33.64% over five years. The stock’s attractiveness as a long-term institutional capital has increased with the analysts issuing a Strong Buy rating.
13. Teledyne Technologies Incorporated (NYSE:TDY)
No. of Hedge Funds: 45
Value of the hedge funds: $1.23 billion
Teledyne Technologies Incorporated (NYSE:TDY) is a diversified industrial conglomerate. Headquartered in California, the company specializes in instrumentation, digital imaging, aerospace, and defense electronics. The company’s subsidiaries serve markets ranging from marine monitoring to semiconductor metrology. Teledyne Technologies uses proprietary sensor design, high-margin defense, and scientific instrumentation to generate market share amid growing competition. Strategic acquisitions of competitors like FLIR Systems have increased the company’s edge in the market. It is among the stocks with Buy ratings.
Our Insider Monkey database noted 45 hedge funds currently backing Teledyne Technologies Incorporated (NYSE:TDY), with $1.23 billion invested in shares. As per the Q4 earnings report, the company achieved record sales in the fourth quarter, reaching a 5.4% increase. It has successfully closed the Micropac acquisition. During Q1 2025, the company may complete the Excelitas carve-out transaction. The Digital Imaging segment saw a 2.5% increase in 2024, and the Instrumentation segment saw a 10.1% increase in sales in the fourth quarter. The segments are expected to drive up revenue further in the first half of 2025.
Teledyne Technologies Incorporated (NYSE:TDY)’s 9.91% EPS growth over five years suggests the company’s solid position in aerospace and imaging tech. Analysts have positive expectations regarding the company’s innovative strategies, as reflected in their assigning a Strong Buy rating to the stock.
