This article looks at the 7 best money making stocks to buy now. We also discuss the stock market’s recent performance and how tariff wars could impact gains in 2025.
The US markets have been on a stellar run over the past couple of years, with two-year gains of 53%. This is the best performance for the broad market index since the 66% rally between 1997 and 1998.
READ ALSO: 15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years and 12 Best S&P 500 Stocks to Invest in According to Analysts.
The stock market has benefited from waning inflation, declining interest rates, and a resilient economy that has avoided recession. While continued growth is projected for 2025, analysts also warn of the rally having gone too far, with a correction in the offing this year. Moreover, the looming threat of fierce trade wars is already taking a toll on investor sentiment.
The broad market index fell for the fourth successive day on Tuesday, February 25, slipping 0.47% amid heightened concerns about economic growth and global trade. According to CNBC, investors are turning to US bonds, with treasury yield dropping below 4.3% to touch the lowest level since December.
The US president has announced that tariffs on Canada and Mexico will begin next month, ending the month-long suspension. The new administration also recently imposed additional 10% tariffs on Chinese goods and continues to warn the European Union of similar import taxes, citing the bloc’s treatment of Washington.
Protectionist policies have sparked market concerns about which countries will be next on the American president’s list, leaving several large multinationals unsure of how to plan. Past trends show that the broad market index dropped by 5% on days when the US, under Trump’s first stint as president, announced tariffs in 2018 and 2019. The index fell by a cumulative 7% when other countries imposed retaliatory tariffs.
The recent consumer confidence survey for February has added to the negative mood, with results coming in weaker than economists’ estimates and registering the largest deterioration since August 2021. This is the third straight monthly decline, pushing the index to 98.3%, its lowest since June 2024.
Stephanie Guichard, senior economist of global indicators at The Conference Board, stated the following about the dip:
Of the five components of the Index, only consumers’ assessment of present business conditions improved, albeit slightly. Views of current labor market conditions weakened. Consumers became pessimistic about future business conditions and less optimistic about future income. Pessimism about future employment prospects worsened and reached a ten-month high.
Amid rising uncertainty, let’s shift focus on some of the best money making stocks to buy now.
Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels
Methodology
For this article, we sifted through screeners to identify stocks with a market cap of over $2 billion (mid-cap or above), whose ROE was greater than 30%, and ROI of more than 25%, as of the close of business on February 25. From there, we selected the 7 stocks with the highest number of hedge fund investors, based on Insider Monkey’s database of over 1,000 prominent 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).
7 Best Money Making Stocks To Buy Now
7. Mastercard Incorporated (NYSE:MA)
Market Cap: $514.23 billion
ROE: 191.95%
ROI: 52.36%
Number of Hedge Fund Holders: 151
Mastercard Incorporated (NYSE:MA) is a payment card services company that provides financial services to individual consumers, merchants, small and large businesses, and governments by facilitating electronic funds transfers. Through its robust network of digital and cross-border payments, the company facilitates transactions in more than 150 currencies across 200 countries and territories.
On January 30, Mastercard Incorporated (NYSE:MA) announced stellar results for the fourth quarter of fiscal 2024, with profit beating analysts’ estimates on strength in holiday season spending. The company reported adjusted net income of $3.5 billion for the quarter, translating to earnings of $3.82 per share, beating estimates by 13 cents.
Mastercard Incorporated (NYSE:MA)’s net revenue for Q4 totaled $7.5 billion, growing 14% year-over-year, or 16% on a currency-neutral basis. It also saw a 20% increase in cross-border volume during the quarter, with strong growth in travel and non-travel-related spending. The company is poised for continued growth with international travel returning to pre-pandemic levels.
Mastercard Incorporated (NYSE:MA) is also bolstering its value-added services offerings through strategic acquisitions. In December last year, the company enhanced its cybersecurity offerings with the $2.65 billion acquisition of Recorded Future, a global threat intelligence firm. Earlier in October, it acquired Minna Technologies, a Swedish subscription management startup that makes it easier for users to manage their subscription plans.
The stock has gained over 7% year-to-date. It is one of the best money making stocks to buy, with impressive returns on equity and investment. Wall Street analysts are bullish on Mastercard Incorporated (NYSE:MA) with a consensus Buy rating and an average share price upside potential of 8%.
Investors have been encouraged by recent developments in the company. According to Insider Monkey’s database for Q4 2024, 151 hedge funds held a stake in Mastercard Incorporated (NYSE:MA), up from 131 at the end of the third quarter.
6. Uber Technologies, Inc. (NYSE:UBER)
Market Cap: $156.57 billion
ROE: 60.08%
ROI: 31.26%
Number of Hedge Fund Holders: 166
Uber Technologies, Inc. (NYSE:UBER) is an American transportation company that provides ride-hailing services, food delivery, courier services, and freight facilities. It enjoys a dominant position in the US ride-hailing marketplace, with a remarkable 76% share.
The global shift toward convenience and ride-hailing is driving strong growth for Uber Technologies, Inc. (NYSE:UBER), with several prominent investors piling into the stock. David Tepper significantly raised Appaloosa Management’s stake in UBER last quarter by 98%. The growing trend of autonomous driving could further drive long-term gains for investors.
Uber Technologies, Inc. (NYSE:UBER) reported strong financial results during its Q4 2024 earnings call on February 5, with gross bookings growing 18% year-over-year. The company’s quarterly revenue was up 20% from last year to $12 billion. Net income for the quarter stood at $6.9 billion, or $3.21 per share, improving from $1.4 billion, or $0.66 per share in Q4 2023.
The company’s share price has risen by over 26% so far in 2025. Wall Street analysts maintain a consensus Strong Buy rating for the stock and anticipate a further 20% uptick, on average, in the share price.
Andrew Arons, Founder and Managing Partner at Synergy Advisory Management Group expects Uber Technologies, Inc. (NYSE:UBER) shares to hit an all-time high within the next six months. Here is what he stated on a recent program on Schwab Network:
I think Uber stock is going to hit all-time highs. I would say probably within the next six months, we’ll see it reach all-time highs. I wouldn’t be surprised if it hits 100 this year. So yeah, I think they’re moving in the right direction. They are one of those stocks attracting a lot of money, and a lot of money is starting to flow into Uber. They’re also making some really nice partnerships, and I think that’s going to propel the stock.
Investor sentiment around the stock remains robust. According to Insider Monkey’s database for Q4 2024, 166 funds held a stake in the company, up from 136 at the end of the third quarter. Uber Technologies, Inc. (NYSE:UBER) is among the best money making stocks to buy now.
5. Apple Inc. (NASDAQ:AAPL)
Market Cap: $3.71 trillion
ROE: 136.52%
ROI: 63.80%
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is known for its consumer electronics, software, and other related products. Its premium line of products, which includes the iPhone, iPad, Mac computers, and a range of other accessories, has earned the company widespread acclaim and customer loyalty.
On January 30, Apple Inc. (NASDAQ:AAPL) reported financial results for the first quarter of fiscal 2025. Despite a 1% dip in iPhone sales due to weakness in Greater China, the company’s gross margin reached a record 46.9%, driven by a flourishing services business. Total revenue stood at $124.3 billion, up 4% year-over-year, while quarterly diluted EPS grew 10% to $2.40 per share.
Apple Inc. (NASDAQ:AAPL) recently launched the iPhone 16e, which will offer artificial intelligence features at a dramatically lower price compared to its standard flagships. The company is hopeful this would help in bolstering demand for its most profitable product lineup through a more affordable option.
The tech giant has also reached an agreement with the government of Indonesia to resume iPhone 16 sales in the country. Jakarta had banned Apple Inc. (NASDAQ:AAPL) from selling the smartphone in Indonesia due to a regulation mandating that phones and tablets being sold in Indonesia must have at least 40% locally-produced components. In December, the company announced plans to invest $1 billion in a manufacturing plant in the Asian country.
Considering its impressive ROI and ROE, Apple Inc. (NASDAQ:AAPL) is one of the best money making stocks to buy now. Wall Street analysts maintain a positive outlook for the company, with a consensus Buy rating. Investor sentiment remains strong. According to Insider Monkey’s database for Q4 2024, 166 hedge funds held a stake in the company, an improvement from 158 at the end of Q3.
4. Alphabet Inc. (NASDAQ:GOOG)
Market Cap: $2.15 trillion
ROE: 32.91%
ROI: 28.68%
Number of Hedge Fund Holders: 174
Alphabet Inc. (NASDAQ:GOOG) owns several notable platforms such as Google Search, Google Maps, Gmail, and YouTube. The company is also known for pioneering work and research in cloud computing, quantum computing, and artificial intelligence. It is on the fourth spot in our list of the best money making stocks to buy now.
During the Q4 2024 earnings call on February 4, Alphabet Inc. (NASDAQ:GOOG) reported a quarterly revenue of $96.47 billion, up 12% year-over-year, driven by strong momentum across the business. Total operating income increased 31% during the quarter while operating margin rose by five percentage points to 32%. Net income surged 28% from last year to $26.54 billion. EPS stood at $2.15, representing a 31% growth compared to Q4 2023 and beating estimates by two cents.
Robust results in Q4 have raised investor confidence in the stock. The London Company Large Cap Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:
Alphabet Inc. (NASDAQ:GOOG) – GOOG was a top performer this quarter reflecting strong results from its ad business, Cloud growth, and margin enhancements. Investors got some clarity on the antitrust lawsuits during the quarter, but potential outcomes from these cases remain uncertain. Margins in the core business continue to improve, and growth in the Cloud business accelerated. Management has executed its expense control plans and expanded margins through better product and process organization. GOOG has a solid balance sheet, significant market share, and generates strong returns on invested capital.
Another driver of positive momentum for Alphabet Inc. (NASDAQ:GOOG) has been the recent launch of its latest quantum computing chip, called Willow, which is expected to be useful for large-scale simulation and code-breaking when quantum computing matures. The technology will help reduce errors exponentially as it scales up using more qubits. Industry experts describe this as a major breakthrough that has been pursued for nearly three decades.
Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of over 22%. According to Insider Monkey’s database for Q4 2024, 174 hedge funds held a stake in the company.
3. Visa Inc. (NYSE:V)
Market Cap: $679.19 billion
ROE: 50.51%
ROI: 35.84%
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) is a payment technology company. It facilitates electronic transactions worldwide in more than 200 countries and territories through its VisaNet network. The company’s share price has surged 11% year-to-date and boasts impressive returns on equity and investment, which makes it an attractive stock for investors.
On January 30, the company reported financial results for the first quarter of fiscal 2025, beating profit estimates due to a splurge during the holiday shopping season. Net revenue surged 10% from last year to $9.5 billion, driven by growth in processed transactions, payments volume, and cross-border volume.
During the quarter, Visa Inc. (NYSE:V) completed the acquisition of Featurespace, a software company that develops AI payment protection technology to prevent and mitigate financial crimes. This move is expected to further bolster the company’s reputation as a reliable financial services provider.
Visa Inc. (NYSE:V) repurchased approximately 13 million shares worth $3.9 billion in Q1. The company also distributed $1.2 billion in dividends, reflecting its commitment to shareholder returns. Following recent financial results, most analysts maintained their Buy rating for the stock.
According to Insider Monkey’s database for Q4 2024, 181 hedge funds held a stake in Visa Inc. (NYSE:V), up from 165 at the end of the third quarter. The London Company Large Cap Strategy stated the following regarding the company in its Q4 2024 investor letter:
Visa Inc. (NYSE:V) – V’s competitively advantaged and resilient business model makes it a steady compounder. The stock price rallied a bit in November following the election as antitrust enforcement may be looser under the new administration. This is relevant for V’s who is currently facing an antitrust case from the Department of Justice (filed in September), and regularly engages in acquisitions to grow.
2. NVIDIA Corporation (NASDAQ:NVDA)
Market Cap: $3.10 trillion
ROE: 127.21%
ROI: 83.16%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company. It is the go-to company for firms looking for GPUs and semiconductors as they increase spending on artificial intelligence, which has been a significant catalyst behind the chipmaker’s growth.
Driven by robust demand for AI chips and a growing interest in artificial intelligence, NVIDIA Corporation (NASDAQ:NVDA)’s market value surged by more than $2 trillion last year to reach $3.28 trillion at the close of 2024. This was an increase of over 170% from its market value at the end of 2023.
However, on January 27, NVIDIA Corporation (NASDAQ:NVDA)’s shares crashed 17%, resulting in a market cap loss of nearly $600 billion, amid concerns about increased competition from China’s DeepSeek. Four weeks later, the stock has almost fully recovered to the benefit of several investors who bought the dip.
In further good news for the company, the government of South Korea has announced that it plans to acquire 10,000 high-performance GPUs this year to build a national AI computing center. These include NVIDIA Corporation (NASDAQ:NVDA)’s H100 and H200 GPUs. Moreover, the demand for the company’s H20 chips has also jumped amid a rise in Chinese firms adopting DeepSeek’s AI models.
NVIDIA Corporation (NASDAQ:NVDA)’s financial performance remains robust. On February 26, the company declared a record full-year revenue of $130.5 billion for fiscal 2025, up 114% from last year. Non-GAAP diluted EPS was $2.99, increasing 130% from a year ago. These staggering figures alone warrant a place for NVDA among the best money making stocks to buy.
Investors are also bullish on the stock. According to Insider Monkey’s database for Q4 2024, 223 hedge funds held a stake in the company, up from 193 at the end of the third quarter.
1. Meta Platforms, Inc. (NASDAQ:META)
Market Cap: $1.67 trillion
ROE: 37.14%
ROI: 27.07%
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is one of the largest technology companies in the world. It owns numerous popular social media platforms such as Facebook, WhatsApp, Instagram, and Threads. An estimated 3.2 billion people use at least one of Meta’s apps every day.
The stock gained 71% in 2024 and is already up 15% year-to-date in 2025 on the back of advancements in AI integration, strategic restructuring, and successful streamlining of operations. Meta Platforms, Inc. (NASDAQ:META)’s impressive profitability metrics and commitment to shareholder returns have further enhanced the stock’s appeal among investors.
During its Q4 2024 earnings call on January 29, Meta Platforms, Inc. (NASDAQ:META) reported revenues of $48.39 billion for the fourth quarter and $164.50 billion for the full year, representing increases of 21% and 22% from the corresponding periods last year. Net income surged 49% during Q4 to $20.8 billion, while for the full year, it stood at $62.36 billion, a remarkable increase of 59.5% year-over-year.
Meta Platforms, Inc. (NASDAQ:META)’s capital return program included share repurchases worth $29.75 billion in 2024. The company also made dividend payments of $5.07 billion during the year, including $1.27 billion in the fourth quarter.
Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 6%. According to Insider Monkey’s database for Q4 2024, 262 hedge funds held a stake in the company, up from 235 at the end of the third quarter.
Overall, META ranks first among the 7 Best Money Making Stocks To Buy Now. While we acknowledge the potential of internet content and information companies, 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 META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
