In this article, we will discuss the Stocks on The Rise: 10 Best Stocks to Buy Right Now.
As per Merrill Lynch, 2025 has not shown much movement. Between the US tariffs and trade wars, geopolitical scenarios, and more, investors continue to be surrounded by attention-grabbing headlines. The firm believes that investors are required to stay focused on numerous key trends that continue to emerge beneath the surface, such as a rebound in the global economic activity, demonstrating signs of a manufacturing recovery. The US continues to be aided by a strong consumer and healthy labor market with double-digit US earnings growth and the unfolding of market rotation. Elsewhere, China has been making efforts to revive its business confidence and consumption. Also, certain parts of Europe have been experiencing expansion mode.
Consolidation in Sector Valuations
Merrill Lynch believes that robust business confidence has been overwhelming tariff and trade worries, with the global economy demonstrating signs of picking up steam instead of slowing down as the consensus has been expecting. This has resulted in the bull run in equities to spread out from the US into other countries that have started to outperform the US. Generally, a synchronized global acceleration remains positive for the earnings outlook and risk assets.
While the growth stocks have been experiencing a sell-off and value stocks continue to appreciate, Morningstar has seen its sector valuations consolidate towards fair value. For instance, the healthcare, real estate, and basic materials were the most undervalued sectors when the year kicked off, but each has now moved closer towards the fair value. Elsewhere, consumer cyclical was overvalued and has experienced a drop to fair value.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Amidst Uncertainties, What Should Be the Strategy?
Morningstar highlighted the current headlines which continue to weigh on investors’ sentiments. From the corporate earnings and guidance, to the tensions related to DeepSeek, including Trump’s tariffs news, there has been significant volatility in the broader markets. Morningstar believes that investors are required to focus on fundamentals, maintain a long-term mindset, and focus on valuations. As per the firm’s valuations, the rotation into value stocks possesses sufficient ability to run. Apart from attractiveness of the value stocks, the rotation into value is expected to yield healthy returns as the broader economy slows and earnings of growth stocks also witness the same momentum.
With these trends in mind, let us now have a look at the Stocks on the Rise: 10 Best Stocks to Buy Right Now.
A financial analyst at his computer monitor, tracking the public company’s investments.
Our Methodology
To list the Stocks on the Rise: 10 Best Stocks to Buy Right Now, we used a screener to shortlist the stocks that have gained at least 30% YTD, and have a market cap of over $2 billion. We also mentioned the hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.
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).
Stocks On the Rise: 10 Best Stocks to Buy Right Now
10) Elbit Systems Ltd. (NASDAQ:ESLT)
% Gain on a YTD Basis: ~34.7%
Market cap as on March 6: ~$15.8 billion
Number of Hedge Fund Holders: 15
Elbit Systems Ltd. (NASDAQ:ESLT) is a leading global defense technology company, delivering advanced solutions. Its order backlog, which touched a record high of more than $22 billion, offers stability and resilience for the company, as its R&D investments continue to create strong foundations for long-term growth and development. Elbit Systems Ltd. (NASDAQ:ESLT)’s solutions and products continue to witness high demand. Approximately 66% of the current backlog remains attributable to orders from outside Israel, with ~37% of the backlog scheduled to be performed during the remainder of 2024 and 2025. In early January 2025, Elbit Systems Ltd. (NASDAQ:ESLT) was awarded a contract worth ~$60 million to supply its multi-layered Counter Unmanned Aerial Systems (C-UAS) to a NATO European country.
The contract is expected to be performed over 3 years. The contract follows a series of contracts awarded to Elbit Systems Ltd. (NASDAQ:ESLT) in the CUAS field. As part of this contract, the company will deliver its ReDrone™ modular Counter-UAS solution. Also, the company has announced the launch of Dominion-X, which is the next-generation state-of-the-art autonomous management operating system for unmanned platforms. Dominion-X provides advanced capabilities for planning, managing and operating diverse robotic platforms and payloads throughout multiple domains. Elbit Systems Ltd. (NASDAQ:ESLT) continues to innovate and secure new contracts, which are expected to drive its long-term growth.
9) XPeng Inc. (NYSE:XPEV)
% Gain on a YTD Basis: ~104.3%
Market cap as on March 6: ~$22.2 billion
Number of Hedge Fund Holders: 17
XPeng Inc. (NYSE:XPEV) is engaged in designing, developing, manufacturing, and marketing smart electric vehicles (EVs). UBS analyst Paul Gong upgraded the company’s stock from “Sell” to “Neutral,” courtesy of the growing recognition of AI potential in the equity markets, mainly after the DeepSeek impact. As per the analyst, investors seem more focused on value companies for their AI capabilities, even though those applications are not immediate. XPeng Inc. (NYSE:XPEV) strongly focuses on AI in the automotive sector, catching the attention of UBS. In 2025, the company plans to commence development and testing of its Turing AI Smart Driving system for international markets.
XPeng Inc. (NYSE:XPEV) has also announced its official entry to the UK and kicked off the pre-sale of its first right-hand drive model. With the AI-driven advancements, the company plans to offer a more intuitive, safer, and highly customizable driving experience, resulting in enhanced convenience and personalization for users. XPeng Inc. (NYSE:XPEV) has also showcased an impressive lineup of vehicles, providing a glimpse into the future of smart mobility, including XPENG P7+ (the world’s first AI-defined vehicle). Gong has also acknowledged the company’s impressive sales momentum.
XPeng Inc. (NYSE:XPEV) delivered 30,453 Smart EVs in February, reflecting a rise of 570% YoY. Deliveries of the XPENG MONA M03 exceeded 15,000 units for the 3rd consecutive month, and cumulative deliveries of the XPENG P7+ surpassed 30,000 within the first 3 months of its launch.
8) AST SpaceMobile, Inc. (NASDAQ:ASTS)
% Gain on a YTD Basis: ~54.3%
Market cap as on March 6: ~$10.5 billion
Number of Hedge Fund Holders: 22
AST SpaceMobile, Inc. (NASDAQ:ASTS) develops and provides access to a space-based cellular broadband network for smartphones. On a YTD basis, the company’s stock has seen a run up of ~54.3%, thanks to the recent advancements and optimism about its outlook. AST SpaceMobile, Inc. (NASDAQ:ASTS) advanced its customer ecosystem, formalized definitive commercial agreements, and expanded its U.S. Government capabilities.
UBS analyst Christopher Schoell upped the company’s price target to $38 from $31, keeping a “Buy” rating. While the firm believes that it is a high-risk, high-reward investment, scaling production, new carrier deals, and funding progress continue to add to the conviction. The company continues to make advancements in developing a space-based cellular broadband network. AST SpaceMobile, Inc. (NASDAQ:ASTS)’s satellite launches and significant partnerships with well-established telecom companies such as Verizon, AT&T, and Vodafone paint a positive growth outlook.
AST SpaceMobile, Inc. (NASDAQ:ASTS) remains focused on building and deploying satellites and expanding its commercial agreements during 2025, moving toward commercial-scale revenues. The company has secured a contract for $43.0 million in expected revenue with the US Space Development Agency (SDA) via a prime contractor, following successful testing on BlueWalker-3. AST SpaceMobile, Inc. (NASDAQ:ASTS) has agreements with ~50 mobile network operators globally, that possess ~3.0 billion existing subscribers globally. The company remains focused on raising strategic capital via non-dilutive approaches, which include commercial prepayments and commitments from mobile network operator partners.