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.
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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.
7) Gold Fields Limited (NYSE:GFI)
% Gain on a YTD Basis: ~43.6%
Market cap as on March 6: ~$18.04 billion
Number of Hedge Fund Holders: 24
Gold Fields Limited (NYSE:GFI) operates as a gold producer. Bank of America Securities analyst Jason Fairclough reiterated a “Buy” rating on the company’s stock, setting a price objective of $20.00. The analyst’s rating is backed by a combination of factors that highlight the company’s recent performance and strategic developments. One significant reason is Gold Fields Limited (NYSE:GFI)’s FY 2024 gold production, which surpassed the consensus expectations by 2% and remains in line with Bank of America’s projections despite a YoY decrease. Notably, group attributable gold-equivalent production for 2024 was 10% lower YoY and came in at 2,071koz. The decline was because of reduced production in the H1 of the year, particularly at Gruyere, South Deep, Salares Norte and Cerro Corona.
Furthermore, the All-in Sustaining Cost (AISC) was slightly above the consensus but remained below Bank of America’s forecast, reflecting potential cost efficiency improvements. Notably, the Group AISC (including Asanko) rose 26% from US$1,295/oz in 2023 to US$1,629/oz in 2024. The analyst has noted the growth potential from future projects such as the Windfall project in Canada and the Tarkwa/Iduapriem JV in Ghana. Also, the favorable outlook on the gold market, with anticipations of price increases aided by ongoing uncertainties and higher global debt levels, further strengthens the recommendation on Gold Fields Limited (NYSE:GFI)’s stock. For 2025, Gold Fields Limited (NYSE:GFI) expects attributable gold equivalent production to be between 2.250Moz and 2.450Moz.
6) Rocket Companies, Inc. (NYSE:RKT)
% Gain on a YTD Basis: ~42.8%
Market cap as on March 6: ~$30.9 billion
Number of Hedge Fund Holders: 30
Rocket Companies, Inc. (NYSE:RKT) is a Detroit-based fintech platform company, which includes mortgage, real estate and personal finance businesses. FY 2024 was a foundational year for the next chapter of the company, given the expansion of its purchase market share. The purchase market share saw a growth of 8% YoY in 2024, aided by strategic optimizations throughout its processes, teams, marketing, and technology—cementing its ability to serve a greater number of homebuyers and drive sustainable growth.
Rocket Companies, Inc. (NYSE:RKT) also drove significant operating leverage, and continued building the future of homeownership. The company’s focus on AI-driven processes is expected to help it achieve long-term growth. Rocket Logic, the company’s proprietary AI-driven loan origination system, continues to transform client interactions and underwriting efficiency, enabling retail bankers and operations teams to serve 54% more clients in Q4 YoY. In 2024, automation in mortgage qualification alone saved more than 1 million hours of team member time, resulting in the generation of $40 million in efficiency gains.
Seven Corners Capital, an investment management company, published its Q3 2024 investor letter. Here is what the fund said:
“Rocket Companies, Inc. (NYSE:RKT), 9% position (Cost Basis: $8.24)
Rocket Companies, which was up 32% YTD in 2024, represents the newest large position in the SCC Composite Portfolio, having been purchased in December 2022. RKT represents a play on a future decline in mortgage rates if and when inflation becomes subdued again.
RKT shareholders should take a measure of comfort in the fact that the company is ultimately helmed by founder Dan Gilbert. who owns 1.85 billion shares of stock (on an as-converted basis) through Rock Holdings Inc.”
5) Life Time Group Holdings, Inc. (NYSE:LTH)
% Gain on a YTD Basis: ~30.1%
Market cap as on March 6: ~$6.1 billion
Number of Hedge Fund Holders: 36
Life Time Group Holdings, Inc. (NYSE:LTH) offers health, fitness, and wellness experiences to a community of individual members. Analyst John Baumgartner from Mizuho Securities maintained a “Buy” rating on the company’s stock and has a $38.00 price target. The rating was backed by factors highlighting the company’s strong performance and growth potential. Life Time Group Holdings, Inc. (NYSE:LTH) demonstrated healthy results, with Q4 EBITDA and revenue marginally exceeding expectations, reflecting strong operational efficiency and effective management strategies.
In Q4 2024, the company’s revenue rose 18.7% to $663.3 million, thanks to the continued strong growth in membership dues and in-center revenue, fueled by higher average dues, membership growth in its new and ramping centers, and increased member utilization of the in-center offerings. It saw adjusted EBITDA of $177.0 million in Q4 2024, reflecting 28.5% YoY growth. As per the analyst, Life Time Group Holdings, Inc. (NYSE:LTH) has set records in member engagement, retention rates, and revenue per membership, demonstrating its ability to maintain customer loyalty in a competitive market. Furthermore, the strategic reinvestment in programming and enhanced analytics continue to aid Life Time Group Holdings, Inc. (NYSE:LTH)’s growth trajectory, with the expansion of digital capabilities and new revenue streams further cementing its position, says Baumgartner.
White Brook Capital Partners, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:
“Life Time Group Holdings, Inc. (NYSE:LTH) had a terrific 2024 as the Company became free cash flow positive and operated at a high level, opening new locations and achieving very healthy margins. Here in January, the Company preannounced fourth quarter 2024 results and introduced better than expected 2025 guidance. The stock continues to outperform. Interestingly, in this fourth quarter, the Company achieved its long term leverage ratios ahead of schedule. Given the 25% EBITDA growth expected for 2025 and the capital lightness of its newer ventures, it’s likely there will be a stock buyback or a dividend announced early this year. Lifetime is no longer cheap, but it’s an almost perfect company that is well managed and has a solid future.”
4) KE Holdings Inc. (NYSE:BEKE)
% Gain on a YTD Basis: ~34.8%
Market cap as on March 6: ~$28.8 billion
Number of Hedge Fund Holders: 47
KE Holdings Inc. (NYSE:BEKE) is engaged in operating an integrated online and offline platform for housing transactions and services. The company remains well-placed to benefit from the Chinese government’s focus on stabilizing the broader real estate market. Given its leading market position, any policies stimulating market activity or increasing buyer confidence can directly translate to increased transaction volumes for KE Holdings Inc. (NYSE:BEKE). The company has also highlighted that supportive policy packages rolled out by the government at September-end have shown promising results. In October, transaction volumes on the company’s platform saw a rebound, hinting at the start of the market recovery.
KE Holdings Inc. (NYSE:BEKE)’s technology-driven approach can also align well with government initiatives focused on modernizing and bringing greater efficiency to the broader real estate sector. Furthermore, in its home renovation and furnishing and home rental services, KE Holdings Inc. (NYSE:BEKE) has been strengthening its foundational capabilities throughout its product development, process restructuring, and supply chain improvements. With increased urbanization in China and the concept of the sharing economy, the rental market is expected to see strong growth.
Baird Asset Management controlled Chautauqua Capital Management, a boutique investment firm, released the Q3 2024 investor letter. Here is what the fund said:
“KE Holdings Inc. (NYSE:BEKE) reported better-than-expected results this year, but its valuation was depressed due to pessimism toward the property market in China. Recently announced stimulus measures in China and specific measures for its property market have somewhat reduced the extreme pessimism seen earlier in the year.”
3) Okta, Inc. (NASDAQ:OKTA)
% Gain on a YTD Basis: ~37.3%
Market cap as on March 6: ~$18.4 billion
Number of Hedge Fund Holders: 72
Okta, Inc. (NASDAQ:OKTA) sells solutions for identity and access management. Mizuho analyst Gregg Moskowitz upped the company’s stock to “Outperform” from “Neutral” with a price objective of $127, an increase from $110. The company released strong results for Q4 2024, with its current remaining performance obligations (cRPO) increasing 15% YoY. Notably, cRPO represents subscription backlog which is expected to be recognized over the upcoming 12 months. Mizuho opines that Okta, Inc. (NASDAQ:OKTA) is a clear leader in the critically important identity management market.
Also, the firm believes that the company will increasingly benefit from the group of newer products which have started to drive a meaningful contribution. Elsewhere, DA Davidson analyst Rudy Kessinger upped Okta, Inc. (NASDAQ:OKTA)’s stock to “Buy” from “Neutral” with a price objective of $125, up from $90. As per the firm, Okta, Inc. (NASDAQ:OKTA)’s sales productivity reached a multi-year high. Also, while newer products continue to contribute more meaningfully, enterprise and channel contribution are picking up.
Amidst evolving IT and security landscape, the companies continue to turn to Okta, Inc. (NASDAQ:OKTA) as their identity partner for its ability to deliver the broadest array of modern identity security with the flexibility to meet demands. White Brook Capital Partners, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:
“Okta, Inc. (NASDAQ:OKTA) was basically unchanged from where we bought it in 2024, although its had a good start to 2025. Okta’s products are used by customers and consumers to manage and secure identities. I believe we acquired shares at an attractive price and look forward to publishing a write up early this year.”
2) CVS Health Corporation (NYSE:CVS)
% Gain on a YTD Basis: ~49.1%
Market cap as on March 6: ~$83.0 billion
Number of Hedge Fund Holders: 74
CVS Health Corporation (NYSE:CVS) offers health solutions. Mizuho Securities analyst Ann Hynes maintained the bullish stance on the company’s stock, providing a “Buy” rating. The analyst’s rating is backed by several factors that suggest potential for the stock. The recent earnings report demonstrated that CVS Health Corporation (NYSE:CVS) performed better than the anticipations in Q4 2024, with adjusted EPS exceeding both consensus and internal estimates. Notably, the company posted GAAP diluted EPS of $1.30 and adjusted EPS of $1.19 in Q4 2024. As per the analyst, this indicates robust operational performance, mainly in the face of challenges within the Health Care Benefits segment, which exceeded the expectations despite a decline.
Furthermore, Hynes highlighted that CVS Health Corporation (NYSE:CVS)’s guidance for 2025, despite slightly below consensus, was received positively, as it demonstrates a transitional year for the company that could result in a recovery in margins in upcoming years. Elsewhere, Allen Lutz from Bank of America Securities reiterated a “Buy” rating on CVS Health Corporation (NYSE:CVS)’s stock with a price target of $75.00, courtesy of the potential earnings growth driven by Aetna’s ability to support its existing earnings base as it returns to normal profit margins. Additionally, the substantial operating leverage in the company’s model supports this rating.
Ariel Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Lastly, American healthcare company, CVS Health Corporation (NYSE:CVS) underperformed in the period. The company preannounced a third-quarter preliminary profit estimate materially below consensus expectations and pulled its 2024 guidance due to continued medical cost pressures. Investor concerns around the recently proposed Pharmacy Benefit Management (PBM) legislation further weighed on shares. Despite these challenges, management reiterated its focus on improving margins and enhancing its positioning in Medicare Advantage (MA). CVS believes the program can remain an attractive business for Aetna and CVS Health over time as it implements a multi-year repricing strategy across plan level benefits. Meanwhile, CVS continues to take actions to drive long-term success including the appointment of longtime company executive David Joyner as President and CEO as well as adding four new board members.”
1) Alibaba Group Holding Limited (NYSE:BABA)
% Gain on a YTD Basis: ~64.5%
Market cap as on March 6: ~$333.3 billion
Number of Hedge Fund Holders: 107
Benchmark analysts gave a “Buy” rating on Alibaba Group Holding Limited (NYSE:BABA)’s stock and the price objective of $190.00. The optimism stems from expected fundamental improvements throughout its core divisions, such as e-commerce, cloud computing, and Artificial Intelligence and Data Computing (AIDC). Furthermore, Benchmark has highlighted the potential impact of the acceleration of AI adoption in China, thanks to the breakthrough of DeepSeek, an AI technology. The analysts at the firm opine that Alibaba Group Holding Limited (NYSE:BABA) remains well-placed to benefit from the secular growth trend, potentially resulting in strong upside potential for the company’s stock.
Alibaba Group Holding Limited (NYSE:BABA)’s strong emphasis on AI can place it as a leader in next-gen cloud services and e-commerce solutions. Furthermore, the AI integration throughout the platforms can result in improved operational efficiency, enhanced user experiences, and new revenue streams. Also, Alibaba Group Holding Limited (NYSE:BABA)’s e-commerce platforms have demonstrated signs of improved monetization. Its vast user base and rich data resources offer significant opportunities for targeted advertising and value-added services.
Artisan Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Alibaba Group Holding Limited’s (NYSE:BABA) share price decline was primarily giving back the gains from the prior quarter. Recall that all Chinese stocks surged last quarter after the Chinese government unveiled an unanticipated stimulus that temporarily captivated investors. The reality of the undersized stimulus and the challenges facing the Chinese economy eventually prevailed, leading Chinese equities—including Alibaba—to come back down to earth. Despite our concerns about China’s economic outlook, which we outlined in detail in last quarter’s letter, shares of Alibaba still represent significant value. The company is a leading player in several attractive market segments. We believe management is doing the right things, such as selling off businesses and returning capital to shareholders. It has made several changes to management and strategy that we expect will return the business to healthy growth over the coming year. In our opinion, the valuation is depressed and does not reflect a fair value for a company with these attributes.”
While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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