In this article, we will take a detailed look at the Top 12 Stocks to Buy According to Citadel Investment Group.
Citadel Investment Group was officially founded by Ken Griffin on November 1, 1990, with $4.2 million in assets under management. By the end of 2013, the fund had expanded to $16 billion, a remarkable growth driven by a combination of advanced computer algorithms, complex financial models, and a highly secretive approach in its initial years. Griffin was an early adopter of quantitative, technology-driven investment strategies, implementing sophisticated methods long before many firms had even integrated basic digital tools. His reliance on cutting-edge technology and data-driven decision-making positioned Citadel as a leader in the hedge fund industry, setting it apart from traditional investment firms. As of Q4 2024, it holds approximately $577.87 billion in 13F securities in its highly diversified portfolio.
Known more commonly as Ken Griffin, Kenneth Cordele Griffin was born in 1968. His interest in finance began early, and while still a student, he started investing from his Harvard dorm room. In 1986, he launched a small hedge fund that leveraged emerging quantitative analytics to guide investment decisions. A year after he earned a Bachelor of Arts with Honors in Economics from Harvard College in 1989, Griffin founded Citadel, which has since become one of the world’s most successful alternative investment firms. In addition to leading Citadel, Griffin serves as the Founder and Non-Executive Chairman of Citadel Securities, a major global market maker.
Citadel was built on the principle that exceptional talent, combined with advanced quantitative analytics and powerful technology, could unlock significant opportunities in capital markets. The firm’s culture emphasizes continuous learning, innovation, and meritocracy, earning it a reputation as one of the best places to work on Wall Street. Today, Citadel manages over $60 billion in investment capital, consistently ranking among the most profitable hedge funds worldwide. Its success has benefited a range of institutional investors, including pension funds, university endowments, hospital systems, and foundations, contributing to impactful advancements in fields such as medical research and scientific discovery.
Citadel Investment Group employs a diverse range of investment strategies, with a strong focus on fixed income, macro, and quantitative trading. Its fixed income and macro strategy, one of the firm’s longest-running approaches, targets interest rate swaps, sovereign bonds, inflation, currencies, emerging markets, equities, commodities, and credit. By leveraging macro and relative value strategies, the firm integrates quantitative modeling, deep macroeconomic insights, and monetary policy expertise to identify opportunities. The research and trading teams work collaboratively, applying both qualitative and quantitative analysis to generate and refine investment ideas.
Additionally, Citadel’s Global Quantitative Strategies (GQS), established in 2012, has rapidly grown into a major force in the industry. Utilizing advanced statistical and quantitative modeling techniques, its agile teams of researchers, engineers, and traders develop and execute investment strategies with precision. Specialization, collaboration, and centralized operations drive efficiency, allowing the firm to run complex strategies at scale. By combining cutting-edge technology with deep expertise, Citadel continues to expand its capabilities and strengthen its competitive position in global markets.
Beyond finance, Griffin has made a profound impact through philanthropy, donating over $2 billion to education, healthcare, and social initiatives. His philanthropic efforts, now coordinated through Griffin Catalyst, have expanded educational access, strengthened medical and research institutions, and supported cultural organizations. His strategic insights also played a key role in the development of Operation Warp Speed, accelerating COVID-19 vaccine distribution. Whether in business or philanthropy, Griffin’s commitment to data-driven decision-making and transformative impact remains a defining characteristic of his career.
Ken Griffin of Citadel Investment Group
Our Methodology:
The stocks discussed below were picked from Citadel Investment Group’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 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).
Top 12 Stocks to Buy According to Citadel Investment Group
12. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders as of Q4: 162
Citadel Investment Group’s Equity Stake: $548.18 Million
Salesforce, Inc. (NYSE:CRM), an American cloud-based software company, reported lower-than-expected quarterly revenue and issued a disappointing forecast. The company posted earnings per share of $2.78, surpassing analysts’ expectations of $2.61, but revenue came in at $9.99 billion, falling short of the anticipated $10.04 billion. While revenue grew 7.6% year-over-year for the quarter ending January 31, net income increased to $1.71 billion, up from $1.45 billion in the same period last year. Despite the revenue miss, Salesforce continues to experience steady financial growth.
Of the company’s Subscription and Support revenue segments, Service emerged strongest even though it underperformed analyst expectations, reaching a revenue of $2.33 billion. In the sales category, Salesforce, Inc. (NYSE:CRM) achieved revenue of $2.13 billion. Both figures marked an 8% increase but still fell short of consensus estimates of $2.33 billion and $2.37 billion respectively. A key development in the quarter was the launch of Salesforce’s second-generation AI tool, Agentforce, which integrates with Slack to assist employees. Since October, over 3,000 paid deals have been completed for Agentforce, and it has participated in 380,000 customer service interactions, with human intervention required in only 2% of cases. CEO Marc Benioff highlighted Salesforce’s ability to scale AI capabilities, differentiating it from competitors.
For fiscal 2026, Salesforce, Inc. (NYSE:CRM) projects adjusted earnings per share between $11.09 and $11.17, with revenue ranging from $40.5 billion to $40.9 billion, reflecting a 7.4% growth rate. However, these figures fell short of analyst expectations, which estimated adjusted earnings per share of $11.18 and revenue of $41.35 billion. The lower-than-expected forecast suggests potential challenges in maintaining revenue momentum, despite Salesforce’s ongoing investments in AI and cloud services. While the company remains on a growth trajectory, investors may be cautious about its ability to meet market expectations in the coming fiscal year.
Mar Vista Global Quality Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“Investors cheered a solid fiscal year Q3 performance from Salesforce, Inc. (NYSE:CRM), with results driven by strength in subscription revenues, current remaining performance obligations (CRPO), and operating margin. Both the Sales and Service Clouds returned to double-digit growth, fueled by strong adoption of multi-cloud and vertical-specific solutions. These results highlight Salesforce’s ability to address diverse customer needs and sustain growth across its core offerings.
Management expressed significant excitement about Agentforce, an organically developed generative AI product that is garnering enthusiasm from both system integrator partners and customers alike. This innovation underscores Salesforce’s commitment to delivering innovative solutions that enhance customer engagement and drive productivity. While Agentforce’s contributions to subscription revenues and CRPO bookings are still immaterial for now, the growing pipeline provides a solid foundation for optimism around Salesforce’s ability to productize and monetize its generative AI offerings.”
11. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders as of Q4: 108
Citadel Investment Group’s Equity Stake: $553.97 Million
Commonly known as Disney, The Walt Disney Company (NYSE:DIS) is an American multinational mass media and entertainment conglomerate headquartered in Burbank, California. Valued at a market cap of $203.9 billion as of March 4, 2025, the company also offers popular direct-to-consumer streaming services such as Disney+ and Hulu in addition to its extensive theme parks and resort experiences worldwide.
The Walt Disney Company (NYSE:DIS) exceeded expectations in its fiscal Q1 2025 earnings report on February 5, posting earnings per share of $1.76, compared to analysts’ estimates of $1.43. Revenue also came in higher than anticipated at $24.69 billion, surpassing the forecasted $24.55 billion. A key highlight was the entertainment streaming segment, which includes Disney+ and Hulu, achieving its second consecutive profitable quarter. The segment generated $293 million in operating income on $6.07 billion in revenue, marking a 9% year-over-year increase. Despite a net loss of 700,000 Disney+ subscribers worldwide, Hulu exceeded expectations by adding 1.6 million new subscribers following price increases in October.
Disney’s Direct-to-Consumer segment turned profitable for the first time, signaling progress toward sustainable streaming growth. The strong performance of Hulu, combined with increased advertising revenue for ESPN, contributed to a $247 million operating income boost for the company’s sports segment. These results underscore The Walt Disney Company (NYSE:DIS)’s ability to navigate industry challenges while expanding its streaming and sports divisions, reinforcing investor confidence in its long-term strategy.
As of Q4 2024, Citadel Investment Group significantly increased its holdings in The Walt Disney Company (NYSE:DIS) to approximately 4.98 million shares, marking a 1,786% rise from 263,866 shares in Q3. The fund’s stake in the company is now valued at nearly $553.97 million. Insider Monkey’s database indicated that 108 hedge funds held stakes in the company at the end of Q4 2024, with a value of nearly $6.61 billion, as opposed to 76 funds in Q3.
10. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders as of Q4: 80
Citadel Investment Group’s Equity Stake: $589.22 Million
On January 27. 2025, AT&T Inc. (NYSE:T) delivered strong fourth-quarter and full-year results, highlighting steady progress in attracting and retaining 5G and fiber subscribers. CEO John Stankey credited the company’s sustained execution over the past four years for positioning it for continued growth in 2025. He emphasized plans to expand the nation’s largest fiber network, modernize the wireless infrastructure, grow the business, and initiate share repurchases in the second half of the year. The American telecommunication company’s fourth-quarter revenue rose slightly to $32.3 billion from $32.0 billion in the prior year, while full-year revenue totaled $122.3 billion, reflecting a marginal 0.1% decline due to lower Business Wireline and Mobility equipment revenue, offset by gains in Mobility service, Consumer Wireline, and Mexico operations.
AT&T Inc. (NYSE:T)’s net income saw a significant year-over-year improvement, rising to $4.4 billion from $2.6 billion in the previous quarter. However, full-year net income declined to $12.3 billion from $15.6 billion, reflecting broader industry challenges and increased investment in network upgrades. Earnings per share for the quarter stood at $0.54, unchanged from the previous year but surpassing analyst expectations of $0.51. The results reaffirm the company’s strong financial position as it continues to invest in next-generation technology and infrastructure. With plans for network expansion and share repurchases in the latter half of 2025, AT&T Inc. (NYSE:T) remains focused on delivering long-term value to both customers and shareholders, making it a top stock to buy according to Citadel Investment Group.
AT&T Inc. (NYSE:T) CEO John Stankey highlighted the company’s growing use of AI and cloud technology to enhance customer relationships, improve products, and reduce costs. He noted that AI has already improved internal operations, particularly in software development, leading to increased efficiency and cost savings. Addressing the impact of DeepSeek, Stankey acknowledged that AI technology is still in its early stages and emphasized the need for AT&T to stay competitive by leveraging its unique data to refine pricing strategies, better target customers, and enhance market effectiveness. Looking ahead, Stankey expressed his goal for 2025 to be able to report strong business momentum driven by successful AI integration and execution.
TCW Relative Value Large Cap Fund stated the following regarding AT&T Inc. (NYSE:T) in its Q3 2024 investor letter:
“AT&T Inc. (NYSE:T), based in Dallas, TX, is a nationwide provider of voice, video, and data communications services to businesses and consumers in the wired, wireless, and broadband. At initiation, the stock had a $141 billion market capitalization and met all five valuation factors with an above market dividend yield of 5.6%. From a sustainability prism, the company completed its commitment to invest $2 billion by the end of 2023 to help bridge the digital divide. AT&T is working on enabling low-income households to access to low-cost broadband services through its Access service plan as well as reaching out to more rural communities and Tribal lands where internet access remains a challenge. It is nearly 85% the way to providing one million people in need with digital resources through AT&T Connected Learning® with the goal to be reached by the end of 2025. In 2020, the company announced that it is committed to be carbon neutral by 2035 with zero carbon emission across all operations. It is deploying Smart Climate Solutions – through efforts like its Connected Climate Initiative – that will help enable its business customers to reduce their emissions as well. The company’s goal is to help collectively reduce its emissions by one billion metric tons – a gigaton – by 2035, compared to 2018 levels. The primary catalysts are new/strong management and restructuring. John Stankey was appointed CEO in July 2020 and he is committed to refocusing the company and improving its financial performance. The company combined its WarnerMedia operation with Discovery during 1Q:22 which eliminated AT&T’s exposure to the rapidly evolving media industry and refocused its core telecommunication business thus eliminating a major drag on profitability and the company’s balance sheet by reducing long-term debt from a peak $176 billion during 2020 to $142 billion at the end of June 2024 quarter. AT&T is moving aggressively to reduce cost and sell non-core assets such as its advertising platform Xander to Microsoft† which was accomplished during 2022. The company has redesigned its network to be software driven structure reducing the capital investment cycle in its national network – resulting in a network that is flexible with unrivaled speed and reliability – thus enhancing its nationwide position. By the end of 2023, it expanded its 5G network to reach more than 302 million people in nearly 24,500 cities and towns in the U.S. The company’s mid-band 5G+ network alone grew to cover more than 210 million people. AT&T is one of the largest investors in digital infrastructure in the U.S. Over the five years ending 2023, the company invested nearly $150 billion primarily in its wireless, fiber optics, and wireline networks. The extensive restructuring and refocusing of AT&T on its core business should result in improved earnings and cash flow while at the same time reducing uncertainty for shareholders.”
9. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders as of Q4: 81
Citadel Investment Group’s Equity Stake: $623.75 Million
The Coca-Cola Company (NYSE:KO), a multinational beverage corporation established in 1892, is evaluating a potential shift toward increased plastic bottle usage in the U.S. due to rising aluminum costs. CEO James Quincey stated that the 25% import tax on steel and aluminum, imposed by President Trump to boost domestic manufacturing, may lead the company to rely more on PET plastic bottles if aluminum prices surge. While packaging costs are a relatively small portion of overall expenses, Coca-Cola is prepared to implement strategies to maintain affordability and consumer demand. Quincey downplayed the tariff’s impact, emphasizing that while it is notable, it will not drastically alter the company’s multibillion-dollar U.S. business. Additionally, the company is exploring mitigation strategies, such as hedging programs and sourcing aluminum domestically.
This possible shift comes as The Coca-Cola Company (NYSE:KO) faces mounting pressure from environmental groups that have labeled it the world’s top plastic polluter for six consecutive years. The company has increasingly leaned on aluminum cans to align with sustainability efforts and appeal to eco-conscious consumers, despite the material’s higher cost. A move back to plastic, even temporarily, could put Coca-Cola at odds with environmental advocates and consumers pushing for reductions in single-use plastics. Despite these sustainability concerns, the company’s financial performance remains strong, with fourth-quarter 2024 results exceeding analyst expectations. Revenue climbed 6% to $11.54 billion, and net income rose 11% to $2.2 billion. Organic revenue grew by 14%, driven by price increases and heightened demand in key markets such as the U.S., China, and Brazil.
On February 25, 2025, The Coca-Cola Company (NYSE:KO)’s Board of Directors approved its 63rd consecutive annual dividend increase, raising the quarterly dividend by 5.2% from $0.485 to $0.51 per share. This brings the annual dividend to $2.04 per share, up from $1.94 in 2024. The first-quarter dividend will be paid on April 1 to shareholders of record as of March 14. In 2024, Coca-Cola returned $8.4 billion in dividends to shareholders, contributing to a total of $93.1 billion in dividends paid since 2010.
Hayden Capital made the following comment about The Coca-Cola Company (NYSE:KO) in its third 2023 investor letter:
“It’s not just emerging markets either, where one could argue a “scarcity premium” given fewer quality public companies. Even in the US, The Coca-Cola Company (NYSE:KO) trades at ~30x P/E despite having the same earnings as 10 years ago.
Both of these companies actually have lower revenues than 10 – 15 years ago too, indicating that their profit growth is mostly from margin expansion. This can only last for so long before there’s no more excess expenses left to cut.
I find it ironic that all these companies trade as “bond-equivalents” in the minds of investors – even commanding lower yields than US treasuries, the safest security in the world. But it’s clear that their businesses are not nearly as safe. Coca-Cola is facing disruption risk from consumers shifting to new, heathier beverage brands.
But these companies are ~35% more expensive than US Treasuries, despite the heightened risk. On a risk-adjusted basis, one could argue the implied premium is even higher.”
Perhaps the explanation is simply the price volatility difference between these stocks and treasuries over the last two years. For example, 10-year Treasury bonds are down ~-20% since the beginning of 2022. By comparison, KO and PG are remarkably down only -4 – 6% over that time frame.”
8. Arthur J. Gallagher & Co. (NYSE:AJG)
Number of Hedge Fund Holders as of Q4: 77
Citadel Investment Group’s Equity Stake: $682.74 Million
An American insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois, Arthur J. Gallagher & Co. (NYSE:AJG) was established in 1927. With over 56,000 employees and providing services in more than 130 countries, it is one of the largest insurance brokers in the world.
Arthur J. Gallagher & Co. (NYSE:AJG) reported total revenue of $2.68 billion for Q4 2024, falling slightly short of analysts’ expectations of $2.69 billion. However, the company’s adjusted net earnings surged to $491.2 million, a notable increase from $402.4 million in the same period the previous year. Adjusted earnings per share (EPS) reached $2.13, significantly surpassing the projected $1.35. This strong financial performance highlights the company’s ability to maintain growth despite expenses related to acquisitions and workforce adjustments.
The brokerage segment saw a 12% year-over-year revenue increase, reaching $2.3 billion, underscoring Arthur J. Gallagher & Co. (NYSE:AJG)’s expanding market presence and service capabilities. The risk management division also demonstrated steady growth, with revenue climbing to $369.4 million, compared to $340.4 million in Q4 2023.
Arthur J. Gallagher & Co. (NYSE:AJG) continued its aggressive expansion strategy, completing 20 acquisitions in Q4 2024, adding an estimated annualized revenue of $387 million. Notably, its acquisition of AssuredPartners is expected to strengthen its market position further. Chairman and CEO J. Patrick Gallagher, Jr. emphasized the company’s sustained success, marking its 16th consecutive quarter of double-digit revenue growth, with organic revenue increasing by 7%. With a solid balance sheet and a clear focus on expansion, the company remains well-positioned for continued growth in the insurance brokerage industry.
By the end of Q4 2024, Citadel Investment Group significantly boosted its stake in Arthur J. Gallagher & Co. (NYSE:AJG), increasing its holdings to over 2.4 million shares—a substantial jump from 29,786 shares in Q3, representing a 7,976% rise. This investment is now valued at nearly $682.74 million. Data from Insider Monkey shows that 77 out of 1,009 hedge funds held positions in the company by the close of Q4, with total holdings valued at nearly $4.47 billion, up from 44 funds in the previous quarter.
7. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Citadel Investment Group’s Equity Stake: $692.57 Million
Meta Platforms, Inc. (NASDAQ:META) is rapidly increasing its presence in the digital advertising sector by leveraging AI-driven solutions, resulting in a 22% revenue surge in 2024, which is twice the industry’s growth rate. The integration of AI has significantly enhanced ad targeting, creativity, and efficiency, leading to a 32% improvement in advertiser return on investment (ROI) and a 17% decline in customer acquisition costs. Advertiser adoption of Meta’s AI-powered tools has quadrupled in just six months, contributing to a 14% increase in ad prices in Q4. As the company continues to develop innovations such as AI-driven video generation and with the digital advertising market projected to reach $513 billion by 2027, Meta Platforms, Inc. (NASDAQ:META) is well-positioned for sustained expansion.
The Menlo Park-based tech giant reported impressive Q4 2024 financial results, with revenue climbing 21% year-over-year to $48.4 billion, surpassing Wall Street’s estimate of $47 billion. Earnings per share (EPS) jumped 50% to $8.02, exceeding the anticipated $6.76, pushing Meta Platforms, Inc. (NASDAQ:META)’s stock up nearly 9%. The company’s digital advertising division remains its primary revenue driver, benefiting from advanced AI capabilities that improve content recommendations and ad targeting, further solidifying its competitive advantage in the market.
Meta Platforms, Inc. (NASDAQ:META) is preparing to launch a standalone Meta AI app in the second quarter of 2025, joining its existing platforms like Facebook, Instagram, and WhatsApp. This move aligns with CEO Mark Zuckerberg’s goal of making Meta the leader in artificial intelligence, competing with companies like OpenAI and Alphabet. Initially introduced in September 2023 as an AI-powered assistant, Meta AI has been integrated into the company’s apps, replacing search functions across its platforms and reaching 700 million active monthly users as of January 2025. While Meta AI is currently accessible through its website and existing apps, a dedicated app could enhance user engagement by offering deeper personalization and better organization of conversations.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
6. Edwards Lifesciences Corporation (NYSE:EW)
Number of Hedge Fund Holders as of Q4: 67
Citadel Investment Group’s Equity Stake: $697.22 Million
Headquartered in Irvine, California, Edwards Lifesciences Corporation (NYSE:EW) reported its financial results for Q4 and the full year ending December 31, 2024, highlighting strong performance across its product portfolio. The company achieved revenue of $1.39 billion, surpassing expectations by $30 million and reflecting a 9% year-over-year increase. Earnings per share (EPS) for the quarter stood at $0.59, compared to the projected $0.95. Additionally, the company maintained a solid gross profit margin of 79% and a strong liquidity position, holding $3 billion in cash and cash equivalents.
CEO Bernard Zovighian emphasized the company’s progress in advancing structural heart innovations, citing key growth drivers such as transcatheter aortic valve replacement (TAVR), mitral and tricuspid therapies, and emerging opportunities in structural heart failure and aortic regurgitation. Following the earnings announcement, Edwards Lifesciences Corporation (NYSE:EW)’s stock surged by 5.77% in after-hours trading, closing at $75. Analysts consider the stock undervalued, given its low price-to-earnings (P/E) ratio of 10.22 and an exceptionally low price/earnings-to-growth (PEG) ratio of 0.14, indicating strong investor confidence in future growth.
Edwards Lifesciences Corporation (NYSE:EW) reaffirmed its financial guidance for 2025, expecting Q1 sales between $1.35 billion and $1.43 billion, with adjusted EPS ranging from $0.58 to $0.64. For the full year, the company projects total revenue between $5.6 billion and $6.0 billion, representing an anticipated 8-10% growth. The company remains committed to global expansion and sustained investment in research and development, positioning itself for continued success in the structural heart market.
By the end of Q4 2024, Citadel Investment Group significantly expanded its stake in Edwards Lifesciences Corporation (NYSE:EW), increasing its holdings to approximately 9.42 million shares—a sharp rise from approximately 2 million shares in Q3, representing a 373% surge. This boosted the fund’s total investment in the company to nearly $697.22 million, making it sixth in the list of the top stocks to buy according to Citadel Investment Group.
Wedgewood Partners stated the following regarding Edwards Lifesciences Corporation (NYSE:EW) in its Q4 2024 investor letter:
“Edwards Lifesciences Corporation (NYSE:EW) was a contributor to quarterly performance but only slightly impacted annual portfolio performance. As we noted earlier this year, the Company’s flagship transcatheter aortic valve replacement (TAVR) franchise slowed as compared to the Company’s recent history. While the TAVR market is maturing, it is still far from saturated, as recent clinical trial results demonstrated. Many aortic stenosis patients prior to seeking TAVR treatment exhibit adverse symptoms, often prompting them to get the help of a doctor in the 7irst place. However, there is a large population afflicted with aortic stenosis that do not exhibit symptoms which is monitored rather than treated with TAVR. Edwards presented data from its EARLY TAVR trial that showed 45 percent of untreated asymptomatic aortic stenosis exhibited no symptoms, still ended up dying, suffered a stroke, or were hospitalized for cardiac events compared to only 26 percent that had been treated with TAVR. The standard of care for a disease such as cancer is immediate intervention rather than waiting for symptoms to worsen. The EARLY trial could help position aortic stenosis treatment on a similar clinical footing as cancer treatment. Although this is just one study, it adds to the substantial body of knowledge that Edwards has created through its R&D investments, emphasizing how important their treatments are for patients. Edwards is well positioned for double-digit earnings growth over the next several years as they expand its structural heart franchise into new populations and indications.”
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders as of Q4: 150
Citadel Investment Group’s Equity Stake: $799.47 Million
UnitedHealth Group Incorporated (NYSE:UNH) reported quarterly revenue of $100.81 billion in Q4 2024, falling short of analysts’ expectations of $101.76 billion. The company’s medical cost ratio rose to 85.5%, surpassing the estimated 84.96%, reflecting increased demand for healthcare services under Medicare plans. As a result, UnitedHealth’s stock dropped nearly 5% in premarket trading. Despite these challenges, its Optum healthcare services unit expanded by 9% to $65.1 billion, and the company delivered earnings per share of $6.81, exceeding estimates. UnitedHealth Group Incorporated (NYSE:UNH) reaffirmed its 2025 profit outlook, forecasting full-year revenue between $450 billion and $455 billion, signaling confidence in its long-term growth strategy.
The company’s stock has struggled, declining 25.7% from its November 2024 peak of $630.73 and underperforming the broader healthcare sector. Over the past three months, shares have dropped nearly 23%, remaining below key technical indicators such as the 50-day and 200-day moving averages. However, analysts continue to express optimism, maintaining a “Strong Buy” rating with an average price target of $639.21, suggesting a 36.4% upside from current levels. Despite recent setbacks, UnitedHealth Group Incorporated (NYSE:UNH)’s continued growth in Optum and strong full-year revenue guidance highlight its long-term potential, making the stock an appealing opportunity at its current valuation.
Building on UnitedHealth’s long-term growth potential, the company received a significant legal boost on March 4, 2025, when a court-appointed special master found no evidence supporting the U.S. government’s billion-dollar fraud claims against it. Special Master Suzanne Segal determined that discrepancies between diagnoses submitted by doctors and later assessments by UnitedHealth’s coders did not constitute fraud, undermining the Justice Department’s 2016 lawsuit. While the ruling is not final, if adopted by the presiding judge, it would dismiss the case entirely, removing a major legal overhang for the company. UnitedHealth Group Incorporated (NYSE:UNH) welcomed the findings, criticizing the decade-long legal battle as wasteful and unfounded. This development strengthens UnitedHealth’s position, reaffirming investor confidence and alleviating regulatory concerns. With its strong revenue outlook, expanding Optum unit, and now reduced legal risks, UNH remains a top stock to buy, particularly given its current undervaluation and analysts’ bullish price targets.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Citadel Investment Group’s Equity Stake: $804.41 Million
Following the recent announcement of the launch of its upgraded voice assistant, Alexa+, Amazon.com, Inc. (NASDAQ:AMZN) is reportedly gearing up to introduce a range of AI-powered devices. Panos Panay, head of Amazon’s devices and services division, hinted at a “constellation” of interconnected devices designed to enhance user experience, though specific details remain undisclosed. Amazon already incorporates AI into products like Ring security cameras, Eero Wi-Fi routers, and Echo smart speakers, and it also offers smart glasses, rings, and fitness trackers. Alexa+ brings generative AI capabilities, enabling it to handle more complex tasks such as ordering groceries, booking services, and providing personalized responses based on past interactions. Consumer interest in voice-activated technology remains strong, with over half of users favoring it for its speed and convenience. Despite a delayed rollout, Amazon.com, Inc. (NASDAQ:AMZN)’s move reflects the growing integration of AI in everyday consumer technology, positioning the company for further advancements in the smart device market.
Amazon.com, Inc. (NASDAQ:AMZN)’s financial performance in Q4 2024 showcased strong growth; the company exceeded expectations with earnings per share (EPS) of $1.86 and revenue of $187.8 billion, marking a 10% year-over-year increase. However, its Q1 2025 sales forecast of $151 billion to $155.5 billion fell short of Wall Street’s $158.5 billion estimate, raising concerns about future growth. Q4 2024 saw operating income climb to $21.2 billion from $13.2 billion the previous year, while net income doubled to $20 billion, driven largely by AWS, which reported a 19% revenue increase to $28.8 billion. Full-year net sales rose 11% to $638 billion, with operating income nearly doubling to $68.6 billion and net income reaching $59.2 billion.
Despite Amazon’s strong financial performance and continued investment in AI and cloud computing, its stock saw a decline of over 3% on March 3, 2025, amid a broader market downturn triggered by President Trump’s tariff confirmation. Despite this short-term volatility, Amazon.com, Inc. (NASDAQ:AMZN) is a top stock to buy due to its strong long-term growth outlook, supported by its dominant position in e-commerce and cloud services.
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders as of Q4: 113
Citadel Investment Group’s Equity Stake: $821.37 Million
Bank of America Corporation (NYSE:BAC) is a major global financial institution, providing a wide range of banking, investment management, and financial services to individuals, businesses, and governments. Headquartered in Charlotte, North Carolina, with key investment banking operations in Manhattan, the company operates in over 35 countries and facilitates transactions in more than 140 currencies. With a strong foothold in both retail and commercial banking, the company continues to expand its customer base while maintaining financial stability and a commitment to innovation.
In Q4 2024, the bank surpassed expectations with $25.3 billion in revenue, reflecting a 15.2% year-over-year increase and outperforming analyst projections by $170 million. Net income more than doubled to $6.7 billion ($0.82 per share), highlighting its robust financial performance. Additionally, Bank of America Corporation (NYSE:BAC) expanded its consumer banking segment by adding 213,000 new checking accounts, marking its sixth consecutive year of growth. With $953 billion in liquidity and $2 billion returned to shareholders through dividends, Bank of America demonstrates strong financial health and a commitment to investor returns. Its consistent expansion, strategic investments in digital banking, and global reach position it as a top stock to buy.
Bank of America Corporation (NYSE:BAC) remains a strong investment choice due to its financial stability, consistent growth, and strategic investments in digital banking and global operations. Recently, the bank adjusted its diversity initiatives in response to new regulations under President Donald Trump’s administration, removing references to diversity hiring goals and altering its hiring policies. While several companies have revised their stance on diversity, CEO Brian Moynihan emphasized that the bank remains committed to providing opportunities for all employees. Meanwhile, investor confidence in Bank of America remains high, as evidenced by Citadel Investment Group’s significant stake increase, boosting its holdings by 338% in Q4 2024. This substantial investment underscores the bank’s strong market position, making it an attractive long-term investment option.
2. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders as of Q4: 103
Citadel Investment Group’s Equity Stake: $977.31 Million
An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide, The Boeing Company (NYSE:BA) announced its Q4 2024 revenue on January 28, 2025. Boeing reported $15.2 billion in fourth-quarter revenue, with a per-share loss of ($5.46), largely due to the impact of the IAM work stoppage, defense program charges, and costs from previously announced workforce reductions. The company also recorded an operating cash outflow of ($3.5) billion. Boeing President and CEO Kelly Ortberg emphasized that while progress was made in stabilizing operations and enhancing safety and quality measures, the company remains committed to implementing fundamental changes to improve performance and rebuild trust with stakeholders, including customers, employees, suppliers, investors, and regulators.
The Boeing Company (NYSE:BA)’s shares dropped 6.6% on March 4, 2025, highlighting how trade tensions are affecting not just major importers but also the nation’s largest exporter. In 2024, the U.S. maintained a trade surplus of approximately $100 billion from aircraft exports, with Boeing playing a significant role. While the company manufactures jets, bombers, and satellites exclusively in the U.S., it remains vulnerable to rising costs of raw materials like aluminum due to its extensive global supply chain, which includes a composite parts facility in Winnipeg, Canada. CEO Kelly Ortberg has acknowledged that tariffs in China could impact sales in that market. However, The Boeing Company (NYSE:BA) benefits from its position as one of only two major suppliers of commercial jetliners, alongside Airbus, at a time when demand for aircraft remains high.
By the end of Q4 2024, Citadel Investment Group increased its stake in The Boeing Company (NYSE:BA) by an immense margin, from the 233,785 shares it held in Q3 to over 5.5 million shares in Q4. Accordingly, Citadel’s stake in Boeing increased to $977.31 million from $35.54 million in the previous quarter. This signified an increase of 2262% and effectively made Boeing the second-largest holding in Griffin’s portfolio. The company is now second on the list of top stocks to buy according to Citadel Investment Group.
Sound Shore Management stated the following regarding The Boeing Company (NYSE:BA) in its Q4 2024 investor letter:
“The Boeing Company (NYSE:BA): A detractor for the period was global aerospace leader Boeing. We were able to purchase the stock at a prospective 10% free cash flow yield on a normalized scenario. Over the past couple of years the stock rebounded from operational challenges and had surged on improved free cash generation from increasing order activity, driven by global demand for aircraft. It was one of our best performers in the fourth quarter of 2023 after its November plane deliveries increased. When additional manufacturing issues surfaced in January 2024, we believed it would push restructuring efforts back enough to warrant a review by our team. Reacting quickly, we sold our position at a gain in the first quarter, albeit less than before the news.”
1. Hess Corporation (NYSE:HES)
Number of Hedge Fund Holders as of Q4: 92
Citadel Investment Group’s Equity Stake: $1.18 Billion
An American independent energy company founded in 1933, Hess Corporation (NYSE:HES) is involved in the exploration and production of crude oil and natural gas. The company operates production facilities in key regions, including the United States, Guyana, the Malaysia/Thailand Joint Development Area, and Malaysia. It also focuses on offshore exploration, particularly in Guyana and the U.S., strengthening its presence in major energy markets. By maintaining a diversified production portfolio, the company continues to capitalize on global oil and gas opportunities, reinforcing its position within the industry.
Hess Corporation reported strong quarterly earnings of $1.76 per share, exceeding the consensus estimate of $1.51 and improving from $1.63 per share a year ago. Accordingly, the company’s net income was $542 million in the fourth quarter of 2024, compared with net income of $413 million in the fourth quarter of 2023. This earnings beat of 16.56% marks the fourth consecutive quarter in which Hess Corporation (NYSE:HES) has outperformed expectations. Consistently outperforming earnings estimates reflects the company’s solid financial performance and operational efficiency in the oil and gas sector.
Hess Corporation (NYSE:HES) also posted revenue of $3.23 billion for Q4 2024, exceeding analyst expectations by 6.38% and growing from $3.04 billion in the same period last year. This marks another quarter of revenue growth, reinforcing Hess’s ability to capitalize on market conditions. While the stock’s future movement will depend on management’s outlook, HES has gained approximately 8.87% since the start of the year, significantly outperforming the broader market’s 1.68% decline. These strong results suggest continued momentum for the company in the near term.
Recently, Hess Corporation (NYSE:HES) announced a quarterly dividend, which was distributed on December 31, 2024, to investors who were recorded by December 16. The dividend payout stood at $0.50 per share, amounting to an annualized dividend of $2.00 with a yield of 1.34%. With a payout ratio of 22.22%, the company demonstrates financial discipline while providing shareholder value through consistent returns.
Overall, Hess Corporation (NYSE:HES) ranks first on our list of the top 10 stocks to buy according to Citadel Investment Group. While we acknowledge the potential for HES as an investment, our conviction lies in the belief that some 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 HES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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