In this article, we will discuss the 10 Best Fundamental Stocks to Invest in According to Billionaires.
BlackRock, in its Q2 2026 outlook, stated that plans for significant capital investment by tech hyperscalers continues to rise, and that such plans are not impacted by the conflict in the Middle East. The firm’s view of “micro is macro” is based on the large spending ambitions of a few companies. It is overweight on US stocks because of contained damage to global growth from the Middle East war and robust earnings expectations, mainly in tech.
Fidelity, on April 27, highlighted that earnings expectations continue to improve. The firm believes that earnings of S&P 500 companies are expected to increase 13.2% in Q1 and 18% in 2026. Furthermore, the expected earnings growth rate for the Magnificent 7 is 24.6% in 2026. However, for the remaining 493 companies, it is 15.9%, as per FactSet data.
Amidst such trends, we will now have a look at the 10 Best Fundamental Stocks to Invest in According to Billionaires.
Our Methodology
To list the 10 Best Fundamental Stocks to Invest in According to Billionaires, we used a screener to shortlist companies that have 3-year revenue growth of at least ~10% and a 3-year positive EPS growth. Next, we focused on the stocks most favored by billionaires. We also mentioned the hedge fund sentiments around each stock, as of Q4 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Fundamental Stocks to Invest in According to Billionaires
10. Quanta Services, Inc. (NYSE:PWR)
Number of Billionaire Investors: 20
Number of Hedge Fund Holders: 90
3-year Revenue Growth: ~18.6%
3-year EPS Growth: ~27.0%
Quanta Services, Inc. (NYSE:PWR) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 20, Truist lifted its price objective on the company’s stock to $713 from $643, while keeping a “Buy” rating on the shares. This forms part of the broader research note, which previews Q1 results of the companies in the broader machinery, infrastructure services, and multi-industry sector.
Notably, post the contraction of the period of 3 years, the March US Manufacturing PMI came at 52.7 after the positive readings in January and February. Furthermore, the firm continues to witness positive setup for Q1 results throughout the broader Industrials sector. The firm also believes that the strength is critical, considering the worries that the Iran war might impact the healthy industrial recovery.
Also, channel destocking is now in the past, added the firm, while noting that there are improvements in the industrial and cyclical markets, such as construction and mining equipment, commercial vehicles, and semiconductors.
Quanta Services, Inc. (NYSE:PWR) offers specialized infrastructure solutions to the broader utility, power generation, load center, communications, pipeline, and energy industries.
