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. offers specialized infrastructure solutions to the broader utility, power generation, load center, communications, pipeline, and energy industries.
9. MSCI Inc. (NYSE:MSCI)
Number of Billionaire Investors: 21
Number of Hedge Fund Holders: 62
3-year Revenue Growth: ~12.4%
3-year EPS Growth: ~17.0%
MSCI Inc. (NYSE:MSCI) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 21, the company released its financial results for Q1 2026, with operating revenues coming at $850.8 million, reflecting a rise of 14.1%. Notably, organic operating revenue growth stood at 13.3%. The $105.0 million rise was because of $47.6 million growth in recurring subscription revenues, as well as $47.1 million rise in asset-based fees, and $10.3 million rise in non-recurring revenues.
The Q1 2026 results affirmed MSCI Inc.’s foundational, mission-critical role in global capital markets that is reflected in the increase in liquidity and scale of the investment ecosystem associated with the indexes and IP.
The Index operating revenues came in at $496.3 million, reflecting a rise of 17.7%. The $74.6 million rise was mainly backed by $47.1 million in higher asset-based fees as well as $20.9 million in higher recurring subscription revenues. Notably, organic operating revenue growth for Index stood at 17.6%.
MSCI Inc. offers research-based data, analytics, and indexes that are supported by advanced technology.
8. American Express Company (NYSE:AXP)
Number of Billionaire Investors: 22
Number of Hedge Fund Holders: 83
3-year Revenue Growth: ~9.6%
3-year EPS Growth: ~18.9%
American Express Company (NYSE:AXP) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 23, BofA Securities lifted its price objective on the company’s stock to $387 from $381, while maintaining a “Buy” rating. The firm noted the company’s healthy Q1 2026 results that surpassed expectations for revenue and earnings. Notably, American Express Company’s Q1 2026 consolidated total revenues net of interest expense came in at $18.9 billion, reflecting a rise of 11% YoY. Diluted EPS stood at $4.28, reflecting 18% YoY growth.
The results demonstrated better revenue and credit provisions, which were partially mitigated by increased operating expenses. The firm believes that results were consistent with its view, as premium consumers continue to perform well. American Express Company maintained its full-year guidance, with the company providing additional disclosure noting the success of the Platinum card refresh and engagement strength.
American Express Company is an integrated payments company.
7. Chubb Limited (NYSE:CB)
Number of Billionaire Investors: 22
Number of Hedge Fund Holders: 56
3-year Revenue Growth: ~11.4%
3-year EPS Growth: ~31.9%
Chubb Limited (NYSE:CB) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 21, the company released results for Q1 2026, with core operating earnings coming at $2.7 billion, or $6.82 per share. Notably, healthy growth in P&C underwriting income, investment income, and life income resulted in the core operating earnings. Chubb Limited’s globally diversified business, underwriting discipline, and robust balance sheet help generate returns and create growth opportunities.
Given the company’s diversification and balance of opportunities, it produced healthy growth. Its consolidated net premiums rose by 10.7% to $14 billion, which include 21% growth in the global consumer businesses (both P&C and Life).
Chubb Limited’s book value witnessed an unfavourable impact of after-tax net realized and unrealized losses of $1.94 billion in its investment portfolio. This was mainly due to the mark-to-market impact in the public fixed-income portfolio. However, this was partially mitigated by $346 million of foreign currency gains.
Chubb Limited offers insurance and reinsurance products.
6. S&P Global Inc. (NYSE:SPGI)
Number of Billionaire Investors: 27
Number of Hedge Fund Holders: 108
3-year Revenue Growth: ~11.1%
3-year EPS Growth: ~12.8%
S&P Global Inc. is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 24, the company announced strategic innovations and changes to the upstream energy business. This started with a definitive agreement to sell S&P Global Energy’s geoscience and petroleum engineering software portfolio to SLB. Additionally, S&P Global Energy plans to roll-out AI-powered upstream data platform called Titan. This will help transform how the customers discover, analyze, and act on high-quality data and insights.
Titan is expected to serve an estimated 110,000 users throughout 4,000 client organizations, spanning individual analysts to global enterprises. Titan is slated for full commercial rollout later this year, since it is in beta testing currently with select customers.
In a separate release, Wells Fargo reduced its price objective on S&P Global Inc.’s stock to $525 from $530, while keeping an “Overweight” rating.
S&P Global Inc. is engaged in offering benchmarks, data, analytics, and workflow solutions across global capital, energy and commodity, and automotive markets.
5. Moody’s Corporation (NYSE:MCO)
Number of Billionaire Investors: 28
Number of Hedge Fund Holders: 91
3-year Revenue Growth: ~13.2%
3-year EPS Growth: ~23.1%
Moody’s Corporation is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 22, Wolfe Research lifted the price objective on the company’s stock to $535 from $525 and maintained an “Outperform” rating. Notably, this target price reflects an increase of ~17.3% from the price of $456.05. Notably, MA (Moody’s Analytics) ARR growth was largely stable in Q1 2026 at 8%. There was continued healthy recurring revenue growth in Banking and KYC. Notably, the firm placed its year-end 2026 price target at ~28x – 29x its CY 2027 adjusted EPS estimate of $18.85.
Moody’s Corporation stated that both MIS and MA saw healthy results in Q1 2026 amidst sustained growth and healthy operating leverage. MIS (Moody’s Investors Service) witnessed record revenues of $1.2 billion on more than $2 trillion in rated issuance. It also posted an adjusted operating margin of 67%.
Amidst the acceleration of AI adoption, there has been increased demand for Moody’s decision-grade connected intelligence in high-stakes environments.
Moody’s Corporation is an integrated risk assessment firm.
4. ServiceNow, Inc. (NYSE:NOW)
Number of Billionaire Investors: 31
Number of Hedge Fund Holders: 118
3-year Revenue Growth: ~22.3%
3-year EPS Growth: ~62.4%
ServiceNow, Inc. (NYSE:NOW) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 22, the company announced financial results for Q1 2026, with subscription revenues reaching $3,671 million, reflecting 22% YoY growth and 19% growth in constant currency. As of March 31, 2026, ServiceNow, Inc.’s current remaining performance obligations (cRPO) amounted to $12.64 billion, up by 22.5% YoY and 21% in constant currency.
Furthermore, ServiceNow, Inc. had 16 transactions with more than $5 million in net new annual contract value in Q1 2026, which reflects ~80% YoY growth. It closed the quarter with 630 customers with over $5 million in ACV, reflecting ~22% YoY growth. Notably, the early close of the company’s Armis acquisition significantly expands the TAM and ramps up the subscription revenue growth trajectory.
For 2026, ServiceNow, Inc. raised its subscription revenues by $205 million at the midpoint to $15.735 billion – $15.775 billion. This reflects 20.5% – 21% YoY growth on a constant currency basis.
ServiceNow, Inc. offers cloud-based and AI-embedded end-to-end workflow automation solutions.
3. Netflix, Inc. (NASDAQ:NFLX)
Number of Billionaire Investors: 34
Number of Hedge Fund Holders: 146
3-year Revenue Growth: ~13.6%
3-year EPS Growth: ~49.3%
Netflix, Inc. (NASDAQ:NFLX) is one of the Best Fundamental Stocks to Invest in According to Billionaires. Netflix, Inc. released results for Q1 2026, with revenue growing 16% YoY (14% on FX neutral basis). This was mainly aided by membership growth, increased pricing, and higher ad revenue. The company stated that revenue was marginally above its forecast because of higher-than-forecasted membership growth as well as favorable F/X movements net of hedging.
Netflix, Inc.’s diluted EPS for Q1 2026 came in at $1.23 compared to $0.66 in Q1 2025, above the company’s forecast of $0.76. This was aided by higher-than-projected operating income and the $2.8 billion termination fee associated with the Warner Bros. transaction. This was recognized in “interest and other income.”
Netflix, Inc. expects revenue of $50.7 billion – $51.7 billion for FY 2026, reflecting 12% – 14% growth. This will be aided by continued strong membership growth, pricing, as well as projected rough doubling of the ads revenue.
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Billionaire Investors: 35
Number of Hedge Fund Holders: 132
3-year Revenue Growth: ~13.6%
3-year EPS Growth: ~46.6%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 24, DA Davidson upgraded the company’s stock to “Buy” from “Neutral” and increased the price objective to $375 from $220. The firm’s analyst highlighted a structural rise in CPU demand and improved visibility into Advanced Micro Devices, Inc.’s role in the broader data center buildout.
Starting the March quarter, the firm’s analyst expects strong upside to the company’s estimates. Furthermore, the firm believes that stronger-than-expected results from Intel hint that the broader CPU market is reaccelerating. The firm believes that Intel’s performance gives an early sign of the significant step-up for Advanced Micro Devices, Inc.’s CPU franchise. The transition towards agentic AI workloads continues to result in strong demand for server CPUs.
Advanced Micro Devices, Inc. remains well-positioned to increase prices throughout the portfolio amidst expectations of demand outpacing supply.
Advanced Micro Devices, Inc. happens to be a leading semiconductor company. It specializes in high-performance computing and graphics solutions.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Billionaire Investors: 49
Number of Hedge Fund Holders: 224
3-year Revenue Growth: ~21.6%
3-year EPS Growth: ~24.1%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 22, Reuters reported that the company is targeting to open a chip packaging plant in Arizona by 2029. Modern AI chips, like the ones made by Nvidia, are not single chips. These are several chips that are brought together, possessing advanced packaging technologies, Reuters said. This step has become a supply bottleneck for Nvidia and other companies.
Reuters, while quoting Kevin Zhang (Deputy co-chief operations officer and Senior vice president), noted that Taiwan Semiconductor Manufacturing Company Limited plans to build a CoWoS capability and 3D-IC capability before 2029. Here, the key personnel pointed to 2 of the company’s packaging technologies, which are in high demand.
In 2024, Amkor and Taiwan Semiconductor Manufacturing Company Limited stated that they will work together in bringing several of Taiwan Semiconductor Manufacturing Company Limited’s advanced packaging technologies to Arizona. The technology discussions of both companies are ongoing, noted Reuters while quoting Zhang.
Taiwan Semiconductor Manufacturing Co. Ltd. is the leading semiconductor foundry, which is engaged in the manufacturing of semiconductor chips.
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