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.
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. (NYSE:MSCI)’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. (NYSE:MSCI) 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 (NYSE:AXP)’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 (NYSE:AXP) 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 (NYSE:AXP) 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 (NYSE:CB)’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 (NYSE:CB)’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 (NYSE:CB) 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. (NYSE:SPGI) 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. (NYSE:SPGI)’s stock to $525 from $530, while keeping an “Overweight” rating.
S&P Global Inc. (NYSE:SPGI) is engaged in offering benchmarks, data, analytics, and workflow solutions across global capital, energy and commodity, and automotive markets.
While we acknowledge the potential of SPGI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SPGI and that has 100x upside potential, check out our report about the cheapest AI stock.
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