In this article, we will discuss the 10 Best Monopoly Stocks to Buy.
Morgan Stanley believes the bull market might not be finished, and the S&P 500 might close the year with single-digit gains. There can be further declines in the S&P 500, which can result in attractive entry points. Historically, when stocks decline 15%, the average returns after a year tend to be attractive, says Morgan Stanley. Furthermore, the returns are even more attractive when a 20% drop becomes an entry point. That being said, a major risk to the broader equity market can be a resurgence of inflation and the US Fed increasing rates, along with tariff impacts.
S&P 500 Can Deliver Single-Digit Returns
Morgan Stanley Investment Management’s Applied Equity Team believes that 2025 can be a “pause” year for the broader S&P 500, posting single-digit gains. This remains consistent with the firm’s outlook, which was shared at the beginning of the year, suggesting that 3rd year of a bull market tends to deliver mediocre—but positive returns, together with increased volatility. Analyzing 12 times since 1950 that the broader S&P 500 declined a minimum of 20% from its peak, there was a recession in 9 of such instances, says the investment firm. In the current instance, the combination of the market decline or the recession talk appeared to be sufficient to spur a policy response.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Pockets of Opportunities
Morgan Stanley believes that stocks can retest lows seen in early April. The base case outlook is for gains in 2025, and the market is open 251 days a year. If stocks decline 20% or more, the investment firm opines that investors will do well to consider increasing the equity allocations more aggressively. In the 12 times since 1950 in which the S&P 500 fell 20%, the average subsequent 1-year return with that fall as an entry point is 19%. Fidelity International believes that, in this market, which is characterised by increased uncertainty, a focus on dividends as a component of total return can offer support.
Furthermore, the firm believes that it is critical to combine an emphasis on high-quality businesses with valuation discipline in a bid to avoid overpaying for companies and have a better chance of generating strong long-term returns. In difficult market environments, earnings resilience remains critical. This doesn’t mean a top-down allocation to defensive industries, but selecting companies possessing resilient business models throughout a broad range of sectors with the help of detailed bottom-up analysis. Owning resilient businesses, diversified across industries, leads to increased earnings persistence as compared to the broader market indices, says Fidelity International.
Amidst these views, let us now have a look at the 10 Best Monopoly Stocks to Buy.
A man in black suit holding a tablet looks at stock market data on a monitor. Photo by Tima Miroshnichenko on Pexels
Our Methodology
To list the 10 Best Monopoly Stocks to Buy, we scanned through monopoly ETFs and several online rankings. After getting an extensive list, we chose the ones that were the most popular among hedge funds. Finally, the stocks were arranged in ascending order of their hedge fund sentiment, as of Q4 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).
10 Best Monopoly Stocks to Buy
10. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 61
Fortinet, Inc. (NASDAQ:FTNT) offers cybersecurity and convergence of networking and security solutions. The company remains a leader in cybersecurity, mainly in next-generation firewalls and unified SASE solutions. Morningstar sees the company at the forefront of the convergence of networking and security. The firm opines that it is in a strong position to significantly benefit as secular tailwinds in network security and vendor consolidation increase Fortinet, Inc. (NASDAQ:FTNT)’s value proposition to its clients. As per the firm, the company’s established customer switching costs, strengthened by increasingly potent network effects, will enable it to gain and expand the number of clients.
Shaul Eyal from TD Cowen reiterated a “Buy” rating on the company’s stock, with the price objective of $135.00. The analyst’s rating is backed by a combination of factors demonstrating Fortinet, Inc. (NASDAQ:FTNT)’s robust market position and growth potential. Despite the market challenges, the analyst is confident in the company’s fundamentals. Fortinet, Inc. (NASDAQ:FTNT)’s product revenue is expected to continue the positive trajectory, thanks to a healthy refresh cycle and demand for SASE and operational technology solutions. Its competitive pricing and international business strategy tend to mitigate the risks from tariffs, reinforcing the analyst’s rating. As of December 31, 2024, its remaining performance obligations sat at $6.42 billion, reflecting a rise of 11.7% as compared to $5.75 billion as of December 31, 2023.
Conestoga Capital Advisors, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:
“Fortinet, Inc. (NASDAQ:FTNT) is the worldwide market share leader in network security firewalls (by units). During the quarter, FTNT continued to see positive momentum in firewall services revenue and posted a big beat and raise of results and guidance. Looking ahead, the company is expecting a larger-than-normal product refresh cycle, with many customers ordering well in advance (often one year prior) of their firewall’s 2026 end-of-life schedule.”
9. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 74
The Sherwin-Williams Company (NYSE:SHW) is the largest provider of architectural paint. The company’s market standing in the US architectural coatings market, mainly via its own-brand stores, provides it with significant control. Aoris Investment Management, in its Q4 2024 investor letter, highlighted that, in the US market for professional painters, The Sherwin-Williams Company (NYSE:SHW) has a share ~10x the size of its closest peer. BMO Capital analyst John McNulty reiterated the bullish stance on the company’s stock, giving a “Buy” rating.
The analyst’s rating is backed by The Sherwin-Williams Company (NYSE:SHW)’s ability to enhance efficiency and manage costs effectively, which is projected to continue through FY25. It has demonstrated robust pricing strategies, mainly in its PSG (Paint Stores Group) segment, and plans to extend such strategies to its PCG (Performance Coatings Group) and CBG (Consumer Brands Group) segments, which can fuel incremental price increases, says the analyst. Also, The Sherwin-Williams Company (NYSE:SHW) has leveraged data and simplicity in a bid to improve its gross margins and reduce SG&A expenses, placing it well to meet the financial targets, says McNulty. Notably, in Q1 2025, it posted a gross margin of 48.2% as compared to 47.2% in Q1 2024.
Aoris Investment Management, a specialist international equity manager, published its Q4 2024 investor letter. Here is what the fund said:
“Lastly, we bought The Sherwin-Williams Company (NYSE:SHW), which is the world’s largest paint and coatings company. Yes, paint does sound dull, but Sherwin-Williams excels at serving demanding customers with often highly technical products. In the US market for professional painters, Sherwin-Williams has a share around 10x the size of its closest peer. It also has exclusive supply arrangements with 23 of the 25 largest home builders in the US. Remarkably, given its dominant position, its market share continues to rise.”
8. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 86
ASML Holding N.V. (NASDAQ:ASML) offers lithography solutions for the semiconductor industry. The company’s market dominance stems from its technological superiority, mainly its EUV lithography systems. These are critical for manufacturing the most advanced semiconductor chips. Bank of America Securities analyst Didier Scemama remains optimistic about ASML Holding N.V. (NASDAQ:ASML)’s stock, thanks to a combination of factors demonstrating its robust market position and financial outlook.
ASML Holding N.V. (NASDAQ:ASML) showcased strong pricing power, enabling it to manage tariff-related costs effectively, as it can pass them to the customers, says the analyst. Furthermore, ASML Holding N.V. (NASDAQ:ASML)’s strong order book further aids the analyst’s rating, which indicates confidence in meeting revenue targets. Its quarterly net bookings in Q1 2025 came in at €3.9 billion, of which €1.2 billion is EUV. ASML expects Q2 2025 total net sales of between €7.2 billion – €7.7 billion, and a gross margin of between 50% – 53%. The company’s advancements in lithography intensity and average selling prices (ASPs) demonstrate future growth potential, says Scemama.
Generation Investment Management, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:
“ASML Holding N.V. (NASDAQ:ASML), a Dutch company and a recent addition to our portfolio, is a critical enabler of the semiconductor industry. They provide advanced lithography equipment, which is essential for producing semiconductors. As demand for chips accelerates – driven by AI, electrification and broader applications across the economy – ASML stands to benefit significantly.
ASML operates in a near-monopolistic position in lithography machines, thanks to decades of engineering expertise and innovation. Over the past five years, the company has grown revenues at 20% annually. We expect the company’s revenue growth to moderate but continue to grow strongly, in line with the semiconductor industry. Margins are likely to expand over time, underscoring ASML’s high quality and earnings potential.
There are risks. Short-term volatility in orders, and geopolitical trade restrictions, could affect growth. Over the long term, disruptive innovation outside of lithography poses a challenge, though we believe ASML’s position is secure. We therefore find the valuation of the company attractive. We are confident in its ability to compound value over the coming years.”
7. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 89
Intuit Inc. (NASDAQ:INTU) is engaged in providing financial management, compliance, and marketing products and services. The company’s strong brand recognition and potential lack of viable alternatives support its dominant market position in tax software as well as small business accounting software. Analyst Keith Weiss from Morgan Stanley maintained a “Buy” rating on the company’s stock, keeping the price objective of $720.00. This rating is backed by a combination of factors demonstrating Intuit Inc. (NASDAQ:INTU)’s potential for growth and value.
As per the analyst, Intuit Inc. (NASDAQ:INTU)’s performance in the 2025 tax season seems to be aligned with historical trends, cementing confidence in the company’s ability to regain market share and achieve the tax-related goals. Also, Intuit Inc. (NASDAQ:INTU)’s strategic emphasis on higher-end mid-market customers, mainly via its QuickBooks Online Advanced and Intuit Enterprise Suite, continues to show promising results. In Q2 2025, QuickBooks Online Accounting revenue increased by 22%, thanks to the higher effective prices, customer growth, and mix-shift. For FY 2025, the company expects revenue of $18.160 billion – $18.347 billion, demonstrating growth of ~12% – 13%.
Parnassus Investments, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Intuit Inc. (NASDAQ:INTU) shares fell despite the financial software company posting strong quarterly results. The company’s pricing-dependent long-term guidance concerned investors. However, we continue to believe Intuit’s customer growth and relevant platform will sustain its wide moat and long growth runway.”
6. Intercontinental Exchange, Inc. (NYSE:ICE)
Number of Hedge Fund Holders: 91
Intercontinental Exchange, Inc. (NYSE:ICE) offers technology and data to financial institutions, corporations, and government entities. The company’s significant market power and dominance in areas of the financial and commodity markets continue to bolster its market standing. Its dominance stems from the acquisitions of other exchanges and its operation of critical exchanges and clearing houses. Intercontinental Exchange, Inc. (NYSE:ICE) announced that it has acquired American Financial Exchange (AFX), which is an electronic exchange for direct lending and borrowing for American banks and financial institutions. It has acquired 100% of AFX from 7RIDGE.
Morgan Stanley analyst Michael Cyprys upped Intercontinental Exchange, Inc. (NYSE:ICE)’s price objective to $181 from $178, keeping an “Equal Weight” rating. In a difficult macro backdrop with a greater need to hedge risks, the firm expects upside to exchanges’ volumes, primarily rates, credit, and index options. Furthermore, the exchanges act as a defensive safe haven during uncertainties due to the greater need by market participants to manage and hedge risks, opines Cyprys. For FY 2025, Intercontinental Exchange, Inc. (NYSE:ICE) expects mid-single digits fixed income & data services recurring growth.
Aristotle Atlantic Partners, LLC, an investment advisor, released its Q1 2025 investor letter. Here is what the fund said:
“Intercontinental Exchange, Inc. (NYSE:ICE) was a relative contributor in the first quarter following a solid fourth quarter earnings report highlighted by continued strong trading activity in energy and interest rate products, additional efficiency gains, and positive commentary about the Mortgage Technology business. In addition, optimism improved following the company’s annual ICE Experience conference, which highlighted new AI solutions in its Mortgage Technology product suite. The company’s AI efforts in Mortgage Technology are accelerating progress toward improving and digitizing workflows and positioning it to gain an increasing share of the long-term market opportunity in the mortgage industry.”
5. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Holders: 91
Moody’s Corporation (NYSE:MCO) operates as an integrated risk assessment firm worldwide. The company’s dominant position in the broader credit rating industry continues to support its market footing. Its strong position is backed by the critical role its ratings play in the global capital markets, and the increased costs of entering the market. Joshua Dennerlein, an analyst from Bank of America Securities, reiterated a “Buy” rating on Moody’s Corporation (NYSE:MCO)’s stock, and the associated price target remained same at $530.00.
The analyst believes that despite the recent slowdowns in the capital markets, the risk of further downward revisions to earnings guidance remains limited. Furthermore, the analyst highlighted that Moody’s Corporation (NYSE:MCO) has demonstrated robust performance in Q1 2025. During the quarter, the company’s revenue came in at $1.9 billion, reflecting a rise of 8% from the prior-year period. Notably, corporate finance revenue growth was mainly aided by investment-grade issuers, considering the robust demand for high-quality credits. Moody’s Corporation (NYSE:MCO) expects to deliver adjusted diluted EPS of between $13.25 – $14.00, demonstrating a 9% YoY growth at the mid-point. Despite some macroeconomic uncertainty that can impact the issuance activity and decision-making, Dennerlein has maintained confidence in the company’s long-term growth prospects.
4. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders: 101
GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems leader. The company has been tagged as a dominant player in the broader aerospace industry, primarily in engine manufacturing, thanks to its historical leadership, strategic partnerships, and technological investments. The company’s healthy market position, mainly in narrowbody jets and aftermarket services, continues to bolster its market position. Sheila Kahyaoglu, an analyst from Jefferies, maintained a “Buy” rating on GE Aerospace (NYSE:GE)’s stock, and the associated price target remained same at $240.00.
The analyst’s rating is backed by GE Aerospace (NYSE:GE)’s healthy financial performance and strategic management decisions. It has exhibited resilience by maintaining its profit guidance for 2025. This was seen due to effective cost controls and price surcharges, demonstrating the company’s ability to navigate economic challenges. For FY 2025, the company expects low double-digit adjusted revenue growth, operating profit of $7.8 billion – $8.2 billion, adjusted EPS of $5.10 – $5.45, and FCF of $6.3 billion – $6.8 billion. GE Aerospace (NYSE:GE)’s backlog and growth in services continue to support the positive outlook. The company has a commercial services backlog of over $140 billion. It saw continued demand for its services and products. At Commercial Engines & Services (CES), it secured a significant engine commitment from ANA for over 75 LEAP engines to power their fleet of 13 Airbus A321neo and up to 22 Boeing 737 MAX aircraft.
Aristotle Atlantic Partners, LLC, an investment advisor, published its Q4 2024 investor letter. Here is what the fund said:
“GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The industry has high entry barriers and is concentrated among few players. Despite its cyclical nature, the demand for travel is driven by global middle-class growth. Boeing and Airbus have long order books, ensuring steady demand for engines and spare parts. The company also benefits from high-margin services for existing aircraft fleets, with services accounting for 70% of its commercial engine business. GE Aerospace serves customers worldwide.
We see GE Aerospace making significant strides in its commercial engine business, which is expected to boost future services revenue growth. Over the past five years, the company has undergone substantial restructuring and simplification, including divesting its healthcare and energy businesses. The company now operates in three segments: Commercial Engines & Services (CES), Defense & Propulsion Technologies (DPT) and Insurance. Long-term revenue guidance is for high single-digit growth, and management has a goal of $10 billion in annual operating profit by 2028, with an expected 20% annual earnings growth. Following years of restructuring, we see GE Aerospace now positioned to return capital to shareholders through dividends and share repurchases.”
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL)’s dominant market position in the smartphone market arises from its control over the ecosystem, restrictions on competition, and higher switching costs. Its market standing is expected to continue to be aided by several factors, including innovative products, seamless ecosystem, brand loyalty, and strong distribution network. Analyst Brian White from Monness maintained a “Buy” rating on the company’s stock, providing a price objective of $245.00. This rating is backed by a combination of factors such as Apple Inc. (NASDAQ:AAPL)’s recent financial performance and strategic initiatives. The company’s March quarter business performance fueled EPS growth of 8% and $24 billion in operating cash flow.
The analyst highlighted that Apple Inc. (NASDAQ:AAPL) has been actively working to optimize its supply chain by shifting production outside of China. This is a strategic move amidst the trade tensions. Despite uncertainties associated with geopolitical risks and regulatory headwinds, Apple Inc. (NASDAQ:AAPL)’s innovation in products and services, together with its healthy financial position, supports the analyst’s rating. As of March 29, 2025, the company’s cash and cash equivalents came in at $28.1 billion, and the company has also authorized an additional program to repurchase up to $100 billion of its common stock.
Columbia Threadneedle Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“The fund maintained a position in Apple Inc. (NASDAQ:AAPL) throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) operates as a payment technology company. The company’s dominant market position in the debit card payment processing market provides it with the ability to control pricing and access to its network. Therefore, its growth is expected to stem from its network effect, strong presence in the global payments landscape, and scale. TD Cowen analyst Bryan Bergin reiterated a “Buy” rating on the company’s stock, setting a price objective of $380.00. The analyst’s rating is backed by a combination of factors demonstrating Visa Inc. (NYSE:V)’s healthy Q2 2025 performance, which was characterized by strong net revenue growth and robust core payments performance.
In Q2 2025, the company saw 9% net revenue growth, aided by healthy trends in payments volume, cross-border volume, and processed transactions. The payments volume went up by 8% YoY. Furthermore, Visa Inc. (NYSE:V) demonstrated consumer resilience and gave a solid outlook for Q3 2025, says the analyst. For Q3 2025, the company expects net revenue growth (on an adjusted constant-dollar basis) of low double-digit on a YoY basis. As per the analyst, Visa Inc. (NYSE:V)’s diversification and durability remain key strengths, making it an attractive investment. Its investment in innovation resulted in increased diversification, with a growing mix of Value-Added Services (VAS) and Commercial Services (CMS) offerings.
Investment advisory firm Ithaka Group released its Q1 2025 investor letter. Here is what the fund said:
“Visa Inc. (NYSE:V) is one of two leading companies (along with MasterCard) that helps share information and transfer funds between banks that have relationships with card-carrying consumers and banks that have relationships with merchants, ensuring payment transactions are reliable and secure. Since the company’s founding in 1958, Visa has been benefiting from growth in personal consumption expenditure, a strong secular shift from cash and checks to credit and debit cards, and an asset-light, high-margin business model that generates strong free cash flow and resilient earnings, even in volatile macro environments. In the first quarter Visa saw its stock trade up in a tumultuous market tape, as investors tend to flock to more steady earning compounders, of which Visa is an ideal candidate.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA)’s dominance in the GPU market is expected to be sustained for a long time, aiding its growth prospects. The company is a leading producer of discrete graphics processing units for data centers, gaming, and AI workloads. Its GPUs are regarded as the gold standard for training AI models. It has incredible leverage and pricing power in AI hardware and software ecosystems. Morgan Stanley analyst Joseph Moore sees robust demand for inference chips. The analyst’s “Buy” rating is backed by NVIDIA Corporation (NASDAQ:NVDA)’s emphasis on AI-driven growth, together with strong demand for its GPUs.
As per the analyst, NVIDIA Corporation (NASDAQ:NVDA) continues to benefit from robust demand for its GPUs, mainly for inference workloads, despite worries related to the macro risks and supply chain challenges. The analyst further highlighted that with AI adoption growing globally, the demand for inference chips can fuel the company’s long-term growth. The company reported revenue for the Q4 2025 of $39.3 billion, reflecting a rise of 12% as compared to the previous quarter, and a rise of 78% YoY. The company successfully ramped up the massive-scale production of Blackwell AI supercomputers. For Q1 2026, NVIDIA Corporation (NASDAQ:NVDA) expects revenue of $43.0 billion, plus or minus 2%. Furthermore, it expects GAAP and non-GAAP gross margins to be 70.6% and 71.0%, respectively, plus or minus 50 bps.
Investment advisory firm Ithaka Group released Q1 2025 investor letter. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is the undisputed leader in accelerated computing, with dominant market share in Graphics Processing Units (GPUs) powering AI workloads across data centers, edge devices, and emerging platforms. Its end-to-end ecosystem—from silicon to software (CUDA, networking, and AI frameworks)—creates high switching costs and a widening competitive moat. With secular demand for AI infrastructure still in its early innings, Nvidia stands to benefit from sustained topline growth and strong operating leverage. In early January, a little known Chinese AI company, DeepSeek, released its large language model (LLM), DeepSeek-R1, to an unexpecting world. This model was purportedly trained on very few high-end Nvidia chips and was highly efficient when compared to other leading models. This release set off a chain reaction where investors have had to grapple with the idea that the world may not need as many GPUs as previously thought, which hampered the Nvidia buy case and sent the P/E multiple down to its cheapest level in the past 5 years.”
While we acknowledge the potential of NVDA 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
