In this article, we will take a look at the 10 Best Most Active Stocks to Buy According to Hedge Funds.
Wall Street bulls believe the rise in US stocks has more room to run, dismissing fears that massive gains in AI-related stocks signal market extremes. The S&P 500 reached new closing highs 11 times in May, bringing the US blue-chip index up roughly 11% this year.
Small-cap firms have also performed well, with the Russell 2000 index outperforming the S&P 500 in the final week of May, despite a drop on May 29. Speaking on this, Terry Sandven, chief equity strategist at US Bank Asset Management Group, stated the following:
“We’re seeing strength, both home and abroad, and among large and small companies. That is typically a backdrop for upward-trending equity prices.”
Sandven stated that much of the market’s growth is due to strong first-quarter results. He emphasized the S&P 500’s around 22% year-over-year earnings increase, which can be attributed to a market surge fueled by stronger foundations rather than stretched values.
Our Methodology
For this list, we used stock screeners to identify equities with the highest 3-month average volume. These stocks, widely held by hedge funds and followed by analysts, are ranked according to hedge fund interest as of the first quarter of 2026.
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. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 97
Cisco Systems, Inc. (NASDAQ:CSCO) ranks among the best most active stocks to buy according to hedge funds. On May 15, HSBC boosted Cisco Systems Inc.’s (NASDAQ:CSCO) rating to Buy and hiked its price target to $137 from $77, citing a stronger-than-expected AI infrastructure demand pattern that has significantly changed the company’s growth profile. Analyst Stephen Bersey explained to investors that Cisco’s fiscal third-quarter results revealed a fundamental shift, with AI infrastructure orders totaling $1.9 billion for the quarter.
HSBC stated that Cisco’s Silicon One CPUs and Acacia optics led AI outperformance, which was supported by other hyperscaler design results. Total revenue increased 12% year-over-year to $15.84 billion, about 2% higher than expected, while non-GAAP EPS of $1.06 outperformed expectations by 2.5%.
Looking forward, Cisco management increased its fiscal 2026 AI infrastructure order aim to about $9 billion from $5 billion, assuming a significant Q4 increase, and boosted full-year AI revenue expectations to about $4 billion from $3 billion. Meanwhile, HSBC increased its fiscal 2026 to 2029 non-GAAP earnings per share CAGR projection to 13.6% from 9.8%, based on a higher 29x price-to-earnings multiple.
Cisco Systems, Inc. (NASDAQ:CSCO) is involved in the manufacture, design, and sale of Internet Protocol-based networking products and services associated with the communications and IT industry.
9. Walmart Inc. (NASDAQ:WMT)
Number of Hedge Fund Holders: 99
Walmart Inc. (NASDAQ:WMT) ranks among the best most active stocks to buy according to hedge funds. On May 29, Tigress Financial boosted its price target for Walmart Inc. (NASDAQ:WMT) to $155 from $150, while retaining a Buy rating on the company’s shares. According to the firm, Walmart’s AI-driven platform shift has unlocked a number of high-margin growth catalysts.
According to Tigress Financial, Walmart’s omnichannel and marketplace diversification, supply chain automation, and digital shift are propelling economic profit growth and company performance improvements. Walmart’s Sparky AI Assistant was particularly cited by the firm as boosting customer engagement and revenue.
Meanwhile, in response to Walmart Inc. (NASDAQ:WMT)’s first-quarter earnings, Evercore ISI reaffirmed its Outperform rating and $140 price target for the company on May 26. Walmart’s digital operation, which exceeds $100 billion in size, had a 12% variable margin during the quarter.
Evercore ISI also reaffirmed its earnings per share projections for fiscal year 2027 at $2.95 and for 2028 at $3.35.
Walmart Inc. (NASDAQ:WMT) is an omnichannel retailer operating retail and wholesale stores, clubs, e-commerce websites, and mobile applications. It offers an elaborate array of items, from general merchandise and electronics to food, groceries, and more.
