In this article, we will discuss the 10 Best Stocks to Buy According to Brasada Capital Management.
Brasada Capital Management is a leading hedge fund with its headquarters in Houston, Texas. It was established in June 2008 by industry veterans, Mark Edward McMeans and James Gabriel Birdsall. They have a rich history of collaboration at Invesco (earlier known as AIM Investments). The firm’s team uses customized strategies in order to build a personalized portfolio, which aligns with the individual needs and risk tolerance.
Focus on Fundamental Business Factors
In the Q2 2025 market update, Brasada Capital Management highlighted that true investment risk is not the temporary ebb and flow of market prices. It is the probability of a permanent loss of capital. The firm believes that market volatility should not be feared, but rather it should be looked at as an opportunity. The short-term fluctuations, as a result of news and herd behavior, tend to create mispricing, which a long-term and business-focused investor can exploit.
Eric Freedman (Chief Investment Officer at U.S. Bank Asset Management Group) and other investment analysts believe that the broader market’s underlying fundamentals remain encouraging, reported CNBC. Furthermore, the recent corporate earnings results were ahead of expectations, on average. The analysts expect continued growth in H2 2025, as reported by CNBC while quoting data from LSEG I/B/E/S.
Amidst these trends, we will now have a look at the 10 Best Stocks to Buy According to Brasada Capital Management.
Mark McMeans of Brasada Capital
Our Methodology
To list the 10 Best Stocks to Buy According to Brasada Capital Management, we selected the top 10 stocks in Brasada Capital Management’s portfolio as of its Q1 2025 13F filing. We settled on the hedge fund’s 10 biggest holdings. Finally, we ranked the stocks in ascending order based on the value of Brasada Capital Management’s equity stakes. Additionally, we have mentioned the hedge fund sentiments around each stock, as of Q1 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Stocks to Buy According to Brasada Capital Management
10. The Williams Companies, Inc. (NYSE:WMB)
Brasada Capital Management’s Equity Stake: $11.3 million
Number of Hedge Fund Holders: 72
The Williams Companies, Inc. (NYSE:WMB) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 15, Scotiabank lifted the price target on the company’s stock to $60 from $59, while keeping a “Sector Perform” rating. While Q2 2025 was challenging, companies operating in the US Midstream sector largely kept their FY outlooks, believes the firm’s analyst. Furthermore, the firm favors Permian-levered names and has a preference for gas, considering the basin’s highest relative resiliency in a lower commodity price tape. The Williams Companies, Inc. (NYSE:WMB)’s base business supported the higher earnings for Q1 2025, with recently commissioned Transco projects contributing additional fee-based revenues. However, its consolidated Crowheart upstream operations also fueled growth.
Due to its recent investment in Cogentrix Energy and the continued outperformance of its base business, The Williams Companies, Inc. (NYSE:WMB) raised its adjusted EBITDA guidance midpoint by $50 million to $7.7 billion. The company continues to execute on a string of high-return projects, which can accelerate earnings growth during the balance of the year, while adding significant projects to The Williams Companies, Inc. (NYSE:WMB)’s backlog. The company commercialized Socrates, its first Power Innovation project, which can deliver speed-to-market solutions for growing AI demand in Ohio.
Carillon Tower Advisers, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“The Williams Companies, Inc. (NYSE:WMB) performed well because investors expect it to benefit from growing demand for natural gas over the next several years or even decades. Liquid natural gas exports, onshoring, and data center buildouts could place upward pressure on the company’s volumes across its midstream portfolio. We believe that the company’s share price continues to discount this future benefit due to a very challenging overall energy backdrop.”
The Williams Companies, Inc. (NYSE:WMB) operates as an energy infrastructure company.
9. Canadian Pacific Kansas City Limited (NYSE:CP)
Brasada Capital Management’s Equity Stake: $11.84 million
Number of Hedge Fund Holders: 65
Canadian Pacific Kansas City Limited (NYSE:CP) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 14, analyst Fadi Chamoun from BMO Capital reiterated a “Buy” rating on the company’s stock and has a C$129.00 price target. The analyst’s rating is backed by a combination of factors demonstrating the company’s strong growth prospects and operational excellence. The merger of CP and Kansas City Southern resulted in a significant addressable market, offering opportunities for strong organic volume growth over the upcoming decade. This expansion is aided by Canadian Pacific Kansas City Limited (NYSE:CP)’s extensive land bank, enhancing its ability to address customer supply chain needs.
Canadian Pacific Kansas City Limited (NYSE:CP)’s unique supply chain solutions and best-in-class operational execution place it as a leading growth story in the broader transportation sector, added the firm analyst. Furthermore, it was added that Canadian Pacific Kansas City Limited (NYSE:CP)’s robust FCF conversion and limited capital expenditure pressures hint that it will continue to deliver strong financial performance, making valuation attractive when talking about growth and cash flow capabilities.
8. IDEXX Laboratories, Inc. (NASDAQ:IDXX)
Brasada Capital Management’s Equity Stake: $11.85 million
Number of Hedge Fund Holders: 51
IDEXX Laboratories, Inc. (NASDAQ:IDXX) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 17, Leerink analyst Daniel Clark lifted the company’s price objective to $600 from $580, while keeping an “Outperform” rating. The firm likes IDEXX Laboratories, Inc. (NASDAQ:IDXX)’s setup over the upcoming few years and increased the 12-month price target after channel checks and its semi-annual veterinarian survey. The company drove strong execution in Q1 2025, while advancing critical enablers of its innovation-driven growth strategy.
At the end of March, IDEXX Laboratories, Inc. (NASDAQ:IDXX) launched a first-of-its-kind innovation, IDEXX Cancer Dx™, in its North American reference laboratories. The company saw Q1 2025 revenue growth of 4% (as reported) and 5% (organic), thanks to CAG Diagnostics recurring revenue growth of 3% (as reported) and 4.5% (organic). The organic revenue growth was helped by benefits from IDEXX execution drivers, which include continued robust new business gains and healthy YoY global premium instrument installed base growth, including more than 300 IDEXX inVue Dx™ placements.
IDEXX Laboratories, Inc. (NASDAQ:IDXX) saw EPS of $2.96, reflecting 5% increase (as reported) and 7% (on a comparable basis), thanks to the gross margin expansion of 90 bps (as reported) and 80 bps (on a comparable basis). Polen Capital, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“In the second quarter, we initiated a new position in IDEXX Laboratories, Inc. (NASDAQ:IDXX) and eliminated our positions in Apple and UnitedHealth Group. IDEXX Labs is a global leader in pet diagnostics, offering in-clinic diagnostics (razor and razor blade consumables) and out-of-clinic reference labs. We have researched the business for two decades and admired its durable competitive advantages, highly recurring and profitable business model, attractive runway, supported by tailwinds from pet ownership and the “humanization of pets,” and strong execution by its management team. IDEXX employs a successful “surround the customer” strategy by offering diagnostic tests across many modalities, along with imaging and veterinary practice management software. With a dominant market share in pet diagnostic tests, IDEXX continues to expand its addressable market by innovating new types of testing and creating additional revenue streams for its veterinary customers. We envision years of continued innovation and market expansion, with minimal competitive threats.
Historically, we questioned IDEXX’s persistently high valuation. However, the recent, transitory business slowdown—driven by fewer vet clinic visits as COVID-era pets remain relatively young— has made the valuation more attractive. We believe the company’s long-term outlook remains largely unchanged. As these pets approach 6-7 years of age, their vet care needs will increase, supporting our expectation for sustained double-digit organic revenue growth and mid-to-high teens EPS growth. Even with EPS growth at least in line with the portfolio average, we expect IDEXX to also exhibit safety-like characteristics due to its unique competitive position, recurring revenues, and loyal shareholder base.”
IDEXX Laboratories, Inc. (NASDAQ:IDXX) is engaged in developing, manufacturing, and distributing products for the companion animal veterinary, livestock and poultry, dairy, and water testing industries.
7. CRH plc (NYSE:CRH)
Brasada Capital Management’s Equity Stake: $12.21 million
Number of Hedge Fund Holders: 91
CRH plc (NYSE:CRH) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 10, DA Davidson downgraded the company’s stock to “Neutral” from “Buy” with a price objective of $105, down from the prior target of $120, as reported by The Fly. The firm sees moderating growth rates as likely limiting further significant re-rating potential in the near term. However, M&A and buybacks are the tools that CRH plc (NYSE:CRH) should be expected to utilize, believes the firm’s analyst.
The firm likes the story and the US leverage, but is still moving to the sidelines since the current demand drivers might limit core growth. The strength of CRH plc (NYSE:CRH)’s Q1 2025 performance demonstrates the benefits of its differentiated strategy, good commercial management, and contributions from acquisitions. Notably, the adjusted EBITDA of $495 million, compared to $445 million in Q1 2024, was 11% ahead due to the continued delivery of CRH plc (NYSE:CRH)’s differentiated strategy, positive pricing, ongoing cost control, and further operational efficiencies.
In the three months ended March 31, 2025, CRH plc (NYSE:CRH) completed 8 acquisitions for a total consideration of $0.6 billion. Baron Funds, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“CRH plc (NYSE:CRH) is the largest building materials company in both North America and Europe and supplies products for construction and infrastructure projects such as roads, highways, bridges, and commercial and residential buildings. Its products include materials such as aggregates, cement, asphalt, and concrete, as well as critical utility infrastructure and outdoor living solutions.
CRH is currently trading at 8.7 times 2025 estimated cash flow, while vertically integrated construction materials peers, who are not as big as CRH and do not have the same track record of consistent performance, have traded as high as 13 times cash flow. Aggregates focused peers with similar construction project exposure trade at approximately 16 times cash flow.”
6. Alphabet Inc. (NASDAQ:GOOGL)
Brasada Capital Management’s Equity Stake: $12.72 million
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 23, the company reported its Q2 2025 results, wherein, its consolidated revenues went up by 14%, or 13% in constant currency, YoY to $96.4 billion. This reflects strong momentum throughout the business. Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each saw double-digit growth in Q2 2025. Alphabet Inc. (NASDAQ:GOOGL) highlighted that AI continues to positively impact every part of the business, fueling strong momentum. Search saw double-digit revenue growth, and its new features, like AI Overviews and AI Mode, continue to perform well.
Cloud saw another great quarter of healthy growth in revenues, backlog, and profitability. Its annual revenue run rate is now over $50 billion, and it is witnessing strong demand for its comprehensive AI product portfolio. Alphabet Inc. (NASDAQ:GOOGL) sees healthy customer demand in Google Cloud, thanks to the product differentiation and its comprehensive AI product portfolio. The company has integrated AI agents deeply into each of its Cloud products. Alphabet Inc. (NASDAQ:GOOGL) highlighted that Google Cloud backlog rose 18% sequentially in Q2 2025 and 38% YoY, reaching $106 billion at quarter end. This was aided by robust demand for its products and services from both new and existing customers.
Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. The U.S.-headquartered technology company’s stock price rose relatively steadily throughout the period after it delivered solid first-quarter 2025 earnings and mega-cap tech stocks trended higher. Despite concerns around incremental competition, Google Search revenue grew low-double digits and was slightly ahead of consensus forecasts. Operating income was also ahead of expectations, with Alphabet improving margins even as the company continues to make substantial investments in AI. We believe the potential payoff from these investments across each of Alphabet’s business units remains underappreciated. After adjusting for the value of Google Cloud and Alphabet’s Other Bets, we believe the Search, YouTube and Android businesses are being valued at a low-teens price-to-earnings (P/E) multiple. We still see this as an attractive valuation.”
5. Amazon.com, Inc. (NASDAQ:AMZN)
Brasada Capital Management’s Equity Stake: $13.25 million
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Stocks to Buy According to Brasada Capital Management. The company has reached a deal to buy San Francisco-based Bee, highlighted Reuters on July 23. Bee is a startup that is engaged in making an AI-enabled bracelet to listen in on and transcribe conversations. Reuters also noted that Bee’s $50 wristband is capable of analyzing and distilling what it records to make summaries, to-do lists, or other tasks.
Reuters, while quoting a spokesperson, mentioned that Amazon.com, Inc. (NASDAQ:AMZN) will work with Bee to provide users more control over the devices, which are set to automatically transcribe audio and can be muted. In Q1 2025, the operating income of AWS was $11.5 billion, which reflects the continued growth, along with its focus on fueling efficiencies throughout the business. Amazon.com, Inc. (NASDAQ:AMZN) has also announced plans to launch an AWS infrastructure Region in Chile by 2026 end. Amazon.com, Inc. (NASDAQ:AMZN) plans to invest over $4 billion in Chile to help with the construction, connection, operation, and maintenance of its data centers in the country.
Investment management company Vulcan Value Partners recently released its Q2 2025 investor letter. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN) is a dominant, world-class company with powerful secular tailwinds in place including its e-commerce penetration, digital advertising growth, and the transition to the cloud. Amazon reported strong results during the f irst quarter. The company’s stock rebounded during the second quarter.”
4. Copart, Inc. (NASDAQ:CPRT)
Brasada Capital Management’s Equity Stake: $13.54 million
Number of Hedge Fund Holders: 57
Copart, Inc. (NASDAQ:CPRT) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 8, Stephens analyst Jeff Lick initiated coverage of the company’s stock with an “Equal Weight” rating and a price objective of $50, as reported by The Fly. As per the firm’s analyst, the stock’s healthy absolute and relative performance is and was due to the robust operational execution, strategic planning, among other factors. That being said, the firm also noted that the current setup of elevated valuation, slowing profit growth, and increased competitive and macro-economic uncertainty results in a more challenging 12 – 24 months backdrop, resulting in a neutral rating for Copart, Inc. (NASDAQ:CPRT)’s stock.
The rise in service revenues for Copart, Inc. (NASDAQ:CPRT) during the 3 months ended April 30, 2025 of $88.2 million, or 9.3% YoY, was because of an increase in the US of $67.9 million and an increase in International of $20.3 million. While the US growth was because of an increase in revenue per car, the international growth (after excluding unfavourable fluctuations in currency exchange rates of $0.8 million) was mainly because of an increase in revenue per car and higher volume.
Madison Investments, an investment advisor, released its Q2 2025 investor letter. Here is what the fund said:
“The bottom five detractors for the quarter were Fiserv, Arch Capital Group, Copart, Inc. (NASDAQ:CPRT), Alcon, and Progressive. Shares in Copart lagged the market following quarterly results that showed an uncharacteristic disappointment in volume growth. We believe this was due to temporary factors and the stock was simply coming down from an elevated valuation multiple.”
3. Costco Wholesale Corporation (NASDAQ:COST)
Brasada Capital Management’s Equity Stake: $17.5 million
Number of Hedge Fund Holders: 93
Costco Wholesale Corporation (NASDAQ:COST) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 21, analyst Zhihan Ma from Bernstein maintained a “Buy” rating on the company’s stock, while keeping the price objective of $1,153.00. This rating is backed by compelling factors demonstrating Costco Wholesale Corporation (NASDAQ:COST)’s healthy market position and growth potential. While it has an elevated valuation, the company’s strong earnings growth justifies it. The expansion of Costco Wholesale Corporation (NASDAQ:COST)’s store network happens to be a significant driver of membership growth, and the appeal of the value proposition ensures increased retention and traffic among members, added the firm’s analyst.
Furthermore, Kirkland Signature, Costco Wholesale Corporation (NASDAQ:COST)’s private label brand, plays a key role in the value proposition. Kirkland Signature is an important factor in customer satisfaction and loyalty. The analyst opines that international markets are anticipated to fuel further store and membership growth, and Kirkland Signature will remain critical in maintaining Costco Wholesale Corporation (NASDAQ:COST)’s high customer loyalty. Notably, Costco Wholesale Corporation (NASDAQ:COST) saw net sales of $26.44 billion for the retail month of June, the 5 weeks to July 6, 2025, reflecting 8.0% growth from $24.48 billion last year.
Patient Capital Management, a value investing firm, released its Q2 2025 investor letter. Here is what the fund said:
“We initiated an options position in Costco Wholesale Corporation (NASDAQ:COST) (COST 1/16/26 P960) during the quarter, purchasing at-the-money puts with a 2026 expiration. We’ve consistently highlighted the risk lurking in the “overpriced compounder” segment of the market, and we view Costco as a prime example. The stock is currently trading at 54x earnings despite growing only at a mid-single-digit rate. While Costco is undoubtedly a well-run business, we believe paying more than twice the market multiple for a low-growth, low-margin retailer is difficult to justify. At some point, we expect the market to reassess the premium valuation being placed on Costco’s fundamentals. When it does, we believe the stock could face meaningful downside from its current all-time high multiple.”
2. Waste Connections, Inc. (NYSE:WCN)
Brasada Capital Management’s Equity Stake: $21.1 million
Number of Hedge Fund Holders: 41
Waste Connections, Inc. (NYSE:WCN) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 23, the company announced its results for Q2 2025 and updated its outlook for FY 2025. The strength of its financial profile and FCF generation places it well for additional acquisitions, while maintaining the flexibility for higher return of capital to shareholders, including via opportunistic share repurchases already underway. Despite incremental and growing headwinds, Waste Connections, Inc. (NYSE:WCN)’s FY 2025 outlook is within the ranges from February, providing ~6% revenue growth and 50 bps of adjusted EBITDA margin expansion to 33.0%.
Waste Connections, Inc. (NYSE:WCN) is well-placed for upside stemming from contributions from additional acquisitions, improvements in commodity-related activity, and solid waste volumes. For FY 2025, the company expects revenue to be ~$9.450 billion and net income of ~$1.140 billion. Waste Connections, Inc. (NYSE:WCN) expects capital expenditures to be between $1.200 billion – $1.250 billion. The company highlighted that its acquisition activity continues at an above-average pace, resulting in ~$200 million in annualized revenues already closed to date.
Waste Connections, Inc. (NYSE:WCN)’s balance sheet strength, together with a strong acquisition pipeline stemming from long-term relationships and a consistent, disciplined approach to market selection, places it well for the additional activity. TimesSquare Capital Management, an equity investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Case in point was Waste Connections, Inc. (NYSE:WCN), which collects, transfers, recycles, and disposes of waste for municipalities and businesses in the U.S. and Canada. Revenues exceeded expectations though earnings fell shy of them given the impacts of foreign exchange and lower prices for recycled cardboard. The resilience of Waste Connections’ business within the current economic landscape contributed to a 14% increase in its stock price.”
1. Microsoft Corporation (NASDAQ:MSFT)
Brasada Capital Management’s Equity Stake: $23.60 million
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 23, Morgan Stanley analyst Keith Weiss maintained a “Buy” rating on the company’s stock and set a price objective of $530.00. The analyst’s rating is backed by several factors demonstrating Microsoft Corporation (NASDAQ:MSFT)’s robust potential for sustained growth. After the impressive Q3 2025 results, investor sentiment improved, fueling the share price. Despite this, the analyst believes that the risk/reward ratio remains attractive.
Microsoft Corporation (NASDAQ:MSFT)’s valuation is supported by its leading position in the broader Generative AI space, which is projected to contribute to a durable mid-to-high teens total return profile, added the firm’s analyst. Furthermore, the analyst is confident that Microsoft Corporation (NASDAQ:MSFT)’s robust performance in the last quarter is expected to continue into Q4 2025. The company surpassed consensus expectations throughout all the business segments. Furthermore, Microsoft Corporation (NASDAQ:MSFT)’s disciplined operating expenses and the potential for continued low operating expense growth are projected to offset gross margin pressures, further aiding the company’s growth outlook, added Weiss. These factors continue to underscore the attractive investment opportunity.
Sands Capital, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Microsoft Corporation (NASDAQ:MSFT) is a leading global software and cloud infrastructure business. The company delivered better than-expected quarterly results, with a reacceleration in Azure growth as the key highlight. Demand for AI-related services remains strong, and Microsoft also benefited this quarter from sequential improvement in non-AI-related Azure revenue. We believe Microsoft is well positioned to facilitate and benefit from enterprise adoption of AI services, both at the infrastructure and application layers.”
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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