In this article, we will look at the 10 Best Stocks to Buy Before the Next Bull Run.
On May 4, Tom Lee, Head of Research at Fundstrat, appeared on a CNBC Television interview to discuss the market outlook. Lee believes that the risk-to-reward ratio of the stock market remains attractive, despite the uncertainty surrounding the war. He added that while an effective resolution of the war remains uncertain, it has revealed the strength of the US economy and stock market relative to the rest of the world. Lee added that earnings expectations have risen, and AI has been boosting productivity and leading US GDP growth.
Lee is particularly interested in the software sector despite the recent sell-off. He noted that investors might be right to question the long-term effectiveness of software business models. However, Lee added that many of these companies are managed very well, and he expects the companies to adapt as the AI unfolds. Lee believes that the stock market has tailwinds to lift the market higher through May till July 2026.
With that, let’s take a look at the 10 Best Stocks to Buy Before the Next Bull Run.
Stocks
Our Methodology
To curate the list of 10 Best Stocks to Buy Before the Next Bull Run, we used the Finviz stock screener, CNN, and Insider Monkey’s hedge funds database. Using the screener, we aggregated a list of stocks that are trading close to their 52-week lows, but analysts expect more than 30% upside over the next 12-months. Next, we checked the upside from CNN and ranked the stocks in ascending order of the number of hedge fund holders. We have limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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 Stocks to Buy Before the Next Bull Run
10. SAP SE (NYSE:SAP)
Upside Potential: 48.45%
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) has fallen 27.93% on a year-to-date basis, but Wall Street expects more than 48.45% upside over the next 12-months. The stock also ranks among our Best Stocks to Buy Before the Next Bull Run as it is trading close to its 52-week lows and analysts expect significant upside.
SAP SE (NYSE:SAP) has gained spotlight after its fiscal Q1 2026 earnings, released on April 23. During the quarter, the company posted $11.17 billion in revenue, reflecting 8.44% year-over-year but missing the consensus by $17.79 million. On the bright side, the GAAP EPS came in at $1.94 and topped the estimates by $0.14.
Management attributed quarterly growth to 19% year-over-year growth in Cloud revenue and 23% growth in Cloud ERP Suite. Notably, the company’s backlog grew by 20% to reach €21.9 billion.
Following the result, on April 30, Adam Wood from Morgan Stanley reiterated a Buy rating on the stock with a price target of €190. Earlier, on April 29, Barclays reiterated a Buy rating on the stock and raised the price target from $256 to $257. Analysts at Barclays noted that during Q1, management addressed key AI concerns, which have reduced downside risks for Sapphire.
SAP SE (NYSE:SAP) is a multinational enterprise software company that provides solutions for enterprise resource planning, supply chain management, procurement, and customer experience. Its offerings include the SAP S/4HANA and SAP Business Technology Platform.
9. Medtronic plc (NYSE:MDT)
Upside Potential: 38.70%
Number of Hedge Fund Holders: 63
Medtronic plc (NYSE:MDT) is one of the Best Stocks to Buy Before the Next Bull Run. Recently, on April 28, Medtronic plc (NYSE:MDT) announced receiving the CE Mark for its Stealth AXiS system. The AXis system is a next-generation platform that combines planning, navigation, and robotics into a single intelligent solution. This new clearance from the EU comes after the system got FDA approval. Management noted that the CE Mark means that the company will accelerate access across Europe.
The system is aimed at spine and cranial procedures, and is designed to support various clinical workflows and surgical environments. Notably, the system features LiveAlign segmental tracking, which is an industry-first capability that allows surgeons to visualize anatomic motion during the procedure.
Moreover, the system is backed by AI, which allows advanced planning and visualization at all stages of the procedure. Overall, the Street is bullish on Medtronic plc (NYSE:MDT) as 65% of the 34 analysts covering the stock have a Buy rating, and the 12-month average price target suggests more than 38% upside from the current level.
Medtronic plc (NYSE:MDT) is based in Ireland and provides healthcare technology solutions. Its business is organized across four main segments: Cardiovascular, Neuroscience, Medical Surgical, and Diabetes.
