In this article, we will discuss the 10 Best Stocks to Buy Now for Good Returns.
The artificial intelligence trade is showing signs of fatigue after three years of blockbuster gains. Strategists at UBS note that hedge funds are increasingly cutting their exposure to AI stocks following meetings with clients across the US and Europe. While the market still believes in the AI story over the long term, tactical conviction is eroding at the margin.
According to UBS, hedge funds are rotating quickly as the search for the next trade gets underway. The focus is now on new areas as US economic growth accelerates, as reflected in major plays in US cyclical sectors such as industrials and financials.
“We’re seeing a normal rotation out of some areas that may be a little overbought, a little overheated for the time being,” said Eric Marshall, president of the Dallas-based mutual-fund firm Hodges Capital. “Even though you don’t at this point see an end in demand for a lot of AI optical switch gear or memory- or compute-, you know that trees don’t grow to the sky.”
On its part Berkshire Hathaway has been a net seller of equities for than a dozen quarters in a row. The Warren Buffett investment holding company has parted with well over $150 billion more in equities than it has bought since late 2022. In the first quarter, it sold $8 billion more stock than it bought.
“We’ve never had people in a more gambling mood than now,” Buffet said at Berkshire’s annual meeting in May, pointing to investors paying up for stocks and piling into short-term options and prediction markets.
Amid concerns about AI trade, Warren Buffett still boasts exposure to solid investment plays he believes are well-positioned to deliver strong returns over the long term.
With that in mind, let’s take a look at some of the best stocks to buy now for good returns.
Our Methodology
To curate the list of 10 Best Stocks to Buy Now for Good Returns, we summarized our research on the performance of Warren Buffett’s top 12 stock picks in Q1 2026 and identified those best suited for inclusion. We further focused on stocks with noteworthy positive developments and boast of significant hedge fund holdings. Finally, the stocks are presented in ascending order of hedge fund sentiment in Q1 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Best Stocks to Buy Now for Good Returns
10. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 52
Berkshire Hathaway Stakes: $3.62 Billion
The Kroger Co. (NYSE:KR) is one of the best stocks to buy now for good returns. On June 22, Morgan Stanley reiterated an Equal Weight rating on the stock but cut the price target to $67 from $73 a share. The Kroger Co. is currently trading at $58 a share.
The investment bank terms the strategy of self-funding price investments to drive market share as prudent, given CEO Greg Foran’s track record of supporting execution. However, Morgan Stanley insists that a self-funding price investment strategy comes with its degree of difficulty.
Similarly, on June 22, UBS reiterated a Neutral rating on the stock and cut the price target to $63 from $70. According to UBS, the first-quarter results showed that Kroger Co. has the right plan to strengthen its competitive edge. For starters, the company is well-positioned to fund necessary investments from its savings.
However, the research firm cut its price target amid concerns that Kroger may not have what it takes to deliver long-term targets of 3% to 5% operating income growth and high-digit to low-double-digit shareholder returns.
The Kroger Co. is one of the world’s largest food retailers, operating nearly 2,800 grocery stores and multi-department stores across 35 U.S. states. The company serves over 11 million customers daily, offering a massive footprint in grocery, pharmacy, manufacturing, and fuel services.
9. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 59
Berkshire Hathaway Stakes: $11.16 Billion
Chubb Limited (NYSE:CB) is one of the best stocks to buy now for good returns. On June 12, Barclays reiterated an Equal Weight rating on Chubb Limited and lowered the price target to $368 from $375. The new price target represents significant upside potential as the stock is trading at about $335 a share.
The price target cut comes amid concerns that the company will feel the full brunt of pricing softening and margin pressure. According to Barclays, earnings upside in the property and casualty insurance space is becoming increasingly difficult. Companies in the sector have to pull back on growth initiatives amid weakening pricing to defend underwriting margins.
Earlier on May 26, Piper Sandler reiterated a Neutral rating on the stock and increased the price target to $340 from $328. The price target hike was in response to the stock’s strong performance and the forward-looking nature of the roll. It also reiterated the neutral rating, impressed by the first-quarter results, and touted organic growth prospects in the sector.
Chubb Limited is a global insurance company. It provides a wide variety of insurance and reinsurance products, including commercial and personal property and casualty (P&C) insurance, life insurance, and supplemental health and accident coverage for individuals and businesses of all sizes.
8. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 60
Berkshire Hathaway Stakes: $7.32 Billion
The Kraft Heinz Company (NASDAQ:KHC) is one of the best stocks to buy now for good returns. On June 18, The Kraft Heinz Company announced it will restructure its global operations into three regions effective July 1, 2026.
Plans are underway to consolidate the current regional structure into North America, Europe, and Pacific Developed Markets and Emerging Markets. The reorganization will result in the merger of Asia Emerging Markets and West and East Emerging Markets divisions into a single Emerging Markets region headed by Marcel Regis.
Willem Brandt is to spearhead the Europe and Pacific Developed Markets, which includes European countries, while Nico Amaya remains in charge of North America, covering Canada and the US.
The reorganization is expected to accelerate and scale Kraft Heinz’s operations across markets. The merger of Procurement and Supply Chain is also expected to strengthen the value chain and enable supply chain resilience.
The Kraft Heinz Company is one of the world’s largest food and beverage corporations. They manufacture and market a wide range of consumer packaged goods, including condiments, sauces, dairy, and processed foods. Their portfolio features globally recognized, everyday staples found in millions of households.
7. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 68
Berkshire Hathaway Stakes: $2.65 Billion
Delta Air Lines, Inc. (NYSE:DAL) is one of the best stocks to buy now for good returns. On June 23, UBS reiterated a Buy rating on Delta Air Lines, Inc. and increased the price target to $107 from $98. The new price target represents significant upside as the stock is trading at $90 a share.
The price target hike also comes amid expectations that the second-quarter earnings report will be a positive catalyst for the broader airline sector. UBS expects Delta Air Lines to deliver earnings per share of $1.38. While the company experienced cost pressures in the second quarter owing to higher energy costs, UBS projects 7% cost per available seat mile as the airline raised pay to address crew scheduling issues.
For the third quarter, UBS expects Delta Airlines to achieve earnings per share of $2.51, above the consensus estimate of $1.68 a share. The earnings would incorporate 13.7% revenue per available seat mile on 0.5% available seat mile. The research firm has also raised full-year earnings estimates to $6.70 per share from the consensus of $5.52.
Delta Air Lines, Inc. is a major global airline that transports passengers and cargo to hundreds of destinations worldwide. It operates a vast network, utilizing various aircraft, and offers premium travel services, including vacation packages and alliances with other international carriers.
6. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 76
Berkshire Hathaway Stakes: $30.42 Billion
Coca-Cola (NYSE:KO) is one of the best stocks to buy now for good returns. Recently, Morgan Stanley touted Coca-Cola as its top stock pick in the US beverage sector. The investment bank maintains an Overweight rating on the stock, impressed by strong long-term organic growth prospects on the back of positive short-term developments.
According to the investment bank, the company’s Fairlife sales growth in the US has accelerated over the last six weeks due to incremental capacity expansions. Additionally, the company continues to demonstrate strong pricing power compared to its consumer packaged goods peers. Consequently, it boasts a greater competitive advantage than rivals PepsiCo and Keurig Dr. Pepper.
While Coca-Cola trades at a 5% next 12-month price-to-earnings premium versus peers, Morgan Stanley sees greater short-term visibility given the ramp-up at Fairlife and favorable competitive dynamics. In addition, it expects the company to benefit from a more favorable price-to-cost gap following the recent geopolitical developments compared to consumer packaged goods peers. It expects continued pricing, mix, and volume growth opportunities, above those of large-cap peers.
The Coca-Cola Company is a total beverage corporation that manufactures, markets, and sells nonalcoholic beverage concentrates and syrups, as well as alcoholic beverages. It operates in over 200 countries, supplying beloved brands such as Coca-Cola, Sprite, Fanta, Dasani, Powerade, and Costa Coffee.
5. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 83
Berkshire Hathaway Stakes: $45.86 Billion
American Express Company (NYSE:AXP) is one of the best stocks to buy now for good returns. On June 15, American Express Company announced credit performance metrics for the three months ending May 31, detailing delinquency and net write-off rates for U.S Small Business and USCS card portfolios.
Source: Pexels
The data provides insights into the asset quality of the company’s lending programs, detailing the proportions of loans that are delinquent and written off. For starters, the Consumer card balances held for investment totaled $113.8 billion as of the end of May, and increased from $111.4 billion at the end of April and $110.8 billion at the end of March.
The net write-off rate for principal stood at 2% in May, lower than 2.1% in April. On the other hand, the US Small Business card balances totaled $46.7 billion at the end of May, up from $45.8 billion in April and $45.2 billion in March.
American Express Company is a globally integrated payments company and premium lifestyle brand. It primarily issues credit and charge cards, operates its own merchant payment network, and provides travel, expense management, and banking services to consumers, small businesses, and large corporations.
4. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Holders: 95
Berkshire Hathaway Stakes: $10.76 Billion
Moody’s Corporation (NYSE:MCO) is one of the best stocks to buy now for good returns. On June 16, Moody’s Corporation integrated its data services with Amazon Quick, an agentic AI assistant developed by Amazon Web Services (AWS). Its data and research services are now accessible through the AI assistant via a Model Context Protocol server.
With the integration, customers using Amazon Web Services will have access to Moody’s ratings and research. They will also have access to data from more than 600 million public and private entities, including firmographics, ownership information, financials, macroeconomic forecasts, economic data, and news sentiment.
According to Moody’s, the integration supports credit and lending use cases, including credit analysis, management, and relationship management. The integration also underlines the growing collaboration with AWS in the race to enable AI-supported decision-making for financial institutions.
Meanwhile, on June 18, analyst Charles Bendit raised Moody’s price target to $500 from $490, while maintaining a Neutral rating. He noted that AI is causing a “redistribution of value rather than wholesale disruption” in information services. Proprietary datasets such as ratings, risk, and private‑market data should retain pricing power and see stronger demand, whereas workflow and aggregation models may face gradual erosion. Rothschild also adjusted ratings and targets across the sector.
Moody’s Corporation is a global financial intelligence and risk assessment firm that evaluates the creditworthiness of borrowers and provides financial analytics to help institutions navigate market risks.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 103
Berkshire Hathaway Stakes: $17.46 Billion
Chevron Corporation (NYSE:CVX) is one of the best stocks to buy now for good returns. On June 23, Chevron Corporation selected Texas Pacific Land Corporation to provide land and brackish water resources for its Project Kilby.
Project Kilby is a massive $7 billion initiative by Chevron Corporation and Microsoft to construct a 2.67 gigawatt natural gas-fired power facility in West Texas. TPL has agreed to provide surface acreage in exchange for cash consideration and the exclusive right to source aquifer-derived water for the power generation facility.
Chevron has already made it clear that water stewardship and community engagement are central considerations on the proposed Project Kilby. Consequently, TPL is tasked with providing brackish groundwater to help reduce demand for freshwater resources. It will also provide advanced solutions for the reuse of desalinated produced water from oil and gas operations.
“This project demonstrates how large-scale energy infrastructure can be developed responsibly in West Texas to meet the increasing demands for power and technology,” said Daniel Droog, Vice President, Power Solutions of Chevron.
Chevron Corporation is a global, integrated energy company. It explores for, produces, and refines crude oil and natural gas, and markets fuels, lubricants, and petrochemicals. Additionally, the company invests in lower-carbon energy solutions and renewable technologies.
2. Bank Of America Corp (NYSE:BAC)
Number of Hedge Fund Holders: 106
Berkshire Hathaway Stakes: $25.04 Billion
Bank of America Corp (NYSE:BAC) is one of the best stocks to buy now for good returns. On June 16, the Kansas City Current and Bank of America renewed their multi-year partnership as part of an effort to celebrate community impact and grow the game of soccer nationwide.
Under the terms of the agreement, Bank of America will remain the club’s official partner, and the Current will support its landmark global sports program, Sports with Us. The agreement affirms the investment bank’s longstanding commitment to the women’s soccer team, which has also collaborated with it on various community initiatives.
The partnership comes as Bank of America maintains a strong regional footprint across the Kansas City area with 33 locations. The bank is also the Official Bank of the FIFA World Cup 2026, supporting all 106 matches across North America.
Meanwhile, on June 23, Citi reiterated a Buy rating on Bank of America and raised the price target to $66 from $62. According to Citibank, Bank of America’s conference commentary has been constructive, pointing to upside in Q2 estimates.
Bank of America Corp is one of the world’s leading financial institutions, providing comprehensive banking, investing, and asset management. It serves approximately 70 million clients globally across several core divisions, ranging from everyday consumer checking accounts to corporate investment banking.
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 170
Berkshire Hathaway Stakes: $57.84 Billion
Apple Inc. (NASDAQ:AAPL) is one of the best stocks to buy now for good returns. On June 23, Apple Inc. opened investigations after a ransomware group claimed to have published files linked to the company and electric vehicle company Tesla.
The leaked information allegedly dates back to 2021, and does not contain critical or sensitive operational data. Reuters reported that the authenticity and scope of the purported data had not been independently verified. Apple’s global cybersecurity team is evaluating the incident as it seeks to identify the root cause and put additional safeguards in place where possible.
Meanwhile, on June 22, Bank of America reiterated that the just-concluded Apple WWDC announcement represented a material positive reset to the company’s AI strategy, which is underappreciated. According to the research firm, the new Siri AI is positioned as a context-aware multimodal cross-app assistant embedded across the Apple ecosystem. The research firm maintains a Buy rating on the stock and a $380 price target.
Apple Inc. is an American multinational technology company that designs, manufactures, and sells consumer electronics, computer software, and online services. It is best known for iconic hardware such as the iPhone, Mac computers, iPad, Apple Watch, and AirPods, as well as subscription services such as Apple Music and iCloud.
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