On June 24, Chris Hyzy, Merrill and BofA Private Bank CIO, joined ‘Closing Bell’ on CNBC to discuss his bullish outlook on the stock market. He presented a series of positive indicators that he suggested are gradually unfolding as the market heads into 2026. These include the expected upward revisions in corporate earnings, the continued positive impact of productivity gains and margin protection, stable oil prices that are not spiking, tariffs remaining quiet, easing financial conditions, and sustained leadership from tech. Hyzy acknowledged that there have been many negative surprises, but he noted that these events have not impacted corporate earnings or consumer behavior to the extent that many had anticipated. He also pointed out that the expected price hikes from tariffs have not yet materialized.

When pressed about the lack of material impact from potential tariff-driven inflation or oil price reactions to geopolitical events, Hyzy asserted that building a strategy based on ‘yet’ has historically led to underperformance for investors. He drew a parallel to the Fed’s hiking regime, where many predicted a recession that never fully materialized despite an inverted yield curve persisting for an unusually long period without leading to a downturn. Hyzy attributed this market resiliency to lessons learned by corporations during the pandemic, which enabled them to maintain margins. He also highlighted the increasing role of GenAI in driving efficiencies, despite continued skepticism from some. Hyzy does not expect immediate multiple expansion, like the P/E ratio increasing from 22 to 23 or 24 times; rather, he believes that future gains will be driven by profitable production, which he expects will become evident in FY2026.

That being said, we’re here with a list of the 1o high profit margin stocks to buy now.

Methodology

We sifted through the Finviz stock screener to compile an initial list of the top stocks. From that list, we narrowed our choices to companies with TTM net profit margin above 20%. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.

Note: All data was collected on July 2. 

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 High Profit Margin Stocks to Buy Now

10. KLA Corporation (NASDAQ:KLAC)

TTM Net Profit Margin: 31.99%

Number of Hedge Fund Holders: 61

KLA Corporation (NASDAQ:KLAC) is one of the high profit margin stocks to buy now. Towards the end of May, KLA Corporation officially opened a new $138 million R&D and manufacturing facility in Newport, Wales, UK. This investment expands on KLA’s existing operations in the region and builds upon decades of semiconductor equipment innovation by SPTS Technologies, which is KLA’s Wales-based product division.

SPTS has been a key player in semiconductor equipment innovation in Wales since 1984, and has earned multiple Queen’s Awards for excellence in R&D and export. KLA acquired SPTS’s etch and deposition product lines in 2019. The new 237,000-square-foot Newport facility is designed to meet growing customer demand and strengthen KLA’s portfolio. It includes 25,000 square feet of R&D clean rooms and 35,000 square feet of state-of-the-art manufacturing space and tool demo areas.

The new facility can accommodate 750 employees and is expected to support the electronics ecosystem in Wales, which serves as a center of engineering and manufacturing excellence. KLA’s investment strengthens Wales’ globally renowned compound semiconductor cluster. The UK Government has also committed ~£5 million to develop the talent pipeline in the sector.

KLA Corporation (NASDAQ:KLAC) designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries.

9. Fortinet Inc. (NASDAQ:FTNT)

TTM Net Profit Margin: 30.60%

Number of Hedge Fund Holders: 62

Fortinet Inc. (NASDAQ:FTNT) is one of the high profit margin stocks to buy now. On June 30, Fortinet announced its recognition as a Leader in the 2025 Gartner Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure. This marks the second consecutive year Fortinet has received this distinction.

The company attributes this achievement to its secure LAN edge portfolio, which includes secure networking solutions like FortiSwitch and FortiAP. The portfolio is fully integrated with the Fortinet Security Fabric and powered by a single operating system, FortiOS. Fortinet emphasizes that its wired and wireless LAN portfolio was developed with built-in AI-powered security and AI-assisted network operations.

The Fortinet Secure LAN Edge portfolio offers benefits to address evolving customer needs, such as pervasive, built-in security at the LAN edge, which helps reduce cyber risk through intuitive architectures with integrated security and AI-assisted management via FortiAI, coupled with a simplified licensing model. The portfolio also promotes stronger IT and OT convergence through a unified platform.

Fortinet Inc. (NASDAQ:FTNT) provides cybersecurity and convergence of networking and security solutions worldwide.