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.
A professional stock market trader in a suit in front of a computer, monitoring movements of different stocks.
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.
8. Fair Isaac Corporation (NYSE:FICO)
TTM Net Profit Margin: 31.36%
Number of Hedge Fund Holders: 68
Fair Isaac Corporation (NYSE:FICO) is one of the high profit margin stocks to buy now. On June 25, FICO announced a partnership with MI New York, which is an American professional cricket team participating in Major League Cricket/MLC. The collaboration aims to promote financial literacy and credit education among cricketers and cricket fans worldwide.
Throughout the Major League Cricket season, MI New York cricketers will use social media to share their personal financial experiences and provide access to valuable credit education content. This content will help individuals understand credit better and access resources to improve their financial health. The initiative is important given cricket’s vast global audience of 2.5 billion fans, which makes it the second most popular sport worldwide.
Additionally, the FICO Score is widely trusted by top US lenders for various credit products, such as personal loans, mortgages, auto loans, and credit cards. Through myFICO, FICO’s consumer website, individuals can check and monitor their FICO Score for free and access educational materials and tools designed to help them understand their credit reports and FICO Scores.
Fair Isaac Corporation (NYSE:FICO) develops software with analytics and digital decision-making technologies that enable businesses to automate, enhance, and connect decisions.
7. Abbott Laboratories (NYSE:ABT)
TTM Net Profit Margin: 31.89%
Number of Hedge Fund Holders: 70
Abbott Laboratories (NYSE:ABT) is one of the high profit margin stocks to buy now. On June 19, Beta Bionics Inc. (NASDAQ:BBNX) announced its plan to integrate its iLet Bionic Pancreas automated insulin delivery/AID system with Abbott’s future dual glucose-ketone sensor in the US. The collaboration aims to enhance real-time decision-making support for individuals with diabetes.
The iLet Bionic Pancreas received FDA clearance in May 2023 and is distinguished as the first and only AID system that autonomously makes 100% of insulin dosing decisions. This eliminates the need for carb counting or manual insulin correction calculations for users, though they still need to be “carb aware.” The system currently supports Abbott’s FreeStyle Libre 3 Plus continuous glucose monitoring sensor, and the new agreement deepens the ongoing partnership between Beta Bionics and Abbott.
The new dual sensor is currently under development and is built on the same form factor as Abbott’s FreeStyle Libre 3 Plus and will continuously monitor both glucose and ketone levels. Ketone monitoring is a crucial advancement as it can help detect early signs of diabetic ketoacidosis, which is a serious complication of diabetes. Abbott’s dual glucose-ketone sensor has received FDA breakthrough device designation.
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells health care products. Beta Bionics Inc. (NASDAQ:BBNX) is a commercial-stage medical device company.
6. CME Group Inc. (NASDAQ:CME)
TTM Net Profit Margin: 57.81%
Number of Hedge Fund Holders: 73
CME Group Inc. (NASDAQ:CME) is one of the high profit margin stocks to buy now. On June 30, CME Group announced its plan to launch CME FX Tape+ later this year. The new service will provide centralized reference prices and a comprehensive view of foreign exchange/FX market liquidity. It will aggregate data from CME Group’s transparent central limit order book/CLOB marketplaces, which include FX futures, EBS Market, FX Spot+, and FX Link.
CME FX Tape+ is designed to enhance transparency in the fragmented FX market by using price information from CME Group’s network of 1,400 institutions and 100,000+ active FX market participants. Unlike other industry reference pricing sources that often use indicative or curated pricing from less transparent origins, CME FX Tape+ will exclusively provide an accessible, unbiased, and transparent view of the FX market.
Initially, CME FX Tape+ will cover 10 major currencies and include a composite “true” spot mid-price. This mid-price will combine liquidity, trades, and mid-rates from across these various venues. The reference data will be disseminated at rapid 250-millisecond intervals via a WebSocket API and made available through historic market data files.
CME Group Inc. (NASDAQ:CME) operates contract markets for the trading of futures and options on futures contracts worldwide.
5. Robinhood Markets Inc. (NASDAQ:HOOD)
TTM Net Profit Margin: 48.77%
Number of Hedge Fund Holders: 76
Robinhood Markets Inc. (NASDAQ:HOOD) is one of the high profit margin stocks to buy now. On June 30, Robinhood announced the launch of new tokens that will enable its European Union/EU customers to trade over 200 US stocks and ETFs. This includes popular companies like NVIDIA Corp. (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), and Microsoft Corp. (NASDAQ:MSFT).
These commission-free tokens can be traded around the clock, 5 days a week. Robinhood also plans to expand this offering to include tokens linked to stocks of privately held companies. The tokens are being issued through a partnership with the blockchain firm Arbitrum, though Robinhood intends to eventually develop its own Layer 2 blockchain to support 24/7 trading and self-custody.
Tokenized equities blend traditional finance with crypto-like trading and are gaining traction among international investors. While these tokens could alter the securities investing landscape, they currently face a lack of clear regulatory guidelines in the US.
Robinhood Markets Inc. (NASDAQ:HOOD) operates a financial services platform in the US that allows users to invest in stocks, ETFs, American depository receipts, options, gold, and cryptocurrencies.
4. Pinterest Inc. (NYSE:PINS)
TTM Net Profit Margin: 50.41%
Number of Hedge Fund Holders: 86
Pinterest Inc. (NYSE:PINS) is one of the high profit margin stocks to buy now. On June 18, Pinterest announced its first-ever product collaboration, as the company partnered with influencer Emma Chamberlain’s coffee company called Chamberlain Coffee. This co-branded product is a limited-edition “Sea Salt Toffee Flavored Blend” coffee.
The coffee blend became available for purchase on June 17 this year on Chamberlain Coffee’s website in the UK, the US, Canada, and Europe, as well as directly through Chamberlain Coffee’s Pinterest profile. The collaboration is notable as a branding opportunity and also because the coffee itself was inspired by Pinterest trends. Emma Chamberlain is a long-time Pinterest user and used the platform to imagine the entire campaign and design.
A core theme throughout the process was the “Fisherman Aesthetic” trend, identified as one of 20 rising trends in Pinterest Predicts, which is the platform’s annual emerging trends report for 2025. While Emma Chamberlain’s influence is a factor in the product’s potential popularity, Pinterest suggests that if the coffee blend proves successful, it could indicate the predictive power of its trend reports.
Pinterest Inc. (NYSE:PINS) is a visual search and discovery platform that allows people to find ideas, such as recipes, home and style inspiration, and others.
3. Alphabet Inc. (NASDAQ:GOOGL)
TTM Net Profit Margin: 30.86%
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the high profit margin stocks to buy now. On June 30, Google announced an investment in nuclear fusion, which is a power source not yet successfully deployed globally. The tech giant revealed plans to purchase 200 megawatts of power from a proposed nuclear fusion plant in Chesterfield County, Virginia, which is being developed by Commonwealth Fusion Systems/CFS.
This technology is based on research from MIT. Additionally, Google will increase its existing equity investment in Commonwealth, adding to the over $2 billion the company has already raised. The exact size of Google’s new investment was not disclosed, but CFS co-founder and CEO Bob Mumgaard indicated it would be comparable to the previous Series B funding round of $1.8 billion in 2021.
This shows Google’s commitment to its pledge to match its global electricity use with 24/7 carbon-free power by 2030, which was a goal set by Alphabet. The International Atomic Energy Agency estimates that fusion could produce 4x more energy per kilogram of fuel than fission and ~four million times more energy than burning oil or coal, without releasing carbon dioxide, the primary gas contributing to global warming.
Alphabet Inc. (NASDAQ:GOOGL) offers various products and platforms and operates through Google Services, Google Cloud, and Other Bets segments.
2. Meta Platforms Inc. (NASDAQ:META)
TTM Net Profit Margin: 39.11%
Number of Hedge Fund Holders: 273
Meta Platforms Inc. (NASDAQ:META) is one of the high profit margin stocks to buy now. On July 1, Meta CEO Mark Zuckerberg announced the launch of Meta Superintelligence Labs/MSL, which is a new AI unit aimed at developing personal superintelligence for everyone and positioning the company at the forefront of AGI development.
This new division will consolidate Meta’s existing foundation model teams, which include the open-source Llama model and its Fundamental AI Research/FAIR division, and will also establish a new lab focused on next-gen models. MSL will be co-led by Alexandr Wang, who joins Meta as its Chief AI Officer, and Nat Friedman, former CEO of GitHub. Friedman has also been part of Meta’s AI advisory group since May 2024.
The formation of MSL is part of Meta’s aggressive recruitment drive for top AI talent, amidst intense competition with rivals like OpenAI, Google, and Anthropic. Meta has reportedly offered up to $300 million over 4 years to some top AI researchers. Meta’s new team demonstrates a strong interest in multimodal AI, which involves AI generating images, video, and speech, and a focus on reasoning capabilities where AI chatbots flesh out their thoughts before answering.
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through two segments: Family of Apps/FoA and Reality Labs/RL.
1. Microsoft Corporation (NASDAQ:MSFT)
TTM Net Profit Margin: 35.79%
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the high profit margin stocks to buy now. On June 30, Microsoft announced an advancement in medical AI, revealing a new AI system called the MAI Diagnostic Orchestrator/MAI-DxO. According to Mustafa Suleyman, the CEO of Microsoft’s AI arm, this tool can diagnose diseases 4x more accurately and at a lower cost than a panel of human physicians.
The MAI-DxO system was tested using a Sequential Diagnosis Benchmark, comprising 304 diagnostically complex case studies sourced from the New England Journal of Medicine. The system works by mimicking a doctor’s step-by-step diagnostic process, querying several leading AI models such as OpenAI’s GPT (specifically the o3 model), Google’s Gemini, Anthropic’s Claude, Meta’s Llama, and xAI’s Grok. This chain-of-debate orchestration mechanism allows multiple AI agents to work collaboratively, emulating a virtual panel of physicians.
In the experiment, MAI-DxO achieved an accuracy of 80% (specifically 85.5% with the o3 model), while a group of 21 practicing physicians from the US and UK who worked without external resources achieved a mean accuracy of 20% on the same complex cases. Furthermore, the AI system reduced costs by ~20% by efficiently selecting less expensive tests and procedures.
Microsoft Corporation (NASDAQ:MSFT) develops and supports software, services, devices, and solutions worldwide.
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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