Earlier on July 1, Ralph Schlosstein, Evercore’s chairman emeritus and BlackRock’s co-founder, joined ‘Closing Bell Overtime’ on CNBC to talk about his outlook for markets heading into H2 2025. Schlosstein explained that it’s impossible to say that tariffs are entirely behind us. Still, he expressed cautious optimism and noted a strong desire from both the US government and its negotiating counterparts to reach the least disruptive settlement possible. While he acknowledged that there might be some mini tantrums, he overall expects no major disruptions from tariffs in H2. Schlosstein also stated that while predicting future economic statistics with certainty is impossible, the trend for inflation appears positive and lays a strong foundation for a September rate cut. He also observed a slight loosening in the labor markets, which would support a downward move in interest rates. He concluded that the next directional change in Fed interest rates would be downward. The only remaining question was the number of cuts this year. Schlosstein expected two, and if not two, then three rather than just one.
Schlosstein also noted signs of the IPO market percolating, an increase in M&A activity, and more liquidity entering the market. Schlossstein first addressed M&A and reiterated his earlier prediction that 2025 would be stronger than 2024 in terms of dollar volume, and 2026 would be stronger than 2025. While the initial pace had been slower than anticipated due to volatility and uncertainty in the first few months of the year, he stood by his forecast. Regarding the markets generally, he pointed to several key factors: monetary policy would become accommodative in the latter half of the year, and a stimulative fiscal policy was almost certain to pass. He believed government actions would strive not to disrupt the building of confidence in the economy.
That being said, we’re here with a list of the 10 most profitable new stocks to buy now.
A portfolio manager studying various stocks and other securities on a tablet.
Methodology
We sifted through the Finviz stock screener to compile a list of the top companies that went public in the last 2 years and had a TTM net income greater than $300 million. We then selected 1o 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 recorded on July 23.
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 Most Profitable New Stocks to Buy Now
10. Inhibrx Biosciences Inc. (NASDAQ:INBX)
TTM Net Income as of July 23: $1.72 billion
Number of Hedge Fund Holders: 10
Inhibrx Biosciences Inc. (NASDAQ:INBX) is one of the most profitable new stocks to buy now. On July 18, it was reported that Inhibrx Biosciences is currently conducting a pivotal Phase 2/3, randomized clinical study, titled “HexAgon-HN,” to evaluate the efficacy and safety of INBRX-106.
The study combines INBRX-106, which is a hexavalent OX40 agonist antibody, with pembrolizumab (an anti-PD-1 antibody) as a first-line treatment for patients with recurrent or metastatic Head and Neck Squamous Cell Carcinoma/HNSCC that expresses PD-L1 (with a Combined Positive Score of ≥20). The combination therapy is being compared against pembrolizumab monotherapy. Both INBRX-106 and pembrolizumab are administered intravenously every 3 weeks.
The study design is randomized with a parallel assignment model, and the Phase 3 portion will be double-blind, ensuring that neither participants nor investigators are aware of the treatment allocations. The primary objective is to evaluate treatment efficacy. The HexAgon-HN study commenced on May 14 earlier this year and is actively recruiting participants. The most recent update regarding the study’s progress was submitted on July 15.
Inhibrx Biosciences Inc. (NASDAQ:INBX) is a clinical-stage biopharmaceutical company that engages in the development of biologic therapeutics for people with life-threatening conditions.
9. Hamilton Insurance Group Ltd. (NYSE:HG)
TTM Net Income as of July 23: $324.1 million
Number of Hedge Fund Holders: 21
Hamilton Insurance Group Ltd. (NYSE:HG) is one of the most profitable new stocks to buy now. On July 14, Morgan Stanley raised its price target for Hamilton Insurance from $20 to $21 per share, while maintaining an Equal Weight rating on the shares. This indicates a slightly more optimistic outlook for the company’s valuation.
Despite global catastrophe losses, the company reported a net income of $81 million in Q1 2025. Gross premiums written increased by 17% due to growth in both its Bermuda and International segments. The company also saw strong investment returns, which totaled $167 million and helped offset catastrophe losses.
However, the company experienced high catastrophe loss ratio of 30.2% primarily due to the California wildfires. The combined ratio increased to 111.6% from 91.5% in the previous year, mainly attributed to these catastrophe losses. The expense ratio also rose by 1.2 points to 32.4%, driven by higher acquisition costs and changes in business mix. The Bermuda segment specifically incurred an underwriting loss of $59 million, which resulted in a combined ratio of 122.8% due to catastrophe losses.
Hamilton Insurance Group Ltd. (NYSE:HG) is a specialty insurance and reinsurance company in Bermuda and internationally.
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