In this article, we will discuss the 10 Must-Buy Non-Tech Stocks to Invest in.
Wall Street is under pressure heading into year-end as a selloff in technology stocks shows no signs of waning. After an extraordinary rally fuelled by the artificial intelligence boom, concerns that technology stocks are overvalued are looming large. The NASDAQ 100 pulling back by about 4% over the past month is a rare feat that’s arousing questions.
The growing charter of a potential pullback from current highs has triggered rotation from tech stocks. According to Joe Mazzola, head of trading and derivatives strategy at Charles Schwab, there is a significant shift in the sectors investors are willing to hold. For starters, the healthcare sector is up about 5.2% over the past month, while energy stocks rose 4%. In contrast, technology stocks are down by about 4%.
“There are a lot of uncertainties about the state of the economy,” said Peter Carrillo, chief market economist at Spartan Capital Securities in New York. “What we’re going through is a little bit of a correction in the market in the AI sector and we’re seeing market rotation.”
A sell-off in the technology sector is attracting increasing attention as the industry has driven performance over the past few years. Nevertheless, growing concerns about when artificial intelligence spending will start paying off are sending jitters through the investment community.
The recent pullback is already suggesting that investors see life outside big tech names that have defined the market over the past two years. Scott Chronert, managing director of US equity strategy at Citi, believes healthier market dynamics are emerging beyond tech stocks.
Data from Bespoke Investment Group also suggests investors are moving out of the biggest winners and into less-loved pockets of the market. With that in mind, let’s take a look at some of the must-buy non-tech stocks to invest in.
Photo by christina wocintechchat on Unsplash
Our Methodology
To compile the list of must-buy non-tech stocks to invest in, we used Finviz Screener and other online sources to identify non tech companies. We focused on stocks that have surged over 50% year-to-date and carry strong Buy ratings from analysts. We further trimmed the list by focusing on non-tech stocks with upside potential of more than 30% as of November 24 and detailed their hedge fund holdings for the second quarter of 2025. Finally, we ranked the stocks in ascending order based on their upside potential.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Must-Buy Non-Tech Stocks to Invest in
10. Alamos Gold Inc. (NYSE:AGI)
Year to date Gain: 71.60%
Stock Upside Potential: 33.19%
Number of Hedge Fund Holdings: 38
Alamos Gold Inc. (NYSE:AGI) is a must-buy non-tech stock to invest in. On November 20, Alamos Gold Inc. (NYSE:AGI)’s board approved a quarterly dividend of $0.25 a share. The dividend offering comes just days after the company delivered record free cash flow of $130 million for its third quarter.
The dividend offering is to be paid on December 18, 2025, to shareholders of record as of December 4. The dividend offering underscores the company’s commitment to shareholder value. It has paid dividends for 16 consecutive years and returned $447 million via dividends and buybacks.
In the third quarter, the company’s cash from operating activities increased to $265.3 million, a 33% increase from the second quarter. The increase underlines substantial margin expansion as the company continues to capitalize on higher gold prices. Alamos plans to increase its gold production in the fourth quarter by 18% to between 157,000 and 177,000 ounces, expected to mark the strongest quarter of the year.
Meanwhile, on November 3, Steven Green from TD Cowen reiterated a Buy rating on the stock, impressed by the company demonstrating strong financial performance. Additionally, the analyst expects the company to continue capitalizing on higher commodity prices.
Alamos Gold Inc. (NYSE:AGI) is a Canadian-based intermediate gold producer that explores for, develops, and mines gold deposits. It operates mines in North America, including the Island Gold District and Young-Davidson mine in Canada, and the Mulatos District in Mexico.
9. XP Inc. (NASDAQ:XP)
Year to date Gain: 49.62%
Stock Upside Potential: 35.29%
Number of Hedge Fund Holdings: 29
XP Inc. (NASDAQ:XP) is a must-buy non-tech stock to invest in. On November 17, XP Inc. (NASDAQ:XP) reiterated its commitment to returning value to shareholders by approving three capital allocations. The board approved a $0.18-per-share dividend, payable on December 18 to shareholders of record as of December 10.
Additionally, the board of directors approved a new share buyback program of up to R$1 billion targeting outstanding Class A common shares. The board also approved the retirement of 10,970,754 Class A common shares, representing the company’s total shares.
The capital distribution follows a solid third quarter, during which XP generated R$4.9 billion in revenue, representing a 9% year-over-year increase. The increase was driven by growth in the corporate & issuer service businesses. Retail revenue increased 6% driven by float from checking and investment accounts. It also benefited from higher average volumes and higher interest rates. Net income rose 12% to R$1.3 billion, translating to basic earnings per share of R$2.51.
Meanwhile, Jorge Kuri of Morgan Stanley has reiterated XP is a Buy with a $26 price target. The positive stance stems from the company’s net income exceeding estimates amid a surge in retail net inflows that exceeded expectations by 30%.
XP Inc. (NASDAQ:XP) is a technology-driven financial services platform that operates primarily in Brazil, offering a wide range of low-fee products and services to both retail and institutional clients. The company’s business includes wealth management, securities brokerage, investment management, and corporate and issuer services, such as M&A advisory.
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