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.
8. Sterling Infrastructure, Inc. (NASDAQ:STRL)
Year to date Gain: 93.02%
Stock Upside Potential: 36.16%
Number of Hedge Fund Holdings: 25
Sterling Infrastructure Inc. (NASDAQ:STRL) is a must-buy non-tech stock to invest in. On November 12, Sterling Infrastructure Inc. (NASDAQ:STRL) announced plans to return $400 million to shareholders through share repurchases. The new program, set to run over the next 24 months, replaces the previous repurchase program, which expires in December.
The $400M buyback program comes on the heels of the company delivering impressive third-quarter results, characterized by top-line growth and better bottom-line growth. Revenue in the quarter was up 32% year over year to $689 million, driven by 58% growth in E-Infrastructure Solutions and 10% growth in Transportation Solutions. Adjusted net income increased 57% to $107.7 million or $3.48 a share.
“This expanded share repurchase authorization reflects our continued confidence in Sterling’s outlook,” stated Joe Cutillo, Sterling’s CEO. “With our strong balance sheet and cash flow, we are well-positioned to pursue a balanced capital allocation strategy that supports our investments in organic growth and strategic acquisitions, while returning capital to shareholders. We will continue to pursue an opportunistic approach to share repurchases.”
Meanwhile, William Blair analyst Louie DiPalma reiterated a Buy rating on the stock. According to the analyst, the $400M stock purchase program affirms confidence in the company’s financial health and future performance.
Sterling Infrastructure, Inc. (NASDAQ:STRL) is a construction and infrastructure services provider that operates through three main segments: E-Infrastructure, Transportation, and Building Solutions. It specializes in large-scale site development for data centers and e-commerce, heavy civil construction for roads and bridges, and concrete foundations for residential and commercial buildings.
7. Futu Holdings Limited (NASDAQ:FUTU)
Year to date Gain: 114.60%
Stock Upside Potential: 37.78%
Number of Hedge Fund Holdings: 36
Futu Holdings Ltd (NASDAQ:FUTU) is a must-buy non-tech stock to invest in. On November 20, Barclays analyst Jiong Shao reiterated that Futu Holdings Limited (NASDAQ:FUTU) is a Buy. The positive stance stems from the company delivering impressive third-quarter results, characterized by significant growth in funded accounts as client acquisition picked up across every market.
The total number of funded accounts rose to 3.13 million, representing a 42.6% year-over-year increase. Likewise, the number of brokerage accounts increased by 30.8% to 5.61 million, while total trading volume rose 104.8% to HK$3.90 trillion.
“Malaysia contributed meaningfully to the Company’s funded account growth in the quarter, and we continue to see a long runway for growth in Malaysia after seven quarters of rapid market share expansion. During the quarter, we enhanced product localization by rolling out Bursa derivatives, SGX futures, and AI tools that support Malay language and local stock analysis,” Mr. Leaf Hua Li, Futu’s Chairman and Chief Executive Officer, said.
Consequently, Futu reported an 86.3% increase in third-quarter revenue to $822.9 million. Net income rose 143.9% to $413.5 million as gross profit rose 99.5% to $720.9 million. In addition, the company has approved an $800 million share buyback following the expiration of the current program.
Futu Holdings Limited (NASDAQ:FUTU) is a fintech company that provides a one-stop digital platform for online brokerage and wealth management services. Through its proprietary platforms, Futubull and Moomoo, it offers clients the ability to trade a wide range of financial products, including stocks, options, and ETFs, as well as wealth management products, margin financing, and securities lending.
6. Karman Holdings Inc. (NYSE:KRMN)
Year to date Gain: 105.76%
Stock Upside Potential: 39.50%
Number of Hedge Fund Holders: 21
Karman Holdings Inc. (NYSE:KRMN) is a must-buy non-tech stock to invest in. On November 7, analysts at Raymond James reiterated a strong Buy rating for Karman Holdings Inc. (NYSE:KRMN) following an impressive third quarter. While the stock is up by more than 100% year to date, the analyst has set a $100 price target, suggesting significant upside.
The research firm has reiterated that the stock is a buy after the recent pullback as Q3 results underscore underlying growth. The defense contractor posted a 42% increase in revenue to $121.8 million as adjusted EBITDA grew 34% to $37.7 million. The company achieved a record net income of $7.6 million, up 78.1%. In addition, it exited the quarter with a record backlog of $758.2 million, up 30.8%.
“High demand for our $1.2 billion secondary equity offering reflected confidence in our business model and market focus, and marked the effective exit of our private equity sponsor,” said Tony Kolinsky, chief executive officer of Karman Space & Defense.
Following the impressive third quarter, Raymond James raised its revenue forecast on the expectation of growth exceeding 30% in response to the Five Axis acquisition.
Karman Holdings Inc. (NYSE:KRMN) designs, develops, and manufactures critical systems for the US missile, space, and defense industries. The company provides mission-critical solutions for programs involving launch vehicles, satellites, spacecraft, and unmanned aircraft systems.
5. AeroVironment, Inc. (NASDAQ:AVAV)
Year to date Gain: 76.39%
Stock Upside Potential: 42.94%
Number of Hedge Fund Holdings: 31
AeroVironment, Inc. (NASDAQ:AVAV) is a must-buy non-tech stock to invest in. On November 18, BNB Paribas analyst Mathew Akers initiated coverage of the stock with an Outperform rating and a $355 price target. According to the analyst, the company remains well-positioned to benefit from various “Department of War” priorities.
Likewise, on November 20, Piper Sandler analyst Clarke Jefferies initiated coverage of the stock with a Buy rating and a $391 price target. The positive stance comes amid expectations that the company will see further growth given its ability to develop innovative products in expanding market segments. The company is making a name for itself in the development of autonomous systems for the military, including the Switchblade guided munition, which can loiter in the air and wait for a target.
On October 31, the company inked a strategic partnership with OpenJAUS, paving the way for integrating the JAUS standard into its AV_Halo Command software platform. The integration paves the way for establishing a framework that can accelerate the development of unmanned and control systems.
AeroVironment, Inc. (NASDAQ:AVAV) is a global defense technology company that designs, develops, and produces intelligent, multi-domain robotic systems for government and commercial clients. Its portfolio includes unmanned aircraft systems (UAS), loitering munitions, counter-UAS technologies, space-based platforms, and cyber and electronic warfare capabilities.
4. Super Group (SGHC) Limited (NYSE:SGHC)
Year to date Gain: 93.70%
Stock Upside Potential: 46.91%
Number of Hedge Fund Holders: 22
Super Group (SGHC) Limited (NYSE:SGHC) is a must-buy non-tech stock to invest in. On November 4, analysts at Canaccord Genuity reiterated a Buy rating and an $18 price target on Super Group (SGHC) Limited (NYSE:SGHC). Likewise, Needham analyst Bernie McTernan echoed similar sentiments, reiterating a Buy rating and a $15 price target.
The wave of positive ratings on Wall Street comes on Super Group delivering another quarter of strong financial results, marked by a 65% increase in adjusted EBITDA to $152 million. Revenue in the quarter was up 26% to $556.9 million from $442.9 million delivered in the same quarter last year. Profit for the quarter was $95.8 million, a significant improvement from $10.3 million delivered in the same quarter last year.
The strong financial results came amid an 18% increase in monthly active customers to 5.5 million. Likewise, SGHC has raised its revenue guidance to between $2.17 and $2.27 billion, up from $2.125 – $2.20 billion. Adjusted EBITDA is expected to range between $555 and $565 million, up from the previous guidance of between $550 and $560 million.
Super Group (SGHC) Limited (NYSE:SGHC)is a global holding company for online sports betting and gaming. It offers Betway, an online sports betting and casino offering, and Spin, a multi-brand online casino.
3. Tencent Music Entertainment Group (NYSE:TME)
Year to date Gain: 63.43%
Stock Upside Potential: 47.43%
Number of Hedge Fund Holdings: 31
Tencent Music Entertainment Group (NYSE:TME) is a must-buy non-tech stock to invest in. On November 13, BNP Exane Paribas touted the company’s third-quarter results, which showed significant improvement as it benefits from continued innovations in content enrichment and service expansion.
Revenue in the quarter was up 20.6% year over year to $1.19 billion, driven by growth in online music services. Additionally, the company benefited from the Value-Added Services (VAS) segment, which grew 16%, as domestic gaming rose 15% and international gaming surged 42%. The company delivered earnings per share of $0.19. According to the research firm, the solid third-quarter results affirm the long-term investment case for Tencent Music Entertainment.
Likewise, on November 13, Benchmark reiterated that Tencent Music Entertainment is a Buy but cut the price target to $25 from $28. The price target cut comes amid concerns that the rapid expansion of offline events is negatively impacting gross margins, creating pressure on profitability. Nevertheless, the company posted a 50% increase in non-subscription music revenue driven by strong performance in concerts and merchandise.
Tencent Music Entertainment Group (NYSE:TME) is a leading online music and audio entertainment platform that provides music streaming, online karaoke, and live streaming services. It also offers a comprehensive music library and hosts online concerts.
2. Corcept Therapeutics Incorporated (NASDAQ:CORT)
Year to date Gain: 56.65%
Stock Upside Potential: 77.83%
Number of Hedge Fund Holders: 35
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a must-buy non-tech stock to invest in. On November 17, analysts at Wolfe Research initiated coverage of Corcept Therapeutics Incorporated (NASDAQ:CORT) with a Peer Perform rating. According to the research firm, the stock is likely to trade in the $70 to $75 range until there is a resolution to the ongoing patent litigation and antitrust concerns.
Nevertheless, the research firm expects drug candidate relacorilant to drive upside following its PDUFA date for hypercortisolism on December 30, 2025. It expects the candidate drug for Cushing syndrome to impact the company’s long-term outlook positively. The remarks follow the company’s mixed third-quarter results on November 3.
Earnings per share came in at $0.16, beating consensus estimates of $0.13 but representing a significant drop from $0.41 per share delivered in the same quarter last year. On the other hand, revenues totaled $2097.6 million, compared with $182.5 million in the same quarter last year.
The third quarter marked another period of robust growth in our hypercortisolism business. Once again, we had a record number of new prescriptions written for Korlym® and continued to add to our base of prescribers. […]Our financial results don’t fully reflect this surge in demand, given capacity constraints at our previous specialty pharmacy vendor. We have modified our 2025 revenue guidance to $800 – $850 million,” said Joseph K. Belanoff, M.D., Corcept’s Chief Executive Officer.
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a pharmaceutical company that discovers, develops, and commercializes medications to treat serious metabolic, oncologic, and psychiatric disorders by modulating the effects of the stress hormone cortisol. Its lead product is Korlym (mifepristone), which is approved to treat hypercortisolism (Cushing’s syndrome).
1. TeraWulf Inc. (NASDAQ:WULF)
Year to date Gain: 121.43%
Stock Upside Potential: 96.01%
Number of Hedge Fund Holders: 26
Terawulf Inc. (NASDAQ:WULF) is a must-buy non-tech stock to invest in. On November 11, ROTH MKM reiterated a Buy rating on the stock and raised the price target to $26 from $24. The buy stance is in response to the company developing its high-performance computing infrastructure.
The research firm expects the company to ink additional HPC contracts at its existing and future sites as part of its expansion plans. The company could have more than five execution ready sites in addition to its 366MW site. The addition of new sites could result in the company’s capacity exceeding 100MW, providing sufficient power capacity to meet customer demand.
Likewise, analysts at B. Riley have raised the stock’s price target to $23 from $22 while reiterating a Buy rating, impressed by solid third-quarter results that beat expectations. The research firm has echoed the company’s growth prospects, noting its target of annual HPC contracts between 250 and 500 MW as it also advances site acquisitions and financing plans.
TeraWulf Inc. (NASDAQ:WULF) is an American digital infrastructure company that develops, owns, and operates data centers for high-performance computing (HPC), artificial intelligence (AI) applications, and proprietary Bitcoin mining. The company’s business model is shifting from its traditional focus on Bitcoin mining to providing AI infrastructure, which offers a higher-margin, more stable revenue stream. The buy stances.
While we acknowledge the potential of WULF 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 WULF and that has 100x upside potential, check out our report about this cheapest AI stock.
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