In this article, we will look at the 10 Must-Buy US Stocks to Invest In.
US equity valuations appear stretched by multiple measures. Bank of America strategist Michael Hartnett cautions that of the 20 valuation indicators he tracks, all register the S&P 500 as overvalued. He noted that the index’s price-to-book ratio has risen to a record 5.3, surpassing the March 2000 dot-com peak of 5.1. Other valuation metrics, such as forward P/E and cyclically adjusted P/E, also hover near historical extremes seen in 1929, 2000, and 2021.
Meanwhile, trade policy uncertainty continues to unsettle markets. Back in late April, Goldman Sachs CEO David Solomon warned that ambiguity around tariffs is prompting CEOs to “tighten their belts,” with the firm’s “Tariff-Induced Recession Risk” report lowering the 2025 US growth forecast from 1.5% to 1.3% and raising the probability of recession from 35% to 45%. Solomon’s remarks weren’t just a snapshot; they were a leading indicator. The ambiguity he flagged has now crystallized into hard policy, and the economic drag is becoming more measurable. The Fed is caught between softening labor data and rising inflation, and Goldman believes the risk of stock-market decline has “suddenly spiked.”
At the same time, the “Magnificent 7” (megacap tech stocks) are shouldering most of the market gains. As described by the Financial Times, these megacaps have increasingly driven the S&P 500’s performance, prompting some investors to rotate toward the so-called “forgotten 493” stocks amid concerns over concentration risk.
Yet, even amid elevated valuations, policy ambiguity, and megacap dominance, select US stocks still offer meaningful upside potential. This post presents 10 names with the potential to perform even in a challenging market environment.
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Our Methodology
To identify the 10 Must-Buy US Stocks to Invest In, we used the Finviz stock screener to compile an initial group of US-listed equities. From this pool, we focused on well-known companies that had delivered year-to-date (YTD) returns exceeding 30% as of August 26, 2025. We determined the stocks’ popularity using hedge fund holdings data from Q2 2025 13F filings available in Insider Monkey’s database. The final list is ranked in ascending order by number of hedge fund holders.
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).
Must-Buy US Stocks to Invest In
10. Welltower Inc. (NYSE:WELL)
Number of Hedge Fund Holders: 56
Year-To-Date Returns: 32.22%
Welltower Inc. (NYSE:WELL) is one of the must-buy US stocks to invest in. On August 4, Wells Fargo upgraded Welltower to “Overweight” from “Equal Weight.” The firm set a new price target of $158, higher than the stock’s trading price of $138.81 at the time. The upgrade was timed with a recent drop in Welltower’s share price (down nearly 10% over the previous week), which analysts viewed as a buying opportunity for investors.
Wells Fargo’s analyst, Connor Siversky, stated: “We’ve been on the sidelines waiting for the right moment to get back into WELL and the recent pullback gives us an opportunity.” The firm’s positive view is based on strengths in Welltower’s senior housing operations, management team, and financial structure. The company has maintained consistent dividend payments for 50 consecutive years, with a current yield of 1.80%.
The analysts believe Welltower is well-positioned to handle economic challenges, such as tariffs and potential recessions. They expect the company to benefit from distressed investment opportunities due to market volatility and widening credit spreads.
Welltower Inc. (NYSE:WELL) is a real estate investment trust (REIT). It invests in healthcare infrastructure, owning and managing senior housing, post-acute care, and outpatient medical properties across the United States, Canada, and the United Kingdom. The company partners with leading healthcare operators and developers to provide modern facilities that address the growing demand for senior living and healthcare services.
9. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders: 71
Year-To-Date Returns: 34.70%
RTX Corporation (NYSE:RTX) is one of the must-buy US stocks to invest in. The company announced on August 18 that its subsidiary, Raytheon, had successfully completed a 360-degree flight test for its Lower Tier Air and Missile Defense Sensor (LTAMDS) at White Sands Missile Range in New Mexico. The primary purpose of the test was to demonstrate the LTAMDS’s 360-degree sensing capability. The system utilized one of its secondary radar arrays to “track and intercept a complex, threat representative target.”
The test also validated the LTAMDS’s successful integration with the Integrated Battle Command System (IBCS), a PAC-3 MSE missile, which was used to intercept the target, and the Large Tactical Power Source (LTPS), a recently delivered component that provides increased power, enabling the radar to reach its “full battlespace potential.”
The LTAMDS is equipped with three radar arrays that provide “full-sector sensing capabilities” for 360-degree coverage. According to Raytheon, this design is intended to counter “massive, coordinated attacks” involving a mix of threats, including drones, advanced aircraft, and ballistic, cruise, and hypersonic missiles.
RTX Corporation (NYSE:RTX) is an aerospace and defense company. It designs, manufactures, and services advanced systems and technologies for commercial, military, and government customers worldwide. The company operates through major business segments, including Collins Aerospace, Pratt & Whitney, and Raytheon.
