On September 12, Friday, the Nasdaq Composite ended the week on a high note, marking a week of closing record highs. Investors took indications of weakening jobs and controlled inflation to mean that the Federal Reserve will cut interest rates next week.
The tech-heavy Nasdaq went up by 0.44% on Friday. The broad market S&P 500 dropped just 0.05%. The blue-chip Dow Jones Industrial Average fell by 0.59%.
Looking at the full week, the three major averages showed gains. The S&P 500, which rose 1.6%, saw its best weekly performance since early August and its fifth positive week out of the last six. The Nasdaq secured its second winning week in a row as it advanced 2%. The Dow posted its first positive week in the last three after seeing a week-to-date climb of 1%.
Investors are now waiting for the Federal Reserve’s decision on September 17. Futures markets expect the Fed to cut interest rates by a quarter percentage point, according to the CME FedWatch tool.
With this background in mind, let’s take a look at the 10 unrivaled stocks of the next 3 years.
Our Methodology
To compile our list of the 10 unrivaled stocks of the next 3 years, we sifted through our own rankings, financial media reports, and various online resources. We used search phrases like “unrivaled stocks” and “wide moat stocks” to compile a list of more than 25 unrivaled stocks. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds. Finally, the 10 unrivaled stocks of the next 3 years were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2025.
Why do we care about what hedge funds do? 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 Unrivaled Stocks of the Next 3 Years
10. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 91
Costco Wholesale Corporation (NASDAQ:COST) is one of the best unrivaled stocks of the next 3 years. On September 5, Truist Securities reaffirmed its Hold rating on Costco Wholesale Corporation (NASDAQ:COST) with a price target of $1,042. This decision came after the company reported strong sales in August.
In the US, Costco Wholesale Corporation (NASDAQ:COST) saw comparable sales rise by 6.7% in August, excluding the impacts from changes in gasoline prices and foreign exchange. This performance was a small improvement of 20 basis points compared to July. For the fourth fiscal quarter, US comparable sales increased by 6%.
Costco Wholesale Corporation (NASDAQ:COST) saw total sales rise by 6.9% in August, excluding fuel and foreign exchange effects. Net sales for the quarter reached $84.4 billion, up 8% year-over-year and in line with Truist’s estimates.
Truist Securities acknowledged Costco Wholesale Corporation’s (NASDAQ:COST) ability to attract value-conscious customers with competitive offerings. However, the firm remains on the sidelines because of valuation concerns as the stock trades at about 50 times the estimated earnings per share for calendar year 2025.
Costco Wholesale Corporation (NASDAQ:COST) is a global retailer that operates an international chain of membership warehouses, offering well-known brand products at prices much lower than regular wholesale or retail stores.
9. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 95
Johnson & Johnson (NYSE:JNJ) is one of the best unrivaled stocks of the next 3 years. On September 3, Wolfe Research increased the price target for Johnson & Johnson (NYSE:JNJ) from $175 to $195 and kept an Outperform rating.
Wolfe Research cited growing confidence in Johnson & Johnson’s (NYSE:JNJ) upcoming talc litigation outcome. This confidence led the firm to use lower weighted average cost of capital (WACC) assumptions in its discounted cash flow analysis.
The research firm pointed out some challenges for the pharmaceutical industry in 2025. These include sector-specific tariffs and Most-Favored-Nation prescription drug pricing, which aims to reduce prescription drug prices for Americans.
Despite these challenges, Wolfe Research has a positive outlook on Johnson & Johnson’s (NYSE:JNJ) growth prospects, especially from its Innovative Medicine division.
Johnson & Johnson (NYSE:JNJ) is an American multinational healthcare company that specializes in pharmaceuticals and medical technologies.
8. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 104
Adobe Inc. (NASDAQ:ADBE) is one of the best unrivaled stocks of the next 3 years. On September 12, DA Davidson reaffirmed its Buy rating on Adobe Inc. (NASDAQ:ADBE) with a price target of $500.
This decision came after Adobe Inc. (NASDAQ:ADBE) reported results for its third quarter of fiscal year 2025.
DA Davision noted that the company has reached its goal of $250 million AI-first Annual Recurring Revenue (ARR) earlier than expected. This shows that Adobe Inc. (NASDAQ:ADBE) is successfully increasing the use of its AI-powered product portfolio.
The firm pointed out that Adobe Inc. (NASDAQ:ADBE) is also actively buying back shares at current price levels and maintaining strong operating margins in the mid-40% range. This supports double-digit earnings growth for the company.
DA Davidson’s price target of $500 for Adobe Inc. (NASDAQ:ADBE) is based on 21 times the company’s expected earnings per share for fiscal year 2026.
Adobe Inc. (NASDAQ:ADBE) is a leading digital media and digital marketing solutions company that offers creator tools and services to individuals, teams, and enterprises to create, publish, and promote content.
7. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 105
Intuit Inc. (NASDAQ:INTU) is one of the best unrivaled stocks of the next 3 years. On August 25, Mizuho reiterated its Outperform rating on Intuit Inc. (NASDAQ:INTU) with a price target of $875.
The firm sees the recent weakness in Intuit Inc.’s (NASDAQ:INTU) stock price as a buying opportunity.
Mizuho noted that the company’s Global Business Solutions Group (GBSG) 14-15% year-over-year growth forecast was lower than expected. However, the firm believes that the company’s core business momentum is still strong, especially in key growth segments.
According to Mizuho, Intuit Inc.’s (NASDAQ:INTU) GBSG guidance implies 19% QuickBooks Online (QBO) ecosystem growth. This aligns with the initial guidance for fiscal year 2025 after adjusting for a one-point headwind from Mailchimp. AI is also seen as an important driver of growth.
Mizuho sees Intuit Inc.’s (NASDAQ:INTU) guidance as conservative and believes QBO growth could reach 23%. The firm views TurboTax’s forecast of 8% growth as also conservative with many growth drivers in place to support another year of double-digit growth.
The firm noted that the company’s Investor Day on September 18 is an important event, which could offer more details about QBO and TurboTax. This could drive investor confidence in the company’s future growth.
Intuit Inc. (NASDAQ:INTU) is an American multinational financial technology and business software company that offers a wide range of products and services.
6. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 111
The Walt Disney Company (NYSE:DIS) is one of the best unrivaled stocks of the next 3 years. On September 8, Reuters reported that The Walt Disney Company (NYSE:DIS) entered into an agreement with Spanish media group Atresmedia. This deal allows Disney+ to add Atresmedia’s content to its streaming platform.
Starting in September, Disney+ customers in Spain can watch popular TV series like “Casa de papel”, also known as “Money Heist” in English, “Veneno”, and “Gran Hotel” under the Atresmedia label.
The Walt Disney Company (NYSE:DIS) said this agreement gives Disney+ co-exclusive rights to a variety of Atresmedia productions, expanding Spanish-made content on Disney+ for the viewers.
Previously, in July, The Walt Disney Company (NYSE:DIS) had announced a similar deal with Britain’s ITV to include productions on each other’s streaming platforms.
The Walt Disney Company (NYSE:DIS) is an American multinational mass media and entertainment conglomerate that operates through 3 core business segments: Disney Entertainment, ESPN, and Disney Experiences.
5. MercadoLibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders: 116
MercadoLibre, Inc. (NASDAQ:MELI) is one of the best unrivaled stocks of the next 3 years. On September 10, Benchmark analyst Fawne Jiang maintained a Buy rating on MercadoLibre, Inc. (NASDAQ:MELI) with a price target of $2,875.
The research note by the analyst focused on MercadoLibre, Inc.’s (NASDAQ:MELI) recent decision to lower the free shipping threshold in Brazil. This decision has caught the attention of investors regarding both strategic implications and financial impacts.
Benchmark noted that this move is expected to increase near-term costs and create some uncertainty in the market. However, the firm agrees with MercadoLibre, Inc. (NASDAQ:MELI) that Brazil is ready for deeper online penetration.
The research note also mentioned that Benchmark’s recent meeting with MercadoLibre, Inc.’s (NASDAQ:MELI) management reinforced the firm’s belief that collective actions by major companies will speed up the growth of online shopping in the region.
Benchmark believes that even though lowering the free shipping threshold could bring higher costs at first, the growth of the overall market will help leading players like MercadoLibre, Inc. (NASDAQ:MELI) in the long run.
MercadoLibre, Inc. (NASDAQ:MELI) is the leading e-commerce and financial technology company in Latin America with a presence in 18 countries.
4. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 167
Visa Inc. (NYSE:V) is one of the best unrivaled stocks of the next 3 years. On September 9, Visa Inc.’s (NYSE:V) Chief Product and Strategy Officer, Jack Forestell, presented at the Goldman Sachs Communacopia + Technology Conference.
Forestell pointed out that in August, cross-border transactions increased by about 11%, excluding intra-Europe. Spending was strong in August, similar to July’s performance. Visa Inc.’s (NYSE:V) tap-to-pay technology is at 78% penetration at physical points of sale. However, in the US, the number is 63%, which means there is still significant growth potential in the US market.
Visa Direct saw a 25% rise in transaction volume in the latest quarter and it was highlighted as an important growth driver. The value-added services portfolio also grew by 26% in the second quarter.
Visa Inc. (NYSE:V) is focused on integrating stablecoins into its payment network. Forestell noted that stablecoin settlement volume has reached a run rate of $1 billion.
Looking ahead, Visa Inc. (NYSE:V) aims to capture a larger share of the $23 trillion cash, check, and ACH payment market. The company is also focused on expanding tap-to-pay penetration, especially in the US market.
Visa Inc. (NYSE:V) is an American multinational digital payments company that provides a wide range of payment products and payment processing to facilitate electronic payments in over 200 countries and territories.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the best unrivaled stocks of the next 3 years. On September 8, Evercore ISI increased its price target for Alphabet Inc. (NASDAQ:GOOGL) from $240 to $300 and kept an Outperform rating.
This decision to raise the price target came after Evercore’s sixth quarterly proprietary search survey, which showed that Alphabet Inc.’s (NASDAQ:GOOGL) Google still keeps its dominant position in commercial-intent search, even though general search competition is growing.
Evercore’s research suggests that Google’s advances in generative AI are leading to “an overall better Search Engine for users.” The firm expects this improvement to lead to “consistently robust Search Revenue growth” for Alphabet Inc. (NASDAQ:GOOGL).
Channel checks have also shown that the quality of search leads for marketers is improving. This supports Evercore’s expectation that Google Search revenue will grow by a double-digit percentage.
Evercore sees Alphabet Inc. (NASDAQ:GOOGL) as a “Top Large Cap Long” investment. The firm sees multiple growth catalysts. These include YouTube revenue acceleration, Google Cloud revenue stabilization above 30%, and expansion of Waymo’s robotaxi.
Alphabet Inc. (NASDAQ:GOOGL) is a global technology company and the parent company of Google. The company’s products include Search, Ads, Chrome, Cloud, YouTube, and Android.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the best unrivaled stocks of the next 3 years. On September 4, JPMorgan reaffirmed an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $215.
This decision came after a meeting with NVIDIA Corporation’s (NASDAQ:NVDA) Vice President of Investor Relations and Strategic Finance.
JPMorgan noted that the demand for NVIDIA Corporation’s (NASDAQ:NVDA) data center products is outpacing supply. The lead time for these products remains long but stable when measured in quarters. This is despite the busy ramp-up of Blackwell Ultra chips in the company’s second quarter.
JPMorgan analysts highlighted that Blackwell Ultra accounted for about 50% of NVIDIA Corporation’s (NASDAQ:NVDA) Blackwell product mix in the quarter. The stretched lead times show that demand continues to be higher than supply, even two years into the current AI spending cycle.
NVIDIA Corporation (NASDAQ:NVDA) also assured JPMorgan that the company’s upcoming Vera Rubin platform is on track to launch in the second half of 2026. This cleared up recent market speculation about possible delays.
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company that specializes in graphics processing units (GPUs), AI hardware and software, and high-performance computing (HPC) solutions.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best unrivaled stocks of the next 3 years. On September 8, Amazon.com, Inc. (NASDAQ:AMZN) announced that its full-service online pharmacy, Amazon Pharmacy, is expanding RxPass to Texas. This brings RxPass and its $5 monthly prescription subscription service to 2 million Texans living in areas where there are few pharmacies.
According to the report by Amazon.com, Inc. (NASDAQ:AMZN), Texas ranks fourth highest in the US for adults who have three or more chronic conditions. With RxPass, Texans will have access to more than 50 commonly prescribed medications for $5 a month with free delivery.
The Prime member benefit will help Texans get access to medications for conditions like anxiety, diabetes, hypertension, and heart disease. Members can get all these medicines for $5 per month, regardless of how many prescriptions they need. Amazon.com, Inc.’s (NASDAQ:AMZN) RxPass will offer free and fast delivery, with two-day delivery and same-day service available in eligible locations.
With this expansion, Amazon.com, Inc.’s (NASDAQ:AMZN) RxPass is now available in 48 states in the US.
Amazon.com Inc. (NASDAQ:AMZN) is an American technology company specializing in e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN as an investment, 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 AMZN and that has a 100x upside potential, check out our report about this cheapest AI stock.
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