In this article, we will discuss the 10 Unstoppable Stocks to Buy According to Hedge Funds.
As per Morgan Stanley, investors can see gains in equities and high-quality fixed income for 2025, despite a slowdown in global economic growth. In the Midyear Investment Outlook, Morgan Stanley Research strategists believe that the US assets, namely equities, government bonds, and corporate credit, can outperform their non-U.S. counterparts.
S&P 500 Can Reach 6,500, Says Morgan Stanley
According to the Morgan Stanley Research strategists’ base-case scenario, the S&P 500 is expected to climb to 6,500 by the middle of next year, thanks to the improvement in earnings. The US stocks are not expected to revisit their April lows in the near future, with strategists believing that Treasuries will increase as the US Fed reduces rates early next year. This will push yields on 10-year down to 3.45% by the middle of 2026.
Serena Tang, Morgan Stanley’s Chief Global Cross-Asset Strategist, sees broader markets remaining choppy for the upcoming 2 quarters, with the US Fed reacting to tariff-induced inflation. However, there is expected to be significant monetary easing ahead. Also, further deregulation in the US can bolster the US assets.
Amidst such trends, we will now have a look at the 10 Unstoppable Stocks to Buy According to Hedge Funds.
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Our Methodology
To list the 10 Unstoppable Stocks to Buy According to Hedge Funds, we sifted through several online rankings to get an extensive list of the stocks that have increased at least ~30% over the past 6 months (as of June 24). Next, we mentioned the hedge fund sentiments around each stock, as of Q1 2025. Finally, we selected the ones popular among hedge funds.
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 Unstoppable Stocks to Buy According to Hedge Funds
10. Monopar Therapeutics Inc. (NASDAQ:MNPR)
% Gain over 6 Months: ~51.9%
Number of Hedge Fund Holders: 10
Monopar Therapeutics Inc. (NASDAQ:MNPR) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, Chardan analyst Keay Nakae began coverage of the company’s stock with a “Buy” rating and a price objective of $60, as reported by The Fly. The firm cited potential in its late-stage Wilson disease treatment as well as an early-stage radiopharmaceutical pipeline for the rating. In the research note, the analyst mentioned that the company’s co-founder and Chief Executive Officer has a long history with the development of ALXN1840.
On May 7, 2025, Monopar Therapeutics Inc. (NASDAQ:MNPR) presented long-term efficacy and safety data for ALXN1840 (tiomolybdate choline). The data supported ALXN1840 as a potential treatment for Wilson disease. Pooled results from 3 clinical trials (n=255) exhibited sustained clinical benefits over a median treatment duration of 2.63 years. Monopar Therapeutics Inc. (NASDAQ:MNPR), in collaboration with Excel Diagnostics and Nuclear Oncology Center (EDNOC), announced that the physician-sponsored Expanded Access Program (EAP) for the investigational imaging agent MNPR-101-Zr and investigational therapeutic agent MNPR-101-Lu has received authorization to proceed from the US FDA.
9. NuScale Power Corporation (NYSE:SMR)
% Gain over 6 Months: ~96.6%
Number of Hedge Fund Holders: 18
NuScale Power Corporation (NYSE:SMR) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, Citi analyst Vikram Bagri began coverage of the company’s stock with a “Neutral” rating and a price objective of $46. The company possesses a first-mover advantage in the industry, which is aided by increased power demand due to the data centers and AI.
Notably, NuScale Power Corporation (NYSE:SMR)’s unrated and approved 77 MW design, modular technology, relationship with Fluor, supply chain partnerships, and no HALEU dependence place it well amidst competition, while new contract announcements remain on the horizon, added the analyst. However, it was also pointed out that significant execution risks are there, while the stock appears to be pricing nearly 50 GW of installs by 2040, added Bagri.
NuScale Power Corporation (NYSE:SMR) announced that it has received design approval from the US Nuclear Regulatory Commission for the uprated 250 MWt (77 MWe) NuScale Power Modules. In Q1 2025, the company’s revenue rose $12.0 million to $13.4 million compared to $1.4 million. This rise was due to revenues generated from FEED Phase 2 project as well as the Technology License Agreement for the RoPower Doicești power plant.
8. AST SpaceMobile, Inc. (NASDAQ:ASTS)
% Gain over 6 Months: ~118.8%
Number of Hedge Fund Holders: 22
AST SpaceMobile, Inc. (NASDAQ:ASTS) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, Scotiabank downgraded AST SpaceMobile, Inc. (NASDAQ:ASTS)’s stock to “Sector Perform” from “Outperform” with an unchanged price target of $45.40, as reported by The Fly. The firm hinted at the valuation for this downgrade after the stock’s impressive rally. On a YTD basis, the company’s stock has seen a run-up of over ~131%. While the firm can’t be more optimistic regarding the prospects for such valuable technology, it doesn’t see new reasons to increase the price target higher.
The firm cites valuation for the downgrade with the shares above the price target following the “impressive rally.”
As per the firm analyst, the launch of FM1 from India, along with the subsequent launching campaign, would be testing AST SpaceMobile, Inc. (NASDAQ:ASTS)’s capability to orbit dozens of satellites. Furthermore, the competition with Starlink and Globalstar can also heat up, added the firm. However, Vi, India’s leading telecom service provider, and AST SpaceMobile, Inc. (NASDAQ:ASTS) announced a partnership focused on expanding mobile connectivity throughout India’s unconnected regions.
The partnership is expected to bring together Vi’s strong national network with AST SpaceMobile, Inc. (NASDAQ:ASTS)’s revolutionary space-based cellular technology. Commercially, AST SpaceMobile, Inc. (NASDAQ: ASTS) has expanded its US Government opportunity and is in a position to begin garnering revenue during 2025.
7. Oklo Inc. (NYSE:OKLO)
% Gain over 6 Months: ~153.4%
Number of Hedge Fund Holders: 23
Oklo Inc. (NYSE:OKLO) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, Craig-Hallum analyst Eric Stine downgraded Oklo Inc. (NYSE:OKLO)’s stock to “Hold” from “Buy” with a price objective of $59, reflecting an increase from $43. Considering its build, own, operate model, Okla Inc. (NYSE:OKLO) has been articulating a regulatory path in which it would be the nuclear technology provider as well as the project owner, with the company supplying baseload zero emissions power along with heat to end users in the Al data centers and other applications.
The firm’s checks have resulted in various degrees of skepticism surrounding the company’s regulatory and commercial timelines. Even though the firm believes that it might be possible for Oklo Inc. (NYSE:OKLO) to meet its objectives, it also mentioned that this is a path that no company has decided to take. The company targets to deploy the first nuclear power plant at Idaho National Laboratory by 2027 end, or early in 2028 at the latest. The analyst believes that it would be prudent to wait for evidence of tangible progress.
Oklo Inc. (NYSE:OKLO) announced that the US Nuclear Regulatory Commission (NRC) began its review of the company’s Licensed Operator Topical Report. This highlights the continued progress in its regulatory strategy and follows Oklo Inc. (NYSE:OKLO)’s recent entry into the NRC’s Readiness Assessment Audit for Phase 1 for its Combined License Application.
6. Exelixis, Inc. (NASDAQ:EXEL)
% Gain over 6 Months: ~30.6%
Number of Hedge Fund Holders: 38
Exelixis, Inc. (NASDAQ:EXEL) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 24, Stephens upgraded the company’s stock to “Overweight” from “Equal Weight” with a price objective of $60, an increase from the prior target of $29, as reported by The Fly. As per the analyst, the firm has a better understanding of how CABOMETYX will be able to retain market share in RCC, amidst competition and triplet combination trials in progress.
This gives confidence regarding the franchise to retain its market share in RCC and add growth from NET. Furthermore, the firm highlighted that there is an increased probability of success for zanzalintinib getting FDA approval and market opportunity. In Q1 2025, Exelixis, Inc. (NASDAQ:EXEL) delivered strong financial performance thanks to the accelerating growth in CABOMETYX demand, new patient starts, and revenues.
In March, Exelixis, Inc. (NASDAQ:EXEL) announced that the US FDA approved CABOMETYX for the treatment of adult and pediatric patients who are aged 12 years and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated pancreatic NET (pNET), and adult and pediatric patients aged 12 years and older with previously treated, unresectable, locally advanced or metastatic, well-differentiated extra-pancreatic NET (epNET).
Riverwater Partners, an investment management company, released its Q4 2024 investor letter. Here is what the firm said:
“Exelixis, Inc. (NASDAQ:EXEL) is a commercial-stage oncology company focused on developing therapies for cancer; its blockbuster commercial asset, Cabozantinib, derived ~$2B in global revenues in 2023 and 2024. The company also has a compelling early-stage pipeline. EXEL is not in the business of me-too programs and trying to get FDA results that are just good enough; FDA approval is the starting line, not the finish line. EXEL manages its portfolio of current and prospective drug candidates to drive innovation to improve the standard of care for patients, having found that generating differentiated data that moves the standard of care is what drives value for patients and EXEL over the long-term. The stock trades at a below-the-market multiple and a 25% discount to its five-year average forward valuation.”
5. BrightSpring Health Services, Inc. (NASDAQ:BTSG)
% Gain over 6 Months: ~31.9%
Number of Hedge Fund Holders: 39
BrightSpring Health Services, Inc. (NASDAQ:BTSG) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, TD Cowen initiated coverage of BrightSpring Health Services, Inc. (NASDAQ:BTSG)’s stock with a “Buy” rating and a price objective of $37. The firm mentioned the company’s position as a leading oncology-focused specialty pharmacy and home health provider, highlighting that it stands to benefit due to the continued specialty growth in the broader healthcare sector.
Furthermore, the firm also cited the advantages for BrightSpring Health Services, Inc. (NASDAQ:BTSG) coming from the generic wave due to pharma’s upcoming patent cliff as a critical factor responsible for the positive outlook. Also, the firm stated that its price objective demonstrates that BrightSpring Health Services, Inc. (NASDAQ:BTSG)’s stock trades at 15 times its adjusted EBITDA estimate for FY 2026.
For FY 2025, the company has increased its guidance, which excludes the Community Living business and the effects related to future closed acquisitions. BrightSpring Health Services, Inc. (NASDAQ:BTSG) expects net revenue of between $12,000 million – $12,500 million, or 19.1% – 24.1% growth, with Pharmacy Segment revenue of between $10,550 million – $11,000 million, or 20.5% – 25.7% growth.
4. Brinker International, Inc. (NYSE:EAT)
% Gain over 6 Months: ~30.7%
Number of Hedge Fund Holders: 46
Brinker International, Inc. (NYSE:EAT) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, Stifel analyst Chris O’Cull upped the price target on Brinker International, Inc. (NYSE:EAT)’s stock to $215 from $200, while keeping a “Buy” rating, as reported by The Fly. The firm cited Chili’s robust traffic performance and market share gains as the key reasons.
The firm assessed Chili’s market share, growth capacity, as well as constraints, in order to determine whether or not its outperformance compared to the full-service industry will continue. Stifel opines that the chain can continue to gain market share in a fragmented category, wherein scale advantages have been more valuable. As per the analysis conducted by the firm, current traffic volume per store, despite improving from recent lows, remains well below the historical peaks. Overall, the firm concluded that Brinker International, Inc. (NYSE:EAT) possesses a proven playbook that would lead to durable same-restaurant sales gains.
For FY 2025, Brinker International, Inc. (NYSE:EAT) expects total revenues to be in the range of $5.33 billion – $5.35 billion, and net income per diluted share (excluding special items) (non-GAAP) to be in the range of $8.50 – $8.75.
3. Dollar General Corporation (NYSE:DG)
% Gain over 6 Months: ~51.5%
Number of Hedge Fund Holders: 55
Dollar General Corporation (NYSE:DG) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 24, Goldman Sachs downgraded the company’s stock to “Neutral” from “Buy” with a price objective of $116, an increase from the prior target of $115. The firm cited valuation for this downgrade following a robust recovery in Dollar General Corporation (NYSE:DG)’s stock. Also, the firm believes that a significant competitive environment can impact its same-store sales. It highlighted the ongoing investment needs in stores, together with supply chain infrastructure.
As per analyst Kate McShane, Dollar General Corporation (NYSE:DG)’s management team worked hard in a bid to improve its positioning via the “Back to Basics” program. This resulted in better comp trends as well as improved margins. While the analyst believes that Dollar General Corporation (NYSE:DG) still has room for margin improvement in the long term, the stock is pricing in its better fundamentals, added Kate McShane.
In Q1 2025, the company’s net sales rose 5.3% to $10.4 billion as compared to $9.9 billion in Q1 2024. This rise was because of positive sales contributions from new stores and growth in same-store sales, partially mitigated by the impact of store closures. For FY 2025, Dollar General Corporation (NYSE:DG) expects net sales growth of ~3.7% – 4.7% as compared to the previous expectation of ~3.4% to 4.4%. Artisan Partners, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Other top performers were Heineken and Dollar General Corporation (NYSE:DG). Discount retailer Dollar General (DG) has contended with several business pressures post the pandemic, including execution issues, rising competition and an increasingly constrained lower income consumer after a period of high inflation. Additionally, labor costs, shrink and markdowns have hurt margins. However, the stock has been experiencing renewed interest amid a broader market rotation to cheaper stocks driven by tariff fears and policy uncertainty, as well as the potential for some of DG’s headwinds to subside. The company is making progress on fixing operational issues, from store standards to supply-chain execution and labor efficiency. Additionally, with inflation stabilizing, there are early signs that customers have adjusted to higher price levels as basket sizes and units are beginning to rise again. Another dynamic is DG’s business model is countercyclical. During tougher economic times, DG typically gets trade-down business from middle-income cohorts, and with the possibility that escalating tariffs could trigger a recession, investors see DG as a potential beneficiary.”
2. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
% Gain over 6 Months: ~89.7%
Number of Hedge Fund Holders: 58
Soleno Therapeutics, Inc. (NASDAQ:SLNO) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, TD Cowen analyst Tyler Van Buren began coverage of the company’s stock with a “Buy” rating and a price objective of $110, as reported by The Fly. The firm highlighted VYKAT XR as the first-approved treatment for hyperphagia in Prader-Willi syndrome (PWS). As per the firm, the drug bucked the trend of clinical shortcomings in PWS by securing the regulatory approval.
The firm demonstrated confidence in Soleno Therapeutics, Inc. (NASDAQ:SLNO)’s management team, mentioning that they seem to be prepared to execute a strong launch with a high price tag and sizable population to itself. The analysis exhibits that the company has positioned itself for commercial success. The firm remains optimistic and believes that the PWS community’s urgency is expected to drive significant uptake of VYKAT XR, reflecting robust demand potential among patients and caregivers.
Soleno Therapeutics, Inc. (NASDAQ:SLNO) also announced that its Marketing Authorization Application (MAA) seeking regulatory approval of Diazoxide Choline Prolonged-Release Tablets for the treatment of adults and children aged 4 years and older with PWS, who possess hyperphagia, had been validated by the EMA (European Medicines Agency). TimesSquare Capital Management, an equity investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a clinical-stage biopharmaceutical company focused on developing novel therapeutics for rare diseases. The FDA granted approval of Vyvkat for treating Prader Willi syndrome, a rare genetic disorder that causes life-threatening obesity in children. That development served to boost the stock price by 60% and we decided to book some of the profits by cutting back on the investment.”
1. DoorDash, Inc. (NASDAQ:DASH)
% Gain over 6 Months: ~35.8%
Number of Hedge Fund Holders: 81
DoorDash, Inc. (NASDAQ:DASH) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, Raymond James analyst Josh Beck upgraded DoorDash, Inc. (NASDAQ:DASH)’s stock to “Strong Buy” from “Outperform” with a price target of $260, an increase from $215. This upgrade comes on the heels of an underappreciated valuation amidst consideration of the Deliveroo acquisition. The firm’s analyst expects the acquisition to result in a mid-teens increase in DoorDash, Inc. (NASDAQ: DASH)’s EBITDA by 2026 and high teens by 2027. Furthermore, the synergies, together with elevated investment in advertising, operational performance, and future benefits coming from autonomous technology, can fuel the company’s stock.
Apart from this, DoorDash, Inc. (NASDAQ:DASH) has made an acquisition of NYC-based software company, Seven Rooms, and ad platform, Symbiosys. DoorDash, Inc. (NASDAQ:DASH) expects that both SevenRooms and Deliveroo can expand its ability to build world-class services, thereby, increasing its potential to grow local commerce and help with financial goals. In Q1 2025, its total orders saw an increase of 18% YoY to 732 million, and marketplace GOV rose 20% YoY to $23.1 billion. The YoY growth in total orders was due to growth in consumers and average consumer engagement. For Q2 2025, DoorDash, Inc. (NASDAQ:DASH) expects marketplace GOV of between $23,3 billion – $23.7 billion, and adjusted EBITDA of $600 million – $650 million.
Sands Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“DoorDash, Inc. (NASDAQ:DASH) is the leading food delivery platform in the United States by market share. The business exceeded investor expectations in its most recently reported quarter, demonstrating continued strong execution. Orders grew 19 percent year-over-year, supported by 14 percent growth in monthly active users, while adjusted EBITDA rose 56 percent. First-quarter 2025 guidance was better than consensus expected, calling for 20 percent gross order volume growth. Our investment case continues to play out, and we continue to believe that consensus underestimates DoorDash’s longer-term earnings power.”
While we acknowledge the potential of DASH 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 DASH and that has 100x upside potential, check out our report about this cheapest AI stock.
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