It is widely understood that employing debt to fund operations can act as a powerful financial tool. But debt doesn’t come without its trade-offs. Borrowing allows companies to lower their taxable income through interest deductions and helps them to potentially boost their returns during good times. However, debt also introduces financial obligations that don’t go away when earnings fall. For companies with inconsistent cash flow, those obligations can become a serious liability.
That’s why companies with little or no debt often stand on more stable ground. Without the burden of regular interest payments or looming repayments, these businesses tend to have more freedom—whether that means reinvesting in operations, pursuing acquisitions, or returning capital to shareholders. In uncertain economic climates, that flexibility can make all the difference.
With Macro Uncertainty, Risks Remain to the Downside
U.S. corporate bankruptcy filings continue to climb, with 2025 shaping up to be one of the most active years for bankruptcies in over a decade, according to a July 8 report by S&P Global Market Intelligence. June alone saw 63 new filings—slightly lower than May’s revised count of 64—but the broader trend remains clearly upward.
As per the report, 371 corporate bankruptcies have been recorded year-to-date, marking the highest total for the first half of any year since 2010. This rising trend reflects growing financial stress across the corporate sector. The data reflects growing pressure across industries as many companies struggle under heavy debt loads. Access to credit is also tightening, with interest rates expected to remain elevated through the summer, based on S&P Global’s projections.
Additionally, S&P Global Market Intelligence notes that consumers, too, are beginning to show signs of strain. A softer job market, persistent inflation, and renewed tariff policies under the Trump administration are all weighing on household budgets. These headwinds are feeding into weaker corporate revenues, further challenging balance sheets.
Being debt-free isn’t inherently better in every situation, especially for companies with weaker fundamentals. But in today’s environment of high interest rates and uneven growth, companies without debt are often better placed to weather macroeconomic headwinds. Their clean balance sheets offer not just safety, but strategic optionality. And for investors, that kind of resilience is increasingly valuable.
So, where should you look for debt-free stock opportunities? Let’s explore our selection of the 11 best debt-free stocks to invest in right now.
Our Methodology
To screen for the 11 best debt-free stocks, we first compiled a list of U.S. stocks with a market capitalization of at least $2 billion. For the shortlisted stocks, we compared their enterprise value (EV) to their market capitalisation (EV to Market cap ratio). A ratio of 1.0 or below indicates that the company has no debt or minimal debt. From this refined list, we identified the top 11 stocks with a potential upside of at least 20%, and the highest hedge fund ownership by leveraging data from Insider Monkey’s Q1 2025 hedge fund database. Finally, we ranked these stocks in ascending order based on the number of hedge funds holding positions in them.
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).
Note: All pricing and analyst rating data are as of market close on July 7, 2025.
11 Best Debt-Free Stocks to Invest in Right Now
11. QXO Inc. (NYSE:QXO)
EV to Market Cap: 0.66
Number of Hedge Fund Holders: 36
QXO Inc. (NYSE:QXO) is one of the 11 best debt-free stocks to invest in right now. The company presents a compelling long-term investment opportunity as it aims to become the tech-enabled leader in a massive, fragmented industry. With over 7,000 distributors across North America, the $800 billion building products distribution market is primed for consolidation.
QXO plans to build a $50 billion revenue platform over the next decade by acquiring undervalued regional businesses, particularly in roofing, waterproofing, and adjacent categories, and rapidly enhancing their performance.
In addition, structural demand drivers, such as a persistent housing shortage, an aging housing base, and multitrillion-dollar infrastructure needs, should act as long-term tailwinds.
Truist analyst Keith Hughes echoed this long-term view in his July 1 initiation of coverage on QXO, with a Buy rating and a $30 price target. According to Hughes, QXO’s acquisition of Beacon Roofing Supply Inc. in April marks a significant first step toward consolidating what remains a highly fragmented industry.
The analyst views this transaction as more than a one-off move. Instead, it reflects the company’s broader ambition to scale rapidly through acquisitions. He noted that QXO has laid out an aggressive roadmap, one that will likely involve consistent deal flow. In Hughes’ view, the company is well-positioned, both structurally and strategically, to execute on this pace of consolidation.
QXO Inc. (NYSE:QXO) is a distributor of roofing, waterproofing, and complementary building products in the United States.
10. United Therapeutics Corp. (NASDAQ:UTHR)
EV to Market Cap: 0.64
Number of Hedge Fund Holders: 43
United Therapeutics Corp. (NASDAQ:UTHR) is one of the 11 best debt-free stocks to invest in right now. The company boasts a strong portfolio led by Tyvaso, its inhaled therapy for pulmonary hypertension, and a growing pipeline targeting pulmonary arterial hypertension (PAH). Its existing therapies are leading to stronger topline and earnings growth; the 17% year-over-year growth in Q1 2025 revenue and a 17% compounded annual growth rate (CAGR) over the last five years are evidence of that.
UBS analyst Ashwani Verma maintained a Buy rating on United Therapeutics (NASDAQ:UTHR) on June 30 but adjusted the price target to $385 from $410, reflecting a recalibration of expectations ahead of a key clinical update. Verma pointed to the company’s upcoming Phase III readout for idiopathic pulmonary fibrosis (IPF), expected in the third quarter, as a potential high-impact event that could meaningfully influence the stock. While binary in nature, the analyst believes the risk/reward remains attractive at current valuation levels.
Verma also highlighted Tyvaso as a continued bright spot for the company. He expects the therapy to see seasonally strong performance in both Q2 and Q3, which should support near-term revenue momentum.
9. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
EV to Market Cap: 0.94
Number of Hedge Fund Holders: 59
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the 11 best debt-free stocks to invest in right now. On July 2, Morgan Stanley analyst Sean Laaman initiated coverage on BioMarin with a Buy rating and a $97 price target, citing a favorable outlook despite ongoing competitive concerns.
Laaman’s optimism centers on Voxzogo, BioMarin’s therapy for achondroplasia, a rare disorder affecting bone growth. While Ascendis Pharma’s TransCon CNP could pose competition due to its longer half-life, Laaman notes that it still faces key challenges, including ongoing patent litigation. Importantly, he believes investors may be underestimating Voxzogo’s broader potential, particularly in other indications such as hypochondroplasia.
The analyst also pointed to the CANOPY clinical program, which is evaluating Voxzogo in conditions linked to SHOX gene mutations, as a promising path for further label expansion. In Laaman’s view, this pipeline optionality is not fully reflected in BioMarin’s current valuation.
Trading near a 10-year low, the stock appears to already account for most of the perceived risks. Given the strength of Voxzogo’s current performance, expansion potential, and an underappreciated pipeline, Laaman sees a compelling upside case for BioMarin shares from current levels.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a biotechnology company that develops and commercializes therapies for rare diseases and medical conditions worldwide.
8. HubSpot Inc. (NYSE:HUBS)
EV to Market Cap: 0.95
Number of Hedge Fund Holders: 61
HubSpot Inc. (NYSE:HUBS) is one of the 11 best debt-free stocks to invest in right now. In a report published in early June, Jefferies analyst Samad Samana maintained a Buy rating on HubSpot and reaffirmed his $700 price target, despite recent stock weakness. The stock had declined roughly 10% following the company’s Q1 2025 results, which Samana attributed to investor concerns around the company’s forward guidance. The analyst noted that the exit growth rate implied from the guidance was lower than previously anticipated, and slightly soured the investor sentiment.
Samana acknowledged that current valuation levels appear to reflect these concerns. However, he believes that a return to 20% revenue growth could help restore investor confidence and reestablish a valuation premium for the stock.
To assess near-term momentum, the analyst collaborated with a HubSpot partner to gain a deeper understanding of recent demand dynamics and evaluate competitive pressure from Salesforce. According to the analyst, feedback from the partner was constructive, suggesting that demand has increased since the quarter began and that broader macroeconomic headwinds may be easing.
Samana concludes that if HubSpot delivers a solid Q2, the company could regain its growth narrative and shift investor sentiment in a more positive direction.
HubSpot Inc. (NYSE:HUBS) is a provider of cloud-based software that helps businesses attract, engage, and retain customers.
7. Deckers Outdoor Corp. (NYSE:DECK)
EV to Market Cap: 0.90
Number of Hedge Fund Holders: 63
Deckers Outdoor Corp. (NYSE:DECK) is one of the 11 best debt-free stocks to invest in right now. The company presents a strong investment case driven by its consistent revenue growth, expanding global footprint, and disciplined execution. In FY 2025, the company reported balanced performance across its major brands, UGG and HOKA, which now contribute 51% and 45% of sales, respectively. HOKA, in particular, continues to show robust momentum, supported by rising brand awareness and product innovation across key lines like Clifton, Bondi, and Speedgoat.
With a diversified revenue mix, 64% from the U.S. and 36% from international markets, and an almost even split between direct-to-consumer and wholesale channels, Deckers is well-positioned for stability and scalability. Management’s focus on marketplace control, operational efficiency, and supply chain agility further strengthens the company’s foundation.
UBS analyst Jay Sole reiterated a Buy rating on Deckers Outdoor (NYSE: DECK) in early June, maintaining his $169 price target. His optimism stems from expectations that the company’s earnings per share could outperform consensus over the next year, driven by continued momentum in the HOKA brand.
Following meetings with management on June 4, the analyst expressed greater confidence in Deckers’ ability to deliver a low double-digit compound annual growth rate in revenue. According to him, the company should command a significantly better forward P/E multiple with this kind of growth, one that is substantially better than the current 16.7x. While some investors remain cautious about HOKA’s long-term trajectory amid rising competition and shifting trends, Sole argues that the company is actively navigating these challenges. In his view, Deckers is well-positioned to deliver sustained performance across its key brands.
Deckers Outdoors Corp. (NYSE:DECK) designs, markets, and distributes innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities.
6. Neurocrine Biosciences Inc. (NASDAQ:NBIX)
EV to Market Cap: 0.96
Number of Hedge Fund Holders: 63
Neurocrine Biosciences Inc. (NASDAQ:NBIX) is one of the 11 best debt-free stocks to invest in right now. Following a recent investor meeting with Neurocrine Biosciences’ senior leadership, Guggenheim analyst Yatin Suneja reaffirmed a Buy rating on the stock on June 4, keeping his price target steady at $165. The discussion covered several key areas of interest to investors, including commercial performance and future catalysts.
Management pointed to continued momentum in Ingrezza, with expectations for quarter-over-quarter sales growth in Q2 and a stronger performance in the second half of 2025. They also addressed investor concerns about potential pricing pressure on TEVA’s Austedo under the Inflation Reduction Act. While the IRA remains a point of uncertainty, the management is working toward equal access with TEVA.
The team also highlighted a significant population of untreated patients, underscoring long-term growth potential for VMAT2 inhibitors.
Neurocrine Biosciences Inc. (NASDAQ:NBIX) is a leading neuroscience-focused biopharmaceutical company that discovers and develops treatments for patients with underserved neurological, neuroendocrine, and neuropsychiatric disorders.
5. Okta Inc. (NASDAQ:OKTA)
EV to Market Cap: 0.90
Number of Hedge Fund Holders: 65
Okta Inc. (NASDAQ:OKTA) is one of the 11 best debt-free stocks to invest in right now. Stifel Nicolaus analyst Adam Borg maintained his Buy rating on Okta in a June 25 note, holding the price target steady at $130. While recent sentiment around the stock has been mixed, Borg believes the company’s long-term positioning remains solid, particularly as demand for identity-focused cybersecurity solutions continues to rise.
Okta’s dual focus on Workforce Identity and Customer Identity is gaining traction, with early signs of success from newer products pointing to stronger adoption across both segments. Borg noted that recent improvements in go-to-market execution are also helping drive better results, potentially setting the stage for a revenue and RPO (Remaining Performance Obligations) reacceleration.
He believes that if this momentum continues, it could translate into meaningful improvements in operating margins and stronger free cash flow over time. From a valuation standpoint, Borg believes that while the broader market remains divided on the stock, the valuation is reasonable relative to the company’s upside potential. All these factors support his optimistic view.
Okta Inc. (NASDAQ: OKTA) offers a suite of products and services used to manage and secure identities, enabling users to access applications in the cloud or on-premises from various devices.
4. Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)
EV to Market Cap: 0.74
Number of Hedge Fund Holders: 66
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is one of the 11 best debt-free stocks to invest in right now. The company secured accelerated FDA approval for Lynozyfic (linvoseltamab-gcpt) on July 2, 2025, marking a significant progress in the treatment of relapsed or refractory multiple myeloma in patients who have undergone four or more prior therapies. The approval adds depth to the company’s late-stage pipeline. Moreover, it enhances the company’s long-term growth trajectory in a high-need, underserved segment of the cancer market.
On the other side, on July 7, JP Morgan analyst Chris Schott reiterated a Buy rating on Regeneron, while maintaining his $800 price target. Although Regeneron has faced recent headwinds, particularly around Eylea, Schott expects those pressures to ease. He points to patient affordability issues and competitive dynamics as near-term hurdles, but believes the enhanced Eylea HD formulation and expanded copay assistance programs should help stabilize sales.
Offsetting some of this softness is the continued strength of Dupixent, which Schott sees as a key growth engine, especially as new indications expand its market reach.
Looking ahead, Schott views the setup for Regeneron shares as compelling. With a strong balance sheet and growing contributions from Dupixent, he sees room for upside even without relying on near-term pipeline catalysts. However, potential updates, including LAG-3 data in melanoma and further clarity on Eylea, could serve as meaningful valuation drivers.
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is a biotechnology company focused on discovering, developing, and distributing innovative therapies that address serious and life-threatening diseases.
3. MongoDB Inc. (NASDAQ:MDB)
EV to Market Cap: 0.86
Number of Hedge Fund Holders: 72
MongoDB Inc. (NASDAQ:MDB) is one of the 11 best debt-free stocks to invest in right now. In early June, William Blair analyst Jason Ader reiterated his Buy rating on MongoDB without a price target. The analyst maintained a constructive view despite heightened concerns around competition in the database market.
Ader acknowledges that competitors like Postgres and other relational database solutions are eating into its pie, but argues that MongoDB’s core advantages, particularly in scalability, developer experience, and flexibility, give it a durable edge. He believes these strengths will allow MongoDB to continue gaining share in the operational database segment, which is expanding at a healthy 10% annual rate.
While recent market sentiment has turned cautious, partly due to perceived competitive risks, Ader sees the valuation reset as excessive, offering a more favourable setup for long-term investors. He expects growth to reaccelerate over the medium term, supported by increased go-to-market investments and expanding AI-related workloads, areas where MongoDB is well-positioned.
MongoDB Inc. (NASDAQ:MDB) develops database software and provides open-source database platforms for automating, monitoring, and deploying data.
2. Workday Inc. (NASDAQ:WDAY)
EV to Market Cap: 0.93
Number of Hedge Fund Holders: 85
Workday Inc. (NASDAQ:WDAY) is one of the 11 best debt-free stocks to invest in right now. On June 11, William Blair analyst Jake Roberge reiterated a Buy rating on Workday, reflecting his continued confidence in the company’s growth outlook. While no specific price target was provided, the analyst pointed to several drivers behind his positive stance.
Roberge believes Workday is well positioned in the current macroeconomic landscape, as interest in AI-driven enterprise tools continues to grow. He pointed to recent product launches such as Recruiter Agent, Extend Pro and Evisort, noting that early signs of adoption suggest growing interest and support the case for near-term uptake and longer-term revenue growth.
Roberge also pointed to Workday’s growing traction in the financial services space, where it is competing against larger legacy providers such as SAP and Oracle. He believes continued momentum here could help the company gradually chip away at market share.
He further noted that an uptick in new customer activity and encouraging trends in current remaining performance obligations (cRPO) suggest healthy underlying demand. In his view, these signs indicate that Workday is building a solid pipeline, which should support ongoing business expansion.
Workday Inc. (NASDAQ:WDAY) provides cloud-based enterprise software for human capital management (HCM), financial management, and planning applications.
1. Salesforce Inc. (NYSE:CRM)
EV to Market Cap: 0.98
Number of Hedge Fund Holders: 140
Salesforce Inc. (NYSE:CRM) is one of the 11 best debt-free stocks to invest in right now. In a sign of strong traction, the company recently reported that over the last six months, AI agent usage has increased by 233%, with more than 8,000 customer sign-ups to deploy Agentforce. Around the end of June, Salesforce also launched Agenforce 3, a significant upgrade designed to increase visibility and control for scaling AI agents.
The company’s rapid adoption of advanced AI capabilities has also drawn greater attention to Salesforce’s broader strategy. On July 2, KeyBanc analyst Jackson Ader reaffirmed his Buy rating on Salesforce (NYSE: CRM), maintaining a $440 price target. Ader weighed both the potential benefits and short-term risks associated with Salesforce’s proposed acquisition of Informatica, which was first announced in May 2025.
According to the analyst, the deal could be a strategically sound decision. One of the key obstacles limiting the adoption of Salesforce’s AI assistant, Agentforce, is the lack of clean and accessible enterprise data. He noted that Informatica’s tools could help clean up and streamline the data used in Salesforce’s Data Cloud, which, in his view, would be a key step in improving the performance of Agentforce. Ader views this as a practical step toward enhancing how the company’s AI platform works, while also laying the groundwork for future product expansion.
The timing of the deal, however, raised some concerns. Rather than deepening a partnership, Salesforce has opted to fully acquire Informatica. Ader warned this decision could slow down progress on pressing data issues, possibly delaying improvements to Agentforce by a year or more.
In his view, while the acquisition could create value over time, the urgency of fixing Agentforce’s data gap may not align with the longer timeline required for integration.
Salesforce Inc. (NYSE:CRM) is a global leader in customer relationship management (CRM) software. Its cloud-based platform provides solutions for sales, service, marketing, and commerce, enabling businesses to build stronger customer connections using the power of data and AI.
While we acknowledge the potential of CRM 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 CRM and that has 100x upside potential, check out our report about this cheapest AI stock.
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