11 Best Fundamentally Strong Stocks to Buy Now

In this article, we will discuss the 11 Best Fundamentally Strong Stocks to Buy Now.

On May 12, BNN Bloomberg reported that increased US inflation, as a result of war involving Iran, continues to add uncertainty related to the outlook for rates, oil markets, and global supply chains. Amidst these, equities continue to climb. BNN Bloomberg, while quoting Sadiq Adatia (chief investment officer at BMO Global Asset Management), reported that the broader markets are confident about the conflict stabilizing. Notably, resilient earnings and improving sentiment toward US tech stocks continue to lend support to equities.

Fisher Investments highlighted that, with the US midterm elections fast approaching, the Trump administration has an incentive to reach a deal with Iran. On May 11, CNBC, while quoting Ed Yardeni (President of Yardeni Research), reported that the market veteran increased the year-end target for the S&P 500 to 8,250 from the previous target of 7,700. This optimism was supported by earnings.

Amidst such trends, we will now have a look at the 11 Best Fundamentally Strong Stocks to Buy Now.

Our Methodology

To list the 11 Best Fundamentally Strong Stocks to Buy Now, we used a screener to shortlist companies that have a 3-year revenue growth of at least ~10%, and that have a positive diluted EPS growth (3-year). We also mentioned hedge fund sentiments around each stock, as of Q4 2025. The stocks are arranged in ascending order of their hedge fund sentiments.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

11 Best Fundamentally Strong Stocks to Buy Now

11. Fortinet, Inc. (NASDAQ:FTNT)

3-year Revenue Growth: ~14.5%

3-year Diluted EPS Growth: ~28.9%

Number of Hedge Fund Holders: 50

Fortinet, Inc. (NASDAQ:FTNT) is one of the Best Fundamentally Strong Stocks to Buy Now. On May 11, Shrenik Kothari from Robert W. Baird maintained a “Hold” rating on the company’s stock with a price objective of $115.00. The rating is influenced by several factors that demonstrate strong fundamentals and emerging risks for Fortinet. The analyst noted that remaining performance obligations and current RPO continue to grow at a healthy pace.

Notably, a significant portion of future revenue remains already contracted, which bolsters the durability of Fortinet, Inc. (NASDAQ:FTNT)’s subscription and support model. However, the analyst also noted the increasing inventory purchase commitments as well as supply chain constraints, mainly related to components like memory chips, which can result in execution and balance sheet risk.

The analyst highlighted a high concentration of hardware manufacturing in Taiwan. This is despite the diversification efforts. Therefore, the company is exposed to geopolitical and operational disruptions.

Fortinet, Inc. (NASDAQ:FTNT) is engaged in offering cybersecurity and the convergence of networking and security solutions.