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.

10. General Dynamics Corporation (NYSE:GD)

3-year Revenue Growth: ~10.4%

3-year Diluted EPS Growth: ~9.1%

Number of Hedge Fund Holders: 66

General Dynamics Corporation (NYSE:GD) is one of the Best Fundamentally Strong Stocks to Buy Now. On April 29, the company released its Q1 2026 financial results, with revenue coming at $13.5 billion, up by 10.3% YoY, amidst growth in all the 4 segments. Notably, the orders totaled $26.6 billion in Q1 2026 on a company-wide basis. The consolidated book-to-bill ratio came at 2-to-1 for the quarter. General Dynamics Corporation (NYSE:GD)’s Chairman and CEO noted that the company delivered healthy operating results and strong cash conversion.

General Dynamics Corporation (NYSE:GD) noted that, while Aerospace and Marine primarily supported the revenue increases, each of the other 2 segments saw revenue growth as well. Coming to the operating earnings, each of the segments saw better performance, mainly led by Marine Systems that witnessed 26.4% growth. This was because of improved operating performance across all of the company’s shipyards, along with revenue growth.

General Dynamics Corporation (NYSE:GD) is an aerospace and defense company.

9. Woodward, Inc. (NASDAQ:WWD)

3-year Revenue Growth: ~15.5%

3-year Diluted EPS Growth: ~47.9%

Number of Hedge Fund Holders: 69

Woodward, Inc. (NASDAQ:WWD) is one of the Best Fundamentally Strong Stocks to Buy Now. On May 5, Truist lifted its price objective on the company’s stock to $415 from $404 and kept a “Buy” rating on the shares. This comes after the company’s Q2 2026 earnings beat and its guidance raise. As per the analyst, the improvement in guidance remains favorable, considering it is ahead of the street expectations throughout the board and demonstrates confidence in the end-market strength for the balance of FY 2026.

Furthermore, the firm added that the management didn’t see any impacts from geopolitical developments and remains confident about the commercial aero services.

Notably, considering its H1 performance and continued demand strength, Woodward, Inc. (NASDAQ:WWD) raised its full-year outlook. For FY 2026, the company now expects sales growth of between 20% to 23% versus the prior expectation of 14% to 18% growth. Adjusted EPS is expected to be $9.15 – $9.45 compared to the previous expectation of $8.20 – $8.60.

Woodward, Inc. (NASDAQ:WWD) is engaged in designing, manufacturing, and servicing control solutions for aerospace and industrial markets.

8. Interactive Brokers Group, Inc. (NASDAQ:IBKR)

3-year Revenue Growth: ~21.8%

3-year Diluted EPS Growth: ~28.1%

Number of Hedge Fund Holders: 81

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is one of the Best Fundamentally Strong Stocks to Buy Now. On May 14, WSJ reported that the company is launching a platform on which users can place yes-or-no bets via Kalshi, CME Group, and its own ForecastEx. This boosts the efforts of prediction markets to attract institutional investors.

Interactive Brokers Group, Inc. (NASDAQ:IBKR) highlighted that its Prediction Markets offering allows investors to access and trade contracts throughout all the 3 prediction market exchanges from a single platform, along with a range of asset classes such as stocks, options, forex, futures, crypto, and bonds.

The company’s Prediction Markets provides a structured and transparent way to express views about real-world events, including monetary policy decisions, economic data releases, etc. Coming to the key features of its Prediction Markets solution, it offers unified access, best-price execution, multi-asset integration, etc. Notably, an intelligent order UI supports the clients in viewing liquidity throughout markets and automatically choosing the destination with the best net price.

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an automated electronic broker.

7. Advanced Micro Devices, Inc. (NASDAQ:AMD)

3-year Revenue Growth: ~17.5%

3-year Diluted EPS Growth: ~134%

Number of Hedge Fund Holders: 132

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Fundamentally Strong Stocks to Buy Now. On May 12, Mizuho lifted its price objective on the company’s stock to $515 from $415 and kept an “Outperform” rating on the shares. As per the firm, agentic AI has been fueling server demand. The firm increased the semiconductor estimates after the March quarter earnings season.

In a separate release, Advanced Micro Devices, Inc. (NASDAQ:AMD) released its results for Q1 2026, with revenues coming at $10.3 billion, gross margin at 53%, operating income at $1.5 billion, and net income at $1.4 billion. It saw diluted EPS of $0.84. The company’s results were aided by accelerating demand for AI infrastructure, and the data center is the key driver of the company’s revenue and earnings growth. Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to see healthy momentum, with inferencing and agentic AI fueling higher demand for high-performance CPUs and accelerators.

For Q2 2026, the company anticipates revenue to be ~$11.2 billion, plus or minus $300 million.

Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.

6. Netflix, Inc. (NASDAQ:NFLX)

3-year Revenue Growth: ~13.6%

3-year Diluted EPS Growth: ~49.3%

Number of Hedge Fund Holders: 146

Netflix, Inc. (NASDAQ:NFLX) is one of the Best Fundamentally Strong Stocks to Buy Now. On May 13, Citi analyst Jason Bazinet maintained a “Buy” rating on the company’s stock, setting a price objective of $115.00. The analyst’s rating is backed by factors related to the company’s growth in ad-supported business and user engagement. Furthermore, the analyst pointed towards healthy weekly usage among ad-tier customers and the company’s plan to roll out the ad-supported service to additional countries.

Notably, this significantly expands the addressable audience despite expected reductions in monetization in some regions. Additionally, Bazinet noted Netflix, Inc. (NASDAQ:NFLX)’s innovation in advertising formats as well as AI tools for creators and advertisers. This can help expand ad inventory and improve the campaign effectiveness, added the analyst.

In a different release, JPMorgan reiterated an “Overweight” rating on the company’s stock with a price objective of $118. Notably, it is optimistic about Netflix, Inc. (NASDAQ:NFLX)’s reach, content strategy, and improved advertising technology.

Netflix, Inc. (NASDAQ:NFLX) offers entertainment services.

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