In this article, we discuss the 11 Best Roth IRA Stocks to Invest in Now.
One of the most powerful tools available for long-term wealth creation is a Roth IRA. While traditional IRAs feature contributions, which are tax-deductible upfront and withdrawals, which are taxed later, Roth IRA offers tax-free investment growth and withdrawals. This strategy turns even more lucrative if you start early and let compounding do its trick over decades. For those between 35 and 60, in particular, a Roth IRA offers a significant boost to retirement security if contributions are maxed out consistently.
However, picking out the right stocks to hold in a Roth IRA is crucial, particularly in today’s uncertain economic climate. On Friday, September 5, 2025, markets ended lower following a weaker-than-expected jobs report, which raised concerns about slowing growth. The S&P 500 fell by 0.32%, the Dow slipped 220 points, and the Nasdaq went down 0.03%. However, all three indexes hit record intraday highs earlier in the session. While expectations are set high for Federal Reserve rate cuts, the jobs report has raised uncertainty about the strength of the labor market and the broader economy.
In such uncertain times, long-term growth stocks become even more difficult to find to build a tax-advantaged retirement portfolio. To help the cause, let’s jump to our list of the 11 Best Roth IRA Stocks to Invest in Now.
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Our Methodology
To curate our list of the 11 Best Roth IRA Stocks to Invest in Now, we selected companies that have long-term growth catalysts, dividend growth history, solid business fundamentals, and positive analyst coverage. Next, we assessed hedge fund sentiment surrounding these stocks using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds. We ranked these stocks in ascending order based on the number of hedge funds holding stakes in each stock as of Q2 2025.
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).
11. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 66
NextEra Energy, Inc. (NYSE:NEE) is one of the 11 Best Roth IRA Stocks to Invest in Now.
On August 28, 2025, Goldman Sachs reaffirmed its ‘Buy’ rating on NextEra Energy, Inc. (NYSE:NEE), maintaining the $91.00 price target. The bullish stance follows the company’s strong track record in navigating regulatory challenges, even as its Florida Power & Light subsidiary faces an alternate settlement proposal related to its rate increase. The subsidiary would gradually increase rates by roughly 2% per year on average until 2030, ensuring sufficient revenue generation while not overburdening customers with large bill increases.
With rate adjustment tools and SoBRA built in, NextEra Energy, Inc. (NYSE:NEE) aims to strengthen its outlook for predictable returns with the proposal. The final commission order, which is expected this fall, could reinforce stability, positioning the company for steady financial and operational momentum.
NextEra Energy, Inc. (NYSE:NEE), a leading U.S. utility and clean energy company, generates power through wind, solar, nuclear, natural gas, and battery storage solutions. It is one of the Best Roth IRA Stocks.
10. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 67
Honeywell International Inc. (NASDAQ:HON) is one of the 11 Best Roth IRA Stocks to Invest in Now.
Honeywell International Inc. (NASDAQ:HON) announced a $600 million equity capital raise for its quantum subsidiary Quantinuum on September 4, 2025. This equity raise values the company at $10 billion pre-money. This offering featured investors such as Quanta Computer, NVentures, JPMorgan Chase, and Mitsui, alongside new ones like MESH and Korea Investment Partners.
Proceeds are intended to accelerate the development of Quantinuum’s next-generation Helio quantum computer, which is expected to be launched this year. At the same time, Honeywell International Inc. (NASDAQ:HON) plans to use proceeds to advance its subsidiary’s pursuit of universal fault-tolerant computing. Furthermore, the company is also extending its ties with Nvidia, RIKEN, SoftBank, and others, while also expanding into Qatar, Singapore, and New Mexico to strengthen infrastructure, AI integration, and scientific breakthroughs.
Honeywell International Inc. (NASDAQ:HON) provides automation, aerospace, building, and energy solutions globally, leveraging innovation and advanced technologies to enhance safety, efficiency, and sustainability. It is one of the Best Roth IRA Stocks.
9. Elevance Health, Inc. (NYSE:ELV)
Number of Hedge Fund Holders: 67
Elevance Health, Inc. (NYSE:ELV) is one of the 11 Best Roth IRA Stocks to Invest in Now.
Elevance Health, Inc. (NYSE:ELV) announced on September 4, 2025, that it expects to reaffirm its full-year 2025 earnings guidance during upcoming investor meetings. The company expects earnings of roughly $24.10 per diluted share, including roughly $5.90 per share in net unfavorable items. Excluding these, adjusted earnings of roughly $30.00 per diluted share are expected.
Furthermore, Elevance Health, Inc. (NYSE:ELV) also expects to achieve a benefit expense ratio close to 90% for the year. The company bases its projections on the current views on market conditions, regulatory factors, and medical cost trends.
With its Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brands, Elevance Health, Inc. (NYSE:ELV) provides health benefits, pharmacy, and healthcare services across the U.S. It is one of the Best Roth IRA Stocks.
8. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 68
Texas Instruments Incorporated (NASDAQ:TXN) is one of the 11 Best Roth IRA Stocks to Invest in Now.
On September 5, 2025, Bank of America Securities lowered its price target on Texas Instruments Incorporated (NASDAQ:TXN) from $218 to $208. The price revision reflects a more cautious outlook on analog and automotive semiconductor demand.
Due to tariff uncertainty, intensified Chinese competition, and weaker auto demand flagged by Infineon and BYD, the investment firm believes that what initially seemed like a strong rebound now looks more seasonal. Accordingly, BofA reduced its auto semiconductor market forecasts for 2025-2027 by up to 2.2%. The firm projects next year’s sales at $50 billion, which is a 7% YoY decline. While the analysts expect softening in industrial chip forecasts, consensus estimates across several diversified vendors remain much more optimistic, indicating short-term resilience.
Texas Instruments Incorporated (NASDAQ:TXN) serves a diverse range of sectors as a designer and manufacturer of analog and embedded semiconductors. It is one of the Best Roth IRA Stocks.
7. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 70
American Tower Corporation (NYSE:AMT) is one of the 11 Best Roth IRA Stocks to Invest in Now.
American Tower Corporation (NYSE:AMT) outlined its growth strategy on September 3, 2025, at Citi’s Global Technology, Media and Telecommunications Conference, reflecting optimism in developed markets with challenges abroad.
In developed markets, American Tower Corporation (NYSE:AMT) expects to achieve mobile data growth of 15%-20%, where it is selectively deploying capital. Meanwhile, the company highlighted short-term headwinds in Latin America stemming from carrier consolidation and currency pressures, with recovery expected post-2027.
American Tower Corporation (NYSE:AMT) also talked about cost discipline, a strong balance sheet, and strategic portfolio optimization, including divestments in Mexico and South Africa. The company also expects to build upon surging growth in leasing activity and colocation, projecting double-digit revenue growth at CoreSite. Looking ahead, AMT expects mid-to-upper single-digit AFFO per share growth, thanks to rising connectivity demand and emerging technologies like AI and edge computing.
American Tower Corporation (NYSE:AMT), a global REIT, owns, operates, and develops multitenant communications sites and interconnected U.S. data centers. It is one of the Best Roth IRA Stocks.
6. Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Holders: 75
Zoetis Inc. (NYSE:ZTS) is one of the 11 Best Roth IRA Stocks to Invest in Now.
Zoetis Inc. (NYSE:ZTS) strengthened its financial flexibility on August 27, 2025, by securing a new five-year, $1.25 billion senior unsecured revolving credit facility. The agreement replaces a 2022 facility that would have expired in 2027. The agreement was administered by JPMorgan Chase, while Barclays, Bank of America, Citibank, and MUFG acted as syndication agents.
With this agreement, Zoetis Inc. (NYSE:ZTS) can avail itself of borrowing options tied to base or SOFR rates plus a margin linked to the company’s debt ratings. The move provides the company with liquidity to support operations and strategic initiatives, with no mandatory prepayments and flexible repayment terms.
Zoetis Inc. (NYSE:ZTS) prepares medicines, vaccines, diagnostics, and precision health solutions for livestock and companion animals globally. It is one of the Best Roth IRA Stocks.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 76
QUALCOMM Incorporated (NASDAQ:QCOM) is included in our list of the 11 Best Roth IRA Stocks to Invest in Now.
After collaborating for three years, QUALCOMM Incorporated (NASDAQ:QCOM) and BMW launched Snapdragon Ride Pilot on September 5, 2025, which is a next-generation automated driving system.
The new system leverages QUALCOMM Incorporated (NASDAQ:QCOM)’s Snapdragon Ride SoCs and a co-developed AD software stack to deliver safety-first autonomy, from NCAP compliance to Level 2+ hands-free driving and urban navigation, featuring in the all-new BMW iX3.
Ride Pilot, which is validated in over 60 countries, with expansion to 100+ by 2026, blends AI-powered perception, context-aware decision-making, and robust cybersecurity. Furthermore, the system supports OTA updates, offering automakers scalable, customizable solutions.
QUALCOMM Incorporated (NASDAQ:QCOM) is focused on the development of AI-driven, low-power computing and connectivity platforms to power next-generation consumer experiences, business solutions, and digital transformation globally. It is one of the Best Roth IRA Stocks.
4. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 81
Applied Materials, Inc. (NASDAQ:AMAT) is included in our list of the 11 Best Roth IRA Stocks to Invest in Now.
On August 28, 2025, Applied Materials, Inc. (NASDAQ:AMAT) provided reassurance to investors that the U.S. government’s moves at chipmakers’ foundry units, including Intel, will not affect the company’s forecast for high-end chipmaking tools. While the company’s CFO stated the incentives may impact factory locations, they won’t expand overall demand. He stated:
“We don’t think anybody’s going to build extra fabs that don’t have designs.”
Furthermore, Applied Materials, Inc. (NASDAQ:AMAT)’s CFO mentioned that competition could reduce utilization rates slightly without affecting the five-year outlook. Meanwhile, on August 25, 2025, Cantor Fitzgerald reiterated its ‘Buy’ rating on the company with a $200 price target.
Applied Materials, Inc. (NASDAQ:AMAT) serves global chipmakers and the electronics industry by providing them with semiconductor manufacturing equipment, services, and display technologies. It is one of the Best Roth IRA Stocks.
3. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 89
Union Pacific Corporation (NYSE:UNP) is included in our list of the 11 Best Roth IRA Stocks to Invest in Now.
Union Pacific Corporation (NYSE:UNP) announced ratified agreements with 11 unions on September 6, 2025. The agreements cover 12 crafts, representing 46% of its craft workforce.
The five-year contracts feature wage hikes effective July 1, 2025, expanded vacation, enhanced health and welfare benefits, and updated work rules.
Furthermore, interim deals granting 3% pay raises starting September 1 were granted to two of the largest unions, SMART-TD and BLET. Union Pacific Corporation (NYSE:UNP) views the move as a reward for employees for ensuring the safe, reliable service that defines the company’s operations.
With its freight rail services across 23 western U.S. states, Union Pacific Corporation (NYSE:UNP) connects customers to the global economy with efficient, reliable, and environmentally responsible transportation. It is one of the Best Roth IRA Stocks.
2. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is included in our list of the 11 Best Roth IRA Stocks to Invest in Now.
Merck & Co., Inc. (NYSE:MRK) showcased the potential of enlicitide decanoate, an investigational oral PCSK9 inhibitor for hypercholesterolemia. It did so by reporting positive topline results from its Phase 3 CORALreef Lipids trial on September 2, 2025.
The study met all the endpoints, with enlicitide delivering significant reductions in LDL-C, non-HDL-C, ApoB, and Lp(a) compared to placebo at Week 24. Furthermore, the study reported favorable safety outcomes, with low discontinuation rates and no meaningful differences in adverse events between treatment groups. The results follow the previous momentum achieved with successful outcomes, reinforcing its promise as the first oral macrocyclic peptide PCSK9 inhibitor. The achievement positions Merck & Co., Inc. (NYSE:MRK) to seek regulatory review and potentially redefine cholesterol management.
Merck & Co., Inc. (NYSE:MRK), a global biopharmaceutical company, focuses on developing innovative medicines, vaccines, and health solutions to save and improve lives worldwide. It is one of the Best Roth IRA Stocks.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 159
UnitedHealth Group Incorporated (NYSE:UNH) is included in our list of the 11 Best Roth IRA Stocks to Invest in Now.
Bernstein raised its price target on UnitedHealth Group Incorporated (NYSE:UNH) from $337 to $379, maintaining its ‘Outperform’ rating. The investment firm believes the company is a strong pick amid a sector recovery.
While Bernstein prefers other stocks for longer-term investment, UnitedHealth Group Incorporated (NYSE:UNH) is cited as a strong short-term pick for its stability and earnings potential. Expressing confidence in the relative strength of diversified managed care organizations (MCO), the investment firm believes that UNH represents solid long-term value at current levels with strong earnings growth potential.
With its UnitedHealthcare and Optum segments, UnitedHealth Group Incorporated (NYSE:UNH), a global healthcare company, provides insurance benefits, pharmacy services, and data-driven care solutions. It is one of the Best Roth IRA Stocks.
While we acknowledge the potential of UNH 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 UNH and that has 100x upside potential, check out our report about this cheapest AI stock.
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