In this article, we will take a look at the 11 Best Stocks to Buy for Investment.
Following growing uncertainty in global markets amid heightened geopolitical tensions, the U.S. market rebounded this week. The S&P 500 index rose to a new all-time high as investors await earnings from companies in the tech sector. On January 27, the NASDAQ Composite was up over 0.91%, compared with 0.40% gains for the S&P 500. Tech giants aided the rally on Tuesday, driven by expectations of the Fed rate decision.
The Federal Reserve is expected to keep interest rates unchanged after the conclusion of its two-day policy meeting. CME Group highlighted a 97% chance the Fed will hold rates steady between 3.50% and 3.75%.
After cutting rates three times during 2025, the Fed is once again in a wait-and-see mode, according to Yahoo Finance’s Hal Bundrick. The next rate cut will not occur before June 2026 under the current think tank, according to CME Group. Fed officials have said they will proceed meeting by meeting to shape the policy path.
According to JPMorgan Asset Management, S&P 500 gains are being driven by earnings growth, with tech expected to drive 60% of EPS growth in 2026.
Thomas Martin, senior portfolio manager at Globalt Investments, said:
Everybody is watching anything that gives you insight into the [AI] narrative. It’s all going to be about commentary about that in addition to the amount of money that they’re spending, both on the capex line and the opex line.
Martin added that AI isn’t going away, nor is data center infrastructure. He further mentioned:
The usage of it, the usage of the models, the advent of agents, robotics, etc. — all that stuff is just going to continue its trajectory of discovery. It’s going to be backwards and forwards, but we expect it to be with a positive bias,” Martin said about AI’s market impact.
With that, let’s take a look at the 11 Best Stocks to Buy for Investment.
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Our Methodology
To create the list of 11 best stocks to buy for investment, we shortlisted companies with a trailing twelve-month (TTM) EPS growth rate and a forward EPS growth rate of at least 20%, while these companies had a 3-year revenue growth rate of over 20% and a Beta of under 1. We selected only those stocks with upside potential. Finally, we ranked, in ascending order, the 11 best stocks to buy for investment based on the number of hedge funds holding positions in them. The hedge fund sentiment data for each stock were sourced from Insider Monkey’s database as of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All the data is as of market close on January 27, 2026.
11. AppFolio, Inc. (NASDAQ:APPF)
Number of Hedge Fund Holders: 40
AppFolio, Inc. (NASDAQ:APPF) is one of the best stocks to buy for investment.
As of January 27, AppFolio, Inc. (NASDAQ:APPF) shares have plunged by over 15% over the past year. However, all analysts covering APPF are bullish on the stock with a median price target of $318. This implies a potential upside of over 47%.
On December 12, TheFly reported that UBS initiated coverage of AppFolio, Inc. (NASDAQ:APPF) with a Buy rating, setting the price target at $285. Seth Gilbert at UBS believes AppFolio’s channel checks indicate no signs of a spending slowdown or rising competitive pressure, according to TheFly. Gilbert also pointed out that their analysis indicates healthy demand for its core product and incremental traction upselling with APM Plus and Max.
In other news, on January 15, D.A. Davidson reiterated a Buy rating on AppFolio, Inc. (NASDAQ:APPF), keeping the price target at $325. D.A. Davidson’s analyst Clark Wright retains a positive view on APPF following Bilt’s announcement of its 2.0 Credit Cards Program. Bilt 2.0 introduced a revised reward system for cardholders, which comes with a potential churn risk, added Wright. The analyst sees this as a great competitive opportunity for AppFolio to design its own offering that could be a suitable option compared to the competitor.
AppFolio, Inc. (NASDAQ:APPF) is a cloud-based property management software provider. The company, along with its subsidiaries, assists real estate clients from leasing to maintenance and accounting in the U.S.
10. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
Number of Hedge Fund Holders: 41
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the best stocks to buy for investment.
On January 9, H.C. Wainwright reiterated a Buy rating on Halozyme Therapeutics, Inc. (NASDAQ:HALO), maintaining the price target at $90. Mitchell Kapoor from H.C. Wainwright remains positive on HALO, considering the strategic and financial strength of its ENHANZE platform. Kapoor believes the recent business developments with Takeda and Skye are a significant win for the company, expanding ENHANZE’s reach beyond oncology. The analyst expects these deals to help ENHANZE reach into large and durable markets such as inflammatory bowel disease and obesity.
In other news, on January 8, Morgan Stanley slightly lowered the price target on HALO from $79 to 75, keeping an Overweight rating. The analyst at Morgan Stanley expects small-to-mid-cap U.S. biotech stocks to outperform in 2026 as commercial names shift from ‘capital consumers to producers.’ The analyst sees large-cap biopharma companies facing a looming patent cliff.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical company focused on the research, development, and commercialization of proprietary enzymes and devices worldwide.
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