In this article, we will look at the 11 Best Stocks to Buy for the Next 3 Months According to Hedge Funds.
On September 6, Rebecca Patterson, Chief Investment Strategist at Bridgewater Associates, appeared in an interview on CNBC to discuss the current US economy. She noted that the economy, from a labour market perspective, is slowing and even stalling to some extent. She believes that this is due to the disconnect between GDP reports and labor market data expected in the coming months and quarters. Patterson emphasized focusing on the labor market and consumer spending, stating that as the labor market slows, consumers become more cautious with less income, eventually causing the equity market and GDP growth to falter.
While talking about the investment environment, she noted that the market should not assume that the Federal Reserve will bail out the market as it has done in the past cycles. Patterson highlighted that the Fed might cut rates but not as aggressively as markets expect unless the economy slows significantly or inflation falls. This, however, will not be good for the economy or the stock market. She noted on the bright side, even if the economy merely stalls, large-cap stocks and lower-volatility stocks could be better off in that situation.
She advised investors to look for companies that have structural support, such as AI beneficiaries, global defense, and utilities. She emphasized looking at companies with long-term structural trends rather than purely cyclical factors.
With that, let’s take a look at the 11 best stocks to buy for the next 3 months according to hedge funds.
Stocks
Our Methodology
To curate the list of 11 best stocks to buy for the next 3 months according to hedge funds, we used the Finviz stock screener, CNN, and Insider Monkey’s Q2 2025 hedge funds database. Using the screener, we aggregated a list of stocks that have performed well (up more than 25% over the past 6 months) and analysts still expect more than 25% upside. Next, from these stocks, we chose the ones on analysts’ and hedge funds’ radars, and ranked them in ascending order of the number of hedge fund holders.
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 Best Stocks to Buy for the Next 3 Months According to Hedge Funds
11. Metsera, Inc. (NASDAQ:MTSR)
6-Month Performance: 40.83%
Analyst Upside Potential: 72.85%
Number of Hedge Fund Holders: 18
Metsera, Inc. (NASDAQ:MTSR) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On August 28, Bank of America Securities analyst Tim Anderson raised the firm’s price target on Metsera, Inc. (NASDAQ:MTSR) from $45 to $50, while maintaining a Buy rating on the stock.
The improved bullish sentiment for the stock comes after the company reported financial and business updates for its fiscal second quarter of 2025. The company reported notable progress in its obesity and metabolic disease drug pipeline for mid-2025. Its lead drug, MET-097i, which is a once-monthly GLP-1 receptor agonist, showed strong potential for weight loss and good tolerability in Phase 2b trials. Moreover, data from VESPER-1 and interim VESPER-3 studies are expected in September 2025.
Moreover, another drug, MET-233i, which is a once-monthly amylin analog, delivered impressive Phase 1 results, with an 8.4% weight loss over five weeks and a 19-day half-life. Management is expecting full 12-week monotherapy data by late 2025. Similarly, the company is also advancing oral peptide programs, with data from MET-097o and MET-224o expected in late 2025 as well.
Metsera, Inc. (NASDAQ:MTSR) is a clinical-stage biotechnology company developing innovative injectable and oral hormone analog peptides.
10. Venture Global, Inc. (NYSE:VG)
6-Month Performance: 39.11%
Analyst Upside Potential: 32.40%
Number of Hedge Fund Holders: 22
Venture Global, Inc. (NYSE:VG) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On August 27, Christopher Robertson from Deutsche Bank upgraded Venture Global, Inc. (NYSE:VG) from a Hold to a Buy rating with a $17 price target.
The analyst noted that Deutsche Bank visited the management at the Plaquemines LNG facility. During the visit, the firm was able to gain a clearer picture of the complexity and discipline of the company to simultaneously continue commissioning and construction work at its projects. The analyst noted that it takes a lot of effort and discipline to deliberately schedule the construction sequence, which has become one of the differentiation factors for Venture Global, Inc. (NYSE:VG). The company is known for using factory-built, mid-scale liquefaction trains.
Earlier on August 12, Venture Global, Inc. (NYSE:VG) delivered strong results for its fiscal second quarter of 2025. The revenue of $3.10 billion came in ahead of Wall Street consensus by $130.25 million. Management exported a record 89 cargos totaling 331 TBtu of liquefied natural gas, up from 53 cargos totaling 202 TBtu a year ago.
Venture Global, Inc. (NYSE:VG) provides liquefied natural gas (LNG) sourced from North American gas basins. It operates across the LNG supply chain, including production, transport, shipping, and regasification.
9. Avidity Biosciences, Inc. (NASDAQ:RNA)
6-Month Performance: 66.26%
Analyst Upside Potential: 32.05%
Number of Hedge Fund Holders: 26
Avidity Biosciences, Inc. (NASDAQ:RNA) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On September 3, Eric Schmidt FCA from Cantor Fitzgerald reiterated a Buy rating on Avidity Biosciences, Inc. (NASDAQ:RNA) with a price target of $96.
The reiterated Buy rating on the stock comes after the company reported strong business updates in its fiscal second quarter of 2025. The company reported progress in three late-stage neuromuscular programs for treating Duchenne muscular dystrophy, myotonic dystrophy type 1, and facioscapulohumeral muscular dystrophy.
Management noted that the FDA granted Breakthrough Therapy designation for Delpacibart Zotadirsen and that they plan to submit a Biologics License Application for del-zota by the end of 2025. The company also advanced clinical trials for Delpacibart Etedesiran and Delpacibart Braxlosiran with regulatory progress and plans for future marketing applications.
Financially, Avidity Biosciences, Inc. (NASDAQ:RNA) grew its collaboration revenue by 88.12% to reach $3.85 billion, which was ahead of the consensus by $2.24 million.
Avidity Biosciences, Inc. (NASDAQ:RNA) is a biopharmaceutical company developing a new class of RNA therapies called Antibody Oligonucleotide Conjugates.
8. Applied Digital Corporation (NASDAQ:APLD)
6-Month Performance: 91.32%
Analyst Upside Potential: 43.99%
Number of Hedge Fund Holders: 28
Applied Digital Corporation (NASDAQ:APLD) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On August 29, Applied Digital Corporation (NASDAQ:APLD) announced finalizing a new lease agreement with CoreWeave for an additional 150MW of data center capacity at Applied Digital’s Polaris Forge 1 Campus in Ellendale.
This new lease increases the total contracted lease revenue for the company to around $11 billion, including $7 billion from two earlier leases signed earlier in May 2025. As a result, the Polaris Forge 1 Campus will now have a total IT capacity of 400MW across three long-term lease agreements with CoreWeave. Moreover, the additional 150MW will be housed in the third building of the campus, which is in the planning phase, and this new data center is expected to be ready for service by 2027.
After the announcement on the same day, Robert Brown from Lake Street maintained a Buy rating on Applied Digital Corporation (NASDAQ:APLD) with a price target of $18. Analysts’ 12-month price target reflects around 44% upside from the current levels.
Applied Digital Corporation (NASDAQ:APLD) is a technology company that designs, develops, and operates next-generation digital infrastructure and cloud services across North America.
7. Summit Therapeutics Inc. (NASDAQ:SMMT)
6-Month Performance: 46.12%
Analyst Upside Potential: 34.72%
Number of Hedge Fund Holders: 30
Summit Therapeutics Inc. (NASDAQ:SMMT) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On September 3, Bradley Canino from Guggenheim initiated coverage on Summit Therapeutics Inc. (NASDAQ:SMMT) with a Buy rating and a $40 price target.
The analyst noted that they liked the stock when it was trading at $3 as the market overlooked an important upcoming progression-free survival readout for its drug Ivonescimab in direct comparison to Merck’s Pembrolizumab in lung cancer. Now that the stock trades at $24, the analyst still likes it and believes that if Summit Therapeutics Inc.’s (NASDAQ:SMMT) two first-line lung cancer trials succeed on PFS overall survival endpoints in 2027 and 2028, the stock has the potential to explode multi-fold.
He sees strong upside potential for the company. Overall, analysts’ 12-month average price target points towards a 34.72% upside from the current levels.
Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical company focused on discovering, developing, and commercializing innovative medicinal therapies to improve the quality and duration of life.
6. Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR)
6-Month Performance: 71.33%
Analyst Upside Potential: 30.70%
Number of Hedge Fund Holders: 32
Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On September 2, Patrick Trucchio from H.C. Wainwright reiterated a Buy rating on Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) with a price target of $80.
The analyst noted the company’s recent deal with Novartis as a strong vote of confidence. The deal brings $200 million upfront, which has the potential to lead to a $2 billion milestone. Trucchio highlighted that this deal validates Arrowhead Pharmaceuticals, Inc.’s (NASDAQ:ARWR) approach to treating CNS diseases and adds important funding without diluting shares.
He also likes the positive results from Ionis Pharmaceuticals’ Olezarsen, which supports Arrowhead’s Plozasiran drug. Both drugs target severe hypertriglyceridemia, a condition linked to pancreatitis risk. Trucchio noted that the company stands out by offering quarterly dosing, which may attract patients and doctors.
Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) develops medicines that silence genes causing difficult diseases using RNA interference.
5. IDEAYA Biosciences, Inc. (NASDAQ:IDYA)
6-Month Performance: 47.13%
Analyst Upside Potential: 63.84%
Number of Hedge Fund Holders: 32
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On September 4, Citizens JMP analyst Ivan Tuerkcan initiated coverage of IDEAYA Biosciences, Inc. (NASDAQ:IDYA) with a $41 price target.
The firm started coverage of the company after it announced enrolling the first patient with non-small cell lung cancer (NSCLC) in its Phase 1/2 clinical trial. This trial tests a combination of IDE397, a potential first-in-class MAT2A inhibitor, and Trodelvy, which is a Trop2-directed antibody-drug conjugate. The study targets solid tumors with MTAP deletion, a genetic alteration found in up to 20% of NSCLC patients.
The trial was initially focused on MTAP-deletion urothelial cancer; however, it expanded in April 2025 to include NSCLC. IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is conducting the trial in collaboration with Gilead Sciences, which supplies Trodelvy. Both companies retain commercial rights to their drugs.
IDEAYA Biosciences, Inc. (NASDAQ:IDYA) is a precision medicine oncology company focused on discovering and developing targeted cancer therapies.
4. MoonLake Immunotherapeutics (NASDAQ:MLTX)
6-Month Performance: 56.28%
Analyst Upside Potential: 27.86%
Number of Hedge Fund Holders: 34
MoonLake Immunotherapeutics (NASDAQ:MLTX) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On August 21, Leerink Partners analyst Thomas Smith reiterated a Buy rating on MoonLake Immunotherapeutics (NASDAQ:MLTX) with a price target of $73.
Smith highlighted the potential of the company’s Sonelokimab in treating moderate-to-severe hidradenitis suppurativa. He noted that the upcoming Phase 3 VELA trial results to be a key catalyst for the stock and believes that it will show superiority over existing treatments, which could boost the share price significantly.
In addition, Smith’s optimism is supported by the recent completion of patient enrollment in the VELA trial. The baseline characteristics of this trial resemble those from the successful Phase 2 MIRA study. Moreover, the analyst also noted speaking with key dermatology experts who favor the company’s drug. The dermatologists noted that the drug has better efficacy, safety, and dosing convenience compared to competitors. As a result, the analyst expects strong sales growth for the drug by 2035.
MoonLake Immunotherapeutics (NASDAQ:MLTX) is a clinical-stage biopharmaceutical company that develops therapies for inflammatory skin and joint diseases.
3. TransMedics Group, Inc. (NASDAQ:TMDX)
6-Month Performance: 54.18%
Analyst Upside Potential: 39.41%
Number of Hedge Fund Holders: 35
TransMedics Group, Inc. (NASDAQ:TMDX) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On August 4, TransMedics Group, Inc. (NASDAQ:TMDX) received conditional approval from the US FDA for its Investigational Device Exemption, allowing the company to start its Next-Generation OCS ENHANCE Heart trial.
The trial has two parts, where the first part focuses on supporting prolonged heart perfusion using the OCS Heart System. Whereas the second part aims to prove that OCS Heart perfusion is better than traditional cold storage methods in hearts donated after brain death.
Analysts have been bullish on the stock since the approval. On September 5, Josh Jennings from TD Cowen reiterated a Buy rating on TransMedics Group, Inc. (NASDAQ:TMDX) with a price target of $170. Earlier on September 3, Matthew O’Brien from Piper Sandler had also reiterated a Buy rating on the stock with a price target of $145.
TransMedics Group, Inc. (NASDAQ:TMDX) is a medical technology company that revolutionizes organ transplant therapy for patients with end-stage lung, heart, and liver failure.
2. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
6-Month Performance: 55.81%
Analyst Upside Potential: 70.56%
Number of Hedge Fund Holders: 52
Soleno Therapeutics, Inc. (NASDAQ:SLNO) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. The company announced several positive developments in its fiscal second quarter 2025 business update.
It announced the commercial launch of VYKAT XR during the quarter, which is the first FDA-approved treatment for hyperphagia in Prader-Willi Syndrome. Management noted that since the approval, the company has received 646 patient start forms from 295 unique prescribers, covering over 100 million insured lives in the US. Moreover, the company is also seeking marketing approval for VYKAT XR in the European Union through the European Medicines Agency and has presented clinical data at major medical conferences to raise awareness about the drug’s safety and efficacy.
Analysts have been bullish on the stock. On September 4, TD Cowen analyst Tyler Van Buren maintained a Buy rating on Soleno Therapeutics, Inc. (NASDAQ:SLNO), with a price target of $120. Earlier, on August 25, Leland Gershell from Oppenheimer also reiterated a Buy rating on the stock with a price target of $110.
Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a biopharmaceutical company that develops and commercializes novel treatments for rare diseases.
1. QXO, Inc. (NYSE:QXO)
6-Month Performance: 64.80%
Analyst Upside Potential: 45.12%
Number of Hedge Fund Holders: 65
QXO, Inc. (NYSE:QXO) is one of the Best Stocks to Buy for the Next 3 Months According to Hedge Funds. On September 5, Sam Darkatsh from Raymond James initiated coverage of QXO, Inc. (NYSE:QXO) with a Buy rating and a $28 price target.
The analyst sees QXO as a good investment opportunity and describes the setup for the company as asymmetrically favorable. He also highlighted the company’s acquisition of Beacon Roofing Supply for around $11 billion to be a major milestone. Darkatsh believes that this acquisition gives QXO a strong platform in building product distribution and supports the company’s goal to reach $50 billion in revenue. However, the analyst warned about some possible execution risks that could potentially challenge and delay the company’s plan.
QXO, Inc. (NYSE:QXO) distributes roofing, waterproofing, and building products in the US. It uses technology to help contractors and suppliers manage inventory, orders, and customer service.
While we acknowledge the potential of QXO 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 QXO and that has 100x upside potential, check out our report about this cheapest AI stock.
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