In this article, we will discuss the 11 Best Young Stocks to Invest In According to Hedge Funds.

On June 6, Stephanie Aliaga, JP Morgan Asset Management Global Market Strategist, joined ‘Closing Bell Overtime’ on CNBC to interpret the recent slide in equities, questioning whether it signifies the start of something larger or is merely a natural pullback following a significant rally. Aliaga characterized the year’s performance as a ferocious rally, particularly within the hardware complex, and noted that the semiconductor ETF had essentially doubled in the first five months of the year. She argued that these levels set a very high bar for the market, creating sensitivity as uncertainties for the second half of the year begin to percolate.

Discussing AI opportunities that are not yet fully reflected in the market, Aliaga referenced a 2002 report by Eric Mnielsen regarding the internet era, which found that for every dollar spent on computer hardware, firms spent nine dollars on complementary investments such as worker retraining, software, and reorienting workflows. While she noted the ratio for AI may differ, she emphasized that companies are in the very early innings of this broader spending. She highlighted an Atlanta Fed survey indicating that companies expect to increase AI spend per employee by 50 percent this year, a factor that she believes is not yet fully baked into market expectations.

Regarding the influx of new stock entering the market, Aliaga advised investors to buckle up for volatility as this high-profile liquidity enters the system. However, she remains optimistic by taking a broader perspective: since 1990, the number of public market companies has halved to 4,000, while structural demand from 401(k) contributions and valuation-agnostic passive inflows remains strong. She believes that the market can digest this new issuance, provided the underlying reason to invest persists.

Our Methodology

We used screeners to identify stocks that have gone public in the last 5 years, including IPOs, spin-offs, and other recent public listings, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on June 15. 

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

11 Best Young Stocks to Invest In According to Hedge Funds

11. SOLV Energy (NASDAQ:MWH)

Number of Hedge Fund Holders: 41

SOLV Energy (NASDAQ:MWH) is one of the best young stocks to invest in according to hedge funds. On May 12, SOLV Energy reported significant growth for Q1 2026, with revenue increasing 66% year-over-year to $677 million and Adjusted EBITDA rising 174% to $93 million. While the company recorded a net loss of $27 million, this was driven by a one-time, non-cash expense of $52 million related to legacy equity award modifications following its IPO. Excluding these impacts, the company demonstrated strong profitability, highlighted by an Adjusted Gross Margin of 18.4%.

Operational momentum remains robust, with the company’s total backlog reaching $8.2 billion and nearly 22 gigawatts currently under contract for operations and maintenance services. To further expand its footprint in the utility services sector, SOLV Energy announced the $45 million acquisition of California-based Roberson Waite Electric/RWE, which is expected to close by Q3 2026. The company also strengthened its leadership team with the appointment of Mike Adams as Vice President of Investor Relations.

Reflecting this continued strength, SOLV Energy (NASDAQ:MWH) has updated its full-year 2026 guidance, now projecting revenue between $3.720 billion and $3.820 billion. The company also anticipates full-year Adjusted EBITDA in the range of $435 million to $455 million, supported by an Adjusted Gross Margin target of 16.4% to 17.0%.

SOLV Energy (NASDAQ:MWH) provides power infrastructure services, offering engineering, procurement, construction, operations, maintenance, repowering, and grid-related solutions for utility-scale energy projects.

10. Warby Parker Inc. (NYSE:WRBY)

Number of Hedge Fund Holders: 48

Warby Parker Inc. (NYSE:WRBY) is one of the best young stocks to invest in according to hedge funds. On May 19, Warby Parker unveiled its first line of Intelligent Eyewear, scheduled for release this fall. Developed in partnership with Google and Samsung, the frames integrate Gemini and Android XR to offer contextual, real-time assistance, enabling users to manage tasks, navigate, and communicate seamlessly. The debut style, a classic rounded silhouette, is constructed from ultra-lightweight, flexible nylon in a custom dark green finish, prioritizing aesthetics and long-term comfort.

Staying true to the brand’s design heritage, the eyewear is built for all-day, everyday use. The company leveraged its extensive archives and proprietary fit data to ensure the technology feels intuitive and unobtrusive. The interior temple features a semi-translucent finish that subtly showcases the integrated tech while maintaining a streamlined look that complements various face shapes.

The upcoming collection will offer multiple optical and sun styles, supporting a wide range of prescriptions and lens preferences. By blending Warby Parker Inc.’s (NYSE:WRBY) signature aesthetic with advanced AI and mobile technology, the company aims to redefine wearable tech, emphasizing that personal expression and style remain core to the future of intelligent devices.

Warby Parker Inc. (NYSE:WRBY) is a retailer specializing in eyewear for men and women, offering prescription glasses, sunglasses, and contact lenses. The company designs its eyewear in-house and works directly with manufacturing partners globally to produce high-quality frames at affordable prices.