In this article, we will look at the 11 Good Stocks to Buy According to Analysts.
Earlier, on November 17, Morgan Stanley raised its S&P 500 2026 year-end target to 7,800. The decision is reportedly driven by robust earnings growth and AI-enhanced gains in efficiency. To discuss Morgan Stanley’s bullish market outlook, Mike Wilson from the firm appeared on a CNBC television interview on December 5.
Wilson noted that the target simply reflects a continuation of the story from 2025. He added that the firm entered 2025 with the assumption that the government would announce negative growth policies. However, since the market turned off the negative growth switch to positive in April, the revisions were reversed, and the market has started to see the positive impact of some of these government policies. He noted the government’s Big Beautiful bill, highlighting its capital expenditure expansion potential and tax cuts and tax benefits for consumers in the first half of 2026. In addition to the supportive government policies, the Federal Reserve has come into play to turbo-charge the market.
Wilson noted that the story setup for 2026 suggests that the market is going to see broadening out of the few big names. He highlighted areas, including consumer discretionary, some underperforming financials, transports, and consumer products, among other sectors, that were among the low performers in 2025. Wilson explained that these sectors have low earnings multiples, making it easier to post earnings surprises, which will result in multiple expansion and earnings growth.
With that, let’s take a look at the 11 Good Stocks to Buy According to Analysts.
Our Methodology
To curate the list of 11 Good Stocks to Buy According to Analysts, we looked at the top holdings of three quality factor ETFs, including iShares MSCI USA Quality Factor ETF, Invesco S&P 500 Quality ETF, and iShares MSCI Intl Quality Factor ETF. From these, we shortlisted stocks with more than 25% analyst upside potential, sourced from CNN. Lastly, we ranked the stocks in ascending order of the upside potential. We have also added the hedge fund sentiment around each stock, sourced from Insider Monkey’s Q3 2025 database. Please note that the data was recorded on December 3, 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).
11 Good Stocks to Buy According to Analysts
11. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
Analyst Upside Potential: 25.06%
NVIDIA Corporation (NASDAQ:NVDA) is one of the Good Stocks to Buy According to Analysts. On December 3, NVIDIA Corporation (NASDAQ:NVDA) was reiterated with a Buy rating and a $275 price target by Vivek Arya of Bank of America Securities. Earlier on December 1, Joseph Moore from Morgan Stanley also reiterated a Buy rating on the stock, while also raising the price target from $235 to $250.
The ratings follow recent partnerships of NVIDIA Corporation (NASDAQ:NVDA) with Mistral AI and Amazon’s AWS, announced on December 2. The company announced its partnership with Mistral AI to accelerate a new family of open models. This comes as Mistral AI announced the Mistral 3 family of open-source multilingual, multimodal models, which is optimized across NVIDIA supercomputing and edge platforms. Management noted that by combining Mistral’s AI with NVIDIA’s GB200 NVL72 systems, companies can easily deploy and scale AI models.
Moreover, NVIDIA Corporation’s (NASDAQ:NVDA) partnership with AWS revolves around new technology integrations across interconnect technology, cloud infrastructure, open models, and physical AI.
NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company that focuses on accelerated computing to solve complex computational problems. The company offers AI data center platforms, GPUs, networking, and autonomous vehicle solutions.
10. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 104
Analyst Upside Potential: 25.93%
The Home Depot, Inc. (NYSE:HD) is one of the Good Stocks to Buy According to Analysts. Wall Street has a mixed opinion on the stock. On December 3, Steven Zaccone from Citi assigned a Buy rating on The Home Depot, Inc. (NYSE:HD) with a $407 price target. Earlier on December 1, W. Andrew Carter from Stifel Nicolaus reiterated a Hold rating on the stock and lowered the firm’s price target from $370 to $350.
The mixed outlook stems from the company’s fiscal Q3 2026 results, announced on November 18. The company grew its quarterly revenue by 2.82% year-over-year to $41.35 billion, surpassing estimates by $231.5 million. However, the EPS of $3.74 fell short of the consensus by $0.09. Management attributed this soft performance to the lack of storms in the quarter, which resulted in greater-than-expected pressure in certain categories.
Analyst Steven Zaccone of Citi noted that despite a weaker-than-expected 2025, the company is positioned to be a prominent share gainer in the market. The analyst highlighted that he is looking forward to the company’s plan that will outline its strategy to return to normalized growth.
The Home Depot, Inc. (NYSE:HD) is the world’s largest home improvement retailer, operating over 2,300 stores that offer a wide selection of tools, building materials, appliances, and services for both DIY and professional projects.
