In this article, we will look at the 11 Good Stocks to Invest in Now.
On August 9, Fundstrat’s Tom Lee appeared on CNBC to discuss the current state of the market and the potential for further gains in the S&P 500. He observed that the market is currently in a consolidation phase, largely due to a pause in major macroeconomic developments, including the Federal Reserve’s decision to hold off on any policy changes until September. Additionally, the market is still absorbing the 28% rally from the April lows, and August typically sees lower liquidity, which has contributed to the market adopting a “wait and see” stance.
Referring to his meeting with clients and business owners, Lee noted that there is stubborn bearishness from investors and caution as the markets have moved and the valuations have gone higher. Lee added that many investors sold their best names in the April downturn to get defensive, but haven’t had the chance to reload their portfolios. He noted this might be good for stock as it shows that there is room for stocks to go up.
While talking about the inflated valuations, Lee noted that the stock market has gone through six stress tests, starting from COVID-19 to the fastest inflation cycle, Trump tariffs, and the United States bombing nuclear sites in Iran. All of these stress events have the potential to cause a market catastrophe; however, regardless, the S&P 500 earnings have kept growing. Lee suggests that the market is in the process of rerating the S&P 500, which can result in multiples drifting even higher.
With that, let’s take a look at the 11 good stocks to invest in now.
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Our Methodology
To curate the list of 11 good stocks to invest in now, we sifted through reputable financial media and used the iShares MSCI USA Quality Factor ETF to aggregate a list of good stocks. Next, we ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q1 2025 database.
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 Good Stocks to Invest in Now
11. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the Good Stocks to Invest in Now. On July 30, Reuters reported that Tesla, Inc. (NASDAQ:TSLA) has signed a $4.3 billion deal with South Korea’s LG Energy Solution.
LG Energy Solution will supply lithium iron phosphate batteries for energy storage systems and lower Tesla, Inc.’s (NASDAQ:TSLA) reliance on Chinese imports, which have become expensive due to US tariffs. LG Energy will produce these batteries at its Michigan factory. The contract spans from August 2027 to July 2030, with a possible extension of up to seven years and higher supply volumes if needed.
Moreover, Tesla, Inc.’s (NASDAQ:TSLA) management noted that they are increasing their energy storage business, which now makes around 10% of the company’s revenue.
Tesla, Inc. (NASDAQ:TSLA) is a leading designer and manufacturer of fully electric vehicles and also sells energy generation and storage systems.
10. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the Good Stocks to Invest in Now. On August 7, Eli Lilly and Company (NYSE:LLY) announced positive results from its Phase 3 ATTAIN-1 trial of Orforglipron, which is an oral drug for overweight adults without diabetes.
The trial, which lasted 72 weeks and included 3,127 participants, showed significant weight loss compared to the placebo. The highest dose administered during the trial was 36 mg daily, which led to an average weight loss of 12.4%. Over half of the participants on this dose lost at least 10% of their body weight. Moreover, the drug also improved cardiovascular risk markers like cholesterol and blood pressure.
Management noted that the safety profile of Orforglipron matched expectations for its class of drugs, and discontinuation due to side effects was low. The company plans to submit the drug for regulatory approval by the end of the year and aims for a global launch.
Eli Lilly and Company (NYSE:LLY) is an international pharmaceutical company that discovers, develops, and markets medicines across various health areas.