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.
9. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 150
Netflix, Inc. (NASDAQ:NFLX) is one of the Good Stocks to Invest in Now. On August 8, Netflix, Inc. (NASDAQ:NFLX) announced that it has secured official broadcasting rights for the FIFA Women’s World Cup in the United States and Canada for 2027 and 2031.
This is the first time that the tournament will be on a streaming service in Canada. The 2027 World Cup is set to take place in Brazil with 32 teams, whereas the 2031 event will be even bigger with 48 teams. Canadians and the United States would be able to watch these matches live on Netflix with their subscriptions. Moreover, Netflix, Inc. (NASDAQ:NFLX) will also offer studio shows, expert commentary, and exclusive documentaries about players and the sport’s rise worldwide.
Netflix, Inc. (NASDAQ:NFLX) is an international entertainment company providing streaming services for TV shows, movies, and games.
8. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 155
Mastercard Incorporated (NYSE:MA) is one of the Good Stocks to Invest in Now. On July 30, Mastercard Incorporated (NYSE:MA) announced its strategic partnership with BMO to expand BMO’s Global Money Transfer service.
The service is powered by Mastercard Move and now covers more than 70 destinations worldwide, including Europe, the Middle East, Africa, Asia Pacific, Latin America, and the Caribbean. BMO’s Global Money Transfer is part of its core banking services, whereas the Mastercard Move supports sending money to over 200 destinations. This strategic partnership is a joint effort to provide secure and affordable international payment options.
Mastercard Incorporated (NYSE:MA) is a financial technology company that enables secure and simple electronic payments worldwide.
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
Broadcom Inc. (NASDAQ:AVGO) is one of the Good Stocks to Invest in Now. On July 30, Joseph Moore from Morgan Stanley raised the firm’s price target on Broadcom Inc. (NASDAQ:AVGO) from $270 to $338, while keeping an overweight rating on the stock.
The bullish sentiment is based on the company’s position in the AI semiconductor market. The firm believes that the increased enthusiasm for AI semiconductors is justified by the long-term strength of Broadcom Inc.’s (NASDAQ:AVGO) business. Morgan Stanley sees the company as one of the most uncontroversial names in the AI market. The firm has also raised price targets for AI-linked semiconductor companies in its coverage.
Broadcom Inc. (NASDAQ:AVGO) is an international technology company that designs and supplies a wide range of semiconductor chips.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is one of the Good Stocks to Invest in Now. On August 8, Apple Inc. (NASDAQ:AAPL) announced a new major $100 billion investment in the United States, bringing its total investment commitment to $600 billion over the next four years. This investment is meant to expand the company’s supply chain and advanced manufacturing operations across the country.
Under this investment program, Apple Inc. (NASDAQ:AAPL) is partnering with over 10 key companies, including Corning, Samsung, Texas Instruments, and GlobalWafers America. Its partnership with Corning in Kentucky holds significance as the facility will produce iPhone and Apple Watch cover glass there.
Moreover, Apple Inc. (NASDAQ:AAPL) is also building a complete silicon supply chain in the United States, which is expected to produce over 19 billion chips in 2025. Management noted that this investment is expected to create 20,000 new job opportunities, mostly in research and development, software, AI, and engineering industries.
Apple Inc. (NASDAQ:AAPL) is an international technology company that produces a wide range of products, including iPhones, Macs, iPads, and wearable devices. It also develops software platforms like iOS and macOS.
5. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) is one of the Good Stocks to Invest in Now. On June 30, Barclays analyst Ramsey El-Assal raised the firm’s price target on Visa Inc. (NYSE:V) from $396 to $408, while keeping an overweight rating on the stock.
The firm upgraded its financial model for the company following its fiscal third-quarter earnings. Visa Inc. (NYSE:V) grew its revenue by 14.29% to reach $10.17 billion, surpassing consensus by $324.97 million. Moreover, the EPS of $2.98 also exceeded expectations by $0.13. Management attributed this growth to strong consumer spending in both discretionary and non-discretionary categories in the United States. This growth was evident by an 8% year-over-year increase in payment volumes along with a 12% increase in cross-border volumes.
Visa Inc. (NYSE:V) is an international payment technology company that enables secure and fast money movement and commerce across more than 200 countries.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the Good Stocks to Invest in Now. On August 4, Vivek Arya from Bank of America Securities reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $220.
The reiterated bullish sentiment comes as the company announced the date for its fiscal second-quarter results for 2026. The company is set to announce its results on August 27. During the fiscal first quarter of 2026, NVIDIA Corporation (NASDAQ:NVDA) delivered $44.1 billion in revenue, up 69% year-over-year. The Data Center revenue alone contributed $39.1 billion, up 73% during the same time.
Looking ahead, management is expecting the second quarter revenue to be around $45 billion. The conservative outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations.
NVIDIA Corporation (NASDAQ:NVDA) is a leading technology company specializing in graphics processing units and accelerated computing platforms.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the Good Stocks to Invest in Now. On August 1, Reuters reported that Alphabet Inc.’s (NASDAQ:GOOGL) growth-stage venture CapitalG and NVIDIA Corporation (NASDAQ:NVDA) are in talks to invest in Vast Data.
Vast Data is an artificial intelligence infrastructure provider, and reports suggest that a new funding round could value the startup as high as $30 billion. Vast Data is raising several billion dollars from tech giants, private equity, and venture capital investors, aiming to grow as one of the top AI startups. The startup reported $200 million in yearly recurring revenue by early 2025, with projections to reach $600 million next year. It has raised about $380 million so far, and its last valuation in 2023 was $9.1 billion.
Alphabet Inc. (NASDAQ:GOOGL) is a technology holding company that operates through three main segments, including Google Services, Google Cloud, and Other Bets.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the Good Stocks to Invest in Now. On August 1, Saiyi He from CMB International Securities raised the firm’s price target on Meta Platforms, Inc. (NASDAQ:META) from $760 to $860, while maintaining a Buy rating on the stock.
The analyst noted that the company’s Q2 revenue grew by 22% year-over-year, driven by AI-enhanced ad impressions and pricing. Moreover, the net income grew by 36%, which was well above expectations. Saiyi noted that the management is expecting continued revenue growth in the third quarter as well, beating the market expectations.
The analyst highlighted that AI advancements are central to Meta Platforms, Inc.’s (NASDAQ:META) business. The company has improved AI-powered ad recommendation models, leading to better ad conversions on Facebook and Instagram. It is also investing in AI talent and infrastructure, which Saiyi believes will help the company maintain its AI leading position.
Meta Platforms, Inc. (NASDAQ:META) is a tech company that connects people through social media and immersive experiences.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the Good Stocks to Invest in Now. On August 7, Microsoft Corporation (NASDAQ:MSFT) announced it would be integrating GPT-5 into many of its products and services
GPT-5 is OpenAI’s latest AI system, which is trained on Microsoft Corporation’s (NASDAQ:MSFT) Azure. After this integration, users of Microsoft 365 Copilot and Microsoft Copilot benefit from GPT-5’s powerful AI reasoning for complex tasks. The system features a real-time router that automatically selects the best model for each task.
Moreover, developers across GitHub Copilot and Visual Studio Code can also now use GPT-5 to write, run, and deploy their code. Management noted that the company’s AI Red Team rigorously tested GPT-5’s safety against threats like malware and scams. The model showed a strong safety profile, surpassing earlier OpenAI models.
Microsoft Corporation (NASDAQ:MSFT) is a technology company that develops software, cloud services, devices, and business solutions.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
