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12 Best Debt Free Stocks To Buy

In this article, we discuss the 12 best debt free stocks to buy. If you want to read about some more debt free stocks, go directly to 5 Best Debt Free Stocks To Buy.

There are negative connotations associated with debt in the mind of an average person. Debt might not be ideal for individuals or families, but it does not necessarily mean it is also the case for businesses. In fact, debt can be good for businesses, depending on the market situation. Some of the advantages of debt for businesses include lower financing costs, maximization of benefits of financial leverage, and tax savings. According to a report by the Institute of International Finance, a trade association based in Washington DC, the total global debt is around $305 trillion and corporations account for more than 53% of this figure. 

This is not surprising, since many big companies take on debt to expand their business. Some of these include Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), among others. Taking on debts can be fine as long as the company makes money and implements stringent measures to avoid failure of payments. If big companies fail to pay off debt, it could force them into bankruptcy, resulting in a chain reaction that would push the economy into recession. In the US, recession fears have already forced companies to take on less debt than usual in the past few months. 

Since it is costly to take on debt in the business world right now due to soaring interest rates, investors have been looking to invest their money into companies that are debt-free. Investments in these companies come with many advantages, which include better credit ratings – companies that take on too much debt in a short period of time have negative impacts on their credit scores –  and improved cash flows – lenders expect debt to be repaid in equal amounts regardless of income statements. Some of the best debt-free stocks in this context are discussed below. 

Our Methodology

The companies that are debt free or have very little debt were selected for the list. The firms that have low debt to equity ratios (below 0.1) as well as low long-term debt to equity ratios (below 0.1) were preferred. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2023 was used to identify the number of hedge funds that hold stakes in each firm.

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Best Debt Free Stocks To Buy

12. Arm Holdings plc (NASDAQ:ARM)

Number of Hedge Fund Holders: N/A

Arm Holdings plc (NASDAQ:ARM) develops central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. Some of these products include microprocessors, systems intellectual property (IPs), graphics processing units, software, tools, and other related services. The industries that use these products include automotive, computing infrastructure, consumer technologies, and Internet of things, among others. 

In early November, Arm Holdings plc (NASDAQ:ARM) posted earnings for the second quarter of 2023, reporting earnings per share of $0.36, beating market estimates by $0.10. The revenue over the period was $806 million, up 27% year-on-year. 

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Arm Holdings plc (NASDAQ:ARM) with 16 million shares worth more than $877 million.  

Unlike Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Arm Holdings plc (NASDAQ:ARM) is one of the best debt free stocks to buy.

11. Natural Health Trends Corp. (NASDAQ:NHTC)

Number of Hedge Fund Holders: 1

Natural Health Trends Corp. (NASDAQ:NHTC) is an ecommerce firm that sells personal care, wellness, and lifestyle products. Some of the countries it operates in include the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, Vietnam, South Korea, Japan, India, Russia, Kazakhstan, and others. It sells beauty products, herbal products, vitamin supplements, home appliances, hair care, and body care products under the NHTC brand. 

On November 1, Natural Health Trends Corp. (NASDAQ:NHTC) posted second quarter earnings, reporting earnings per share of $0.02. The revenue over the period was $10.6 million, down nearly 9% compared to the same period last year. 

At the end of the second quarter of 2023, 1 hedge fund in the database of Insider Monkey held stakes worth $3,828 in Natural Health Trends Corp. (NASDAQ:NHTC), compared to the same as  in the previous quarter worth $3,455.

10. SEI Investments Company (NASDAQ:SEIC)

Number of Hedge Fund Holders: 22

SEI Investments Company (NASDAQ:SEIC) is an asset management holding company. Some of the services it provides include wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services. In late October, the firm posted third quarter earnings, reporting earnings per share that were in line with analyst estimates and revenue that grew more than 1% year-on-year. 

On October 26, investment advisory Piper Sandler maintained a Neutral rating on SEI Investments Company (NASDAQ:SEIC) stock and lowered the price target to $58 from $64, appreciating the long-term growth prospects of the firm. 

At the end of the second quarter of 2023, 22 hedge funds in the database of Insider Monkey held stakes worth $285 million in SEI Investments Company (NASDAQ:SEIC), compared to 17 in the preceding quarter worth $210 million. 

9. T. Rowe Price Group, Inc. (NASDAQ:TROW)

Number of Hedge Fund Holders: 24

  1. Rowe Price Group, Inc. (NASDAQ:TROW) operates as an investment manager. On November 10, the group posted asset management numbers for the month end. At the end of October, the group had more than $1.3 trillion in assets under management. The preliminary net outflows for the month stood at around $6.3 billion. The firm also said it expected outflows in November and December to be elevated based on a few large known terminations and regular seasonal patterns. 

On October 30, Wells Fargo analyst Finian O’Shea maintained an Equal Weight rating on T. Rowe Price Group, Inc. (NASDAQ:TROW) stock and lowered the price target to $95 from $110, noting the franchise and financial strength of the firm. 

At the end of the second quarter of 2023, 24 hedge funds in the database of Insider Monkey held stakes worth $309 million in T. Rowe Price Group, Inc. (NASDAQ:TROW), compared to 21 in the previous quarter worth $313 million.

8. Amdocs Limited (NASDAQ:DOX)

Number of Hedge Fund Holders: 26

Amdocs Limited (NASDAQ:DOX) provides software and related services to the communications industry. On November 7, the company announced that it had extended a collaboration with VodafoneZiggo, a Dutch mobile tech firm, for managed services. Under the agreement, the former would take control of the business systems operations of the latter. Amdocs also announced that it would be collaborating with Lionsgate, an entertainment firm, to move a content library, consisting of more than 18,000 film and TV titles, to a cloud-based platform.

On November 9, investment advisory Baird maintained a Neutral rating on Amdocs Limited (NASDAQ:DOX) stock and lowered the price target to $85 from $100, noting the company’s initial 2024 revenue guidance missed prior expectations. 

At the end of the second quarter of 2023, 26 hedge funds in the database of Insider Monkey held stakes worth $710 million in Amdocs Limited (NASDAQ:DOX), compared to 25 the preceding quarter worth $976 million.

7. MarketAxess Holdings Inc. (NASDAQ:MKTX)

Number of Hedge Fund Holders: 28

MarketAxess Holdings Inc. (NASDAQ:MKTX) operates an electronic trading platform for institutional investor and broker-dealer companies. In early November, Chris Concannon, the CEO of the firm, announced that the total credit average daily trading volume of October had risen nearly 8% from the previous month and nearly 2% from the previous year. The CEO attributed the success to the solid growth shown in US high-grade, Eurobonds and municipal bond ADV amid improving market backdrop. 

On October 28, investment advisory Barclays maintained an Overweight rating on MarketAxess Holdings Inc. (NASDAQ:MKTX) stock and lowered the price target to $246 from $278, noting that third quarter results of the firm showed that incremental improvement was less than investors expected. 

Among the hedge funds being tracked by Insider Monkey, London-based GuardCap Asset Management is a leading shareholder in MarketAxess Holdings Inc. (NASDAQ:MKTX) with 1.8 million shares worth more than $404 million. 

In its Q2 2023 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and MarketAxess Holdings Inc. (NASDAQ:MKTX) was one of them. Here is what the fund said:

“MarketAxess operates an electronic trading platform that allows institutional investors to trade corporate bonds and other forms of fixedincome securities. The stock underperformed as fixed-income volumes slowed dramatically after the regional banking crisis. This volume slowdown has caused earnings estimates to move lower in the near term.”

6. Monolithic Power Systems, Inc. (NASDAQ:MPWR)

Number of Hedge Fund Holders: 33

Monolithic Power Systems, Inc. (NASDAQ:MPWR) engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. In late October, the company announced that the board of directors of the firm had approved a stock buyback program worth $640 million. The firm said the repurchase of stock would be funded from available working capital and cash repatriation from a Bermuda subsidiary.

On November 13, investment advisory Oppenheimer maintained an Outperform rating on Monolithic Power Systems, Inc. (NASDAQ:MPWR) stock and raised the price target to $600 from $500, noting that 2024 outlook on the firm was decidedly bullish. 

At the end of the second quarter of 2023, 33 hedge funds in the database of Insider Monkey held stakes worth $842 million in Monolithic Power Systems, Inc. (NASDAQ:MPWR), compared to 42 in the preceding quarter worth $1 billion. 

In contrast to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB), Monolithic Power Systems, Inc. (NASDAQ:MPWR) is one of the best debt free stocks to buy.

In its Q1 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Monolithic Power Systems, Inc. (NASDAQ:MPWR) was one of them. Here is what the fund said:

“Monolithic Power Systems, Inc. is a fabless high-performance analog and power semiconductor company serving diverse end markets across the semiconductor industry. The company, a relatively small player in the industry, leverages its deep system-level and applications knowledge, strong design experience, and innovative process technologies to provide highly integrated, energy-efficient, cost-effective, and easy-to-use monolithic products. Shares rose 41.8% during the quarter as the company delivered solid financial results with revenues up 37% year-over-year and EPS up 50% year-over-year while also providing a favorable outlook driven by share gains across key end markets, including automotive and data center. Investor anticipation of a broader semiconductor industry recovery into the second half of 2023 also helped boost shares. The company continues to expand its addressable market and drive strong revenue growth by taking advantage of areas where its competition has failed to innovate. It has also started to sell more integrated, higher-ASP module products as opposed to discrete products, generating additional above-market growth.”

Click to continue reading and see 5 Best Debt Free Stocks To Buy.

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Disclosure. None. 12 Best Debt Free Stocks To Buy is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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This company is completely debt-free.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…