On September 16, Lauren Goodwin, New York Life Investments chief market strategist, joined ‘Closing Bell’ on CNBC to suggest that the market’s rally will remain healthy through year-end. Goodwin was interviewed regarding the stock market’s consistent ascent to record highs for the S&P and NASDAQ in 2025. She admitted that she did not expect this slow melt-up, especially not after Liberation Day. Goodwin anticipated market jitters would arise from the policy changes occurring and noted that these changes are beginning to appear in economic indicators such as inflation and jobs data. However, she projects that the worst impacts of these policy shifts may not materialize until next year, leading to a healthy rally through the end of the current year. Goodwin also believes that a first rate cut has become necessary to maintain market confidence. She cited weakness in the labor market and the need for insurance to get ahead of an otherwise healthy economic cycle.
While her firm expected a 25 basis point cut on Wednesday, she is not convinced that this will initiate a consistent rate-cutting cycle. She warned that the market is likely getting a little bit ahead of itself by pricing in continuous cuts, given existing risks to inflation and the fact that financial conditions are already very loose. Addressing where investors should allocate capital for the next 6 months, Goodwin described the current environment as challenging because valuations are high across asset classes. However, she explained that the most expensive assets are often so for a reason and are the most likely to benefit from the interest rate cut. While a typical rate-cutting cycle or an economic reacceleration would suggest a broadening of activity and the outperformance of small caps, she noted that the current run-up in valuations is driven by structural improvements and concepts like AI, not just the economic cycle.
That being said, we’re here with a list of the 12 best innovative stocks to buy now.
Methodology
We sifted through different financial media reports to compile a list of the top innovative companies that promote the development of groundbreaking ideas, products, services, or business processes. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Note: All data was sourced on September 19.
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).
12 Best Innovative Stocks to Buy Now
12. Incyte Corporation (NASDAQ:INCY)
Number of Hedge Fund Holders: 42
Incyte Corporation (NASDAQ:INCY) is one of the best innovative stocks to buy now. On September 17, Incyte announced new 24-week interim data from its pivotal Phase 3 STOP-HS clinical trial program for povorcitinib/INCB54707, which is an oral small-molecule, highly-selective JAK1 inhibitor, in adult patients with moderate to severe hidradenitis suppurativa/HS.
The results support the company’s planned regulatory submissions for povorcitinib in HS, expected in Europe in 2025 and the US in early 2026. Both Phase 3 studies, STOP-HS1 and STOP-HS2, previously met their primary endpoint at the 12-week mark for both tested doses (45 mg and 75 mg) administered once daily, which was the achievement of HiSCR50.
The new 24-week data show continued clinically meaningful and statistically significant improvements, with nearly 60% of efficacy-evaluable patients across both povorcitinib treatment groups in both studies achieving HiSCR50. The overall safety profile was consistent with previous data, and both doses were well tolerated. HS is a chronic inflammatory condition estimated to affect more than 150,000 patients with moderate to severe HS in the US.
Incyte Corporation (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes therapeutics in the US, Europe, Canada, and Japan.
11. Accenture (NYSE:ACN)
Number of Hedge Fund Holders: 65
Accenture (NYSE:ACN) is one of the best innovative stocks to buy now. On September 9, Accenture announced the acquisition of IAMConcepts, which is a privately held Canadian company that specializes in Identity and Access Management/IAM services. The acquisition will support Accenture’s capacity to deliver advanced IAM solutions across Canada, particularly within key critical infrastructure sectors.
The acquisition brings Accenture highly specialized and credentialed talent and enhances industry solutions. IAMConcepts provides end-to-end IAM services, including Identity Governance and Administration, Privileged Access Management, and Customer Identity and Access Management. According to Accenture’s Research for State of Cybersecurity Resilience 2025 report, two-thirds (67%) of organizations still rely on legacy IAM systems.
The acquisition of IAMConcepts is Accenture’s latest strategic move to expand its cybersecurity capabilities; since 2015, the company has made 22 acquisitions in the cybersecurity sector, including CyberCX, Morphus, and MNEMO Mexico most recently. IAMConcepts was also recently recognized in the 2024 KuppingerCole North American Leadership Compass report on IAM systems integrators.
Accenture (NYSE:ACN) provides strategy and consulting, industry X, song, and technology and operation services in North America, Europe, the Middle East, Africa, and internationally.
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