Momentum investing is a well-established strategy that involves purchasing securities that have demonstrated strong recent performance and selling those that have underperformed. According to BlackRock, the effectiveness of this approach is often attributed to behavioral finance principles, which suggest that investor herding behavior and the tendency to chase performance contribute to such price trends. As more investors buy rising stocks, their prices are pushed even higher, creating a self-reinforcing cycle.
Additionally, some scholars argue that momentum premiums may serve as compensation for bearing specific types of risk, such as the risk of abrupt, short-term losses that many investors prefer to avoid. This is evident in historical momentum crashes, like those in 2001, 2009, and 2023. Despite these setbacks, long-term data indicated that investors are generally rewarded for maintaining exposure through periods of short-term volatility.
2024 has witnessed one of the most significant momentum rallies in the past three decades, with high momentum stocks outperforming their low momentum counterparts by 28% year-over-year, an event that statistically represents a two-standard-deviation occurrence. Momentum has outpaced other investment factors like quality and growth this year. These top-performing stocks come from a mix of industries, especially technology and financials, including many regional banks, and have returned 36% over the past year. While they are slightly more expensive than average stocks, they also have better profit margins and expected earnings growth.
However, history shows that when momentum stocks perform this well, they usually face a major drop within the next year. Typically, after a strong run like this, the gains continue for a few more months before reversing, often losing much of what they had gained.
With that in mind, let’s take a look at the 12 best stocks to buy that are also on Wall Street’s radar.
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Our Methodology
We analyzed the iShares MSCI USA Momentum Factor ETF and identified 12 stocks that received coverage from Wall Street analysts and mainstream media outlets recently. These momentum stocks were also favored by top hedge funds in the first quarter of 2025, as per 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).
12. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best stocks to buy. An SEC filing revealed that Palantir director, Eric H. Woersching, sold nearly $2.2 million worth of his shares on June 10. A total of 17,000 Class A common shares were sold on June 9, 2025, priced between $125.24 and $131.70 per share. The sale follows PLTR trading close to its 52-week high of $135.28, with a whopping 456.81% return over the last year.
The shares were sold under a pre-established Rule 10b5-1 trading plan, which was formalized on March 10, 2025. This plan enables insiders of publicly traded corporations to establish a trading plan for disposing of stocks they own, following insider trading laws.
Before these sales, Woersching secured 2,348 restricted shares on June 6, 2025, as a yearly award for his position on the board of directors. These restricted units were offered with no financial exchange, reflecting a contingent right to obtain shares according to a vesting schedule.
After these transactions, Eric Woersching owns 12,562 Palantir shares.
Palantir Technologies Inc. (NASDAQ:PLTR) develops software platforms that help governments and businesses make sense of complex data, supporting counterterrorism efforts, enterprise operations, and AI-driven decision-making.
11. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) is one of the best stocks to buy. On June 11, Coca‑Cola announced a partnership with Universal Music Group to launch Real Thing Records (rtr), a music label to promote emerging global talent and foster greater engagement between artists and audiences. This collaboration represents Coca‑Cola’s longstanding relationship with music.
Adopting a genre-agnostic philosophy, rtr seeks to bring forward unique and authentic voices from around the world, positioning itself as a platform for the next generation of musical talent. The label’s debut signings include Max Allais, a French-New Zealand artist, and Aksomaniac, an Indian singer-songwriter and producer.
Joshua Burke, Coca‑Cola’s Global Head of Music & Culture, commented:
“The Coca‑Cola Company has a rich legacy, one of deep human connection and cultural resonance—breaking barriers and bringing people together across borders and generations. Real thing records is designed to unlock greater potential for artists, fans, and our brands—where creativity fuels growth, and the combined power of our network and key global music partners create value greater than the sum of its parts. It’s our intention to let artists shine and give them the flexibility to develop their identities with the support of global reach and expertise. It’s a long-term commitment to music—enabling us to reinvest in our programs, champion the next generation of talent, and stay rooted in what matters most: music and fandom.”
The Coca-Cola Company (NYSE:KO) is a global beverage corporation that produces and distributes carbonated soft drinks, bottled water, juices, teas, coffees, and plant-based beverages.
10. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 87
AT&T Inc. (NYSE:T) is one of the best stocks to buy. The company is currently implementing its multi-year strategic growth plan, looking to stand out in the connectivity sector by offering customers an integrated experience through a combination of fiber and 5G services under a single provider.
As part of this strategy, the company recently announced its intent to acquire the majority of Lumen’s Mass Markets fiber internet business. Expected to close in the first half of 2026, this acquisition is positioned to enhance US connectivity infrastructure, expand access to high-speed internet for millions of Americans, and generate middle-class employment opportunities.
This initiative supports the company’s ambition to become the leading American connectivity provider while driving long-term value for customers, shareholders, and the organization. With a goal of reaching approximately 60 million fiber locations by year-end 2030, AT&T continues to strengthen its leadership in fiber deployment.
For the second quarter of 2025, AT&T Inc. (NYSE:T) affirms its guidance for capital investment in the range of $4.5 to $5 billion and anticipates roughly $4 billion in free cash flow. The company maintains full-year 2025 financial and operational targets, as well as its long-term capital return strategy. Furthermore, AT&T is moving ahead with its $10 billion share repurchase program, targeting at least $3 billion in common stock buybacks by the end of 2025, with the remainder to be carried out in 2026.
AT&T Inc. (NYSE:T) delivers a wide range of telecommunications and technology services, including wireless, internet, and fiber solutions for both consumers and businesses.
9. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 96
AppLovin Corporation (NASDAQ:APP) is one of the best stocks to buy. On June 9, Morgan Stanley reiterated an Overweight rating on APP and lifted the price target to $460 from $420, noting that the company would be “more valuable without its 1P games.” The analysts were bullish on AppLovin’s initiative to sell its Apps segment, suggesting the move would create shareholder value while keeping future earnings steady.
As reported in February, the company plans to shed its first-party mobile games division, called the Apps Segment, in the second quarter of 2025 to Tripledot Studios for $400 million in cash and $400 million in Tripledot stock.
Morgan Stanley is bullish on this divestiture, even though the Apps segment generated 32% of AppLovin’s revenue and 10% of EBITDA in 2024. The analysts commented that the sale would allow the company to achieve “high-margin revenue that the 1P studios spend on APP’s ad network, offsetting most of the lost earnings from 1P games.”
The tactical shift will redistribute profits “from the low multiple games business to the high multiple ad business, increasing the total value of the company.”
Morgan Stanley has revised its 2026 and 2027 EBITDA projections for AppLovin downward by 1%. However, the analysts are using a larger EBITDA multiple of 29x, up from the prior 26x. This update suggests a shift from the prior sum-of-the-parts valuation model, which placed a conservative 4x multiple on the Apps’ EBITDA.
AppLovin Corporation (NASDAQ:APP) builds software tools that help advertisers and app developers grow and monetize their content across mobile and connected TV platforms.
8. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 100
Walmart Inc. (NYSE:WMT) is one of the best stocks to buy. On June 9, RBC Capital maintained an Outperform rating on Walmart and increased the target price from $102 to $103. The update came after the firm took part in Walmart’s Annual Associates & Shareholders Week held in Northwest Arkansas.
In the event, the tone of Walmart’s leadership aligned with the impressions from the Q1 earnings call in mid-May. Steven Shemesh, an RBC analyst, observed uniformity in Walmart’s messaging and insights from five primary data points during the event.
RBC revised its financial model for Walmart to indicate the present foreign exchange rates, while the rest of the model remained unchanged. In the future, RBC Capital forecasts a consistent increase in Walmart’s net sales, projecting a 4.3% boost in 2025 and 5% in 2026. These estimates marginally top the consensus figures, which project a growth of 4% and 5% for 2025 and 2026, respectively.
RBC’s expectations for adjusted EPS are also slightly higher than consensus estimates. The firm expects an adjusted EPS of $2.64 for 2025 and $3.02 for 2026, in comparison to the consensus figures of $2.60 and $2.92, respectively.
The target price of $103 is derived from roughly 34x the firm’s forecasted 2026 adjusted EPS of $3.02, up from the previous estimate of $3.01. The slight change in the target price represents RBC’s conviction in Walmart’s financial performance and growth potential over the coming years.
7. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders: 104
GE Aerospace (NYSE:GE) is one of the best stocks to buy. On June 10, RBC Capital maintained an Outperform rating on GE with a target price of $275. RBC analysts forecast higher guidance for the company for 2025, which is expected to boost investor confidence.
RBC observed that although Airbus is unlikely to change its full-year guidance of roughly 820 aircraft deliveries, focus will possibly pivot to a strong Q4 after an expected weaker first half of 2025. This is projected to offer improved visibility on Airbus’s midterm margin and free cash flow outlook, which can likely be a positive catalyst.
The analysts added that GE Aerospace’s rating and target price indicate confidence in the company’s upcoming performance, regardless of wider industry developments. The ongoing focus on enhancing guidance and upholding delivery targets contributes to positive investor sentiment.
GE Aerospace (NYSE:GE) designs and builds aircraft engines and related systems for both commercial and defense markets.
6. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the best stocks to buy. A coalition of ten French Tesla owners is suing the American EV giant, challenging Elon Musk’s prior political affiliations and support for far-right causes in Europe. The automaker faced a sharp decline in sales across Europe following Musk’s alignment with Germany’s AfD party and inflammatory comments regarding the nation’s Nazi-era history.
Sales of Tesla vehicles in France plummeted 67% in May 2025 year-over-year, as reported by the PFA. The backlash has manifested not only in boycotts but also in physical attacks on Tesla infrastructure and customer property. Several clients of Ivan Terel, a partner at the Paris law firm GKA, were among the victims of vehicle vandalism. One reported a swastika painted on their car, and another said it had been defiled with feces.
GKA brought the case before the Paris Commercial Court on June 11, demanding that the leases be voided and their clients compensated for the purchase costs and other related damages. Terel explained that the case is grounded in a French civil code article requiring sellers to “guarantee buyers the undisturbed use of purchased goods,” emphasizing that the statute, though old, is being cited in a unique situation involving Musk’s former White House ties.
The commercial court will evaluate whether the case holds legal merit and if others may be added to the claim in the meantime. Since GKA filed the lawsuit, Terel mentioned that several Tesla owners have reached out to learn more.
5. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 106
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the best stocks to buy. On June 9, Deutsche Bank slashed its rating for ISRG from Neutral to Sell, trimming the price target from $440 to $515. Deutsche Bank announced that it will hold an investor webinar with Jon Reuter, COO of Keck Hospitals of USC, on June 9, to explore how hospitals are viewing Intuitive’s remanufactured Endowrist instruments. The bank projected rising competition for Intuitive Surgical, signaling potential headwinds ahead.
Deutsche Bank, though confident in da Vinci’s lasting dominance, pointed to several upcoming rival systems, including Medtronic’s Hugo, expected FDA approval in late 2025, as potential threats to ISRG’s competitive edge.
Even with a Sell rating, the firm highlighted the da Vinci system as a historic disruptor within medical technology.
Deutsche Bank noted that shareholders have realized substantial gains, with shares soaring more than 26,000% since the company’s IPO in 2000, compared to a nearly 500% rise in the broader market, and ISRG remains a bullish idea.
Intuitive Surgical, Inc. (NASDAQ:ISRG) develops robotic systems like da Vinci and Ion to advance minimally invasive procedures, supported by specialized tools, training, and digital services to enhance surgical outcomes and healthcare efficiency.
4. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders: 108
Boston Scientific Corporation (NYSE:BSX) is one of the best stocks to buy. On June 10, the company announced that it is selling one suburban Twin Cities property and expanding another, mirroring a pattern of companies centralizing in fewer but more dynamic sites.
BSX has placed its 226,000 square foot Minnetonka campus on the market, indicating the wind-down of its presence in that suburb. Meanwhile, it is enlarging its Maple Grove operations with a new 52,000 square foot buildout at its 79-acre Weaver Lake location.
That $139.4 million development seems relatively small beside Boston Scientific’s second Maple Grove site, which is a $170 million, 400,000 square foot facility where staff are expected to begin moving in before year’s end.
CBRE’s listing describes the Minnetonka property as containing labs, warehousing, and top-tier offices. Though no asking price is listed, county records place the combined 2025 value of four adjacent parcels at $14.8 million.
Boston Scientific employed around 10,000 people in Minnesota as of March, including sites in Minnetonka, Maple Grove, and a sizable Arden Hills facility. The number of employees has roughly doubled over 15 years. Despite its Massachusetts roots, the company runs all eight of its divisions in Minnesota, including its flagship cardiology arm.
The company did not respond to specific queries about the Minnetonka sale, including the functions housed there or implications for workforce downsizing. The real estate listing indicates the company may lease the site until mid-2026 but plans a complete exit thereafter.
Boston Scientific Corporation (NYSE:BSX), a global player in medical device innovation, operates through its Cardiovascular and MedSurg segments to deliver advanced diagnostic and therapeutic technologies.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
Broadcom Inc. (NASDAQ:AVGO) is one of the best stocks to buy. On June 11, software giant Synopsys, Inc. (NASDAQ:SNPS) reported seamless compatibility between its PCIe 6.x IP and Broadcom’s PEX90000 series switch.
The demonstration, operating at 64 GT/s, showcases compatibility between the two companies’ PCIe 6.x technologies, which are designed for high-performance computing and AI data center systems. This development also aligns with Synopsys’s growth trajectory, as the company has achieved 7.5% revenue growth over the last twelve months.
According to the announcement, PCIe switches are pivotal in powering advanced AI architectures, ensuring the required flexibility and scalability for evolving computational loads. The integration tests paired Synopsys’ PCIe 6.x IP, incorporating PHY and controller modules in dual roles, with Broadcom’s PEX90000 switch.
Dan Roehrich, Broadcom’s VP of IC Development within the Data Center Solutions Group, emphasized that the milestone “constitutes a pivotal move in supporting the sector’s ability to confront modern AI and HPC processing challenges.”
Broadcom Inc. (NASDAQ:AVGO) is a technology giant specializing in the design, development, and supply of complex semiconductor devices and infrastructure software.
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) is one of the best stocks to buy. On June 16, Truist maintained a Buy rating on Visa Inc. (NYSE:V) with a $400 price target, after the stock dropped 5% on June 13 due to stablecoin-related buzz. Apart from recent fluctuations, the stock has gained 31% over the past year.
Truist labeled the market’s response as excessive, clarifying that stablecoins are not expected to meaningfully displace card payments. The firm also highlighted Visa Inc. (NYSE:V)’s continued centrality in crypto and stablecoin infrastructure.
In addition to addressing stablecoin issues, Truist maintained a favorable stance on Visa’s near-term outlook, implying that analysts’ estimates for Q2 volume expansion seem cautious. According to the firm, the recent decline in the US dollar could bolster Visa’s financial performance and lead to higher analyst expectations.
Truist pointed out that Visa’s current valuation, relative to the broader market, remains compelling when viewed historically, justifying its continued support for the Buy rating despite recent market weakness.
Visa Inc. (NYSE:V) is a global payments technology company that offers card services, digital payment solutions, and cross-border platforms to support financial institutions, merchants, and governments.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the best stocks to buy. On June 11, Meta rolled out V-JEPA 2, a refined AI model that strengthens the system’s capacity to understand and predict physical gestures.
The newly introduced model empowers robots and intelligent agents with stronger situational awareness and predictive skills, crucial for fostering AI systems that “think before they act.”
By analyzing video footage, the model developed an understanding of real-world patterns, such as human-object contact, kinetic movement, and inter-object interactions. Testing in Meta’s research facilities confirmed the model could guide robots in executing actions like reaching for, lifting, and placing items elsewhere.
Three new benchmarks have been released by Meta to help measure the effectiveness of current models in interpreting real-world interactions via video. By sharing these benchmarks, Meta hopes to accelerate progress in the AI research community.
Meta underlined the importance of physical reasoning as a cornerstone for equipping AI systems to interact effectively with the tangible world and to attain higher levels of artificial intelligence.
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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