In this article, we will take a look at the 12 Best Stocks to Invest In for Good Returns.
Wall Street experienced gains during the July 9 session. The S&P 500 and Dow Jones Industrial Average posted their first positive sessions in days, with increases of 0.6% and 0.5%, respectively. Over the past six months, both indices have soared over 6% and 7.40%, respectively. This indicates the market is showing strong signals following Trump’s tariff saga.
The Fed just released the June 17-18 meeting minutes. The policymakers largely held a wait-and-see position on future rate moves. The Fed members unanimously voted to hold the central bank’s key borrowing rate between 4.25% and 4.50%, the rate since December 2024.
The Fed meeting minutes also showed a growing divide over how policy should proceed.
“Most participants assessed that some reduction in the target range for the federal funds rate this year would likely be appropriate,” the minutes said.
Fed Governors Michelle Bowman and Christopher Waller have gone on record saying that the rates could go down as soon as the July 29-30 Fed meeting if inflation stays under control.
Warren Buffett’s Take on the Market
Warren Buffett’s Berkshire Hathaway portfolio has been a beacon for value investors, and if you are looking for stocks with good returns, Buffett’s portfolio could be a perfect pick. Buffett’s growth stock portfolio is a great choice for value investors seeking high-quality businesses with long-term competitive advantages and good returns. Since taking over as CEO of Berkshire Hathaway six decades ago, the veteran investor named “Oracle of Omaha” has outperformed the broader market, yielding over 20% compounded annual returns over multiple decades.
Warren Buffett has been a net seller for 10 consecutive quarters, growing Berkshire Hathaway’s cash pile to a record $347 billion. Buffett’s recent moves have been cautious, considering the uncertainty in the market and recessionary fears. Buffett’s long-term holding policy is considered a benchmark for long-term performance in hedge fund-style investing.
“Some people should not own stocks at all because they just get too upset with price fluctuations,” Buffett said in April 2025 during CNBC’s Becky Quick. “If you’re going to do dumb things because a stock goes down, you shouldn’t own a stock at all,” highlighting the major market crashes in the first half of 2025. During these uncertain times, the 11 best-performing Warren Buffett stocks in 2025 have returned over 20% on average, as of June 24.
With these trends in view, let’s take a look at the 12 Best Stocks to Invest in for Good Returns.
Our Methodology
To compile the list of the 12 Best Stocks to Invest in for Good Returns, we searched through Warren Buffett’s Berkshire Hathaway’s top 20 stock holdings as of Q1 2025. We have ranked the best stocks to invest in for good returns in ascending order of the analyst upside. We have highlighted the 5-year stock returns and the number of hedge funds holding stakes in these stocks. The data for hedge funds is taken from Insider Monkey’s Hedge Fund database, updated as of Q1 2025. Please note that the data was collected on July 9.
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 Stocks to Invest in for Good Returns
12. Chevron Corporation (NYSE:CVX)
Berkshire Hathaway’s Stake: 7.67%
5-Year Returns: 70.78%
No. of Hedge Fund Holders: 81
Analyst Upside: 8%
Chevron Corporation (NYSE:CVX) is one of the 12 Best Stocks to Invest in for Good Returns. On July 7, Barclays raised its price target on Chevron Corporation (NYSE:CVX) from $152 to $156, keeping its Equal Weight rating on the stock.
Betty Jiang from Barclays increased the price target on CVX as the analyst remains constructive on the firm’s leverage to gas. Jiang sees reasons for long-term price support with an additional demand of over 20 billion cubic feet per day expected by 2030.
The analyst believes that Chevron will leverage the higher expected demand. Moreover, the analyst raised the gas estimates to $4.50 and $4.25 for 2026 and 2027, further adding to the growth of gas companies.
Chevron Corporation (NYSE:CVX) is an integrated energy company. The company produces crude oil and natural gas and manufactures related products.
11. Chubb Limited (NYSE:CB)
Berkshire Hathaway’s Stake: 3.16%
5-Year Returns: 120.12%
No. of Hedge Fund Holders: 55
Analyst Upside: 10.38%
Chubb Limited (NYSE:CB) is one of the 12 Best Stocks to Invest in for Good Returns. On June 25, Chubb Limited (NYSE:CB) revealed that it is launching a new engineering center in Bogotá, Colombia.
Chubb’s latest engineering center in Colombia joins the company’s existing centers in India, Mexico, and Greece. The engineering center is scheduled to open in October 2025, enhancing Chubb’s technological capabilities and customer experience.
“Bogotá offers a rich pool of engineering talent, supported by strong academic institutions and a vibrant tech ecosystem. By tapping into local talent and expertise, Chubb will further develop tailored products and services that meet the specific needs of our Latin American and North American clients, enabling our strategic growth,” said Gordon Mackechnie, Vice President, Chubb Group, Global Head of Technology.
Software development, data analytics, AI, and infrastructural development will be key focuses at the Bogotá center. The company will make new hires in software engineering, network and data center infrastructure, and network security.
Chubb Limited (NYSE:CB) is a Swiss-based holding company that offers various insurance and reinsurance products and services to clients globally.
10. Visa Inc. (NYSE:V)
Berkshire Hathaway’s Stake: 1.12%
5-Year Returns: 83.65%
No. of Hedge Fund Holders: 165
Analyst Upside: 10.50%
Visa Inc. (NYSE:V) is one of the 12 Best Stocks to Invest in for Good Returns. On July 8, Visa Inc. (NYSE:V) announced that it would report its Q3 2025 financial results on July 29, after the close of the market.
Wall Street analysts expect Visa to post earnings of around $2.83 per share, while the revenue is expected to be around $9.82 billion. During the second quarter, the company posted earnings of $2.76 and revenue of $9.59 billion, both exceeding analyst consensus by $0.08 per share and $45.32 million, respectively.
Ahead of its Q3 earnings, Visa Inc. has launched a new Security Roadmap for New Zealand to fight the rising AI scams and payment fraud. This is a three-year plan focused on protecting consumers and businesses from delicate cyber threats. Visa pointed out that in 2024, New Zealand suffered NZ$194 million in scam and card fraud losses.
Visa Inc. (NYSE:V) is an international payments technology firm that allows secure and fast transactions across more than 200 countries.
9. Mastercard Incorporated (NYSE:MA)
Berkshire Hathaway’s Stake: 0.84%
5-Year Returns: 88.43%
No. of Hedge Fund Holders: 155
Analyst Upside: 11.57%
Mastercard Incorporated (NYSE:MA) is one of the 12 Best Stocks to Invest in for Good Returns. On July 7, Mastercard Incorporated (NYSE:MA) announced its collaboration with Eastern Bank PLC to launch its first biometric metal credit card in Bangladesh.
Mastercard Incorporated is introducing this innovative card under the ultra-premium World Elite Mastercard portfolio that combines cutting-edge biometric authentication. The card comes with a sophisticated metal design, providing both top-notch security and a premium user experience. The metal card is co-powered by IDEX Biometrics, Kona I, and Infineon Technologies.
“Mastercard is delighted to collaborate with Eastern Bank PLC to launch its first biometric metal card in Bangladesh. This groundbreaking innovation reaffirms Mastercard’s leadership in redefining the future of payments—where cutting-edge security meets seamless convenience. By embedding fingerprint authentication into a sleek metal card, Mastercard has set a new benchmark for premium cardholders who demand both sophistication and safety,” said Syed Mohammad Kamal, Country Manager, Bangladesh, Mastercard.
The new card will allow Mastercard cardholders to make purchases in-store without any need for PINs or signatures and effortlessly authenticate using just their fingerprint. In this way, the user can also safeguard sensitive financial data, setting a new benchmark for secure and premium payment experiences.
Mastercard Incorporated (NYSE:MA) is an international technology company in the global payments industry. The company connects consumers, merchants, governments, businesses, and many other institutions.
8. The Kroger Co. (NYSE:KR)
Berkshire Hathaway’s Stake: 1.31%
5-Year Returns: 112.14%
No. of Hedge Fund Holders: 64
Analyst Upside: 11.84%
The Kroger Co. (NYSE:KR) is one of the 12 Best Stocks to Invest in for Good Returns. On June 23, Guggenheim raised the price target on The Kroger Co. (NYSE:KR) stock from $73 to $78, maintaining its Buy rating.
Guggenheim analyst John Heinbockel increased the price target on KR as he believes that Kroger is making progress to restore food volume growth and reduce major e-commerce losses. Heinbockel added that although work remains to close the top-line gap with key club competitors, Kroger’s seems to be thriving across the e-commerce segment. The company’s e-commerce sales soared by 15% during Q1 2025, driven by order accuracy and reduced pickup wait times, leading to higher customer engagement. The company’s Our Brands segment outperformed national brands for the seventh straight quarter in Q1, fueled by high-quality products and innovation, such as the release of 80 new protein products.
Heinbockel’s “longstanding” Buy rating is further backed by Kroger Co.’s (NYSE:KR) defensive positioning during the macro uncertainty and a $6 billion share buyback during the next 18 months.
The Kroger Co. (NYSE:KR) is a food and drug retailer. The company operates supermarkets, multi-department stores, and fulfilment centers throughout the U.S.
7. Apple Inc. (NASDAQ:AAPL)
Berkshire Hathaway’s Stake: 25.76%
5-Year Returns: 125.33%
No. of Hedge Fund Holders: 159
Analyst Upside: 11.90%
Apple Inc. (NASDAQ:AAPL) is one of the 12 Best Stocks to Invest in for Good Returns. On July 7, Goldman Sachs reiterated its Buy rating on Apple Inc. (NASDAQ:AAPL) stock, keeping its price target at $253.
Mike Ng from Goldman Sachs retains its optimistic stance on Apple Inc. despite declining smartphone shipments in China. For the first month since May 2024, foreign brands have outperformed the overall Chinese market. Ng attributes this relative strength to growing discounts by Apple Inc. ahead of China’s 618 shopping period. This move has allowed the iPhone 16 Pro with 128 GB storage to be eligible for domestic smartphone subsidies.
The analyst sees the market challenges as overall mobile phone trends worsen annually and sequentially. The total smartphone market declined over 22% year-over-year and 5% sequentially in May 2025. Ng sees Apple Inc. remaining a leading figure in the industry and keeps his Buy rating on the stock.
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories.
6. Amazon.com, Inc. (NASDAQ:AMZN)
Berkshire Hathaway’s Stake: 0.74%
5-Year Returns: 48.97%
No. of Hedge Fund Holders: 328
Analyst Upside: 12.14%
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 12 Best Stocks to Invest in for Good Returns. On July 2, Truist Financial increased the price target on Amazon.com, Inc. (NASDAQ:AMZN) stock from $226 to $250, keeping its Buy rating on the shares.
Youssef Squali from Truist raised the price target on AMZN as he expects the e-commerce giant to report stronger-than-expected Q2 2025 results. The company expects mixed results during the second quarter, with revenue expected between $159 billion and $164 billion, indicating 7-11% growth from a year ago. Squali sees resilient North American consumer demand despite the macro or tariffs and favourable FX on a weakening U.S. Dollar. The company’s operating income guidance of around $13 billion to $17.5 billion fell short of the market expectation of $17.7 billion.
However, Squali anticipates that higher order frequency and average selling price have added to Amazon’s growth and sees this to be a key growth factor ahead. Amazon.com’s solid progress across e-commerce, advertising, cloud, and logistics remains the backbone of the business.
Amazon.com, Inc. (NASDAQ:AMZN) is a diversified company with operations in e-commerce, advertising, cloud, and logistics, among others.
5. Bank of America Corporation (NYSE:BAC)
Berkshire Hathaway’s Stake: 10.19%
5-Year Returns: 104.11%
No. of Hedge Fund Holders: 117
Analyst Upside: 12.41%
Bank of America Corporation (NYSE:BAC) is one of the 12 Best Stocks to Invest in for Good Returns. On July 9, Truist increased the price target on Bank of America Corporation (NYSE:BAC) from $51 to $53, maintaining its Buy rating on the stock.
John McDonald from Truist Financial made the price upgrade on BAC ahead of the Q2 2025 release. The analyst pointed out that the recessionary fears that fueled the steep sell-off before the last quarter’s results mostly played out in multiples, as did the subsequent rebound.
McDonald expects Bank of America’s net interest income to be higher, though its net interest margins are likely to stay flatter compared to Q1 2025. The company posted net income of around $7.4 billion in Q1, up by 11% year-over-year. Whereas the net interest income soared 3% year-over-year.
Bank of America Corporation (NYSE:BAC) is a bank holding company and a financial holding company.
4. Aon plc (NYSE:AON)
Berkshire Hathaway’s Stake: 0.63%
5-Year Returns: 83.53%
No. of Hedge Fund Holders: 68
Analyst Upside: 13.66%
Aon plc (NYSE:AON) is one of the 12 Best Stocks to Invest in for Good Returns. On July 7, Barclays lowered the price target of Aon plc (NYSE:AON) from $415 to $401, maintaining its Overweight rating on the stock.
Barclays analyst Alex Scott has kept his rating while reducing the price target on AON ahead of the Q2 2025 earnings. The analyst believes that Aon plc remains more cautious on property and casualty carriers, pointing out that the underwriting margins face pressure from unfavourable mix shifts and softening rates.
Scott is more constructive on reinsurers due to “idiosyncratic tailwinds” and capital return potential in the second half of 2025. During Q1, the company saw 4% organic revenue growth in the reinsurance segment. The company expects to achieve its 2025 full-year guidance, expecting mid-single-digit or greater organic revenue growth and double-digit FCF growth.
Aon plc (NYSE:AON) is a global professional services firm that operates through two segments, including Risk Capital and Human Capital.
3. The Coca-Cola Company (NYSE:KO)
Berkshire Hathaway’s Stake: 11.07%
5-Year Returns: 57.07%
No. of Hedge Fund Holders: 87
Analyst Upside: 13.90%
The Coca-Cola Company (NYSE:KO) is one of the 12 Best Stocks to Invest in for Good Returns. On June 19, The Coca-Cola Company (NYSE:KO) announced that it would release its Q2 2025 financial results on July 22, before the opening of the market.
Wall Street analysts expect The Coca-Cola Company to post earnings of $0.84 per share and revenue of around $12.55 billion. In Q1, the company posted earnings of $0.73 and $11.22 billion in revenue, both exceeding analyst consensus by $0.01 and $58.05 million, respectively.
Dara Mohsenian from Morgan Stanley keeps a Buy rating on KO with a price target of $81 ahead of the Q2 earnings. The analyst believes that the company will achieve sustained growth in the second quarter, driven by Coca-Cola’s strong pricing power fueled by its effective marketing, innovation, and solid execution.
The Coca-Cola Company (NYSE:KO) is one of the largest beverage companies that operates worldwide.
2. DaVita Inc. (NYSE:DVA)
Berkshire Hathaway’s Stake: 2.08%
5-Year Returns: 74.18%
No. of Hedge Fund Holders: 43
Analyst Upside: 14.05%
DaVita Inc. (NYSE:DVA) is one of the 12 Best Stocks to Invest in for Good Returns. On June 18, DaVita Inc. (NYSE:DVA) released its Community Care report, highlighting its long-standing commitment to corporate citizenship and development towards ESG goals for 2025.
DaVita Inc. posted its major developments in 2024. In 2020, the company announced broadened ESG goals and has since reported progress against its five strategic focus areas, including Patient Care, Team Engagement, Environmental Stewardship, Healthy Communities, and Leading with Integrity and Accountability. The company’s 100% global operations are on track to be matched by renewable energy purchases by 2025. Moreover, over 8,200 DaVita patients received a kidney transplant in 2024, the company’s highest number of annual transplants to date.
“This year, we’re reflecting on 25 years of patient care and progress made toward improving the health and vibrancy of the communities and people we serve. Looking ahead to the next 25 years, I’m excited about how we’re positioned to build on these recent community health achievements to enhance the care experience for people around the world,” said Javier Rodriguez, chief executive officer for DaVita.
DaVita Inc. (NYSE:DVA) is a healthcare provider focused on transforming care delivery to enhance the quality of life for patients worldwide.
1. Domino’s Pizza, Inc. (NASDAQ:DPZ)
Berkshire Hathaway’s Stake: 0.47%
5-Year Returns: 18.91%
No. of Hedge Fund Holders: 45
Analyst Upside: 15.36%
Domino’s Pizza, Inc. (NASDAQ:DPZ) is one of the 12 Best Stocks to Invest in for Good Returns. On July 7, Domino’s Pizza, Inc. (NASDAQ:DPZ) announced that it is bringing back its “Best Deal Ever” promotion!
This deal will allow customers to enjoy any pizza with their favourite toppings for $9.99 when they order online between July 7 and August 8. This deal includes Domino’s Hand Tossed, Handmade Pan, New York Style, Gluten Free, and Crunchy Thin Crust pizzas, as well as an assortment of sauces and toppings. This deal is a move for the company to gain traction and continue its long-standing legacy in the franchise food business.
Loop Capital retains its Buy rating on DPZ with a price target of $564. The firm remains positive on DPZ as Domino’s same-store sales growth surpassed expectations in Q2. From March 23 to June 14, 2025, Domino’s comparable sales soared over 2.5%, aligning with Loop Capital’s estimates but exceeding the consensus of 1.9%. Domino’s latest marketing deal will continue to have a positive impact on its sales during the current quarter.
Domino’s Pizza, Inc. (NASDAQ:DPZ) is a prominent pizza company with a significant business in both delivery and carryout.
While we acknowledge the potential of DPZ 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 DPZ and that has 100x upside potential, check out our report about this cheapest AI stock.
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