In this article, we will discuss the 12 Best WallStreetBets Stocks To Buy According to Hedge Funds.
The World Economic Forum’s Global Retail Investor Outlook 2024 highlighted a sustained transition towards younger retail investors. The research, which spans 13 economies, reflects that 30% of Gen Z start investing in early adulthood, against 9% of Gen X and 6% of Baby Boomers. By the time they enter the workforce, the research demonstrated that 86% of Gen Z have learned about personal investing as compared to 47% of Boomers, highlighting a generational transformation in financial habits.
Current Retail Investor Trends
WEF’s survey mentions that retail investors continue to view cryptocurrency as more understandable and easier as compared to traditional investments such as ETFs, MFs, stocks, and bonds. As per the research, 29% tend to avoid stocks because of a lack of understanding, while only 24% mention the same regarding crypto. Interestingly, among the investors aged under 44 holding cryptocurrencies, over half allocated at least a third of their portfolio to it.
Furthermore, WEF’s research mentioned that financial priorities have been pivoting towards short-term needs. In 2024, 51% of investors focused on emergency savings, reflecting an increase from 41% in 2022, while those who emphasized having sufficient to retire declined from 48% to 42%. As per Dean Frankle, Managing Director and Partner, BCG, individual participation in capital markets can result in long-term financial well-being.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Retail Investors Continue to Pump Billions
Bloomberg reported that individual investors are becoming relentless when it comes to investing money in the volatile US markets. The firm, while quoting JPMorgan Chase & Co.’s Emma Wu, mentioned that considering the continuous dip-buying strategy throughout the crash, there are estimates that retail traders’ portfolios remain far from breakeven. However, individual investors’ strategy of “buy-the-dip” amidst trade fears has been doing better as compared to the broader market.
Interestingly, retail investors invested US$11 billion in equities since April 2, when Trump’s administration revealed reciprocal levies, reported Bloomberg, while citing data through Wednesday’s close (April 9, 2025). Bloomberg also highlighted that individual investors continue to dip their toes into stocks, while well-established institutional investors are rotating into international markets and less risky assets, including Treasuries.
Amidst such trends, let us now have a look at the 12 Best WallStreetBets Stocks To Buy According to Hedge Funds.
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Our Methodology
To list the 12 Best WallStreetBets Stocks To Buy According to Hedge Funds, we sifted through the WallStreetBets forum on Reddit and chose the trending ones. Next, we shortlisted the ones that are popular among hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.
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 WallStreetBets Stocks To Buy According to Hedge Funds
12. Build-A-Bear Workshop, Inc. (NYSE:BBW)
Number of Hedge Fund Holders: 22
Build-A-Bear Workshop, Inc. (NYSE:BBW) operates as a multi-channel retailer of plush animals and related products. The company has been prioritizing its long-term strategic initiatives, and it has mainly focused on broadening its global retail footprint. In FY 2024, Build-A-Bear Workshop, Inc. (NYSE:BBW) launched 64 net new retail units, the majority of which were asset-light partner-operated locations, enhancing its international presence to over 25 countries. For FY 2025, it expects capital expenditures of $20 million to $25 million.
Build-A-Bear Workshop, Inc. (NYSE:BBW) has plans for the continued expansion of its experienced locations in 2025, with an expectation to open a minimum of 50 new net locations during the fiscal year. Notably, the majority will be partner-operated as the company continues to bring its brand to more places and more people. Build-A-Bear Workshop, Inc. (NYSE:BBW) is also focused on multi-year comprehensive digital transformation throughout the entire company, which includes an omnichannel focus on unlocking value, with new capabilities to fuel incremental opportunities such as same-day delivery, gifting, and personalization programs. International trade remains critical, and the company has made strides to diversify its supply chain. In 2018, Build-A-Bear Workshop, Inc. (NYSE:BBW) sourced nearly all of its products from China. The company has since reduced its dependency, and it anticipates China to be the source of less than 50% of its inventory shipped to North America in 2025.
11. DTE Energy Company (NYSE:DTE)
Number of Hedge Fund Holders: 35
DTE Energy Company (NYSE:DTE) is engaged in the energy-related businesses and services. In 2024, the company invested a historic $4 billion to modernize its infrastructure, allowing it to make strong progress in building the electric grid of the future and upgrading its natural gas pipelines to produce more reliable, affordable, and cleaner energy. DTE Energy Company (NYSE:DTE)’s progress in 2024 positions the company to support Michigan’s economic growth by powering the growth of data centers and the electrification of vehicles.
DTE Energy Company (NYSE:DTE)’s renewable energy portfolio currently consists of 20 wind parks and 34 solar parks, all of them located in Michigan. The company has invested $4.6 billion in renewable energy infrastructure since 2009 and targets to invest an additional $4 billion in renewable energy over the next several years. In 2025, DTE Energy Company (NYSE:DTE) will have 3 new solar parks coming online in H1 of the year, with 3 additional solar parks starting construction. The 6 parks are expected to total 800 megawatts, enough clean energy to power over 220,000 homes. These developments can help the company make strong progress towards its goal of achieving net-zero carbon emissions and meeting the State of Michigan’s clean energy goals.
10. Wyndham Hotels & Resorts, Inc. (NYSE:WH)
Number of Hedge Fund Holders: 42
Wyndham Hotels & Resorts, Inc. (NYSE:WH) operates as a hotel franchisor. Analyst David Katz of Jefferies reiterated a “Buy” rating on the company’s stock. The rating is backed by a combination of factors that include the company’s promising growth outlook and strategic positioning. The recent financial results aid the analyst’s rating, with the company surpassing revenue and adjusted EBITDA expectations for Q4 2024. The analyst highlighted that the global RevPAR witnessed a notable increase, hinting at the healthy performance in key metrics.
Furthermore, Wyndham Hotels & Resorts, Inc. (NYSE:WH)’s strong unit and pipeline growth, with a record high retention rate, demonstrates sustained long-term growth potential, says Katz. The expected ancillary revenue growth, together with strategic infrastructure spending, can further improve Wyndham Hotels & Resorts, Inc. (NYSE:WH)’s financial performance, resulting in a positive outlook. In Q4 2024, the company’s fee-related and other revenues went up by 7% to $341 million as compared to $320 million in Q4 2023, implying increased royalties and franchise fees. Its adjusted EBITDA increased 9% to $168 million as compared to $154 million in Q4 2023.
Wyndham Hotels & Resorts, Inc. (NYSE:WH)’s focus on expanding into higher FeePAR markets, enhancing its extended-stay footprint, and unlocking new ancillary revenue streams further strengthens its diverse growth opportunities inherent in the asset-light, resilient business model. TimesSquare Capital Management, an equity investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“New to the strategy was Wyndham Hotels & Resorts, Inc. (NYSE:WH), one of the world’s largest hotel franchising companies with a variety of midscale or economy brands and partners. Operating in secondary or tertiary markets, Wyndham focuses on leisure travelers in spots with sparse competition. Its franchise model limits the need for capital spending or significant debt.”
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