In this piece, we discuss the 13 Best Extremely Profitable Stocks to Invest in According to Hedge Funds.
A unique combination of disruption and resilience shaped the landscape for stocks, including highly profitable ones in 2025. As discussed in Reuters’ year-end report, significant changes in technology, geopolitics, and trade policy, along with macro headwinds rather than traditional fundamentals, drove equity performance for the year.
Among the most important developments was President Donald Trump’s announcement of import tariffs in April 2025, which increased U.S. trade policy uncertainty to an all-time high. This resulted in an effective tariff rate of nearly 17%, the highest since 1935. The U.S. economy showed resilience despite many challenges, with GDP growing at an annualized rate of 4.3% in the third quarter of 2025.
Amid broader market headwinds, certain industries even delivered exceptionally strong profitability during the year. Some industries witnessed tailwinds that supported their share price performances. For example, within the precious metals sector, the standout performers, gold and silver, ended the year 72% and 178% higher, respectively. Strong industrial demand, supply shortages, and a sharp decline in the dollar’s value helped silver reach $80 per ounce for the first time on December 29.
That said, the macroeconomic environment remains challenging, but broader market momentum remains strong. In 2025, the S&P 500 and the NASDAQ Composite gained 17.9% and 21.2%, respectively. Last month, Treasury Partners CIO Richard Saperstein spoke with Yahoo Finance, citing easing inflation, strong economic conditions, and a cooling job market as major contributors to earnings growth. Meanwhile, BNY Wealth highlighted broader-based market gains and potential corporate tax relief in 2026 as additional growth drivers.
With this context in mind, we will now shift our attention to the list of the 13 best extremely profitable stocks to invest in according to hedge funds.
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Our Methodology
To curate our list of the best extremely profitable stocks to invest in according to hedge funds, we used screeners to identify stocks with a net income (profit) margin exceeding 30%. Next, we narrowed the list to companies that have consistently delivered strong profitability over the past five years. Finally, we assessed hedge fund sentiment toward these stocks, ranking the list in ascending order by the number of hedge funds holding stakes in each stock. To assess hedge fund ownership, we used Insider Monkey’s hedge fund database, which tracks 978 stocks as of Q3 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Holders: 44
As of February 2, 2026, the consensus price target for VICI Properties Inc. (NYSE:VICI) is $35.00, which implies a 24.64% upside potential. Meanwhile, 80% of analysts remain bullish on the stock.
The latest analyst update came on January 30, 2026, when Scotiabank analyst Greg McGinniss downgraded VICI Properties Inc. (NYSE:VICI) from ‘Outperform’ to Sector Perform with a $30 price target.
Earlier in the month, on January 5, 2026, Cantor Fitzgerald reduced its price target from $35 to $33, while maintaining its ‘Overweight’ rating. While discussing key catalysts, the firm cited VICI’s stable fundamentals, strong balance sheet, and well-covered dividend yield of nearly 4%. It also mentioned improving macro conditions heading into 2026 and a possible acceleration in REIT-focused M&A activity.
In early January 2026, VICI Properties Inc. (NYSE:VICI) drew Barclays’ attention, which lowered its price target on the stock from $37 to $33, reiterating its ‘Overweight’ rating. The revised target reflects tenant-related risks tied to the updated net lease assumptions. At the same time, Evercore ISI also downgraded the stock from ‘Outperform’ to ‘In Line’, cutting its price target to $32. The firm’s cautious stance stems from uncertainty around the Caesars regional gaming lease.
VICI Properties Inc. (NYSE:VICI), a gaming-focused real estate investment trust, generates consistent, long-term rental income by owning and leasing casino, hospitality, and entertainment properties across the United States.
12. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 50
According to a January 28, 2026, Reuters report, Novo Nordisk A/S (NYSE:NVO) increased its advertising spending for its GLP-1 medication in the U.S. In the first nine months of 2025, the company allocated nearly $500 million to promote Wegovy and Ozempic. The allocated budget is more than twice Eli Lilly’s spending on rival treatments.
As supply constraints eased and competitive pressures increased, Novo spent $316 million on Wegovy and $169 million on Ozempic, according to MediaRadar. This highlights year-over-year increases of 54% and 44%, respectively.
The increased advertising reflects Novo’s efforts to defend its market position after Eli Lilly’s Zepbound showcased greater weight-loss efficacy in late 2024 trial data, surpassing Wegovy in U.S. prescription volume. Novo’s management also plans to immediately promote its upcoming oral version of Wegovy and boost distribution through cash-pay and direct-to-consumer channels.
On the prior day, Citi initiated coverage of Novo Nordisk A/S (NYSE:NVO) with a ‘Neutral’ rating and a DKK 400 price target, noting that the company’s valuation appears fair at current levels despite continued high demand for obesity treatments.
Novo Nordisk A/S (NYSE:NVO), a global pharmaceutical company, specializes in treating rare diseases, diabetes, and obesity.
11. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 57
On January 30, 2026, UBS maintained a ‘Neutral’ rating on Agnico Eagle Mines Limited (NYSE:AEM), raising its price target to $240 from $190.
Agnico Eagle Mines Limited (NYSE:AEM) announced on January 28, 2026, that Agnico Sweden, its owned subsidiary, agreed to sell its remaining 55% stake in Gunnarn Mining AB to Goldsky Resources. The agreement includes a 2% net smelter return royalty on the Barsele project, alongside $20 million in cash and 75.51 million Goldsky shares valued at C$2.64. This transaction is part of Agnico Eagle’s strategy to prioritize higher-quality internal projects, allowing it to maintain upside exposure while shifting development focus to Goldsky. Agnico Eagle now owns about 32.5% of Goldsky as a result of the agreement.
On January 26, 2026, Scotiabank reaffirmed its ‘Outperform’ rating, increasing its price target for Agnico Eagle Mines Limited (NYSE:AEM) to $276 from $219. The firm’s bullish stance reflects increased projections for gold and silver, driven by geopolitical and economic uncertainty.
Additionally, on January 29, 2026, JPMorgan initiated coverage of Agnico, assigning a ‘Neutral’ rating and a $248 target, noting that Agnico’s valuation appears fairly full at current levels despite favorable gold fundamentals.
Agnico Eagle Mines Limited (NYSE:AEM), a global gold producer, operates mines across Canada, Australia, Finland, and Mexico.
