In this article, we will be taking a look at the 13 best major stocks to invest in now.

The U.S. stock market experienced one of its poorest beginnings to a presidential term, marking the worst start since 1928. The S&P 500 is now gradually bouncing back after the recent update on the U.S.-China trade agreement, where both nations consented to substantially reduce tariffs on each other’s imports for 90 days. Year-to-date, the S&P 500 has gained a modest 8.42%, driven mainly by a rally in technology stocks following the tariff cuts.

Following the U.S.-China trade agreement, markets finally breathed a sigh of relief. All of the negative scenarios that Wall Street analysts had predicted based on the tariff worries may be eliminated by the tariff drop. In a recent appearance on a CNBC show, Sylvia Jablonski, CEO and CIO of Defiance ETFs, referred to the tariff cut as a “game changer.”

“I think both countries probably saw a little bit of the demise of what would be here with a non-tariff deal as the data came in. You had a lot of complaints around China across all sectors, and then in the US, retailers were reaching out to President Trump and saying that shelves are empty and, you know, a lot of panic about semiconductor software companies. I think that this is a game changer for both countries, and the big message here is that both countries, it sounds like, decided that they don’t want to decouple, and, you know, make America great might also mean that, you know, China stays.”

Since Inauguration Day, President Trump’s administration has secured about $2 trillion in new company investments, signaling a broad economic revival. Major tech firms like Apple and Nvidia each pledged $500 billion toward AI infrastructure, manufacturing, and training. Healthcare and pharmaceutical manufacturing make up nearly 11% of the planned U.S. investments, according to Yahoo Finance.

Our Methodology 

Our methodology started by selecting stocks with large market capitalizations. From this group, we identified the top 13 stocks and ranked them according to the highest hedge fund (HF) sentiment as of Q1 2025, based on data from the Insider Monkey database. In instances where companies had the same number of hedge fund holders, we used market capitalization as a tiebreaker, giving a higher rank to the company with the larger market cap.

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).

Here is our list of the 13 best major stocks to invest in now.

13. Royal Bank of Canada (NYSE:RY)

Number of Hedge Fund Holders: 30 

Royal Bank of Canada (NYSE:RY), the country’s largest bank, remains a strong investment choice due to its solid fundamentals and defensive qualities amid economic and geopolitical uncertainties and stands thirteenth among the best major stocks. In its fiscal second quarter of 2025, the bank reported an 11% year-over-year net income increase to $4.4 billion, driven primarily by its wealth management division benefiting from strong client inflows and rising assets under management. The bank also raised its quarterly dividend by 4% to $1.54 per share, signaling confidence in its cash flow and commitment to shareholders.

Royal Bank of Canada (NYSE:RY) is strategically navigating a challenging environment marked by trade tensions and steady monetary policy. The firm has held interest rates at 2.75% for the third consecutive time as of July 2025, aiming to balance inflation and economic resilience. RY and peers like Scotiabank do not expect rate cuts for the remainder of the year, influencing the bank’s lending, mortgage sectors, and broader financial services.

Focusing on cautious growth and risk management, Royal Bank of Canada (NYSE:RY) balances expanding wealth management opportunities with prudence on credit risk and market volatility. Its stable dividend growth and strong earnings underscore resilience, positioning the bank as an attractive, stable financial institution for investors seeking security amid uncertain global economic conditions.

12. HDFC Bank Limited (NYSE:HDB)

Number of Hedge Fund Holders: 51 

HDFC Bank Limited (NYSE:HDB), a leading private sector bank in India, reported strong performance in Q2 2025, with net revenue of ₹531.7 billion. This included a notable ₹91.3 billion transaction gain from the partial IPO of its subsidiary, HDB Financial Services Ltd. Gross advances rose 6.7% year-over-year to ₹26,532 billion, driven by an 8.1% increase in retail loans and a 17.1% surge in small and mid-market enterprise loans. The bank’s Basel III Capital Adequacy Ratio stood at a healthy 19.9%, well above regulatory requirements.

In June 2025, HDFC Bank Limited (NYSE:HDB) launched a co-branded credit card with PhonePe, strengthening its digital payment offerings and customer engagement in the fintech space. The bank also continues its commitment to social responsibility through initiatives like establishing STEM labs in Maharashtra schools and empowering 1,000 villages with renewable energy via its CSR arm, HDFC Bank Parivartan.

HDFC Bank Limited (NYSE:HDB) declared a special interim dividend of ₹5 per equity share for the fiscal year 2025-26, reflecting confidence in its financial stability. On the regulatory side, the bank faced a ₹10 lakh penalty from SEBI related to an insider trading case involving HDB and itself, but this is not expected to have a long-term operational impact.

11. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 62 

Caterpillar Inc. (NYSE:CAT), a global leader in construction and mining equipment, is focusing on innovation and market positioning amid cyclical industry challenges. The company plans to release its second-quarter 2025 financial results on August 5, providing investors with insights into recent performance. Despite a 9.8% year-over-year revenue decline to $14.25 billion due to demand headwinds, the business remains competitive and committed to operational efficiency.

Caterpillar Inc. (NYSE:CAT) recently raised its quarterly dividend to $1.51 per share, reflecting confidence in cash flow and long-term stability. The firm is advancing growth through technological innovation, including electrification and automation solutions aligned with sustainability and industrial digitization trends. It also remains one of the best major stocks for exposure to infrastructure and industrial expansion, and is well-positioned to benefit from the industrial onshoring movement, which could boost equipment demand in North America and other markets.

Looking ahead, Caterpillar Inc. (NYSE:CAT) will host its 2025 Investor Day on November 4 in Dallas, where it is expected to outline future strategies focused on technology integration, sustainability, and market expansion, reinforcing its role as a leader in heavy equipment manufacturing.

10. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 65 

Verizon Communications Inc. (NYSE:VZ), a leading U.S. telecom provider, continues strong growth in 2025, driven by 5G and broadband innovation. With the largest mobility and broadband customer base in the U.S., the company maintains top network quality, earning numerous awards for its reliable and fast 5G service.

In Q2 2025, the business added 293,000 broadband subscribers and grew its fixed wireless access base to over 5.1 million, targeting 8 to 9 million by 2028. The corporation is also expanding its Fios fiber network, planning 650,000 new passings this year.

A key focus is leveraging AI to enhance customer service and retention. Verizon Communications Inc. (NYSE:VZ)’s AI-powered Customer Champion, using Google Cloud’s Gemini models, improves support speed and quality. The mobile app has also been upgraded for better transparency and user value, supported by 24/7 live assistance.

Internationally, the business secured a multibillion-dollar contract to deploy a private 5G network at the Thames Freeport industrial zone in the UK, expanding its global 5G presence.

Additionally, Verizon Communications Inc. (NYSE:VZ) plans to open a new Manhattan headquarters in 2026, consolidating corporate functions and supporting growth with around 1,000 employees.

9. Accenture plc (NYSE:ACN)

Number of Hedge Fund Holders: 69 

Accenture plc (NYSE:ACN), a global leader in strategy and digital transformation, is strengthening its technology consulting and AI capabilities through several major developments in mid-2025.

On July 23, Accenture plc (NYSE:ACN) announced its acquisition of Maryville Consulting Group, a U.S.-based technology firm specializing in product-driven growth strategy, digital operations, and technology business management (TBM). This move adds over 100 professionals to the company’s team and enhances its ability to align clients’ tech investments with business outcomes, especially important amid rising demand for AI adoption and next-gen computing.

Accenture plc (NYSE:ACN) continues to be viewed as one of the best major stocks for exposure to enterprise AI and digital transformation, supported by strategic moves like its expanded collaboration with Microsoft to co-develop advanced generative AI-powered cybersecurity solutions. This partnership aims to counter evolving AI-driven threats through innovations in security operations, data protection, cyber migration, and identity management. The initiative reflects the company’s broader strategy of integrating AI and cybersecurity to improve resilience and efficiency for clients.

Accenture plc (NYSE:ACN) also reported strong fiscal Q3 2025 results, with $17.7 billion in revenue, a 7.6% year-over-year increase, driven by growing demand for its AI and digital services. Its expanding partnership portfolio includes a new collaboration with British American Tobacco (BAT), announced on July 30, to transform BAT’s global operations and supply network.

8. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 69 

Texas Instruments Incorporated (NASDAQ:TXN), a leading U.S.-based semiconductor company, designs and manufactures analog and embedded processing chips used across sectors like automotive, industrial, and consumer electronics. In July 2025, TXN announced a landmark $60 billion investment to expand its U.S. semiconductor manufacturing capacity, the largest such investment in U.S. history. The expansion will focus on mega-sites in Texas and Utah, with Sherman, Texas, receiving up to $40 billion for four fabrication plants. This initiative is expected to create over 60,000 jobs and significantly boost the production of critical semiconductors essential for modern technologies, from electric vehicles to data centers.

The expansion aligns with growing global demand for foundational chips and U.S. government efforts to strengthen domestic semiconductor production and supply chain resilience. Texas Instruments Incorporated (NASDAQ:TXN)’s strategy reflects its long-term commitment to scaling manufacturing and driving innovation as digital transformation accelerates across industries.

Despite this growth, Texas Instruments Incorporated (NASDAQ:TXN)’s Q2 2025 earnings call revealed a note of caution. While the company posted $4.45 billion in revenue, management warned of potential volatility due to geopolitical tensions and tariff risks. Analysts noted that some recent demand may have been pulled forward in anticipation of trade changes, leading to tempered expectations for Q3.

7. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 71 

PepsiCo, Inc. (NASDAQ:PEP), a global leader in food and beverages, is navigating a challenging business climate by streamlining operations and aligning its portfolio with evolving consumer preferences. In 2025, the company announced the closure of parts of its Detroit beverage facility, impacting 83 workers, as part of broader efforts to consolidate operations and match production with demand.

Strategically, PepsiCo, Inc. (NASDAQ:PEP) is focusing on healthier product offerings. It plans to relaunch its Frito-Lay’s Simply lineup in late 2025 or early 2026, removing artificial ingredients from snacks like Lay’s and Tostitos. The company is also expanding its health-focused portfolio through acquisitions like Siete Foods and boosting baked and multigrain snacks such as PopCorners and SunChips, reinforcing its place among the best major stocks for investors focused on innovation and adaptability.

Operationally, the business beat Q2 2025 earnings expectations, benefiting from international growth and favorable foreign exchange. However, flat beverage volumes in North America and ongoing cost pressures have prompted further efficiency initiatives. These include plant closures, productivity enhancements, contract reviews, and investments in enterprise resource planning systems.

On the market front, JPMorgan raised PepsiCo, Inc. (NASDAQ:PEP)’s price target from $139 to $157 in July 2025, citing cautious optimism amid the company’s cost-cutting and product innovation strategies.

6. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 87 

AT&T Inc. (NYSE:T), a major U.S. telecommunications company, is strengthening its position in fiber and 5G connectivity through strategic investments and expansion efforts. A key move includes its planned acquisition of a large portion of Lumen’s Mass Markets fiber internet business, expected to close in early 2026. This acquisition will significantly boost the company’s fiber infrastructure, supporting its goal to reach 60 million fiber locations by 2030 and reinforcing its strategy to deliver integrated fiber and 5G services.

To support this growth, AT&T Inc. (NYSE:T) is maintaining capital investments of $4.5 to $5 billion in 2025, while projecting about $4 billion in free cash flow. The corporation has also launched a $10 billion stock buyback program through 2026, signaling investor confidence.

AT&T Inc. (NYSE:T) reported strong Q2 2025 results, driven by growth in fiber subscribers and solid mobility performance, underscoring the effectiveness of its current strategy. However, it faces increasing competition from rivals like Verizon and T-Mobile, especially in business services and AI-powered solutions. Additionally, the business discontinued its email-to-text service in June 2025, reflecting ongoing efforts to modernize offerings.

5. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 96 

Citigroup Inc. (NYSE:C), a global financial services leader operating in over 180 countries, has recently focused on strengthening its capital structure and expanding operations. In July 2025, the company raised $2.7 billion through a preferred share offering and €900 million via callable subordinated notes due 2036. It also redeemed €1.75 billion of existing debt due in 2026, reflecting strategic liability management and efforts to enhance funding efficiency.

Citigroup Inc. (NYSE:C) is often regarded the best major stocks due to its strong financial position and growth prospects. Operationally, the business announced an expansion in Charlotte, North Carolina, with 510 new jobs, reinforcing its presence in key U.S. markets. This domestic growth complements its broader financial momentum.

In Q2 2025, the business reported $21.67 billion in revenue, an 8.2% year-over-year increase, and earnings per share of $1.96, surpassing analyst expectations by nearly 22%. Strong performance in banking (up 18%) and wealth management (up 20%) contributed to this growth, particularly in U.S. consumer banking segments like branded credit cards and retail deposits.

Further signaling confidence in its financial health, Citigroup Inc. (NYSE:C) increased its quarterly dividend by 7% to $0.60 per share, extending a 34-year track record of uninterrupted payouts.

4. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 96 

The Boeing Company (NYSE:BA), a major aerospace and defense firm, is in a significant recovery phase as of mid-2025. The company reported $22.7 billion in revenue for Q2 2025, its highest in six years, despite a net loss of $612 million. This marks a notable improvement from the $1.4 billion loss in the same quarter of 2024, reflecting progress after production setbacks, a regulatory crisis, a major strike, and lingering issues with the 737 MAX.

Under CEO Kelly Ortberg, who assumed leadership in August 2024, The Boeing Company (NYSE:BA) is focusing on quality, safety, and production stability. The corporation delivered 280 commercial aircraft in the first half of 2025, its highest since before the 737 MAX crisis. The business has increased monthly production of the 737 MAX to 38 units and plans to seek FAA approval to raise that to 42, contingent on meeting performance standards. The FAA had previously imposed production limits following a 2024 MAX 9 incident.

Challenges persist, especially with certification delays for the MAX 7 and MAX 10 variants, now pushed to 2026 due to engine de-icing system issues. Meanwhile, The Boeing Company (NYSE:BA) is ramping up production of the 787 Dreamliner to seven units per month in South Carolina and awaiting FAA approval for new 777X models.

3. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 102 

The Charles Schwab Corporation (NYSE:SCHW), a leading financial services firm with over $10.76 trillion in client assets and 37.5 million active brokerage accounts, is making notable strides in capital management and shareholder returns. In July 2025, its Board of Directors approved a new $20 billion stock repurchase program and declared a $0.27 per share quarterly dividend payable in August, replacing the previous authorization. This move reflects the business’s confidence in its financial strength and long-term growth strategy.

These actions align with the company’s “Through Clients’ Eyes” philosophy, aiming to balance client-focused growth with shareholder value. The Charles Schwab Corporation (NYSE:SCHW), a leading financial services firm with over $10.76 trillion in client assets and 37.5 million active brokerage accounts’s CFO emphasized that the company’s strong capital position and diversified financial model allow it to support ongoing client expansion while returning excess capital to investors. The company is also considered one of the best major stocks for investors seeking a blend of growth and income in the financial sector.

In addition, the corporation’s stock has seen strong market momentum, earning buy ratings and upward earnings estimate revisions. Analysts have given it a “Strong Buy” rating based on recent earnings strength and solid price performance compared to industry peers, reflecting positive sentiment around The Charles Schwab Corporation (NYSE:SCHW)’s continued operational success.

2. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 102 

Booking Holdings Inc. (NASDAQ:BKNG), the parent company of Booking.com, Priceline, Agoda, Kayak, and OpenTable, reported strong Q2 2025 results, with revenue up 16% year-over-year to $6.8 billion and adjusted EBITDA rising 28% to $2.4 billion. Room nights grew 8%, and gross bookings increased 13% to $46.7 billion, driven largely by international demand, particularly from affluent Asian travelers. Alternative accommodations saw faster growth than overall room nights, now accounting for 37% of total bookings, supported by an 8% increase in listings to 8.4 million. Mobile bookings also surpassed 50% of total reservations, reflecting growing user preference for direct digital engagement.

To maintain momentum, Booking Holdings Inc. (NASDAQ:BKNG) is investing heavily in AI and technology to personalize and streamline travel planning. Initiatives include a voice-enabled assistant for Priceline, AI tools for Kayak.ai, and automated customer service agents for OpenTable. These tools are aimed at enhancing user experience and reducing reliance on third-party channels. Despite a slowdown in U.S. travel spending, the corporation continues to perform well in European and Asian markets, supported by direct booking and social media strategies.

Looking forward, Booking Holdings Inc. (NASDAQ:BKNG) expects a modest deceleration in Q3, with projected revenue growth of 7–9% and room nights up 3.5–5.5%, citing macroeconomic and geopolitical headwinds. However, the business raised its full-year guidance, anticipating low double-digit revenue growth and mid-teens EBITDA gains, driven by strong alternative accommodation performance and its integrated “connected trip” strategy.

1. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Number of Hedge Fund Holders: 106 

Intuitive Surgical, Inc. (NASDAQ:ISRG) tops our list for being one of the best major stocks. It is known for its da Vinci robotic surgical systems and reported strong Q2 2025 results, highlighting continued growth and innovation in minimally invasive surgery. Revenue rose 21% year-over-year to $2.44 billion, driven by a 17% increase in procedure volumes and record placements of 395 da Vinci systems globally. Of these, 180 were the newer da Vinci 5 systems, up from 70 a year earlier. The total installed base expanded to 10,488 systems, a 14% increase.

The da Vinci 5 rollout is central to the company’s momentum. It recently received EU certification for adult and pediatric procedures across multiple specialties, and clearance in Japan for nearly all previously approved surgical areas, excluding cardiac. Additional approval for the system’s force feedback technology is being pursued in Europe.

Intuitive Surgical, Inc. (NASDAQ:ISRG) updated its 2025 gross margin outlook to 66%, adjusting for tariff effects. The company also reaffirmed expectations for 15–17% global procedure growth this year, reflecting strong demand as hospitals address surgical backlogs and broaden access to robotic procedures.

While we acknowledge the potential of ISRG 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 ISRG and that has 100x upside potential, check out our report about this cheapest AI stock.

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