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.
10 stocks receiving a massive vote of approval from Wall Street analysts
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.
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