In this article, we will take a look at the 13 Best Roth IRA Stocks to Buy Now.
A Roth IRA, or individual retirement account, is a tax-advantaged way to save for retirement and is not tied to an employer plan like a 401(k). The account is opened directly with a financial provider. The individual sets up contributions and decides how the money is invested, whether by choosing assets personally or working with an investment manager. The control sits with the account holder.
Roth IRAs are not only for people close to retirement. Younger investors are opening them in growing numbers. A 2025 report by the Wall Street Journal noted that many young savers are turning to Roth IRAs after hearing consistent advice from parents, workplace financial coaches, and tax professionals. The logic is straightforward. The earlier the money goes in, the more time it has to grow without future tax burdens.
As tax day approaches, many savers rush to make last-minute contributions. They want to max out their individual retirement accounts before the deadline passes. It is a familiar pattern each year. The Investment Company Institute reported that Americans held $13.6 trillion in individual retirement accounts at year-end 2023. Of that total, $1.4 trillion was in Roth IRAs. About 43% of IRA assets, or $5.8 trillion, were invested in mutual funds.IRAs are owned by people across age groups. Still, Roth IRA investors tend to skew younger. At year-end 2020, 34% of Roth IRA investors were under 40. Only 17% of traditional IRA investors fell into that age group.
Given this, we will take a look at some of the best Roth IRA stocks to invest in.
Our Methodology:
For this list, we screened for companies that have long-term growth catalysts, dividend growth history, solid business fundamentals, and positive analyst coverage. Next, we picked 13 companies that were most popular among hedge fund investors, as per Insider Monkey’s database of Q 2025. The stocks are ranked according to the number of hedge funds investing in them.
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. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 68
On February 5, Barclays lifted its price target on PepsiCo, Inc. (NASDAQ:PEP) to $160 from $148 and kept an Equal Weight rating. The change came after the company’s latest earnings report, with the firm adjusting its model to reflect the updated numbers.
On the Q4 2025 call, CEO Ramon Laguarta laid out what he framed as a clear plan to reignite category growth. A big part of that plan centers on affordability. He made it clear the company is leaning in, especially for low- and middle-income consumers. Management is targeting specific brands, pack sizes, and sales channels where sharper pricing can make the most difference.
Laguarta said the company has already tested these moves at scale in several markets. Those trials produced solid returns. That track record is giving management the confidence to expand the effort. He also noted that these pricing steps sit on top of the shelf space gains PepsiCo is already winning through closer ties with retailers.
He then turned to brand momentum and highlighted that Gatorade and Quaker are in the middle of broader restaging efforts. Lay’s and Tostitos have already rolled out early-year updates. Bigger marketing pushes for Gatorade and Quaker are scheduled for later this year.
CFO Stephen Schmitt struck a similar tone. He described the company as playing offense. In his view, the current initiatives should help lift both volumes and overall sales. Importantly, he stressed that the added spending is not a surprise. It is already built into guidance and supported by productivity gains that help fund these investments.
PepsiCo, Inc. (NASDAQ:PEP) operates across beverages, snacks, and food in North America and overseas markets. The latest strategy signals a company that is paying closer attention to shifting consumer behavior.
12. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 74
On February 10, Cisco Systems, Inc. (NASDAQ:CSCO) introduced a new chip and router built to accelerate data movement inside large data centers. The launch positions the company to compete with Broadcom and Nvidia for a share of the projected $600 billion AI infrastructure spending cycle.
The new Silicon One G300 switch chip is expected to go on sale in the second half of the year. Cisco said the chip is designed to improve communication between the processors that train and run AI systems, even when operating across hundreds of thousands of connections.
The G300 will be manufactured using Taiwan Semiconductor Manufacturing Co.’s 3-nanometer process technology. It includes new “shock absorber” features intended to prevent AI chip networks from slowing down during sudden spikes in data traffic. Martin Lund, executive vice president of Cisco’s common hardware group, said in an interview that such traffic surges occur regularly at large scale.
Cisco expects the chip to help certain AI computing tasks complete 28% faster. Part of that improvement comes from the chip’s ability to automatically reroute data around network issues within microseconds. Lund noted that the company is focused on improving overall end-to-end network efficiency.
Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells technologies that support the internet. The company integrates its offerings across networking, security, collaboration, applications, and cloud.
