In this article, we will look at the 13 Best Strong Buy Stocks to Invest in Right Now.
On December 29, Claudia Sahm, chief economist at New Century Advisors and former Fed economist, appeared on CNBC’s “Squawk on the Street” to talk about her 2026 outlook.
She stated that while there are a lot of unanswered questions, her outlook for the year is “relatively positive”. She was of the view that we need to transition out of the low-hire labor market into one where we see a hiring pickup, and there is potential to do so. The first half of the year would provide insight into these dynamics, with the Fed lowering interest rates and trying to frontload some of the insurance against the labor market deteriorating.
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In addition, we have some fiscal stimulus coming on early in the year with tax cuts for households and for businesses. We would, therefore, get considerable clarity early in the year if we are going to get some oomph to get the labor market going again. That, according to her, is critical for sustained growth instead of just a couple of quarters of really outsized GDP growth.
Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania and chief economist at WisdomTree, also appeared on CNBC’s “Squawk Box” the same day to talk about his outlook for 2026. He exhibited similar sentiments, stating that while the stock market has some bumps to cover in January, 2026 looks like a positive year if it manages to overcome them.
With these trends in view, let’s look at the best strong buy stocks to invest in right now.
Our Methodology
We used stock screeners to make a list of strong buy stocks that analysts were bullish on and then selected the top 13 stocks with the highest number of hedge fund holders as of Q3 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on January 2.
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 Best Strong Buy Stocks to Invest in Right Now
13. SailPoint, Inc. (NASDAQ:SAIL)
Analyst Upside: 42.48%
Number of Hedge Fund Holders: 25
SailPoint, Inc. (NASDAQ:SAIL) is one of the best strong buy stocks to invest in right now. Mizuho Securities reaffirmed a Hold rating on SailPoint, Inc. (NASDAQ:SAIL) on December 16 and set a price target of $23.00. SailPoint, Inc. (NASDAQ:SAIL) also received a rating update from Scotiabank on December 10, with the firm lowering the price target to $24 from $25 and maintaining an Outperform rating on the shares. It told investors that while fiscal Q3 annual recurring revenue (ARR) beat was a “tad underwhelming”, the trends were offset by strong fiscal Q4 ARR guidance. The firm continues to believe that the risk-reward on SailPoint, Inc. (NASDAQ:SAIL) skews to the upside.
In addition to Scotiabank, Mizuho also lowered the price target on the stock to $23 from $24 the same day while reaffirming a Neutral rating. The firm told investors in a research note that SailPoint, Inc. (NASDAQ:SAIL) delivered a strong fiscal Q3 with 28% total annual recurring revenue growth and 38% SaaS ARR, both of which slightly exceeded expectations. These trends were attributed to solid cloud-migration activity and broad demand. It added that the company’s IGA platform, along with its SaaS transition, lends it a strong position for long-term ARPU expansion. Mizuho, however, also stated that the extent of future cross-selling traction remains uncertain.
SailPoint, Inc. (NASDAQ:SAIL) provides an elaborate identity security platform for the enterprise, with its solutions allowing organizations to control, establish, and automate policies that allow them to attain regulatory compliance and define and maintain a robust security posture.
12. D-Wave Quantum Inc. (NYSE:QBTS)
Analyst Upside: 42.20%
Number of Hedge Fund Holders: 28
D-Wave Quantum Inc. (NYSE:QBTS) is one of the best strong buy stocks to invest in right now. D-Wave Quantum Inc. (NYSE:QBTS) was initiated with an Outperform rating by Wedbush on December 17 with a price target of $35. The firm told investors that although still in its infancy, it sees the industry and the company benefiting from broad commercial adoption as the next major catalyst. This holds especially true since D-Wave Quantum Inc.’s (NYSE:QBTS) annealing systems are ready for commercial use. Wedbush added that the combination of the company’s significant real-world advantages from optimization and its considerable addressable market is applicable across various industries and verticals, making D-Wave Quantum Inc. (NYSE:QBTS) a compelling investment when coupled with the anticipated energy efficiencies.
Jefferies also initiated coverage of D-Wave Quantum Inc. (NYSE:QBTS) on December 16 with a Buy rating and a $45 price target, detailing that the company is well-positioned to benefit from ecosystem tailwinds elevating sentiment and usage across quantum architectures. It further stated that with Advantage2 commercially available through Leap, these catalysts point towards bigger experimentation budgets, customer education, and pilots that feed the annealing funnel.
D-Wave Quantum Inc. (NYSE:QBTS) is involved in the development and delivery of quantum computing systems, services, and software, offering customers access to its quantum computing systems through the cloud in the form of quantum computing as a service.
11. IonQ Inc. (NYSE:IONQ)
Analyst Upside: 56.08%
Number of Hedge Fund Holders: 30
IonQ Inc. (NYSE:IONQ) is one of the best strong buy stocks to invest in right now. IonQ Inc. (NYSE:IONQ) announced on December 29 the continuation of a strategic partnership with the Korea Institute of Science and Technology Information (KISTI), along with the forthcoming delivery of a 100-qubit IonQ Tempo quantum system. The finalized agreement entails the delivery of IonQ Inc.’s (NYSE:IONQ) next-generation Tempo 100 quantum system to support KISTI’s hybrid quantum-classical research initiatives and marks a significant milestone in the establishment of South Korea’s National Quantum Computing Center of Excellence.
Management detailed that the system would be integrated into KISTI-6, which is the largest high-performance computing (HPC) cluster in Korea, creating the instance of hybrid quantum-classical onsite integration in the country. The compute cluster could be available to be accessed through a secure private cloud environment, allowing remote access to South Korean universities, researchers, and enterprise users.
Niccolo de Masi, Chairman and CEO of IonQ Inc. (NYSE:IONQ), stated that the historic collaboration with KISTI would allow the delivery of the expertise, algorithms, and infrastructure essential to derive long-term technological and economic value from IonQ leading quantum computers.
IonQ Inc. (NYSE:IONQ) also reported that the development and operation of a quantum computing service and research platform would be led by KISTI, and it has identified IonQ Inc. (NYSE:IONQ) as the primary quantum technology provider for the project, along with Megazone Cloud, a leading cloud service and infrastructure provider in South Korea.
IonQ Inc. (NYSE:IONQ) is involved in the development and manufacturing of quantum computers, and it specializes in quantum computing and quantum information processing.
10. Aecom (NYSE:ACM)
Analyst Upside: 50.41%
Number of Hedge Fund Holders: 37
Aecom (NYSE:ACM) is one of the best strong buy stocks to invest in right now. On December 19, Barclays analyst Adam Seiden downgraded Aecom (NYSE:ACM) to Equal Weight from Overweight and brought the price target down to $100 from $135. The rating update came as part of the firm adjusting ratings in the machinery and construction group to reflect its 2026 outlook, with the firm maintaining a positive outlook for the sector going into 2026.
Barclays anticipates modest share gains following several years of strong performance, and is inclined towards machinery and rental companies because of macroeconomic and cyclical factors. The firm added that the price target downgrade for Aecom (NYSE:ACM) exhibits its targets being tied to AI, which adds “complexity” to the matter and could impede the stock’s multiple.
Aecom (NYSE:ACM) also received a rating update from Truist on December 18. The firm lowered its price target on the stock to $126 from $148 while maintaining a Buy rating. It provided the rating update as part of a broader research note previewing Machinery, Infrastructure Services, and Multi-Industry industrial names in 2026, stating that it continues to favor the broader power markets, such as Transmission & Distribution and Power Generation, supported by data centers or AI.
However, Truist also believes that investors would be looking for cracks showing a peak in demand, and thus backlog growth would be a significant focus. This holds especially true given the risks related to hyperscalers and as capacity comes online.
Aecom (NYSE:ACM) designs, manufactures, finances, and operates infrastructure assets for businesses, governments, and organizations. The company’s operations are divided into the following segments: Americas, International, and AECOM Capital.
9. AeroVironment, Inc. (NASDAQ:AVAV)
Analyst Upside: 52.04%
Number of Hedge Fund Holders: 37
AeroVironment, Inc. (NASDAQ:AVAV) is one of the best strong buy stocks to invest in right now. AeroVironment, Inc. (NASDAQ:AVAV) was initiated with an Overweight rating by KeyBanc on December 18 with a $285 price target. The firm expressed optimism on the company’s solid leverage to defense space and tech growth, industry-leading margin, differentiated product portfolio, expansion into advanced cUAS/interceptors, competitive moat from defense backlog and BlueHalo acquisition, and expansion into advanced cUAS/interceptors. KeyBanc justified the stock’s premium valuation with the company’s position as a high-quality defense tech leader, its idiosyncratic growth drivers, and a strong macro backdrop.
In another development, Bank of America Securities reaffirmed a Buy rating on AeroVironment, Inc. (NASDAQ:AVAV) on December 17 and retained the price target at $450. While the firm acknowledged the company’s recent stock decline, attributed primarily to delays in task order awards and margin compression, it views it as an overreaction, and stated that higher demand for the company’s products in both domestic and international markets is a positive indicator for its growth trajectory. In addition, it considers challenges to be temporary, including the effects of a government shutdown and integration complications from the BlueHalo acquisition.
Bank of America Securities also supported the optimistic outlook with the solid performance of AeroVironment, Inc.’s (NASDAQ:AVAV) SCDE products, particularly within the C-UAS portfolio, along with the promising lead of its BADGER phased array antenna and Locust Laser Weapon System.
AeroVironment, Inc. (NASDAQ:AVAV) is involved in the development, design, and production of multi-domain robotic systems and associated services for government agencies and businesses. The company operates through the following business segments: UnCrewed Systems, Loitering Munitions Systems, and MacCready Work.
8. Applied Digital Corp. (NASDAQ:APLD)
Analyst Upside: 51.19%
Number of Hedge Fund Holders: 38
Applied Digital Corp. (NASDAQ:APLD) is one of the best strong buy stocks to invest in right now. On December 30, Northland reiterated an Outperform rating on Applied Digital Corp. (NASDAQ:APLD) with a $40 price target, establishing the stock as a top pick for 2026. It stated that the company holds a strategic position to outperform its peers next year, supported by its ability to execute on schedule, the continued demand for power by hyperscalers, and its notable power assets’ pipeline.
The rating update came after Applied Digital Corp. (NASDAQ:APLD) announced, along with EKSO Bionics Holdings, Inc., on December 29 its entry into a non-binding term sheet for a proposed business combination of the former’s cloud computing business, Applied Digital Cloud, with EKSO. Once closed, the deal will go forward as ChronoScale Corporation, an accelerated compute platform specialized to support AI workloads. Management stated that the proposed transaction is targeted at creating a focused platform design to deliver high-performance compute at scale in a capacity-constrained market, all in a backdrop where enterprise and AI-native demand for GPU-accelerated cloud infrastructure is continually growing rapidly.
Applied Digital Corp. (NASDAQ:APLD) added that the separation of the accelerated compute platform from its data center ownership and development business would allow each business to scale independently, conduct operations with increased strategic and capital flexibility, and pursue distinct growth trajectories.
Applied Digital Corp. (NASDAQ:APLD) is a technology company that provides the development and operation of data centers offering computing power. The company’s operations are divided into the Data Center Hosting Business and HPC Hosting Business segments.
7. Birkenstock Holding plc (NYSE:BIRK)
Analyst Upside: 44.13%
Number of Hedge Fund Holders: 40
Birkenstock Holding plc (NYSE:BIRK) is one of the best strong buy stocks to invest in right now. Bernstein cut the price target on Birkenstock Holding plc (NYSE:BIRK) to $55 from $63 on December 30, keeping a Market Perform rating on the shares and telling investors that the company may experience “significant headwinds” in fiscal 2026. It explained that Birkenstock Holding plc (NYSE:BIRK) has guided gross margin headwinds of 200 basis points, which effectively halves the earnings contribution of any sales growth when combined with a higher anticipated tax rate.
The rating update came after Birkenstock Holding plc (NYSE:BIRK) announced results for fiscal Q4 and fiscal year ended September 30, 2025, on December 18, reporting fiscal 2025 revenue growth of 16% and 18% on a constant currency basis, surpassing its guidance of 15-17%. These positive trends were supported by solid consumer demand across all segments, categories, and channels. Adjusted EBITDA margin for the year was 31.8%, reaching the high end of the company’s guidance range of 31.3-31.8%, despite currency translation and tariff headwinds of 70 basis points for the fiscal year.
Birkenstock Holding plc (NYSE:BIRK) also provided guidance for the fiscal year ending September 30, 2026, and expects revenue growth in constant currency of 13-15%. This translates into reported revenue of EUR 2.30-2.35 billion and growth of 10-12% with a currency translation headwind of around 300-350 basis points.
Birkenstock Holding plc (NYSE:BIRK) is involved in the manufacture and sale of footbed-based products, and operates through the following geographical segments: Americas, Europe, and APMA.
6. Samsara Inc. (NYSE:IOT)
Analyst Upside: 47.41%
Number of Hedge Fund Holders: 42
Samsara Inc. (NYSE:IOT) is one of the best strong buy stocks to invest in right now. Samsara Inc. (NYSE:IOT) was initiated with a Buy rating and $55 price target by BTIG on December 16, with the firm telling investors that despite scaling to $1.7 billion in annual recurring revenue, the company remained one of the fastest-growing software companies. BTIG considers Samsara Inc. (NYSE:IOT) to be a leader in a highly attractive end-market linked to operational budgets, with it continually gaining market share. With a considerably sized total addressable market, the firm sees efficient and durable growth continuing over the medium term.
In addition to BTIG, KeyBanc also initiated coverage of Samsara Inc. (NYSE:IOT) on December 10 with an Overweight rating and a $55 price target. The firm stated that it believes the company’s end-to-end platform for operations is in a suitable position for addressing the $45 trillion “physical operations” industry, adding that Samsara Inc. (NYSE:IOT) boasts “multiple avenues” to sustain and pursue premium growth for the long-term. The firm considers the stock’s current valuation discount to peers to be warranted, provided its ability to sustain premium growth.
Samsara Inc. (NYSE:IOT) also received a rating update from TD Cowen on December 5, with the firm lifting the price target to $55 from $49 while reaffirming a Buy rating on the shares. The firm told investors that it considers Samsara Inc. (NYSE:IOT) to be a top software executor, reporting a solid quarter with impressive momentum and considerable new growth unlocked and taking hold, and thus continues to see strong beat and raise motions in the future in a backdrop of steady execution.
Samsara Inc. (NYSE:IOT) develops internet-connected sensor systems, combining wireless connectivity, plug-and-play sensors, and cloud-hosted software integrated for deployment. The company offers AI-powered safety programs that train and protect employees.
5. Klaviyo, Inc. (NYSE:KVYO)
Analyst Upside: 53.48%
Number of Hedge Fund Holders: 48
Klaviyo, Inc. (NYSE:KVYO) is one of the best strong buy stocks to invest in right now. On January 2, Klaviyo, Inc. (NYSE:KVYO) was initiated with a Buy rating by BTIG with a price target of $40. In a separate development, Klaviyo, Inc. (NYSE:KVYO) reported positive trends in its 2025 BFCM Recap Report, showing that the five days between Thanksgiving and Cyber Monday (BFCM) exhibited record-breaking trends, which were not just promoted by deep discounts but also AI-powered personalization and loyalty.
Brands using Klaviyo experienced outsized growth and engagement even when industry-wide discount rates fell. Key findings from the report showed that Klaviyo, Inc. (NYSE:KVYO) delivered over 22.7 billion messages over BFCM, reflecting a 25% year-over-year growth and generating more than $3.8 billion in KAV for its customers.
In addition, AI-powered recommendations allowed the customers to keep browsing longer, extending onsite engagement and product discovery. Consumer spending also rose 11% year-over-year, even with discounts falling 10% year-over-year, showing that the company’s loyalty drove performance instead of just promotions.
Klaviyo, Inc. (NYSE:KVYO) further reported that one in every $20 spent online in the United States over BFCM stemmed from an experience or message delivered by Klaviyo. Sales in Health & Beauty rose 14% year-over-year, while those in Apparel grew 11% year-over-year.
Klaviyo, Inc. (NYSE:KVYO) is involved in the provision of a SaaS marketing platform and offers personal ecommerce marketing reinvented for online stores on Bigcommerce, Shopify, and Magento.
4. Rubrik, Inc. (NYSE:RBRK)
Analyst Upside: 54.37%
Number of Hedge Fund Holders: 52
Rubrik, Inc. (NYSE:RBRK) is one of the best strong buy stocks to invest in right now. On December 29, Stephens initiated coverage of Rubrik, Inc. (NYSE:RBRK) with an Overweight rating and a $105 price target, telling investors that the company boasts an attractive growth outlook in data security and data protection. It expects the company’s margin expansion to complement top-line growth and believes that its unified platform approach presents a disruptive move from legacy architectures, combining recovery, backup, data observability, and ransomware investigation.
Rubrik, Inc. (NYSE:RBRK) also received a rating update from William Blair on December 19, who reaffirmed a Buy rating on the stock and stated that he views the company as a proven multiproduct platform with a unified SaaS control plane that positions it well amid data environments becoming increasingly complex.
The firm also cited the company’s exceptional execution to justify its premium valuation multiple, with an elaborate runway for platform-led expansion, one of the fastest growth profiles at its scale, and improving cash-flow dynamics. William Blair believes that Rubrik, Inc.’s (NYSE:RBRK) management exhibited the necessary nonconsensus, forward-looking decision-making required to capture new whitespace opportunities and build a multigenerational and durable software franchise.
Rubrik, Inc. (NYSE:RBRK) provides cloud data management solutions, which include VM backup, backup and recovery, ransomware recovery, cloud solutions, database backup, and Polaris sonar. The company’s products include data security posture, data threat analytics, data protection, and cyber recovery.
3. QXO, Inc. (NYSE:QXO)
Analyst Upside: 52.13%
Number of Hedge Fund Holders: 65
QXO, Inc. (NYSE:QXO) is one of the best strong buy stocks to invest in right now. William Blair cut its estimates for QXO, Inc. (NYSE:QXO) on December 31 after a soft roofing survey and reaffirmed an Overweight rating on the shares. The firm brought its fiscal Q4 EBITDA estimate down to $152 million compared to the Street’s $203 million, and also lowered its fiscal Q1 EBITDA estimate to $130 million compared to $167 million by the Street. However, William Blair stated that it views QXO, Inc. (NYSE:QXO) investors to be increasingly focused on the next transformational M&A deal, believing that a sizeable deal would boost investor confidence and thus encourages investors to “use bumps along the road to add to positions.”
In another development, Truist cut the price target on QXO, Inc. (NYSE:QXO) to $26 from $28 on December 19 and maintained a Buy rating on the stock. The firm told investors that it adjusted its model to take into account several factors, such as the rising price pressure in some regions, lack of storms, and weakness in the R&R market. However, it added that its 2026 estimates remain unchanged and are heavily driven by M&A, as it believes the company will close another deal in the near future. Truist also stated that the departure of the company’s CEO expedites a large deal.
QXO, Inc. (NYSE:QXO) distributes roofing, waterproofing, and complementary building products in the United States. The company has plans to become a tech-enabled player in the building products distribution industry.
2. Datadog, Inc. (NASDAQ:DDOG)
Analyst Upside: 61.84%
Number of Hedge Fund Holders: 72
Datadog, Inc. (NASDAQ:DDOG) is one of the best strong buy stocks to invest in right now. Monness Crespi & Hardt reiterated a Buy rating on Datadog, Inc. (NASDAQ:DDOG) on December 29 and set a price target of $255. The firm told investors that the optimistic rating is based on several factors that are not reflected in the company’s recent share price weakness, contending that the sharp pullback after a record high is excessive when compared to the company’s long-term prospects and underlying performance. Despite a challenging macroeconomic backdrop, the firm believes that Datadog, Inc. (NASDAQ:DDOG) is structurally well-positioned to benefit from the increasing complexity of IT environments in the era of generative AI, as well as the ongoing cloud adoption.
The firm further cited Datadog, Inc.’s (NASDAQ:DDOG) strong 2025 execution as a significant factor supporting the optimistic outlook, attributable to healthy usage trends in its consumption-based model and the solid demand for its cloud-native observability and security platform. The company is continuously embedding Gen AI, like Bits AI, within its platform and is rapidly bolstering AI observability capacities, which, according to the firm, points towards meaningful incremental demand in the future. The firm thus sees the current valuation for the stock as an attractive entry point for long-term investors.
Datadog, Inc. (NASDAQ:DDOG) is involved in the development of a monitoring and analytics platform for business users, information technology operations teams, and developers. The platform automates and integrates application performance monitoring, infrastructure monitoring, and log management to offer real-time observability of the entire technology stack of its customers.
1. ServiceNow, Inc. (NYSE:NOW)
Analyst Upside: 55.99%
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) is one of the best strong buy stocks to invest in right now. On December 30, Canaccord Genuity reaffirmed a bullish stance on ServiceNow, Inc. (NYSE:NOW), giving the stock a Buy rating with a price target of $224.00.
In a separate development, ServiceNow, Inc. (NYSE:NOW) announced on December 23 that it entered into an agreement to acquire Armis, a leading company in cyber exposure management and cyber physical security, for $7.75 billion in cash. Armis manages cyber risk across the full attack surface in IT, medical devices, operational technology (OT), and other environments for governments, companies, and critical infrastructure across the globe. Management stated that the acquisition would expand ServiceNow, Inc.’s (NYSE:NOW) security workflow offerings while also advancing AI-native, proactive cybersecurity, and vulnerability response across all connected devices.
The agreement would bring the two companies together to form an end-to-end security exposure and operations stack able to decide, see, and act across the entirety of the technology footprint through connections between threat intelligence, real-time asset discovery, and risk prioritization.
In another development, ServiceNow, Inc. (NYSE:NOW) announced on December 15 the acquisition of Moveworks, which advances the company’s goal of putting AI to work for people. The initiative merges Moveworks’ intuitive front-end AI assistant, enterprise search, and agentic Reasoning Engine with ServiceNow, Inc.’s (NYSE:NOW) trusted agentic AI and intelligent workflows, expanding the ability of the ServiceNow AI Platform to drive faster outcomes, create compelling AI experiences, scale AI adoption, and redefine employee-work engagement.
ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.
While we acknowledge the potential of NOW 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 NOW and that has 100x upside potential, check out our report about this cheapest AI stock.
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