On February 26, Jay Woods of Freedom Capital Markets, Seana Smith of Global X ETFs, and Eric Mandl of Guggenheim Securities joined CNBC to suggest that strong tech results eased AI fears, but volatility, geopolitics, and rotation into energy keep markets cautious. Smith characterized the recent tech earnings as impressive, specifically highlighting Nvidia’s 75% data center revenue growth as a factor that should calm emerging fears within the AI trade. She contrasted this with the anxiety surrounding software names following Salesforce’s results and noted that while the software sector is undergoing a repricing, a total collapse is unlikely. Smith anticipates a multi-year period where clear winners and losers will emerge within the space.
Woods identified anxiety as the prevailing market sentiment, but suggested that guidance has shown the situation is not as dire as feared. He pointed to the price action of Workday as a potential tell and noted that despite a poor quarter, the stock’s ability to close higher after a gap lower suggests the sector may have found a floor. Mandl expanded on the AI opportunity by referencing Dan Ives’ observation of $6 billion year-to-date from physical AI and robotics at Nvidia. Mandl argued that the massive capital expenditure flowing through the system helps substantiate market valuations. He emphasized the critical need for agentic AI and platform providers to leverage relationships with traditional software companies and noted that model training will require significant time, energy, and dependency on established software infrastructure. Furthermore, discussing market rotation and energy, Woods noted that while technology did not pull the market down, investors are rotating into the utility and energy sectors.
That being said, we’re here with a list of the 15 best NASDAQ stocks to buy according to hedge funds.
Our Methodology
We used screeners to identify NASDAQ stocks that are popular among analysts and elite hedge funds, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Note: All data was sourced on March 6.
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).
15 Best NASDAQ Stocks to Buy According to Hedge Funds
15. Lamar Advertising Company (NASDAQ:LAMR)
Lamar Advertising Company (NASDAQ:LAMR) is one of the best NASDAQ stocks to buy according to hedge funds. On February 20, Lamar Advertising reported its financial results for 2025, highlighting a period of growth for the outdoor advertising provider. For Q4, net revenues rose 2.8% to $595.9 million, while net income reached $154.7 million, which was a significant recovery from the net loss recorded in the same period of 2024. Adjusted EBITDA for the quarter also saw a 3.7% increase, totaling $288.9 million. The Chief Executive attributed this performance to strong sales momentum in both local and national markets.
The full-year results reflected a similar upward trend, with annual net revenues climbing 2.7% to $2.27 billion. Net income for 2025 increased by 63.4% to $593.1 million, supported by a $68.6 million gain from the sale of an equity interest in Vistar Media and adjustments related to previous asset retirement obligations.
As of year-end 2025, Lamar Advertising Company (NASDAQ:LAMR) maintained a total liquidity of $807.0 million, including $64.8 million in cash and substantial availability under its credit facilities. For 2026, the company expressed optimism regarding continued sales strength and promising pacing for the remainder of the year. Management issued guidance for FY2026, projecting diluted net income per share between $5.72 and $5.83.
Lamar Advertising Company (NASDAQ:LAMR) is one of the largest outdoor advertising companies in North America, with over 362,000 displays across the US and Canada. Lamar offers advertisers a variety of billboards, interstate logo, transit, and airport advertising formats.
14. Liberty Media Corporation (NASDAQ:FWONK)
Liberty Media Corporation (NASDAQ:FWONK) is one of the best NASDAQ stocks to buy according to hedge funds. On February 26, Liberty Media Corporation announced earnings for 2025, headlined by the successful acquisition of MotoGP and the split-off of Liberty Live Holdings. The company reported consolidated annual revenue of $4.48 billion, which was a 23% increase over the previous year, while consolidated operating income more than doubled to $577 million.
These results were supported by the integration of MotoGP and continued commercial scaling across the portfolio. President and CEO Derek Chang noted that the company met key objectives in strengthening Formula 1’s trajectory and streamlining the corporate structure to drive shareholder value. Formula 1 finished its 75th anniversary season with record-breaking metrics, including a 14% increase in annual revenue to $3.9 billion and a 28% jump in operating income to $632 million. Fan engagement reached new heights with total attendance of 6.75 million and a 21% increase in live viewership.
The division’s primary revenue streams (race promotion, media rights, and sponsorship) all saw gains driven by contractual increases and the continued success of the F1 TV subscription service. Notable developments included the sell-out of the Las Vegas Grand Prix, which generated 1.8 billion social impressions, and the signing of the Concorde Agreement with all teams and the FIA through 2030. The newly acquired MotoGP division also showed momentum, contributing $325 million in revenue to Liberty’s actual results since its acquisition date. For 2026, the company plans to focus on sustaining F1’s global momentum and scaling MotoGP’s commercial functions through new race locations.
Liberty Media Corporation (NASDAQ:FWONK) is an American mass media company. It has two divisions, both represented by separate tracking stocks, reflecting its ownership stakes in the Formula One Group and Live Nation Entertainment.
13. Verisk Analytics Inc. (NASDAQ:VRSK)
Verisk Analytics Inc. (NASDAQ:VRSK) is one of the best NASDAQ stocks to buy according to hedge funds. On February 23, Verisk Analytics officially entered into accelerated share repurchase agreements to buy back $1.5 billion of its common stock. The transactions are being conducted with HSBC Bank USA and Wells Fargo Bank as the primary counterparties. Upon the inception of these agreements, the banks are expected to provide an initial delivery of ~7.0 million shares to the company.
This substantial move follows Verisk’s broader strategic goals as a data analytics and technology partner for the global insurance industry. The final number of shares retired through this initiative will be determined by the daily volume-weighted average price of Verisk’s common stock during the calculation period, minus a pre-negotiated discount. According to the terms, the final settlement for these transactions is anticipated to conclude no later than the end of the third fiscal quarter on September 30. Even after the completion of this $1.5 billion allocation, ~$1.0 billion remains available under the company’s previously authorized share repurchase program.
Verisk Analytics Inc. (NASDAQ:VRSK) maintains the flexibility to continue purchasing shares on the open market depending on prevailing market conditions. The company continues to focus its core operations on providing advanced data analytics and software to help insurance clients manage global risks, ranging from catastrophic events to climate change.
Verisk Analytics Inc. (NASDAQ:VRSK) provides data analytics and technology solutions to the insurance industry in the US and internationally.
12. Kimberly-Clark Corporation (NASDAQ:KMB)
Kimberly-Clark Corporation (NASDAQ:KMB) is one of the best NASDAQ stocks to buy according to hedge funds. On March 6, Kimberly-Clark announced the appointment of Francesco Tinto as its new Chief Information and Global Business Services/GBS Officer, effective March 9. In this dual leadership role, Tinto will oversee the company’s Information Technology and GBS organizations, reporting directly to the President and Chief Operating Officer, Russ Torres.
As a new member of the executive leadership team, his arrival is intended to support the company’s Powering Care strategy by integrating technology and business services to accelerate execution and improve overall results. Tinto joins the Dallas-based consumer goods giant with over 30 years of experience in technology leadership and digital transformation. Most recently, he served as Chief Digital Officer at Advantage Solutions, focusing on technology modernization.
His background also includes high-level roles at Walgreens Boots Alliance, where he directed digital overhauls, and Kraft Heinz, where he managed the technology integration following the company’s merger and established a global business services division. Earlier in his career, he held various technical leadership positions at Procter & Gamble. Tinto expressed enthusiasm for joining Kimberly-Clark Corporation (NASDAQ:KMB) and noted that the alignment of tech and business services presents a significant opportunity to drive faster and stronger outcomes for its portfolio of iconic brands.
Kimberly-Clark Corporation (NASDAQ:KMB), together with its subsidiaries, manufactures and markets personal care products in the US. It has two segments: North America and International Personal Care.
11. Trip.com Group Limited (NASDAQ:TCOM)
Trip.com Group Limited (NASDAQ:TCOM) is one of the best NASDAQ stocks to buy according to hedge funds. On February 25, Trip.com reported financial performance for 2025, with full-year net revenue reaching RMB62.4 billion, which was a 17% increase year-over-year. For Q4, the company recorded net revenue of RMB15.4 billion, up 21% year-over-year, driven by resilient travel demand. Net income for the full year rose to RMB33.4 billion due to substantial investment gains.
Accommodation reservations and transportation ticketing remained the primary revenue drivers, representing 42% and 36% of the total annual revenue. Trip.com Group Limited’s (NASDAQ:TCOM) international business saw major expansion, with bookings on its international platform increasing by ~60% year-over-year. Trip.com Group served ~20 million inbound travelers in 2025.
Significant leadership changes were also announced in the report, as co-founders Min Fan and Qi Ji resigned from their board positions. To maintain diverse expertise, the company appointed May Yihong Wu and Iris Yang Xiao as new independent directors. Additionally, the company disclosed that it is currently cooperating with an ongoing anti-monopoly investigation by the State Administration for Market Regulation that began in January this year. Despite this, management stated that business operations remain normal and the company remains focused on its global growth strategy.
Trip.com Group Limited (NASDAQ:TCOM), through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, in-destination, corporate travel management, and other travel-related services in China and internationally.
10. Paychex Inc. (NASDAQ:PAYX)
Paychex Inc. (NASDAQ:PAYX) is one of the best NASDAQ stocks to buy according to hedge funds. On February 26, Paychex announced new AI-driven advancements within its Paycor and Paychex Flex platforms, aimed at streamlining workforce management for businesses. These updates focus on automating complex HR tasks such as scheduling, time and attendance, and payroll preparation.
According to research cited by the company, these types of modern automation tools can significantly improve operational efficiency, potentially returning over $12 for every dollar invested and reducing scheduling time by up to 50%. The latest technological enhancements include the Paycor Smart Scheduler, which uses AI to match employee skills and availability to specific shifts while adhering to business rules.
Another key feature, Paycor Agentic Timesheet Approvals, automatically scores timecards against set thresholds and flags only anomalies for human review, accelerating the pre-payroll process. Additionally, the Paycor Auto-Shifts tool helps managers create optimized shift plans that account for labor laws and fair-workweek regulations to reduce manual errors.
For users of the Paychex Flex platform, new AI-powered time-off tools provide historical insights to help managers identify peak leave periods and staffing conflicts. Paychex Inc. (NASDAQ:PAYX) also previewed an upcoming Time-Off Request Agent, which will offer assistant-guided recommendations for leave requests based on holidays and staffing levels.
Paychex Inc. (NASDAQ:PAYX), together with its subsidiaries, provides human capital management solutions /HCM for payroll, employee benefits, HR, and insurance services for small to medium-sized businesses in the US, Europe, and India.
9. Argenx SE (NASDAQ:ARGX)
Argenx SE (NASDAQ:ARGX) is one of the best NASDAQ stocks to buy according to hedge funds. On February 26, Argenx reported earnings for 2025, achieving its first year of annual operating profitability with $4.2 billion in net product sales, a 90% increase over 2024. This growth was fueled by the global adoption of VYVGART, which reached 19,000 patients by year-end. Management highlighted the successful launch of the prefilled syringe as a significant driver of demand, contributing to a surge of 1,000 new prescribers since its introduction.
In clinical developments, the company announced positive results from the Phase III ADAPT-OCULUS study for ocular Myasthenia Gravis/MG. The study met its primary endpoint, showing statistically significant improvements in patient-reported ocular symptoms like double vision and drooping eyelids. With a PDUFA date for seronegative MG set for May 10, and plans to file for the ocular MG indication, Argenx aims to establish the broadest MG label in the industry, targeting an addressable US population of ~60,000 patients.
For 2026, Argenx SE (NASDAQ:ARGX) expects operating expenses to grow in alignment with revenue expansion as it scales its commercial infrastructure and advances its immunology pipeline. Beyond MG, the company is focused on the ongoing launch in CIDP and upcoming readouts for Sjögren’s disease and myositis.
Argenx SE (NASDAQ:ARGX) is a commercial-stage biopharma company that develops therapies for autoimmune diseases in the US, Japan, China, the Netherlands, and internationally.
8. Teradyne Inc. (NASDAQ:TER)
Teradyne Inc. (NASDAQ:TER) is one of the best NASDAQ stocks to buy according to hedge funds. On February 2, Teradyne reported Q4 2025 revenue of $1.083 billion, which marked a 44% increase over the same period in 2024 and exceeded the high end of its guidance. This growth was driven by the Semiconductor Test division, which generated $883 million, fueled by intense AI-related demand in compute, networking, and memory. For the full year, the company achieved total revenue of $3.19 billion, representing a 13% increase from 2024.
Financial performance for the quarter showed GAAP net income of $257.2 million, or $1.63 per diluted share, while non-GAAP earnings reached $1.80 per diluted share. The CEO noted that all business groups (Semiconductor Test, Product Test, and Robotics) experienced sequential growth during the period. The Robotics segment specifically contributed $89 million to the quarterly total, while Product Test brought in $110 million.
Looking ahead to 2026, management expects continued year-over-year growth across all business units, with AI-driven compute demand remaining a major tailwind. Teradyne Inc. (NASDAQ:TER) issued guidance for Q1 2026, projecting revenue between $1.15 billion and $1.25 billion. Non-GAAP net income for the upcoming quarter is expected to range from $1.89 to $2.25 per diluted share.
Teradyne Inc. (NASDAQ:TER) designs, develops, manufactures, and sells automated test systems and robotics products in the US, Asia Pacific, Europe, the Middle East, and Africa. The company operates through Semiconductor Test, Robotics, and Other segments.
7. Synopsys Inc. (NASDAQ:SNPS)
Synopsys Inc. (NASDAQ:SNPS) is one of the best NASDAQ stocks to buy according to hedge funds. On March 2, Synopsys entered into an accelerated share repurchase agreement with The Bank of Nova Scotia to buy back $250 million of its common stock. This initiative is part of the Sunnyvale-based company’s broader capital allocation strategy. At the start of the agreement, Synopsys is expected to receive an initial delivery of ~513,000 shares.
The final number of shares to be repurchased will be determined by the average daily volume-weighted average price of Synopsys Inc. (NASDAQ:SNPS) stock during the repurchase period, minus a pre-determined discount. This structured approach allows the company to retire a significant portion of shares quickly, while the specific final count is adjusted based on market performance over the duration of the program.
The transaction is expected to be fully settled on or before June 1. This timeline provides a clear window for the completion of the buyback, ensuring that the remaining shares, if any, are accounted for by the end of the second quarter. This move reflects the company’s ongoing efforts to manage its share count and deliver value to its investors.
Synopsys Inc. (NASDAQ:SNPS) provides design IP solutions in the semiconductor and electronics industries. It operates in two segments: Design Automation and Design IP.
6. Coca-Cola Europacific Partners (NASDAQ:CCEP)
Coca-Cola Europacific Partners (NASDAQ:CCEP) is one of the best NASDAQ stocks to buy according to hedge funds. On February 17, Coca-Cola Europacific Partners reported financial performance for 2025, with total revenue reaching €20.9 billion, a 2.3% increase on a comparable basis. The company achieved a reported operating profit of €2.79 billion, marking a 31% increase year-over-year, supported by productivity gains and the full-year integration of its Philippines acquisition. Diluted EPS rose to €4.26, and the company generated a comparable free cash flow of €1.84 billion.
Performance varied by region, with the Australia, Pacific, and Southeast Asia segment seeing an 8.6% volume increase, while European volumes remained nearly flat with a slight 0.2% decline. Revenue per unit case grew by 2.9% overall, driven by price increases and a shift toward premium products, though consumer demand in markets like Germany and Indonesia remained challenged by the broader economic environment.
Looking ahead to 2026, Coca-Cola Europacific Partners (NASDAQ:CCEP) announced a new €1 billion share buyback program and issued guidance projecting revenue growth between 3% and 4%. Operating profit is expected to increase by approximately 7%, supported by ongoing efficiency programs and major upcoming events like the 2026 FIFA World Cup.
Coca-Cola Europacific Partners (NASDAQ:CCEP), together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready-to-drink beverages. It offers flavours, mixers, energy drinks, soft drinks, water, enhanced water, isotonic drinks, teas, coffees, juices, and other drinks.
5. Ferrovial (NASDAQ:FER)
Ferrovial (NASDAQ:FER) is one of the best NASDAQ stocks to buy according to hedge funds. On February 25, Ferrovial reported earnings for 2025, marked by an 8.6% increase in revenue to €9.6 billion and a 12.2% rise in adjusted EBITDA to €1.5 billion on a like-for-like basis. While net profit settled at €888 million, a decrease from the previous year’s figure that had been inflated by significant asset rotation gains, the company saw robust contributions from its North American highways and construction divisions.
The Highways division was a primary growth driver, with revenues climbing 13.7% to €1.4 billion due to the performance of US Express Lanes and the 407 ETR in Canada. This segment provided a record €968 million in dividends from infrastructure projects. Meanwhile, the Construction division reached an all-time high order book of €17.4 billion, with North America representing nearly half of that total. Ferrovial (NASDAQ:FER) also progressed on its New Terminal One project at JFK International Airport, securing agreements with 25 airlines as systems integration continues.
Financially, Ferrovial maintained a solid position with €5.1 billion in liquidity and successful divestments in Heathrow and AGS Airports totaling over €1 billion. These funds supported the acquisition of an additional stake in the 407 ETR and equity injections into the JFK terminal project. For 2026, the CEO emphasized a focus on the US market, where the company has already been shortlisted for several major greenfield infrastructure projects in Tennessee, Georgia, and North Carolina.
Ferrovial (NASDAQ:FER), together with its subsidiaries, develops, constructs, and operates highways and airports in the US, Poland, Spain, the UK, Canada, and internationally. It operates through four segments: Construction, Highways, Airports, and Energy.
4. Xcel Energy Inc. (NASDAQ:XEL)
Xcel Energy Inc. (NASDAQ:XEL) is one of the best NASDAQ stocks to buy according to hedge funds. On February 25, Xcel Energy reached an agreement with Avangrid to extend its existing Power Purchase Agreement for the MinnDakota wind energy project. This extension ensures that Xcel will continue to be the sole offtaker of the electricity produced by the 150 MW facility, which is situated along the Minnesota-South Dakota border.
The MinnDakota project plays a significant role in Xcel Energy’s regional supply, with two-thirds of its capacity located in Lincoln County, Minnesota, and the remainder in Brookings County, South Dakota. Justin Tomljanovic, Xcel Energy Inc.’s (NASDAQ:XEL) senior vice president of Corporate Finance and Strategic Growth, noted that the extension is a key part of the company’s commitment to providing dependable energy. Beyond power generation, the facility supports the local economy through nine full-time operational jobs and ~$10 million in property taxes paid to date.
This collaboration aligns with Xcel Energy’s goal of supporting local communities while using established infrastructure to meet energy demands. Xcel has been the offtaker for the project since its inception, and this latest agreement solidifies the long-term relationship between the two energy companies. The move allows Xcel to use Avangrid’s significant regional presence, which includes over 900 MW of generation capacity across ten different projects in the Minnesota and South Dakota area.
Xcel Energy Inc. (NASDAQ:XEL), through its subsidiaries, operates as an electric and natural gas delivery company in the US. It operates through the Regulated Electric Utility and Regulated Natural Gas Utility segments.
3. Medline Inc. (NASDAQ:MDLN)
Medline Inc. (NASDAQ:MDLN) is one of the best NASDAQ stocks to buy according to hedge funds. On February 25, Medline reported its Q4 and full-year 2025 financial results, marking a significant year that included the completion of its initial public offering. For Q4, the company achieved net sales of $7.8 billion, representing a 14.8% increase driven by higher volumes in the Medline Brand and Supply Chain Solutions segments.
However, net income for the quarter fell by 37.7% to $180 million, while Adjusted EBITDA remained nearly flat at $805 million, impacted by higher operating costs, IPO-related expenses, and tariff-related costs of goods sold. The full year results showed a 11.5% increase in net sales to $28.4 billion, supported by $2.4 billion in new customer signings. While net income for the year decreased slightly by 3.6% to $1.2 billion due to investments in headcount and tariffs, Adjusted EBITDA grew by 3.2% to $3.5 billion.
Looking ahead, the CEO emphasized that the transition to a public company has strengthened Medline’s foundation for sustainable long-term growth. The company introduced 2026 guidance, projecting organic sales growth between 8% and 9%. Additionally, Medline Inc. (NASDAQ:MDLN) expects Adjusted EBITDA for 2026 to reach a range of $3.5 billion to $3.6 billion as it continues to utilize its distribution footprint and broad product portfolio.
Medline Inc. (NASDAQ:MDLN) manufactures med-surg products serving the hospital, surgery centers, physician offices, post-acute facilities, and nursing home sites of care in the US and internationally. It operates through two segments: Medline Brand and Supply Chain Solutions.
2. American Electric Power Company Inc. (NASDAQ:AEP)
American Electric Power Company Inc. (NASDAQ:AEP) is one of the best NASDAQ stocks to buy according to hedge funds. On March 6, American Electric Power, or simply AEP, announced that Adrian Rodriguez has been named president and chief operating officer of AEP Texas. Joining the company on March 30, Rodriguez will report directly to AEP Chairman, President, and CEO Bill Fehrman. He succeeds Judith Talavera, who has left the organization, while Alex Ramirez, vice president of Distribution Operations, serves as interim president until Rodriguez officially assumes the role.
Rodriguez transitions to AEP Texas from his current role as president of Southwestern Public Service Company, which is a subsidiary of Xcel Energy. His professional background includes leadership positions such as senior vice president of Regulatory & Strategy at Puget Sound Energy and interim CEO at El Paso Electric Company.
The appointment is intended to align with American Electric Power Company Inc.’s (NASDAQ:AEP) strategy to capitalize on growth in Texas by utilizing its 765-kV transmission capabilities and strengthening operational performance. The CEO highlighted Rodriguez’s proven ability to build trust with regulators and local leaders while maintaining a focus on safety and reliability. Rodriguez expressed his commitment to working with the AEP Texas team to build a modernized energy system and create value for local communities during this pivotal growth period for the state.
American Electric Power Company Inc. (NASDAQ:AEP) is an electric public utility holding company that generates, transmits, and distributes electricity for sale to retail and wholesale customers in the US.
1. Honeywell International Inc. (NASDAQ:HON)
Honeywell International Inc. (NASDAQ:HON) is one of the best NASDAQ stocks to buy according to hedge funds. Earlier on January 29, Honeywell reported its full-year 2025 financial results, highlighting a record backlog of over $37 billion. For Q4, sales reached $9.8 billion, a 6% increase driven by strong demand in Aerospace Technologies and Building Automation. While reported operating income fell 35% to $996 million due to one-time impairment charges and litigation settlements, adjusted segment profit rose 23% to $2.3 billion. The company also accelerated the timeline for the spin-off of Honeywell Aerospace, which is now expected to be completed as an independent public company in Q3 2026.
For 2025, Honeywell achieved total sales of $37.4 billion, reflecting 8% growth and exceeding the high end of its original guidance. Full-year EPS remained flat at $7.57, but adjusted EPS grew 12% to $9.78. The Aerospace Technologies segment was a primary performer, with 12% organic growth for the year, led by commercial aftermarket and defense demand.
Looking toward 2026, Honeywell International Inc. (NASDAQ:HON) issued an optimistic outlook with expected sales ranging from $38.8 billion to $39.8 billion and organic growth of 3% to 6%. The company anticipates adjusted EPS between $10.35 and $10.65. Chairman and CEO Vimal Kapur noted that the recent completion of the Solstice Advanced Materials spin-off and the classification of certain warehouse businesses as assets held for sale are critical steps in the company’s ongoing transformation toward higher profitable growth.
Honeywell International Inc. (NASDAQ:HON) engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the US, Europe, and internationally.
While we acknowledge the potential of HON 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 HON and that has 100x upside potential, check out our report about this cheapest AI stock.
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