In this article, we will list the 5 Best Middle East and Africa Stocks to Buy According to Hedge Funds. Please visit 8 Best Middle East and Africa Stocks to Buy According to Hedge Funds if you would like to see the extended list and the methodology behind it.
5. Mobileye Global Inc. (NASDAQ:MBLY)
Number of Hedge Fund Holders: 41
Stock Upside: 10.72%
Mobileye Global Inc. (NASDAQ:MBLY) is one of the best Middle East and Africa stocks to buy according to hedge funds. On April 23, Mobileye Global Inc. (NASDAQ:MBLY) released its Q1 FY2026 financial results and reported revenue of $558 million, a 27% increase year over year, and well ahead of the $519.5 million analysts expected. Adjusted EPS came in at $0.12, which also beat the consensus estimate by 33%.
Photo by George Morina on Pexels
Mobileye’s top leadership, led by Professor Amnon Shashua, CEO and President, explained in an earnings call on the same day that the revenue beat was due to Chinese OEMs exporting vehicles to emerging markets like Asia and South America, where Mobileye holds a higher market share than it does in China’s domestic market. This shift powered nearly half of the upside, the executives said. Another driver the executives pointed to was that advanced driver-assistance systems, or ADAS, fitment rates at the company’s top Western OEM customers continued trending higher.
The company added that operating income for the quarter climbed 61% year on year to $95 million. Adjusted operating margin also grew to 17% compared to 13% in the same quarter last year. The executives stated in the earnings call that this improvement was supported by higher volumes flowing through a largely fixed cost base.
Management revised its full-year 2026 revenue midpoint guidance by 2%. They also revised upwards the anticipated adjusted operating income by 8% at the midpoint.
Mobileye Global Inc. (NASDAQ:MBLY) is an autonomous driving technology company headquartered in Jerusalem, Israel. The company develops ADAS, autonomous driving technologies, and semiconductor solutions used by automotive manufacturers worldwide.
4. JFrog Ltd. (NASDAQ:FROG)
Number of Hedge Fund Holders: 50
Stock Upside: 23.88%
JFrog Ltd. (NASDAQ:FROG) is one of the best Middle East and Africa stocks to buy according to hedge funds. On May 8, Stifel analyst Brad Reback raised his price target on JFrog Ltd. (NASDAQ:FROG) from $52 to $75, and maintained his Buy rating on the stock.
The upgrade reverses a cautious stance the analyst had taken on February 22 when he cut his target from $64 to $52. At the time, Reback argued that Claude Code Security, which Anthropic had just introduced, would weigh on JFrog’s growth prospects. Fast forward, the analyst now believes that JFrog’s place in the market is unassailable, an argument that Reback said is supported by the company’s blowout earnings in Q1 FY2026. He noted that, for the first time, JFrog’s cloud revenue exceeded half of total revenue during the first quarter. The revenue came in at $78.9 million, up 50% year over year, and represented 51% of total revenue, up from 43% the year before.
Total revenue for the quarter reached $154 million, a 26% year over year increase. This growth came on the back of growing enterprise demand for a platform that can manage not just software code but also artificial intelligence models and related components as companies push to deploy AI in real-world settings, noted management.
Given the performance, Reback expects JFrog’s stock to stabilize at the current levels. He pointed out that the nature of growth in JFrog’s core business continues to benefit from increased code generation powered by AI.
JFrog Ltd. (NASDAQ:FROG) is a software company with major operations and development activities in Israel. The company provides software supply chain platforms that help organizations manage, secure, distribute, and update software applications across cloud, hybrid, and on-premises environments.
3. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 51
Stock Upside: 44.59%
monday.com Ltd. (NASDAQ:MNDY) is one of the best Middle East and Africa stocks to buy according to hedge funds. On May 12, UBS analyst Taylor McGinnis lowered his price target on monday.com Ltd. (NASDAQ:MNDY) from $93 to $85, while keeping a Neutral rating on the stock. The analyst cited uncertainty over the company’s outlook for the rest of fiscal year 2026.
McGinnis made the call soon after monday.com reported its Q1 2026 earnings on May 11. In the earnings report, monday.com said quarterly revenue reached $351.3 million, up 24% year over year and exceeding the consensus estimate of $346 million. McGinnis acknowledged that the Q1 performance was healthy, but argued that too much uncertainty surrounds the company’s near-term trajectory to justify a more optimistic stance on the stock.
Part of that uncertainty stems from monday.com’s own forward guidance, which anticipates Q2 FY2026 revenue to range from $354 million to $356 million. This guidance implies a year over year growth range of 18%-19%, which, to McGinnis, is a notable slowdown from Q1’s 24% pace.
In the earnings report, Monday.com flagged foreign exchange headwinds that could shave 100-200 basis points off growth for the remainder of the year. Management also noted that planned investments in artificial intelligence, along with potential cost increases, could moderate performance in the second half of 2026.
monday.com Ltd. (NASDAQ:MNDY) is a software company headquartered in Tel Aviv, Israel. The company develops cloud-based work management platforms that help businesses manage projects, workflows, customer relationships, and software development processes.
2. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 60
Stock Upside: 10.04%
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best Middle East and Africa stocks to buy according to hedge funds. On April 29, Teva Pharmaceutical Industries Limited (NYSE:TEVA) reported its Q1 FY2026 earnings, where it revealed that revenue was $4.0 billion for the quarter. This is a 2% year over year increase and a beat against analyst estimates of about $3.79 billion. Non-GAAP diluted EPS was $0.53, a 10% beat against the consensus estimate.
Management hosted an earnings call on the same day and took the time to explain that the revenue beat was powered by the company’s innovative portfolio growing 41% collectively. They added that the EPS beat was tied directly to a better-than-expected gross margin of 52.9%, and that this reflects the growing mix of high-margin innovative products within overall revenue.
CFO Eli Kalif noted during the earnings call that the gross margin outperformed internal expectations due to a favorable product mix within generics as well. The flip side was that non-GAAP operating margin dipped about 50 basis points year on year to 24%, Kalif noted. He explained that this dip was because the company intentionally increased sales and marketing spending to sustain the growth of its innovative portfolio.
Management said in the earnings call that the company had agreed to acquire Amylyx Pharmaceuticals for $700 million upfront plus up to $200 million in commercial milestones. They said that the key asset they want from this transaction is ecopipam, a first-in-class drug candidate for Tourette syndrome in children. Teva plans an FDA NDA submission for this drug candidate in the second half of this year. Management positioned ecopipam as a natural extension of their company’s CNS commercial infrastructure built around AUSTEDO and UZEDY, and noted the product carries an expected gross margin of approximately 80%.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is an Israeli pharmaceutical company that develops, manufactures, and markets generic medicines, specialty pharmaceuticals, and active pharmaceutical ingredients for patients worldwide. Teva’s portfolio includes treatments for neurological disorders, respiratory diseases, and migraine prevention.
1. Wix.com Ltd. (NASDAQ:WIX)
Number of Hedge Fund Holders: 45
Stock Upside: 104.96%
Wix.com Ltd. (NASDAQ:WIX) is one of the best Middle East and Africa stocks to buy according to hedge funds. On May 13, BofA Securities lowered its price target on Wix.com Ltd. (NASDAQ:WIX) to $95 from $109, while keeping its Buy rating. The firm made the call following Wix.com’s Q1 FY2026 earnings release the same day. BofA described the results as mixed.
According to Wix.com, quarterly revenue reached $541 million, up 14% year over year; however, this fell short of the analyst consensus of around $544 million. The company added that non-GAAP EPS came in at $0.68, which badly missed the $1.22 consensus. Management explained that revenue growth came from a 46% year over year surge in new user cohort bookings, to $52 million. The cohort bookings were largely boosted by Base44, the AI-powered app-building platform Wix acquired in 2025. There was also a noticeably higher conversion of new users into paid subscriptions, driven by the January 2026 rollout of Wix Harmony, the company’s AI website creation platform, noted management. Nonetheless, Base44 ultimately contributed to the earnings miss immensely because, as per management, it has not yet fully ramped to the scale the market had priced in.
The company explained that the EPS miss was due to elevated AI compute costs to run and scale Base44. Management noted that new users consume disproportionately more AI inference bandwidth during their initial build phase. As a result, Base44 costs are front-loaded by design.
Wix.com Ltd. (NASDAQ:WIX) is an Israeli web development platform company. It provides cloud-based tools that allow individuals and businesses to create, manage, and operate websites, online stores, and digital applications without advanced coding expertise.
While we acknowledge the potential of WIX 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 WIX and that has 100x upside potential, check out our report about the cheapest AI stock.
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