In this article, we will discuss the 8 Best Stocks to Buy According to Abrams Bison Investments.
Abrams Bison Investments was founded by Gavin Abrams in 2000, who is a value investor with a long-term focus. He gained work experience and knowledge working as a research analyst at ESL Investments before founding Abrams Bison Investments. The fund has been registered as an investment adviser with the SEC since January 2006.
Drivers for Growth in US Equities
Abrams Bison Investments’ main focus revolves around long-term equity and risk arbitrage investments. The firm looks for businesses that Gavin Abrams suspects are presently trading for well below their actual value. The fund remains primarily focused on investing in US companies.
Elsewhere, Goldman Sachs believes that growing optimism related to AI helps US assets, with the country being home to some of the world’s biggest technology players.
Another critical driver is the perception that geopolitical risks continue to moderate, noted Brian Garrett (who is responsible for overseeing equity execution for the cross-asset sales desk in Goldman Sachs Global Banking & Markets). While trade and geopolitics are still the critical factors for most investors, the focus on those risks has been gradually decreasing over the last few months, with investors factoring an increased tariff rate into their expectations.
Bloomberg, while quoting Wells Fargo Securities LLC’s Christopher Harvey, noted that the S&P 500 Index has been looking at a double-digit rise in the second half of the year, thanks to the resilient strength of America’s technology giants.
Amidst such trends, we will now have a look at the 8 Best Stocks to Buy According to Abrams Bison Investments.
A financial planner carefully scrutinizing company’s investment portfolio.
Our Methodology
To list the 8 Best Stocks to Buy According to Abrams Bison Investments, we selected the top stocks in Abrams Bison Investments’ portfolio as of its Q1 2025 13F filing. We settled on the hedge fund’s 8 biggest holdings. Finally, we ranked the stocks in ascending order based on the value of Abrams Bison Investments’ equity stakes. Additionally, we have mentioned the hedge fund sentiments around each stock, as of Q1 2025.
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).
8 Best Stocks to Buy According to Abrams Bison Investments
8. SelectQuote, Inc. (NYSE:SLQT)
Abrams Bison Investments’ Equity Stake: $26.4 million
Number of Hedge Fund Holders: 20
SelectQuote, Inc. (NYSE:SLQT) is one of the Best Stocks to Buy According to Abrams Bison Investments. On July 17, the company announced the expanded launch of its innovative concierge-like service, which has been designed to specifically improve medication adherence for Medicare beneficiaries managing several chronic conditions and complex medication regimens. SelectQuote, Inc. (NYSE:SLQT)’s SelectRx pharmacy trialed a new approach with a regional health plan, which showcased more than 90% adherence, strengthening HEDIS Star ratings throughout the triple-weighted cholesterol, diabetes, and hypertension measures.
The company targets to expand to additional payers this calendar year and plans to roll out throughout SelectRx’s pharmacy platform in 2026. SelectQuote, Inc. (NYSE:SLQT) saw a successful Q3 2025 across each of its 3 segments: Senior, Healthcare Services, and Life Insurance. On a consolidated basis, the company’s fiscal Q3 2025 revenues of $408 million increased by 8% YoY. The growth was aided by robust member onboarding in its SelectRx business, which has ~106,000 members, representing a 41% rise YoY. Over the remainder of FY 2025 and into FY 2026, SelectQuote, Inc. (NYSE:SLQT) plans to increase the mix of members that benefit most from SelectRx, who typically also have significantly attractive unit economics. The primary goal is to increase efficiency and develop a more consistent margin profile for the business.
SelectQuote, Inc. (NYSE:SLQT) operates a technology-enabled, direct-to-consumer distribution platform that sells insurance policies and healthcare services.
7. Acadia Healthcare Company, Inc. (NASDAQ:ACHC)
Abrams Bison Investments’ Equity Stake: $55.1 million
Number of Hedge Fund Holders: 42
Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is one of the Best Stocks to Buy According to Abrams Bison Investments. On May 19, Ryan Langston from TD Cowen maintained a “Buy” rating on the company’s stock, with a price objective of $44.00. This rating was backed by a combination of factors demonstrating Acadia Healthcare Company, Inc. (NASDAQ:ACHC)’s positive financial performance and strategic outlook. As per the analyst, the company posted a notable adjusted EBITDA beat, indicating a healthy start to 2025.
The analyst noted Acadia Healthcare Company, Inc. (NASDAQ:ACHC)’s proactive share repurchase program, reflecting a commitment to returning value to shareholders. Acadia Healthcare Company, Inc. (NASDAQ:ACHC) highlighted that the year is setting up to be the largest bed expansion year in its history, building upon the record bed additions in 2024. During Q1 2025, the company made progress in catering to the strategic growth objectives, including the addition of 90 beds to existing facilities and 288 beds to new facilities, for a total of 378 newly licensed beds.
Additionally, Acadia Healthcare Company, Inc. (NASDAQ:ACHC) added 7 new comprehensive treatment centers in Q1 2025, extending its market reach to 170 CTCs throughout 33 states. Moving forward, the company has a strong pipeline of potential opportunities in attractive markets and projects to add 608 beds annually over 2026 – 2028. Aristotle Capital Boston, LLC, an investment advisor, released its Q4 2024 investor letter. Here is what the fund said:
“Acadia Healthcare Company, Inc. (NASDAQ:ACHC), a behavioral healthcare and substance abuse treatment services company, continues to be impacted by the negative sentiment surrounding the news headlines related to patient care and questions about billing practices. While we take these developments seriously, we believe investors’ reaction to the news has been more severe than warranted. Industry peers have faced similar levels of scrutiny in the past with limited fundamental impact, and unless additional information is uncovered, we believe the current scrutiny will be resolved without much of an impact on their business. We continue to believe the company is well positioned to be an important part of the solution to an unfortunately growing need for behavioral health services.”
6. Credit Acceptance Corporation (NASDAQ:CACC)
Abrams Bison Investments’ Equity Stake: $74.7 million
Number of Hedge Fund Holders: 37
Credit Acceptance Corporation (NASDAQ:CACC) is one of the Best Stocks to Buy According to Abrams Bison Investments. On July 11, the company announced that it has extended the date on which its $75.0 million revolving secured warehouse facility will cease to revolve from September 30, 2026, to September 30, 2028. Notably, the interest rate on borrowings has decreased from the Secured Overnight Financing Rate (SOFR) plus 210 bps to SOFR plus 185 bps. Furthermore, the amendment also decreased the servicing fee from 6.0% to 4.0% of collections on the underlying consumer loans.
During Q1 2025, Credit Acceptance Corporation (NASDAQ:CACC)’s loan portfolio touched a new record high of $9.1 billion on an adjusted basis, reflecting a rise of 10% from Q1 2024, even though it saw a decline in unit dollar volume growth. Credit Acceptance Corporation (NASDAQ:CACC) maintains a healthy liquidity position, with more than $2.2 billion in unrestricted cash and cash equivalents and unused and available revolving lines of credit as of March 31, 2025.
During Q1 2025, Credit Acceptance Corporation (NASDAQ:CACC) financed more than 100,000 contracts for its dealers and consumers. Furthermore, it enrolled 1,617 dealers and now has the second-highest quarterly number of active dealers, with 10,789 dealers.
The London Company, an investment management company, released Q4 2024 investor letter. Here is what the fund said:
“Initiated: Credit Acceptance Corporation (NASDAQ:CACC) – CACC provides dealer financing programs, enabling automobile dealers to sell vehicles to consumers with poor credit. Operating as a lender of last resort, CACC serves a critical role for a large cohort of borrowers. CACC’s competitive advantage lies in its 50-year track record, partnerships with over 10,000 dealers, and robust data models that predict loan defaults with remarkable accuracy. Recent challenges from 2021-2022 loan vintages are improving as stronger 2023-2024 loans gain traction. Rising interest rates and reduced competition are driving double-digit growth in market share. Trading at a 12% earnings yield with a strong balance sheet, CACC offers a compelling risk/reward backed by decades of consistent profitability and shareholder-focused management.”
5. Capital One Financial Corporation (NYSE:COF)
Abrams Bison Investments’ Equity Stake: $95.7 million
Number of Hedge Fund Holders: 93
Capital One Financial Corporation (NYSE:COF) is one of the Best Stocks to Buy According to Abrams Bison Investments. On July 28, Truist analyst Brian Foran lifted the price objective on the company’s stock to $260 from $225, while keeping a “Buy” rating after its Q2 2025 results. The firm is positive on Capital One Financial Corporation (NYSE:COF)’s higher-than-expected net interest margin outlook, a beat on favorable organic growth in Q2, and credit trends, added the analyst. The company has completed its acquisition of Discover and remains optimistic about the expanding set of opportunities to grow and create value as a combined company.
Capital One Financial Corporation (NYSE:COF)’s Q2 2025 net interest margin stood at 7.62%, 69 bps higher as compared to the prior quarter. The partial quarter impact of adding Discover rose NIM by ~40 bps. Moving forward, Capital One Financial Corporation (NYSE:COF) expects the full quarter benefit from the Discover acquisition to drive an additional 40 bps increase to NIM, all else being equal. The company’s common equity Tier 1 capital ratio ended Q2 2025 at 14%, ~40 bps higher than the prior quarter.
Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:
“Capital One Financial Corporation (NYSE:COF) was the top contributor during the quarter. The U.S.-headquartered consumer finance company’s stock price rose as it completed its acquisition of Discover Financial in May and reported solid first-quarter 2025 earnings headlined by broadly improving credit metrics. Management has identified over $2 billion of expense and revenue synergies from the merger, which it expects to realize over the next 24 months. We continue to view Capital One as a disciplined, tech-forward and well-capitalized company and look forward to seeing how the Discover acquisition adds value.”
4. SharkNinja, Inc. (NYSE:SN)
Abrams Bison Investments’ Equity Stake: $123.02 million
Number of Hedge Fund Holders: 69
SharkNinja, Inc. (NYSE:SN) is one of the Best Stocks to Buy According to Abrams Bison Investments. On July 28, Oppenheimer lifted the company’s price objective to $135 from $120, while keeping an “Outperform” rating. Moving forward, the firm is increasingly confident in management’s ability to fuel a top and bottom-line acceleration in H2 2025 into FY26, thanks to the anticipations for reaccelerating top-line momentum and proactive efforts to navigate tariff headwinds.
While navigating an evolving tariff landscape, SharkNinja, Inc. (NYSE:SN) developed and started implementing a comprehensive mitigation strategy via manufacturing efficiencies, strategic retail partnerships, and targeted operational optimizations. SharkNinja, Inc. (NYSE:SN)’s proactive supplier diversification placed it with significant and improving supply chain flexibility. Amidst robust profitability and strong demand for its 5-star products, it is confident in its ability to continue providing sustainable growth.
SharkNinja, Inc. (NYSE:SN)’s net sales rose 14.7% to $1,222.6 million in Q1 2025 as compared to $1,066.2 million during the same period of last year, or 14.9% on a constant currency basis. This was due to growth in each of its 4 major product categories of Food Preparation Appliances, Cooking and Beverage Appliances, Cleaning Appliances, and Beauty and Home Environment Appliances.
Voss Capital, LLC, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“During the “liquidation day” tariff malaise, we significantly upsized our position in SharkNinja, Inc. (NYSE:SN). We view SN as a secularly growing category leader with a unique blend of innovation and agility, brand equity, and global expansion potential. While some competitors dismiss SN as a mere imitator—quick to reverse-engineer their products and undercut them on price—they misunderstand the company’s MO and customer value proposition entirely.
SharkNinja is not chasing cheap fads that will fizzle—it’s an innovation powerhouse that routinely generates consumer phenomena and creates and expands new categories. From the wildly successful CREAMi and Ninja Swirl appliances, to the virality of the TurboBlade fan and CryoGlow beauty devices, the company orchestrates consumer product launches that begin with deep consumer insight and a better mousetrap, followed by organically viral social media buzz, and ends with dominant shelf space at major global retailers.
We think SN is poised for margin expansion. Gross margins hover around 50%, with a narrow range across categories. The company is investing heavily in R&D (7.2% of sales vs a peer average of ~3.5%) and sales & marketing (23%), but this spend is front-loaded to support market entry and new category expansion. In mature markets like the US, marketing spend can fall to as low as 7% of revenue, while new markets begin at 25%+ as the company builds brand awareness and shelf presence. Over time, this dynamic creates meaningful operating leverage. Additionally, as the company continues to build a direct line to customers, their sales mix is shifting more to higher gross and contribution margin direct-to-consumer (“DTC”) revenue. The company has been building out its DTC team and will revamp its website and CRM later this year. We estimate DTC sales in the U.S. are only around 10% today, providing a long runway for growth…” (Click here to read the full text)
3. Applied Materials, Inc. (NASDAQ:AMAT)
Abrams Bison Investments’ Equity Stake: $126.9 million
Number of Hedge Fund Holders: 83
Applied Materials, Inc. (NASDAQ:AMAT) is one of the Best Stocks to Buy According to Abrams Bison Investments. On July 28, Barclays analyst Tom O’Malley lifted the price objective on the company’s stock to $170 from $160, while keeping an “Equal Weight” rating. The firm expects a healthy semiconductor capital equipment setup in H2 2025 on better China dynamics. However, it believes that the Street estimates for 2026 are structurally too high. Applied Materials, Inc. (NASDAQ:AMAT)’s President and CEO highlighted that the broad capabilities and connected product portfolio of the company continue to drive healthy results in 2025 amidst a highly dynamic macro environment.
Notably, high-performance, energy-efficient AI computing is the dominant driver of semiconductor innovation, as Applied Materials, Inc. (NASDAQ:AMAT) continues to work closely with its customers and partners to ramp up the industry’s roadmap. Applied Materials, Inc. (NASDAQ:AMAT) delivered healthy performance in its Q2 2025, with 7% YoY revenue growth, record EPS, and shareholder distributions of ~$2 billion.
Amidst a dynamic economic and trade environment, Applied Materials, Inc. (NASDAQ:AMAT) has not seen significant changes to customer demand and remains well-placed to navigate evolving conditions thanks to its strong global supply chain and diversified manufacturing footprint. Vltava Fund, an investment management company, recently released its Q4 2024 investor letter. Here is what the fund said:
“In the quarter just ended, we added to the portfolio two new companies from the technology sector: Applied Materials, Inc. (NASDAQ:AMAT) and Lam Research. Both are in the same industry as is another of our investments that we have held for some time, KLA Corporation. This industry is termed semiconductor devices and materials. One chapter in Hidden Investment Treasures is devoted to investing in technology companies and, among other things, the controversy over what really constitutes a technology company. As investors, we try to view technology companies not according to the industry into which they are formally classified but by whether the technologies and technological processes used in the production of their products and services are an essential element in value creation or if they are a source of long-term, sustainable competitive advantage. Among the companies that are formally categorized as technology-based and fall into either the Information Technology or the Communications Services sector, we find some that can be said to be just that but also others for which this classification is at least debatable. Similarly, among companies that do not formally belong to these two sectors, we find many that clearly are built to a large extent on technology and base their market positions and competitiveness on it. In the cases of Applied Materials and Lam Research, there can be no doubt that these are technology companies not only as a formality but also in fact.
Applied Materials provides manufacturing equipment, services, and software for the semiconductor, display, and related industries. Its principal business activities are semiconductor systems and Applied Global Services. Its largest customers are Samsung and Taiwan Semiconductors, but its overall clientele is more diversified than is that of Lam Research. At first glance, it would appear that Applied Materials has a somewhat less tangible and definable competitive advantage compared to KLA Corporation and Lam Research, but the numbers do not support such a view. Net margins likewise in the neighborhood of 27% and ROCE around 30% are outstanding. Basically, it can be said that all three companies we own have very similar underlying profitability metrics. Even their valuations, growth, and potential are similar. All have strong free cash flow and strong balance sheets, and they are regularly buying back their own shares over the long term and in large volumes…” (Click here to read the full text)
2. HCA Healthcare, Inc. (NYSE:HCA)
Abrams Bison Investments’ Equity Stake: $137.1 million
Number of Hedge Fund Holders: 74
HCA Healthcare, Inc. (NYSE:HCA) is one of the Best Stocks to Buy According to Abrams Bison Investments. On July 25, the company released its financial and operating results for Q2 2025, which demonstrated healthy revenue growth, improved margins, and better outcomes for its patients. HCA Healthcare, Inc. (NYSE:HCA) saw revenues of $18.605 billion in Q2 2025 as compared to $17.492 billion in Q2 2024. For FY 2025, the company expects adjusted EBITDA of between $14.70 billion – $15.30 billion, an increase from the prior guidance of $14.30 billion – $15.10 billion.
On July 28, Morgan Stanley analyst Craig Hettenbach reduced the price objective on the company’s stock to $400 from $410, while keeping an “Equal Weight” rating. As per the firm analyst, amidst a noisy backdrop for hospital stocks, HCA Healthcare, Inc. (NYSE:HCA)’s diversified business, robust track record, and aggressive cash returns to shareholders remain favourable indicators. That being said, some more clarity on the Health Insurance Exchange marketplace into 2026 might be required for multiple expansion, believes Hettenbach.
Alluvium Asset Management, an asset management company, released its Q1 2025 investor letter. Here is what the fund said:
“HCA Healthcare, Inc. (NYSE:HCA), the hospital and ambulatory site owner/operator, (up 15.4%) released its full year results. Management provided 2025 guidance of revenue up 5.2% and EPS up 13.4% – a little above our estimate of its maintainable earnings. We suspect the concerns over possible regulatory changes (which we wrote about here) have been put on the back burner whilst the market digests the tariff implications. We ended the quarter with a 7.9% position, which, given its current price and our view of its value, we are reasonably comfortable with.”
1. TD SYNNEX Corporation (NYSE:SNX)
Abrams Bison Investments’ Equity Stake: $278.9 million
Number of Hedge Fund Holders: 35
TD SYNNEX Corporation (NYSE:SNX) is one of the Best Stocks to Buy According to Abrams Bison Investments. On July 24, BofA analyst Ruplu Bhattacharya lifted the price objective on the company’s stock to $170 from $156, while keeping a “Buy” rating. The analyst rating is backed by a combination of factors demonstrating TD SYNNEX Corporation (NYSE:SNX)’s robust competitive position and growth potential. As per the analyst, the company remains well-placed to capitalize on opportunities in its manufacturing business, mainly with Hyve, which continues to see strong demand from existing and new customers, including hyperscale clients and neoclouds.
Furthermore, TD SYNNEX Corporation (NYSE:SNX)’s capability to cross-sell solutions throughout different regions further cements its growth prospects. Bhattacharya also noted TD SYNNEX Corporation (NYSE:SNX)’s emphasis on higher-margin products and services, which is projected to fuel long-term profitability. Notably, the management’s confidence in the strength of end markets, mainly in the PC, software, cloud, and compute sectors, helps the outlook. Also, the company’s role in enabling vendors to improve go-to-market strategies through recruiting new resellers and offering value-added distribution services further strengthens the potential for margin expansion, opines Bhattacharya.
TD SYNNEX Corporation (NYSE:SNX) operates as a distributor and solutions aggregator for the IT ecosystem.
While we acknowledge the potential of SNX 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 SNX and that has 100x upside potential, check out our report about this cheapest AI stock.
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