In this article, we will discuss the 8 Best Stocks to Buy According to Billionaire Barry Rosenstein.
Activist investing is seeing a significant pressure through campaigns targeting underperforming companies. Activist investors are increasingly agitating for companies to pursue break ups, asset sales, and other changes in a bid to unlock underlying value.
While shareholder activism appears to have moderated in the first quarter of 2026, down 11% year on year, there was still sustained pressure on boards and management teams across sectors. Against a volatile macroeconomic and geopolitical backdrop, activist investors led by Jana Partners are increasingly emphasizing strategy, operations, and capital returns.
“M&A is a big theme these days and we are seeing activist investors trying to catalyze more mergers and acquisitions,” said Amy Lissauer, global head of activism and raid defense at Bank of America.
Founded by billionaire investor Barry Rosenstein, Jana Partners has established a diversified investment portfolio focused on unlocking value in undervalued assets while undertaking activist campaigns. While heavily invested in the technology sector, Rosenstein has also diversified holdings into financials, industrials, healthcare, and consumer defensive sectors.
Rosenstein’s portfolio is well-positioned to capitalize on a bounce back in the equity market amid optimism about the Middle East peace deal. Equities are also expected to regain ground on the back of a resilient economy that continues to strengthen investor sentiment.
With that in mind, let’s take a look at some of the best stocks to buy according to billionaire Barry Rosenstein.
Barry Rosenstein of JANA Partners
Our Methodology
For this list of the 8 best stocks to buy according to billionaire Barry Rosenstein, we began by scanning his Jana Partners’ portfolio as of Q1 2026. From there, we selected the hedge fund’s top 8 stock picks by equity value. We also reviewed the overall hedge fund sentiment around these stocks using Insider Monkey’s Q1 2026 database. Finally, the stocks were ranked in ascending order based on the value of Jana Partners’ stake in each company.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Best Stocks to Buy According to Billionaire Barry Rosenstein
8. Rapid7 Inc (NASDAQ:RPD)
Jana Partners’ Investment Stake: $37.2 Million
Number of Hedge Fund Holders: 27
Rapid7 Inc (NASDAQ:RPD) is one of the best stocks to buy according to Billionaire Barry Rosenstein.
On June 2, Mizuho reaffirmed its Neutral rating on Rapid7 Inc stock with a price target of $8 on the shares. This call followed executive changes at Rapid7 Inc. On June 1, Rapid7 named Wael Mohamed as its new CEO, effective immediately. Mohamed replaced Corey Thomas, who stepped down as CEO after nearly 13 years at the helm of the cybersecurity company.
Wael Mohamed is an insider who has served on Rapid7’s board since 2025. He brings 30 years of industry and operational experience to the job. His past roles include those at Forescout and Trend Micro Group. Mohamed also founded cybersecurity-focused investment firm Global Forward Capital.
As Mohamed stepped up to the top job, the outgoing CEO Thomas transitioned to the executive chairman role.
Mizuho noted that Rapid7 is well-positioned in the security operations market. In a show of confidence in its business model, the company reaffirmed its Q2 and full-year 2026 outlooks despite the executive transition.
For Q2, Rapid7 is expecting revenue in the range of $207 million to $209 million and adjusted EPS in the band of $0.33 and $0.36. For full-year 2026, the company anticipates revenue between $836 million and $842 million, and adjusted EPS between $1.52 and $1.60.
Rapid7 Inc provides AI-powered cybersecurity solutions. It’s a specialist in managed cybersecurity. It helps clients identify weaknesses in the systems before attackers exploit them, and to detect and shut down active attacks in real-time. Moreover, Rapid7 offers professionals a platform to test their defenses through real-time simulation.
7. Six Flags Entertainment Corp (NYSE:FUN)
Jana Partners’ Investment Stake: $73.1 Million
Number of Hedge Fund Holders: 40
Six Flags Entertainment Corp (NYSE:FUN) is one of the best stocks to buy according to Billionaire Barry Rosenstein. The stock has soared more than 67% over the past six months, and analysts see more upside potential. Some 40 hedge funds are backing Six Flags stock.
On June 11, UBS raised its price target on Six Flags Entertainment Corp shares to $30 from $27 while keeping a Buy rating on the stock. For this call, the brokerage cited traffic improvement for Six Flags. UBS also noted that right now investors are focused more on cost management at Six Flags than demand levels.
According to the brokerage, it is early in the season for forecasting demand trends. However, it continues to see compelling risk/reward for Six Flags shares.
Six Flags reported its Q1 2026 results on May 7, and the management cheered the strong start to the season. Revenue jumped 12% to $225.6 million, as attendance rose 4% to 2.9 million visits. At the same time, per capita spending increased 6%, helped by higher guest spending on food and drinks, improved ticket mix, and effective ticket pricing.
Six Flags Entertainment Corp operates amusement parks and resorts in the US, Canada, and Mexico. Its portfolio features dozens of theme parks, water parks, and resorts. It offers food, merchandise, and live entertainment events.
6. Alkami Technology Inc (NASDAQ:ALKT)
Jana Partners’ Investment Stake: $85.1 Million
Number of Hedge Fund Holders: 27
Alkami Technology Inc (NASDAQ:ALKT) is one of the best stocks to buy according to Billionaire Barry Rosenstein. Jana Partners increased its investment in Alkami Technology Inc by 11% during Q1 2026, as per its latest 13F filing. The stock is backed by 27 hedge funds, and analysts see it rising more than 45% from the current price.
Alkami Technology Inc continues to look for new ways to improve its digital banking platform. On June 10, the company announced an integration with Yodlee to shift data sharing services to the Financial Data Exchange (FDX) application programming interface.
The company said that this transition would improve performance and reduce login disruptions when users are accessing third-party financial applications. The company explained that the shift supports both security and user experience.
Alkami delivers the integration as a built-in capability within its digital banking platform. The company said the FDX API integration supports credential-free but consent-based authentication for sharing financial data between institutions and third-party services.
According to Alkami, the integration will make data sharing more efficient. As a result, the company says the integration system will reduce support inquiries and lower infrastructure strain.
On May 28, Bloomberg reported that Jana Partners believes that Alkami could attract buyout interest from private equity or another public company.
Alkami Technology Inc provides a digital sales and service platform for community banks and credit unions to enable them to compete with the big banks. It enables clients to offer unified retail and business banking, digital account opening, and digital loan origination. It also helps with payment security, targeted marketing, and data analytics.
5. Markel Group Inc (NYSE:MKL)
Jana Partners’ Investment Stake: $144.1 Million
Number of Hedge Fund Holders: 53
Markel Group Inc (NYSE:MKL) is one of the best stocks to buy according to Billionaire Barry Rosenstein. More than 50 hedge funds are backing this stock.
Markel Group Inc has recently moved to bolster its insurance teams. On June 15, the company announced the appointment of two executives to its Canadian construction unit. It appointed Alisha Everett as the assistant vice president and Nicholas Doy as the manager of the unit, which is known as Contractors, Trades and Construction Services.
The company said these executives bring experience and insights that will help strengthen its underwriting capabilities and accelerate its profitable growth. It said Everett will work on market engagement and risk appetite. Doy will support brokerage engagement, portfolio development, and underwriting performance.
Meanwhile, Markel on May 21 appointed Danny O’Donoghue to head its fine art unit in London. It said O’Donoghue will lead the expansion of the fine art portfolio. While announcing O’Donoghue’s appointment, Markel said that galleries, private collectors, and jewelers are facing new risks as asset values rise and high-profile thefts increase.
These appointments come as Markel seeks to improve its core insurance business and repurchase 10% of its shares in under five years.
Markel Group Inc is a conglomerate whose operations span insurance, stock investment, and a portfolio of wholly-owned companies. Some fondly call it the mini Berkshire Hathaway. The company was founded in 1930 and is based in Virginia.
4. Lamb Weston Holdings Inc (NYSE:LW)
Jana Partners’ Investment Stake: $211.7 Million
Number of Hedge Fund Holders: 43
Lamb Weston Holdings Inc (NYSE:LW) is one of the best stocks to buy according to Billionaire Barry Rosenstein.
On June 12, Jefferies reiterated a Buy rating on Lamb Weston Holdings Inc with a $55 price target on the shares. The target is based on roughly 10 times the company’s 24-month forward EBITDA.
While the brokerage noted that restaurant foot traffic in the US weakened in May, it still expects Lamb Weston to post solid growth in North American volume in the fiscal Q4 2026. Jefferies expects customer wins, customer retention, and an extra week of sales to support the volume growth.
In Europe, where it has faced some market challenges, Lamb Weston is restructuring to improve operational efficiency. As part of this effort, the company has announced plans to close its production facility in the Netherlands in order to align manufacturing with market conditions.
The company is implementing what it calls the “Focus to Win” strategy, and it is the basis of the facility closure. This strategy is about strengthening customer partnerships, prioritizing markets and channels, and driving operational excellence.
Idaho-based Lamb Weston Holdings Inc is a global supplier of frozen potato products. Its product range includes straight cuts, waffle fries, and crinkle-cut fries. The company supplies restaurants, fast-food chains, and retail grocery stores around the world.
3. Fiserv Inc (NASDAQ:FISV)
Jana Partners’ Investment Stake: $247.5 Million
Number of Hedge Fund Holders: 61
Fiserv Inc (NASDAQ:FISV) is one of the best stocks to buy according to Billionaire Barry Rosenstein. Barry Rosenstein’s Jana Partners almost doubled its stake in Fiserv during Q1 2026, and this stock now makes up 15.4% of its portfolio.
On June 16, Fiserv Inc filed to issue €1 billion of senior notes in two tranches of €500 million each. One tranche has notes due 2030, and the other has notes due 2034. It targets European institutional and professional investors with these notes.
S&P Global Ratings has assigned a ‘BBB’ issue-level rating to Fiserv’s euro-denominated notes. The rating agency said it expected Fiserv to use proceeds from the euro notes issuance to fund a debt restructuring.
Indeed, the company has simultaneously launched a tender offer to repurchase certain existing dollar-denominated notes with higher interest. It targets two notes for repurchase. These include 2027 senior notes that carry 5.150% interest and have an outstanding balance of $750 million. Then there are 2049 notes with 4.400% and an outstanding balance of $2 billion.
In addition to debt restructuring, Fiserv is also leaning on AI to transform its operations with the goal of boosting productivity and cutting costs to improve margins. This transformation initiative is dubbed Project Elevate, and it is expected to save the company $500 million in costs and boost its margin by more than 200 basis points by 2029.
Fiserv Inc is an American global financial technology and payments company. It provides the technology platform that powers transactions for banks and businesses. It supports digital, card, and check transaction processing. The company also provides point-of-sale systems.
2. Cooper Companies Inc (NASDAQ:COO)
Jana Partners’ Investment Stake: $254.9 Million
Number of Hedge Fund Holders: 49
Cooper Companies Inc (NASDAQ:COO) is one of the best stocks to buy according to Billionaire Barry Rosenstein. This stock is backed by 49 hedge funds, and analysts see the stock rising at least 17% from its current price in the next 12 months.
On June 12, Stifel reiterated a Buy rating on Cooper Companies Inc stock with a price target of $85 on the shares. The brokerage made this call after Cooper reported advancing discussions to sell its surgical business unit known as CooperSurgical. The company said multiple parties are interested in buying the business. The company also settled all legal issues that had plagued the business unit.
Stifel remarked that the settlement is a signal that the management is advancing the unit sale talks to the next level. Selling CooperSurgical would leave Cooper focused on the contact lens business under its CooperVision unit.
After CooperSurgical is divested and Cooper transforms into a contact lens company, Stifel estimates that Cooper stock could be worth $80 a share. This indicates a roughly 21% upside to the current share price. Cooper CEO Albert White has said that the vast majority of the proceeds from the sale of the surgical business would be used to fund share repurchases.
Cooper Companies Inc is a medical devices company. It operates two main business divisions: CooperVision and CooperSurgical. The CooperVision unit makes contact lenses to correct vision challenges. The CooperSurgical division is focused on women’s health and provides genetic testing and fertility products.
1. Mercury Systems Inc (NASDAQ:MRCY)
Jana Partners’ Investment Stake: $299.5 Million
Number of Hedge Fund Holders: 32
Mercury Systems Inc (NASDAQ:MRCY) is one of the best stocks to buy according to Billionaire Barry Rosenstein. The stock has surged more than 120% over the past year, and some 32 hedge funds are backing it. Mercury Systems accounts for roughly 19% of the billionaire’s portfolio.
On June 2, Jefferies raised its price target on Mercury Systems Inc shares to $105 from $95 while keeping a Hold rating on the stock. The brokerage raised the target after meeting the company’s executive team, including CEO Bill Ballhaus.
Jefferies noted that Mercury’s low-margin backlog is diminishing quickly, and may be out of the base by fiscal 2027. The company exited the March quarter with a backlog of $1.6 billion, which it said increased almost 18% from the prior year. The company expects to recognize $891 million of the backlog as revenue in the next 12 months.
In addition to improving backlog quality, the brokerage noted that Mercury is positioned to benefit from increasing budgets and Golden Dome opportunities. On May 28, Mercury announced that it secured an order from Blue Raven to supply 1,000 units of certain server products. Blue Raven, the client, is a leading distributor in the defense industry.
Mercury Systems Inc makes components, modules, and subsystems used in defense, aerospace, and space industries. Its technology helps in areas like secure signal and data processing.
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