On Friday, August 15, the stock market had a mixed day. The S&P 500 fell 0.29% after reaching a record high earlier. The Nasdaq Composite dropped by 0.40%. However, the Dow Jones Industrial Average outperformed and went up by 0.08%.
Even though the market dipped on Friday, the major averages had a good week overall. The Dow was the best performer with a 1.74% gain. The S&P 500 grew by 0.94%. The Nasdaq increased by 0.81%. These gains were supported by new consumer inflation data that gave hope that the Federal Reserve might lower interest rates in September.
Meanwhile, the University of Michigan’s consumer sentiment index declined from 61.7 in July to 58.6 in August. This drop in confidence was mainly because of worries over inflation.
Retail sales data released by the US Census Bureau on Friday morning showed retail sales increased 0.5% in July compared to June. While this was slightly less than the 0.6% gain expected by economists, it still showed a healthy increase after a big drop in consumer spending in spring.
Jay Hatfield, CEO at Infrastructure Capital Advisors, said:
“The AI boom and the required Fed rate cuts are supporting the market, so we don’t think we’ll have a tradable pullback in the S&P, despite the horrible seasonality of August and September.”
With this background in mind, let’s take a look at the 9 best NYSE stocks to buy according to hedge funds.
Our Methodology
To compile our list of the 9 best NYSE stocks to buy according to hedge funds, we looked for the biggest companies listed on the NYSE. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 9 best NYSE stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? 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).
9. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best NYSE stocks to buy according to hedge funds. On August 14, Reuters reported that Eli Lilly and Company (NYSE:LLY) has entered into a deal worth $1.3 billion with Superluminal Medicines, a privately held company.
The aim of this deal is to use AI to discover and develop small-molecule drugs for obesity and other cardiometabolic diseases.
As per the report by Reuters, Eli Lilly and Company (NYSE:LLY) is already leading the obesity treatment market, which is expected to be worth $150 billion by the next decade. The company is looking to solidify its foothold in this area by developing next-generation drugs, making acquisitions, and entering into partnerships.
The deal allows Eli Lilly and Company (NYSE:LLY) to have exclusive rights to develop and commercialize drug candidates discovered with the help of Superluminal’s proprietary AI-driven platform targeting G-protein-coupled receptors (GPCR). These proteins can influence physiological processes including metabolism, cell growth, and immune responses.
Eli Lilly and Company (NYSE:LLY) is an American multinational pharmaceutical company focused on discovering, developing, and delivering innovative medicines.
8. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 125
Alibaba Group Holding Limited (NYSE:BABA) is one of the best NYSE stocks to buy according to hedge funds. On July 24, Mizuho reduced its price target on Alibaba Group Holding Limited (NYSE:BABA) from $160 to $149 and kept an Outperform rating.
This decision to lower the price target reflects concerns about margin contraction because of tougher competition in local commerce, especially in food delivery. This increased competition is affecting all major commerce players.
Mizuho expects Alibaba Group Holding Limited (NYSE:BABA) to experience “meaningful margin contraction” in the second quarter compared to the first quarter. The competitive pressure affecting margins could continue through the second half of 2025 and into 2026.
Mizuho cut its forecast for Alibaba Group Holding Limited’s (NYSE:BABA) EBITDA in the June 2025 quarter from 55 billion RMB to 45 billion RMB. The firm also reduced the full-year 2027 EBITDA forecast to 231 billion RMB, factoring in the company’s 50 billion RMB subsidy program.
Additionally, the firm gave an estimate of 251 billion RMB for Alibaba Group Holding Limited’s (NYSE:BABA) 2028 EBITDA.
Alibaba Group Holding Limited (NYSE:BABA) plans to share its financial results for the quarter ended June 30, 2025, before the US market opens on August 29, 2025.
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company focused on e-commerce, retail, AI, digital media and entertainment, cloud, and technology.
7. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 125
Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the best NYSE stocks to buy according to hedge funds. On August 4, UBS increased its price target on Berkshire Hathaway Inc. (NYSE:BRK-B) from $595 to $597 and kept its Buy rating.
This decision came after Berkshire Hathaway Inc. (NYSE:BRK-B) reported operating results for the second quarter of 2025.
The firm’s analyst noted that GEICO, Berkshire Hathaway Inc.’s (NYSE:BRK-B) auto insurance subsidiary, continues to grow and maintain very attractive underlying margins.
However, UBS pointed out that there is uncertainty about tariffs and the “Big Beautiful Bill,” which could affect federal energy tax policies and the tax rate for Berkshire Hathaway Energy Company.
Berkshire Hathaway Inc. (NYSE:BRK-A) is an American multinational company led by Warren Buffett. The company and its subsidiaries engage in a wide variety of business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services, and retailing.
6. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 129
JPMorgan Chase & Co. (NYSE:JPM) is one of the best NYSE stocks to buy according to hedge funds. On August 15, JPMorgan Chase & Co. (NYSE:JPM) announced dividends on the outstanding shares of its Series II and OO preferred stock.
For the Series II preferred stock, JPMorgan Chase & Co. (NYSE:JPM) declared a dividend of $179.80 per preferred share and a dividend of $17.98 per depositary share.
For the Series OO preferred stock, JPMorgan Chase & Co. (NYSE:JPM) announced a dividend of $162.50 per preferred share. The dividend for each depositary share of the Series OO is $16.25.
According to the report by JPMorgan Chase & Co. (NYSE:JPM), the dividends will be paid on October 1, 2025, to stockholders of record at the close of business on September 2, 2025.
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services firm with leading positions in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 139
UnitedHealth Group Incorporated (NYSE:UNH) is one of the best NYSE stocks to buy according to hedge funds. On August 13, UnitedHealth Group Incorporated (NYSE:UNH) announced that its board of directors declared a cash dividend of $2.21 per share. This dividend will be paid on September 23, 2025, to all common stock shareholders of record as of the close of business on September 15, 2025.
Previously, in June 2025, UnitedHealth Group Incorporated (NYSE:UNH) raised its quarterly dividend rate by 5% to $2.21.
During the second quarter of 2025, UnitedHealth Group Incorporated (NYSE:UNH) returned $4.5 billion to shareholders in the form of dividends and share repurchases.
The company’s annualized return on equity for the first half of 2025 was 20.6%
UnitedHealth Group Incorporated (NYSE:UNH) is an American health insurance and healthcare services company.
4. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 145
Uber Technologies, Inc. (NYSE:UBER) is one of the best NYSE stocks to buy according to hedge funds. On August 7, Cantor Fitzgerald reiterated its Overweight rating on Uber Technologies, Inc. (NYSE:UBER) with a price target of $106.
This decision came after the company reported Q2 2025 results. Uber Technologies, Inc. (NYSE:UBER) saw Gross Bookings grow 17% year-over-year, reaching $46.8 billion. For Q3 2025, the company expects Gross Bookings to grow between 17% to 21% compared to the same period last year on a constant currency basis.
Uber Technologies, Inc. (NYSE:UBER) also experienced strong growth in its Adjusted EBITDA, which grew 35% year-over-year to $2.1 billion in Q2 2025. For Q3 2025, the company projects Adjusted EBITDA to be between $2.19 billion and $2.29 billion, representing growth of 30% to 36% compared to last year.
Cantor Fitzgerald updated its estimates for Uber Technologies, Inc.’s (NYSE:UBER) fiscal year 2026, raising its estimates for bookings by 3% and EBITDA by 1%. The firm believes that product initiatives and positive pricing trends will help the company maintain rides growth in the second half of the year.
Uber Technologies, Inc. (NYSE:UBER) is a global transportation technology company that focuses on ride-hailing, courier services, food delivery, and freight transport.
3. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 155
Mastercard Incorporated (NYSE:MA) is one of the best NYSE stocks to buy according to hedge funds. On July 29, Mastercard Incorporated (NYSE:MA) announced the global launch of its automated solution called Mastercard Receivables Manager, which makes accepting virtual card payments more efficient, secure, and cost-effective for businesses.
Mastercard Receivables Manager brings strong capabilities like multi-language and secure card-on-file to support digital commerce worldwide.
Additionally, Mastercard Incorporated (NYSE:MA) introduced Commercial Direct Payments to offer payment service providers more flexibility in how they offer B2B payment innovations. Commercial Direct Payments is a new card network-agnostic solution that fully automates virtual card payments and optimizes digital payment opportunities for buyers who pay by card.
Together, these solutions will offer a quick and smooth B2B payment experience for both buyers and suppliers. Mastercard Incorporated (NYSE:MA) has announced these new products at a time when using digital payments for business is becoming increasingly important.
Mastercard Incorporated (NYSE:MA) is an American multinational financial services company that provides transaction processing and payment-related products and services to individuals, businesses, and organizations worldwide.
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) is one of the best NYSE stocks to buy according to hedge funds. On July 30, Keefe, Bruyette & Woods (KBW) reiterated its Outperform rating on Visa Inc. (NYSE:V) with a $400 price target.
The investment banking firm believes Visa Inc. (NYSE:V) is showing “solid trends” even though there might be some near-term volatility because of comparisons.
KBW highlighted that Visa Inc.’s (NYSE:V) core business drivers remain largely intact, with normalizing foreign exchange volatility being an exception. KBW pointed out that pricing will continue to act as a tailwind for the company, potentially helping the company to surpass expectations.
The firm sees Visa Inc. (NYSE:V) as “one of the highest quality names with the strongest visibility on medium-term earnings power” and identified it as a top pick for investing in the payments industry.
Visa Inc. (NYSE:V) is an American multinational digital payments company that offers a range of payment products and processing services in over 200 countries and territories.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best NYSE stocks to buy according to hedge funds. On August 12, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shared that its Board of Directors held a meeting and approved a cash dividend of TWD 5.0 per share for the second quarter of 2025.
The ex-dividend date for the common shares is set for December 11, 2025. Shareholders who own the common stock as of December 17, 2025, will be entitled to receive this dividend. According to the report by Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), this dividend will be paid on January 8, 2026.
The Board also approved a large capital investment of nearly $20.7 billion to support long-term capacity plans based on market demand and Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) technology development roadmap.
This investment will be used for installing advanced technology capacity, advanced packaging, mature and specialized technology capacity, and building and installing fab facility systems.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, and tests integrated circuits for various industries.
While we acknowledge the potential of TSM as an investment, 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 TSM and that has a 100x upside potential, check out our report about this cheapest AI stock.
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