In this article, we will look at the Top 10 High Conviction Stocks to Buy According to Hedge Funds.
On June 17, Jeffrey Gundlach, DoubleLine Capital, appeared on CNBC’s ‘Closing Bell’ to talk about the Federal Reserve’s decision to leave the Federal Funds Rate unchanged.
He stated that there is a lot to digest here, as the Fed chair opened up by saying that he is committed to moving the Fed forward, and then laid out what that meant with the five “consultant task forces”, which is what he prefers to call them. Gundlach believes that the Fed chair is buying himself some time, but the real phrase of the day, according to him, is “we will deliver price stability”.
READ ALSO: 15 Best NASDAQ Stocks to Buy and Hold For 3 Years AND 12 Best NYSE Stocks to Buy for Long-Term Investment.
Gundlach further stated that one thing might be in the Fed chair’s favor, since he is buying himself time and talking about the task forces that might start working in the next several weeks and maybe get around to having some ideas, conclusions, or suggestions somewhere in the fall. That, to him, suggests that it is unlikely that rates will be changed until the fall. He also said that the good news is that, according to his model, inflation would be dropping along the way as we move towards the end of the year.
With these broader market trends in view, let’s look at the top high conviction stocks to buy according to hedge funds.
Our Methodology
We used stock screeners and online sources to identify the best fundamentally strong companies with an analyst upside potential of at least 30%. We then selected the top 10 stocks most popular among hedge funds as of Q1 2026, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on June 16.
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 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).
Top 10 High Conviction Stocks to Buy According to Hedge Funds
10. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 64
Accenture plc (NYSE:ACN) is one of the top high-conviction stocks to buy according to hedge funds. JPMorgan cut the price target on Accenture plc (NYSE:ACN) to $201 from $247 on June 8 and reiterated an Overweight rating on the shares. The rating update came as part of a fiscal Q3 report preview, with the firm trimming the company’s estimates to be closer to the midpoint of its guidance.
Accenture plc (NYSE:ACN) also received a rating update from Berenberg on June 17, with the firm cutting the price target on the stock to $220 from $273 while maintaining a Buy rating on the shares. Berenberg stated that the IT services sector has underperformed the market with structural AI concerns driving an “indiscriminate de-rating.” The firm stated that it sees “limited scope” for a near-term sector re-rating, but added that it views Accenture plc (NYSE:ACN) as best positioned to monetize emerging AI value pools.
Accenture plc (NYSE:ACN) is a global professional services company that combines technology and leadership in data, cloud, and AI with functional expertise, industry experience, and global delivery capability. The company’s services include Strategy & Consulting, Technology, Operations, Industry X, and Song, and its operations are divided into the following geographical segments: North America, EMEA, and Growth Markets.
9. PDD Holdings Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 66
PDD Holdings Inc. (NASDAQ:PDD) is one of the top high-conviction stocks to buy according to hedge funds. BofA cut the price target on PDD Holdings Inc. (NASDAQ:PDD) to $113 from $140 on June 15 and maintained a Neutral rating on the shares. The firm told investors that it lowered its 2026-27 revenue forecasts by 6% and adjusted its net profit view by 21%-22% to take into account the increased ecosystem investments, which include commission rebates, merchant traffic support, and platform-funded coupons booked as contra revenue.
PDD Holdings Inc. (NASDAQ:PDD) also received a rating update from Barclays on May 28. The firm downgraded the stock to Equal Weight from Overweight, bringing the price target on the stock down to $89 from $165. The firm told investors in a research note that PDD Holdings Inc. (NASDAQ:PDD) reported its lowest non-GAAP net margin in five years in fiscal Q1. Barclays believes that the company’s China revenue deceleration is likely to continue as its monetization faces headwinds, and added that PDD Holdings Inc. (NASDAQ:PDD) is entering the private label market, which could cause “friction” with merchants.
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations. The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu.
