In this article, we will highlight the Top 10 Stocks to Buy According to Ariel Investments.
Long-term bond yields have risen significantly to the highest level since 2007. The rise has coincided with significant gains in the equity markets. Strategists at Goldman Sachs have already raised concerns that the equity market remains vulnerable to disappointing news about economic growth and inflation amid rising bond yields.
According to Peter Oppenheimer, chief global equity strategist and head of Macro Research in Europe, the significant gains in the equity markets have come on the back of robust earnings growth. Consequently, any concerns about slowing growth could be detrimental to rattling investor confidence.
“If oil disruptions continue into the second half of this year and inflation expectations rise further, there is a real risk of a speed bump for equity markets,” Oppenheimer writes.
Bank of America’s head of U.S. equity and quantitative strategy, Savita Subramanian, has also warned that there are too many red flags despite the market rallying to record highs.
“Our bear market signposts — the triggers that typically precede an S&P 500 peak — suggest additional caution may be warranted. Today, 70% of our signposts are triggered, in line with the average observed in prior market peaks,” Subramanian says.
Morgan Stanley’s chief U.S. equity analyst, Mike Wilson, has also reiterated that a correction in the equity market is inevitable and ultimately healthy, if the bull market is to extend into year-end.
The correction in the equity market has been most pronounced in tech stocks that rallied amid the AI boom and trade. The selloff has come amid ongoing rotation away from tech stocks into cyclical plays.
Ariel Investment is a global asset management firm well-positioned to shrug off volatility in technology stocks. Founded in 1983 by John W. Rogers, the firm boasts a highly diversified portfolio spanning consumer cyclical, financials, and healthcare, which account for a significant share of the portfolio. Ariel Investments’ flagship funds have delivered strong returns by leaning into value stocks, backed by a contrarian approach to quality. For starters, the Ariel Focus Fund delivered a 20.97% return in 2025.
Our Methodology
To compile the list of the Top 10 Stocks to Buy According to Ariel Investments, we analyzed Ariel Investments’ Q1 2026 13F portfolio. From the portfolio, we picked the top stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. Next, we detailed the number of hedge funds that hold stakes in them in Q1 2026. Finally, we ranked the stocks based on Ariel Investments’ equity stakes in the stocks.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Top Stocks to Buy According to Ariel Investments
10. BOK Financial Corporation (NASDAQ:BOKF)
Number of Hedge Fund Holders: 28
Ariel Investments Equity Stake: $211.28 Million
BOK Financial Corp. (NASDAQ:BOKF) is one of the top stocks to buy according to Ariel Investments. On June 25, Benchmark initiated coverage of BOK Financial Corp. (NASDAQ:BOKF) with a Hold rating. The research firm’s stance aligns with expectations that the stock’s premium valuation will continue.
Additionally, Benchmark touted the bank’s solid operating history of growth in the larger southwest metropolitan areas. Amid the growth, the stock has delivered a return of more than 40% over the past year. The impressive stock performance comes against the backdrop of stronger-than-expected peer fee income, pristine asset quality, and a liquid balance sheet.
Excess capital on the balance sheet also leaves BOK Financial Corp. in a solid financial position for deployment into new areas of growth. In the first quarter, the company’s fee-based robustness demonstrated resilience in a volatile environment. The loan portfolio grew by $536 million to $26.2 billion, with outstanding commercial loan balances increasing by $292 million. Expenses also declined significantly attributed to a robust cost structure.
BOK Financial Corporation (NASDAQ:BOKF) is a regional financial services holding company headquartered in Tulsa, Oklahoma, with over $54 billion in assets. They provide a broad array of financial products and services to consumers, businesses, and institutions, operating primarily in the American Midwest and Southwest.
9. Madison Square Garden Sports Corp. (NYSE: MSGS)
Number of Hedge Fund Holders: 47
Ariel Investments Equity Stake: $230.55 Million
Madison Square Garden Sports Corp. (NYSE:MSGS) is one of the top stocks to buy according to Ariel Investments. On June 23, Susquehanna reiterated a Positive rating on Madison Square Garden Sports Corp. (NYSE:MSGS) and raised the price target to $430. The new price target represents significant upside as the stock is trading at about $403 a share.
According to the research firm, the company’s bid to raise external capital comes at an opportune time after the Knicks’ championship. The company is raising capital to fund operations and address tax headwinds.
Earlier on June 2, Guggenheim also raised its price target on Madison Square Garden Sports Corp to $470 from $422 while reiterating a Buy rating. The new price target reflects expectations that the company will generate significant revenue from the NBA playoff games. The research firm expects the company to add $15 million or more in revenues and over $9 million in adjusted operating income.
The potential spinoff of the Knicks and Rangers, at the back of potential NBA expansion in Las Vegas, is also expected to yield between $450 million and $700 million for the Knicks.
Madison Square Garden Sports Corp. (NYSE:MSGS) is a premier sports holding company that owns and operates professional sports franchises, primarily the New York Knicks (NBA) and the New York Rangers (NHL).
