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).
8. Charles River Laboratories International, Inc. (NYSE:CRL)
Number of Hedge Fund Holders: 43
Ariel Investments Equity Stake: $249.12 Million
Charles River Laboratories International, Inc. (NYSE:CRL) is one of the top stocks to buy according to Ariel Investments. On June 17, Morgan Stanley upgraded Charles River Laboratories International, Inc. (NYSE:CRL) to an Overweight from Equalweight and raised the price target to $220 from $185.
The research firm remains bullish on the company’s long-term prospects and growth metrics, driven by a strong uptick in biopharma funding that’s translating into proposals and bookings. Consequently, it expects the company to benefit given its leading preclinical capabilities. The investment bank also expects recent acquisitions and divestitures to offer upside risk to Street estimates and help shrug off historical volatility.
Morgan Stanley expects Charles River Laboratories International to experience a notable uptick in safety testing on the lowering of barriers for taking shots on goal. Consequently, it has moved its 2027 earnings per share estimates up low single digits.
Additionally, CLSA upgraded Charles River Laboratories International to Outperform from Hold, buoyed by a more favorable regulatory environment in China.
Charles River Laboratories International, Inc. (NYSE:CRL) is a contract research organization (CRO) that partners with pharmaceutical, biotechnology, and medical device companies to accelerate drug discovery, development, and manufacturing. They provide the critical research models and laboratory services needed to test new drugs and therapies before they reach human clinical trials.
7. Prestige Consumer Healthcare Inc. (NYSE:PBH)
Number of Hedge Fund Holders: 24
Ariel Investments Equity Stake: $253.34 Million
Prestige Consumer Healthcare Inc. (NYSE:PBH) is one of the top stocks to buy according to Ariel Investments. On June 15, Prestige Consumer Healthcare Inc. (NYSE:PBH) completed the acquisition of the Breath Right brand and certain other brands from Foundation Consumer Healthcare for $1.045 billion.
The acquisition aligns with the company’s disciplined merger-and-acquisition framework and is expected to enhance the portfolio over the long term. The Breathe Right brand becomes the company’s largest brand with revenue of about $200 million and core profit of $95 million in 2025.
The acquisition expands Prestige Consumer Healthcare’s portfolio by providing drug-free nasal strips for consumers with better breathing needs. It also boasts established brands with loyal consumer followings, such as Dimetapp, a trusted children’s cough and cold relief brand.
While the brand is mostly distributed in the US, it boasts a leading position in the category with further growth opportunities internationally.
Prestige Consumer Healthcare Inc. (NYSE:PBH) is the largest independent provider of over-the-counter (OTC) healthcare products in North America. The company develops, markets, and distributes a wide variety of familiar brand-name consumer health products—such as Monistat, Breathe Right, Dramamine, and TheraTears—found in pharmacies and retail stores.
6. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Number of Hedge Fund Holders: 55
Ariel Investments Equity Stake: $274.17 Million
Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) is one of the top stocks to buy according to Ariel Investments. On June 23, TD Cowen touted Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) leadership given its ability to drive improving results and stock performance over the next year. According to the research firm, the company is staring at a turnaround opportunity under the new leadership despite soft performance trends.
Consequently, the research firm reiterated its Buy rating and raised the price target to $24 from $22. The new price target represents 15% upside potential as the stock is trading at about $21 a share. The research firm remains bullish about the company’s long-term prospects owing to its well-loved brands, a modern fleet, and the imminent launch of a revamped private island.
According to TD Cowen, Norwegian Cruise Line Holdings is staring at slow capacity growth in 2027 which would represent the largest margin improvement opportunity. In addition, it raised the discounted cash flow price target to reflect the positive impact of lower oil prices.
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a leading global cruise company that operates a combined fleet of over 30 ships across three distinct brands: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. It offers vacations to approximately 700 destinations worldwide.
While we acknowledge the potential of NCLH 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 NCLH and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the Top 5 Stocks to Buy According to Ariel Investments.
Disclosure: None. Follow Insider Monkey on Google News.
