10 Best Stocks To Buy According to Billionaire Armitage

8. Medline (NASDAQ:MDLN)

Stake Value: $460.92 million

Number of Shares: 13,283,017

Percentage of Portfolio: 4.69%

Medline has been a frustrating position for Armitage, though he has explained his case in detail. He describes the company as the largest medical-surgical supplier in the United States, with deep prime-vendor relationships across the hospital market. Its own-brand products earn some of the best margins in the sector and generate about 80% of profit, which he sees as the source of its pricing power.

The shares disappointed after management cut its 2026 earnings guidance at midyear, citing tariffs, a warehouse fire, recalls and onboarding costs. Egerton had trimmed the position before that report, and it cut again in the third quarter when the stock was among the quarter’s underperformers. Armitage still calls the stock undervalued and labels it a category killer.

His argument is that earnings will recover once those one-off costs fade. He expects mid-teens earnings growth per share from 2027 to 2030, a pace that would reward the patience he describes as central to his approach.

Hospital supply is one of several healthcare niches covered in our list of the best healthcare stocks to buy according to hedge funds.

7. Devon Energy (NYSE:DVN)

Stake Value: $498.59 million

Number of Shares: 10,829,392

Percentage of Portfolio: 5.08%

Armitage regards Devon Energy as a strong operator in the best oil basin in the country. The all-stock merger with Coterra closed earlier this year, and he expects the combined company to beat its $1 billion synergy target, citing a long list of cost initiatives and low well costs. He added to the position during the summer.

Part of his argument rests on assets the market overlooks. Properties outside the Delaware Basin make up roughly 40% of the company’s market value by his estimate, and a portfolio review is due. Two activist investors are involved, and he sees the balance sheet strengthening as leverage falls to a low multiple of earnings by year end, with an $8 billion buyback authorization behind it.

Oil is the risk he names. The shares, in his view, discount a $60 oil price, below the mid-cycle range management plans around. He treats the oil price as the variable that could break the thesis, which is why valuation protection matters to him.

6. Alphabet (NASDAQ:GOOGL)

Stake Value: $715.26 million

Number of Shares: 2,099,142

Percentage of Portfolio: 7.28%

Alphabet is the second hyperscaler Armitage has in mind when he says Egerton owns two of them, and it has been a source of friction. It detracted from the fund’s results in a summer month when investors debated whether cloud providers will earn adequate returns on their AI capital spending, and announced changes among its senior AI leaders added to the unease. Egerton trimmed the holding in that month and again in the next one.

Armitage nevertheless keeps the two hyperscalers as a large exposure. He has argued that their market positions would end stronger if smaller neocloud rivals struggled, and he is openly skeptical of how those rivals are valued, since a measure based on earnings before depreciation ignores their largest cost.

The trims also fit his habit of cutting positions after a disappointment, because he prefers confirmation of a thesis to contradiction. He has said that chasing the crowd at the moment of greatest gloom would have been a disaster, and that the discipline is to ask whether the numbers underpinning the position are still valid.

The company’s autonomous driving unit adds another variable, and a look at whether Alphabet’s valuation accounts for Waymo’s potential takes that up.

5. Moody’s (NYSE:MCO)

Stake Value: $743.52 million

Number of Shares: 1,637,246

Percentage of Portfolio: 7.57%

Moody’s appeared in a Schroders monthly update as a detractor, with the fund citing the potential for reduced debt issuance as interest rates rose. The comment captures the stock’s central sensitivity. A large part of the ratings agency’s revenue comes when companies and governments borrow in the bond market, and higher yields give borrowers a reason to wait or to borrow less.

The company has two engines, though. Its ratings business earns fees tied to issuance, while a second unit sells data, analytics and research on subscription, giving it a steadier revenue base that is less exposed to the borrowing cycle. A rate-driven slowdown in issuance therefore tests only part of the business.

Armitage has said that cyclical exposure is important to get right, because a cyclical company often looks its best just before a downturn. For a holding like this, the question is how much of the earnings stream depends on market conditions, and the answer shifts with the mix between ratings and analytics and with how quickly borrowers return once yields settle.

Moody’s push into private credit is the focus of our analysis of whether it can build a durable subscription business.