Top 10 Best Stocks to Buy Now | Best Stock Picks 2025

Discover the top 10 stocks that elite fund managers are actively buying this year | Top Stock Selections and Investment Opportunities for 2025

last updated Thursday, August 28, 2025
#top 10 best stocks to buy now #top 10 stocks

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by John Burson

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The current investment landscape presents unique challenges, with market volatility driven by economic uncertainties, interest rate fluctuations, and geopolitical tensions. However, seasoned fund managers continue to identify compelling opportunities amid the turbulence.

Top 10 Best Stocks to Buy Now

Our analysis focused on exceptional fund managers who demonstrate consistent performance through rigorous criteria:

• Active management of large-cap US equity funds (value, blend, and growth categories)
• Prestigious Morningstar Medalist Ratings (Gold, Silver, or Bronze)
• Concentrated portfolios of 50 stocks or fewer
• Detailed portfolio analysis comparing recent holdings with previous quarters

This methodology identified 28 elite fund portfolios, revealing the most sought-after investment opportunities among professional stock pickers.

1. American International Group (AIG) - Financial Services Revival

Fund Managers Purchasing: 4 managers
Valuation Status: Fairly valued (Price/Fair Value: 1.06)
Investment Style: Mid-cap Value

AIG has emerged as the top choice among elite managers following its impressive turnaround. The insurance giant delivered an 11% annualized return on equity in Q2 2025, marking a substantial improvement from previous periods. Key performance drivers include:

• Strong underwriting discipline with an 88.4% combined ratio.
• Significant cost reduction initiatives showing a 50 basis point expense ratio improvement.
• Strategic reinsurance utilization to reduce portfolio risk.
• Rising net investment income is benefiting from higher interest rates.

2. Interactive Brokers Group (IBKR) - Digital Trading Platform Leader

Fund Managers Purchasing: 1 manager
Valuation Status: Overvalued (Price/Fair Value: 1.36)
Investment Style: Mid-cap Growth

Despite premium valuation, fund managers recognize IBKR’s exceptional growth trajectory and competitive advantages:

• Remarkable 32% annual customer growth rate.
• 34% increase in customer equity on the platform.
• Industry-leading 74.6% operating margins due to automation.
• Superior order execution capabilities, creating a strong competitive moat.

3. Taiwan Semiconductor Manufacturing (TSM) - AI Chip Manufacturing Giant

Fund Managers Purchasing: 5 managers
Valuation Status: Undervalued (Price/Fair Value: 0.76)
Investment Style: Large-cap Growth

TSM represents exceptional value in the semiconductor space, trading 24% below fair value estimates. Investment highlights include:

• Raised full-year revenue guidance by 30% in USD terms.
• Dominant position in advanced chip manufacturing.
• Strong AI-driven demand supporting long-term growth.
• Expanding gross margins are expected as newer nodes command premium pricing.

4. GE Aerospace (GE) - Aviation Recovery Play

Fund Managers Purchasing: 3 managers
Valuation Status: Fairly valued (Price/Fair Value: 1.00)
Investment Style: Large-cap Growth

GE Aerospace benefits from aviation industry recovery and operational improvements:

• The commercial engines segment achieved 28% operating margins.
• 30% revenue growth in the core commercial engines business.
• Management raised the 2028 operating profit forecast to $11.5 billion.
• Strong aftermarket services demand is driving sustainable profitability.

5. Altria Group (MO) - Defensive Consumer Staple

Fund Managers Purchasing: 1 manager
Valuation Status: Fairly valued (Price/Fair Value: 1.06)
Investment Style: Large-cap Value

Despite regulatory challenges, Altria maintains a strong market position and cash generation:

• Marlboro brand continues gaining premium market share (59.5%)
• Smokeable segment margins expanded to 64.1%
• Attractive 6.9% dividend yield for income-focused investors
• Strategic expansion in reduced-risk product categories

6. ExxonMobil (XOM) - Energy Sector Value

Fund Managers Purchasing: 2 managers
Valuation Status: Undervalued (Price/Fair Value: 0.82)
Investment Style: Large-cap Value

ExxonMobil trades at an attractive valuation while executing strategic growth plans:

• Production reached its highest Q2 levels since the Exxon-Mobil merger.
• Cumulative structural cost reductions of $13.5 billion since 2019.
• Ambitious 2030 production target of 5.4 million barrels per day.
• Strong Permian Basin growth strategy differentiating from competitors.

7. The Trade Desk (TTD) - Digital Advertising Technology

Fund Managers Purchasing: 2 managers
Valuation Status: Significantly Undervalued (Price/Fair Value: 0.65)
Investment Style: Mid-cap Growth

TTD offers compelling value in the programmatic advertising space:

• Trading 35% below fair value following earnings reaction.
• The connected TV segment is showing a rapid growth trajectory.
• 95% customer retention rate, demonstrating platform stickiness.
• New Kokai operating system is gaining client adoption.

8. CME Group (CME) - Market Infrastructure Leader

Fund Managers Purchasing: 2 managers
Valuation Status: Fairly valued (Price/Fair Value: 1.04)
Investment Style: Large-cap Value

CME benefits from market volatility and the interest rate environment:

• Record average daily volume of 30.2 million futures contracts.
• Interest rate futures are showing 20% volume growth.
• Over 80% revenue from transaction fees provides operational leverage.
• Strong expense management maintains profitability.

9. Becton Dickinson (BDX) - Healthcare Technology

Fund Managers Purchasing: 3 managers
Valuation Status: Undervalued (Price/Fair Value: 0.74)
Investment Style: Mid-cap Value

BDX presents a recovery opportunity in the medical technology sector:

• Trading at 26% below fair value estimates.
• Organic revenue growth of 3% shows business stabilization.
• Strong performance in the urology and critical care segments.
• Planned business unit spin-offs to unlock shareholder value.

10. O’Reilly Automotive (ORLY) - Auto Parts Retail

Fund Managers Purchasing: 2 managers
Valuation Status: Overvalued (Price/Fair Value: 1.65)
Investment Style: Large-cap Core

Despite premium valuation, managers recognize ORLY’s market leadership:

• 6% top-line growth with 4.1% comparable store sales increase.
• The professional channel is growing 9.1% annually.
• Extensive distribution network providing competitive advantages.
• Consistent market share gains in a fragmented industry.

Investment Strategy Insights

Value Opportunities Emerge

Several stocks on this list trade below fair value, presenting potential opportunities for patient investors:

• Taiwan Semiconductor (24% discount): AI demand and technological leadership
• ExxonMobil (18% discount): Energy transition positioning and operational improvements
• The Trade Desk (35% discount): Digital advertising growth and platform expansion
• Becton Dickinson (26% discount): Healthcare technology recovery play

Quality at Premium Valuations

Elite managers also pursue high-quality businesses despite premium pricing:

• Interactive Brokers: Exceptional growth and competitive positioning.
• O’Reilly Automotive: Market leadership and consistent execution.
• GE Aerospace: Aviation recovery and operational excellence.

Key Investment Themes

1. Technology Leadership

Fund managers favor companies with technological advantages and AI exposure, particularly in semiconductors and digital platforms.

2. Market Share Leaders

Businesses with dominant market positions and wide competitive moats receive significant attention regardless of sector.

3. Operational Excellence

Companies demonstrating margin expansion and cost discipline attract institutional investment.

4. Recovery Plays

Managers identify businesses positioned to benefit from economic normalization and industry recovery.

Risk Considerations

While these selections represent institutional wisdom, investors should consider:

• Market timing risks in volatile conditions
• Valuation sensitivity for premium-priced stocks
• Sector concentration in specific economic scenarios
• Geopolitical factors affecting international holdings

Conclusion

Elite fund managers continue finding opportunities despite market challenges. Their stock selections reveal focus on technological leadership, operational excellence, and strategic positioning for long-term growth. However, individual investors should conduct thorough research and consider their personal risk tolerance before making investment decisions.

The combination of undervalued recovery plays and premium-quality growth stocks suggests a balanced approach to navigating current market conditions. As economic uncertainties persist, following institutional investment patterns can provide valuable insights for portfolio construction.

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This analysis is based on publicly available portfolio information and should not be considered personalized investment advice. Always consult with qualified financial professionals before making investment decisions.

 
 
 

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