14 Best Forever Stocks to Buy According to Hedge Funds

Core Insights - The article discusses the 14 best "forever stocks" recommended by hedge funds, highlighting concerns over high valuations as many stocks are trading above historical norms, suggesting a potential rotation in investment strategies as 2026 approaches [1][2]. Investment Strategy - There is a noticeable shift from large-cap growth stocks to large-cap value stocks, indicating a defensive posture among investors in anticipation of market changes in the coming year [3]. - Analysts suggest that diversifying beyond large-cap stocks is prudent, especially given the recent resurgence of US equities led by large-cap tech companies [3]. Market Trends - Significant discounts on value stocks are noted, with current valuations being cheaper than historical averages, presenting a potential buying opportunity for investors [5]. - The article emphasizes the importance of stability and growth in selecting "forever stocks," which are favored by elite hedge funds [7]. Company Highlights - KLA Corporation (NASDAQ:KLAC): - Upgraded to a Buy by Jefferies due to accelerating AI-driven spending, with revenue forecasts raised to $14 billion for 2026 and $15.5 billion for 2027 [10][12]. - Analysts expect the company to benefit from increased capital expenditure in the semiconductor sector [11]. - The TJX Companies, Inc. (NYSE:TJX): - Maintains a Buy rating from UBS, with strong market share gains against department stores and a commitment to shareholder value through consistent dividend payments [15][18]. - Expected to achieve a 13% compound annual growth rate from 2021 to 2025, despite facing challenges such as tariffs and consumer uncertainty [18].