Core Insights - The article emphasizes the emergence of new investment opportunities in stocks with improving fundamentals and undervalued potential, as investors often regret not buying these stocks sooner [1][3] - Morgan Stanley has raised its 12-month S&P 500 target to 7,800, driven by a reversal in negative policy and earnings expectations, indicating a bullish outlook for the market [1][2] - The article presents a list of 11 stocks that are considered strong investment opportunities based on their competitive positions, consistent returns, and exposure to long-term trends [3] Market Outlook - Recent policy actions have been more constructive than anticipated, with a supportive Federal Reserve stance acting as a tailwind for positive earnings revisions [2] - The tech sector is expected to continue strong performance, with forecasts of around 20% returns by 2026, particularly for AI-related stocks [2] Stock Selection Methodology - The selection process involved screening U.S.-listed companies with a market capitalization over $2 billion and total returns of at least 50% over the past three years [6] - The final list was narrowed down to companies with a five-year average return on equity above 20% and a free cash flow margin exceeding 20%, with a minimum upside potential of 15%-20% [6] Hedge Fund Interest - The article highlights the significance of stocks that hedge funds are investing in, as research indicates that imitating top hedge fund picks can lead to market outperformance [7] Featured Stocks - Corcept Therapeutics Incorporated (NASDAQ:CORT) has a price return of 261.8% over three years, a return on equity of 23.3%, and a potential upside of 62.4% [8] - InterDigital Inc. (NASDAQ:IDCC) has a price return of 608.1% over three years, a return on equity of 24.3%, and a potential upside of 28.3% [14] - AppFolio Inc. (NASDAQ:APPF) has a price return of 103.2% over three years, a return on equity of 20.6%, and a potential upside of 37.9% [20]