Tom Lee’s GRNY ETF: 3 Top Stocks for Growth

Fundstrat’s Tom Lee has established himself as one of Wall Street’s most vocal and respected bulls, with a track record that commands attention. His investment philosophy, dubbed the ‘Granny Shots’ strategy, focuses on identifying high-conviction, long-term opportunities within the U.S. large-cap universe. This approach is encapsulated in the Fundstrat Granny Shots U.S. Large Cap ETF (GRNY), which has seen recent capital inflows as investors seek exposure to Lee’s curated selections. The strategy’s appeal lies in its focus on companies with strong thematic tailwinds and fundamental strength, rather than short-term market timing.

Lee’s reputation as a Wall Street rockstar has grown alongside his recent market calls, particularly his sustained bullishness on stocks—especially small caps. While market strategist predictions always carry uncertainty, Lee’s consistency and the performance of the GRNY ETF’s holdings suggest his methodology warrants serious consideration. The ETF’s composition reveals a thoughtful selection process that prioritizes companies positioned to benefit from secular trends, whether in technology, consumer behavior, or industrial evolution.

Oracle (ORCL) represents one of the GRNY ETF’s standout successes, with the legacy tech company experiencing a remarkable resurgence driven by the artificial intelligence revolution. Tom Lee was among the early recognizers of Oracle’s potential in the AI infrastructure space, a bet that has paid off handsomely as the stock outperformed many Magnificent Seven components over the past year. The company’s momentum continued following news of Oracle’s stake in TikTok’s U.S. operations, sending shares higher in after-hours trading and reinforcing Larry Ellison’s positioning of the company at the forefront of technological evolution.

Despite Oracle’s impressive run, the investment case remains compelling for long-term holders. As a premier AI infrastructure stock, Oracle is well-positioned to benefit from sustained enterprise demand for cloud and AI services. However, given the stock’s post-earnings spike and increased market volatility following Federal Reserve Chair Jerome Powell’s recent comments, potential investors might consider waiting for a pullback toward the $260 level for a more attractive entry point. For existing shareholders, there appears to be little urgency to sell, as Oracle’s growth engine shows no signs of slowing heading into year-end.

Tesla (TSLA), once a laggard among the Magnificent Seven, has rewarded patient investors with a stunning 56% gain over the past six months, bringing Elon Musk’s empire close to new highs. This resurgence stems from renewed optimism around Tesla’s autonomous driving technology, robotics projects like Optimus, and the company’s positioning in the critical Chinese market. Wall Street analysts have grown increasingly bullish on Tesla’s prospects, particularly with the anticipated launch of a more affordable Model 2 vehicle that could significantly expand the company’s addressable market.

The convergence of these catalysts makes Tesla a quintessential Granny Shots stock—a company with transformative technology and substantial growth runway. Tesla’s recovery in China, coupled with the long-term potential of its robotaxi and robotics initiatives, provides multiple avenues for continued outperformance. Unlike more mature tech companies, Tesla’s value proposition hinges on its ability to execute on visionary projects that could redefine transportation and automation, aligning perfectly with Tom Lee’s focus on thematic investing.

American Express (AXP) offers a compelling non-tech component to the GRNY ETF, having delivered impressive 125% returns over the past two years. The credit card giant successfully bridges traditional financial services with evolving consumer preferences, particularly among Millennial and Gen Z users who value experiences and premium benefits. American Express’s recent price hike for its Platinum Card to $895 annually—accompanied by $3,500 worth of enhanced benefits—demonstrates the company’s pricing power and understanding of what younger consumers value in premium services.

Despite its strong performance, American Express remains reasonably valued at 23.9 times trailing earnings, presenting a compelling risk-reward profile. The company’s growing dividend and secular tailwinds from consumer spending trends position it as a ‘generational winner’ in Tom Lee’s assessment. American Express’s ability to attract and retain younger users while maintaining premium pricing underscores the strength of its brand and business model. For investors seeking exposure to consumer finance with growth characteristics, AXP represents a sophisticated play on changing spending patterns and the premiumization trend.

Tom Lee’s GRNY ETF and its constituent stocks demonstrate the enduring power of thematic investing in identifying companies with sustainable competitive advantages. In a market that many consider ‘fairly highly priced,’ the Granny Shots strategy focuses on businesses with clear growth narratives and fundamental strength rather than speculative momentum. Oracle’s AI infrastructure positioning, Tesla’s autonomous driving ambitions, and American Express’s generational appeal all represent investable themes with long runways.

The diversity within these selections—spanning technology, automotive, and financial services—also highlights the strategy’s balanced approach to growth investing. While each company operates in distinct sectors, they share characteristics that align with Lee’s philosophy: strong leadership (Larry Ellison, Elon Musk), thematic relevance (AI, automation, premium experiences), and reasonable valuations relative to their growth prospects. For investors seeking guidance on implementing similar strategies, tools like SmartAsset’s financial advisor matching service can provide personalized approaches to portfolio construction.