In this article we will take a look at the 10 best NASDAQ stocks to buy now. You can skip our detailed analysis of these stocks and go directly to 5 Best NASDAQ Stocks to Buy Now.
The stocks market has been in flux for the past few months due to uncertain investors as the world economy slowly reopens after being shuttered for the best part of 2020. The volatility was stoked in part by a massive sell-off at the beginning of the year driven by amateur venture capitalists cheering on meme stock rallies. The market has bounced back since then and is expected to touch new highs in the second quarter. However, New York-based investment bank Morgan Stanley has cautioned that the bull market will capitulate later in the year.
The total S&P 500 earnings are expected to increase by more than 20% compared to the same period last year. The increase is predicted on the back of strong growth forecasts for auto manufacturing, energy, and technology firms. Rapid vaccinations, stimulus packages, and increase in consumer demand may lead to 5.6% higher revenues for these companies. Business publication Wall Street Journal reports that as money managers turn their attention towards emerging markets, the US tech sector might be the safest bet on the horizon.
The stock market touched all-time record lows in March 2020 before rising at the end of the year, but the NASDAQ Composite Index, heavily laden with big technology firms, gained over 45% in the same time period. Technology stocks touched all-time highs in February before taking a breather in March, and are rallying once again. After contributing more than half to the 18% total returns of the S&P 500, they are set to increase their share even further this year. On the back of a dismal 2020, it might be time to make safe bets that offer handsome returns.
There are some other sectors that warrant the attention of investors as well. The materials, finance, and retail industries are also set for solid growth this year. Interest rates will most likely stay high this year to support the economy and it makes complete sense to invest in these growth stocks. Another factor responsible for the soaring share prices of these stocks is innovation. Technological firsts in retail and finance will most likely dominate the discussion on these industries throughout 2021. Earnings and revenue for firms leading in research and development will grow as a faster pace than the average business in their industry.
Due diligence is still required before betting on these firms. Long term trends should always be analyzed before investments are made in a sector. With climate change ushering in an era of electric vehicles, perhaps putting money in Tesla, Inc. (NASDAQ: TSLA) is a good choice. The increase in demand for consumer electronics has led to a shortage of chips, and several American chipmakers have increased their production. QUALCOMM Incorporated (NASDAQ: QCOM) is an industry leader in this regard.
The broader move towards growth stocks from value stocks requires close attention as well, especially in the context of the clobbering hedge funds have taken by not keeping up with the times. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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With this context in mind, here are the 10 best NASDAQ stocks to buy now.
10. Moderna, Inc. (NASDAQ: MRNA)
Moderna, Inc. (NASDAQ: MRNA) is a Massachusetts-based pharmaceutical firm that mainly develops drugs and vaccines based on messenger RNA. It is one of the firms that have developed a vaccine for the coronavirus pandemic and struck a deal with several countries for its production and supply. The firm has a market cap of more than $59 billion and posted more than $800 million in revenue in October 2020 that is expected to increase to more than $17 billion this year. Moderna is placed tenth on the list of 10 best NASDAQ stocks to buy now.
At the end of the fourth quarter of 2020, 41 hedge funds out of 887 in the Insider Monkey database held stakes in Moderna, up from 42 out of 817 in Q3 2020. The total value of the shares held by these hedge funds in Q4 2020 was over $1.4 billion, up from $690 million in the preceding quarter. Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Theleme Partners held the most shares – 5.3 million – worth more than $558 million. DE Shaw was 2nd with more than 3 million shares worth almost $325 million.
9. Applied Materials, Inc. (NASDAQ: AMAT)
Applied Materials, Inc. (NASDAQ: AMAT) is a California-based company that provides equipment, services and software for the production of semiconductor chips that are used in electronics, computers, smartphones, televisions, and solar products. It has a market cap of more than $123 billion and posted more than $17 billion in revenue in October 2020. The shares of the firm have gained more than 63% since the start of the year and it is placed ninth on the list of 10 best NASDAQ stocks to buy for now.
At the end of the fourth quarter of 2020, 61 hedge funds out of 887 in the Insider Monkey database held stakes in Applied Materials, up from 59 out of 817 in Q3 2020. The total value of the shares held by these hedge funds in Q4 2020 was over $3.6 billion, up from $2.5 billion in the preceding quarter. Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Generation Investment Management held the most shares – 5.2 million – worth more than $450 million. Cantillon Capital Management was 2nd with 3.8 million shares worth almost $335 million.
8. Intel Corporation (NASDAQ: INTC)
Intel Corporation (NASDAQ: INTC) is a California-based multinational firm that designs, manufactures, and sells computer products, networking services, data storage equipment, and communications platforms. It has a market cap of over $260 billion and posted more than $77 billion in revenue in December 2020. It is also one of the firms expected to benefit from a shortage of autochips, especially in the electric vehicle industry. Intel is ranked eighth on the list of 10 best NASDAQ stocks to buy for now.
At the end of the fourth quarter of 2020, 72 hedge funds out of 887 in the Insider Monkey database held stakes in Intel, up from 66 out of 817 in Q3 2020. The total value of the shares held by these hedge funds in Q4 2020 was over $5.5 billion, up from $4.3 billion in the preceding quarter. Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management held the most shares – 29 million – worth more than $1.4 billion. Baupost Group was 2nd with 18 million shares worth almost $906 million.
7. Microsoft Corporation (NASDAQ: MSFT)
Microsoft Corporation (NASDAQ: MSFT) is a Washington-based multinational company that develops and sells computer software, electronics, computers and other related services. The company has a market cap of close to $2 trillion and posted more than $143 billion in revenue in June 2020. California-based wealth management firm Wedbush earlier this month gave Microsoft an Outperform rating and said the firm was gaining ground on rival Amazon for government contracts. It is placed seventh on the top 10 best NASDAQ stocks to buy for now.
At the end of the fourth quarter of 2020, 258 hedge funds out of 887 in the Insider Monkey database held stakes in Microsoft, up from 234 out of 817 in Q3 2020. The total value of the shares held by these hedge funds in Q4 2020 was over $52 billion, up from $42 billion in the preceding quarter. Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management held the most shares – 23 million – worth more than $5.2 billion. TCI Fund Management was 2nd with 14 million shares worth almost $3.1 billion.
6. eBay Inc. (NASDAQ: EBAY)
eBay Inc. (NASDAQ: EBAY) is a California-based e-commerce website that facilitates sales of all kinds of items globally. It has a market cap of over $43 billion and posted more than $10 billion in revenue in December 2020. The shares of the firm have climbed to new highs as regular business remains shut due to the coronavirus and people rely on online platforms to sell collectibles amid rising inflation and joblessness. eBay ranks sixth on our list of 10 best NASDAQ to buy for now.
At the end of the fourth quarter of 2020, 53 hedge funds out of 887 in the Insider Monkey database held stakes in eBay, up from 50 out of 817 in Q3 2020. The total value of the shares held by these hedge funds in Q4 2020 was over $4.01 billion, down from $4.1 billion in the preceding quarter. Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Baupost Group held the most shares – 31 million – worth more than $1.5 billion. Ako Capital was 2nd with 10 million shares worth almost $550 million.
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Disclosure: None. 10 Best NASDAQ Stocks to Buy Now is originally published on Insider Monkey.
