In this article, we discuss the 10 best stocks to buy according to Motley Fool. If you want to see the five largest holdings of Motley Fool, click 5 Best Stocks to Buy According to Motley Fool.
Motley Fool Asset Management is a Wisconsin-based hedge fund with a $1.5 billion Q4 2021 portfolio and discretionary assets under management of $1.6 billion. The fund primarily invests in the information technology, industrials, healthcare, finance, consumer discretionary, and communications sectors.
Motley Fool is led by its chief investment officer and senior portfolio manager, Bryan Hinmon. He graduated from Stetson University with a bachelor’s in finance. He is also a CFA charterholder and a member of The Boston Security Analysts Society. He joined Motley Fool in 2010, and has worked in multiple departments of the corporation, including Motley Fool Pro and Motley Fool Options. His investment career dates back to 13 years.
According to securities filings for Q4 2021, Motley Fool purchased 184 new stocks, made additional purchases in 67 securities, slashed stakes in 79 stocks, and sold out of 5 names. The hedge fund has a top ten holdings concentration of 34.59%. The top buys in the fourth quarter were Johnson & Johnson (NYSE:JNJ), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), whereas, the fund reduced its positions in Everbridge, Inc. (NASDAQ:EVBG), Cardlytics, Inc. (NASDAQ:CDLX), and Atlassian Corporation Plc (NASDAQ:TEAM).
Some of the most notable stocks in Motley Fool’s Q4 portfolio include Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), and Meta Platforms, Inc. (NASDAQ:FB), among others discussed in detail below.
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Our Methodology
We used the Q4 2021 portfolio of Motley Fool Asset Management for this analysis, selecting the top 10 holdings of the hedge fund.
Best Stocks to Buy According to Motley Fool
10. SBA Communications Corporation (NASDAQ:SBAC)
Motley Fool’s Stake Value: $31,232,000
Percentage of Motley Fool’s 13F Portfolio: 1.99%
Number of Hedge Fund Holders: 43
SBA Communications Corporation (NASDAQ:SBAC) is a Florida-based provider of wireless communications infrastructure in the United States, Canada, Central America, South America, and South Africa. The company primarily leases out antenna space on its communication sites to multiple wireless service providers under long-term contracts.
On April 25, SBA Communications Corporation (NASDAQ:SBAC) reported a Q1 2022 GAAP EPS of $1.72, beating estimates by $0.71. The FFO per share also beat market estimates by $0.04 at $1.06. The company’s revenue grew almost 13% year-over-year to $619.77 million, topping analysts’ predictions by $15.86 million.
SBA Communications Corporation (NASDAQ:SBAC) on April 25 declared a C$0.71 per share quarterly dividend, in line with previous. The dividend is distributable on June 14, to shareholders of the company as of May 19.
Cowen analyst Colby Synesael raised the firm’s price target on SBA Communications Corporation (NASDAQ:SBAC) to $382 from $373 and maintained an Outperform rating on the shares on April 26. The analyst continues to see upside in the U.S. leasing revenue guidance in the second half of 2022, which is positioned to further improve in 2023. He observed that combined with robust international demand, SBA Communications Corporation (NASDAQ:SBAC) is well adjusted in a risk-off environment while higher rates are offset by a tightening spread, rightfully reflecting a bullish backdrop.
In the fourth quarter of 2021, Motley Fool’s portfolio held 80,284 SBA Communications Corporation (NASDAQ:SBAC) shares, worth $31.2 million, representing 1.99% of the total 13F securities. The hedge fund has owned a position in the company since Q1 2017.
According to Insider Monkey’s Q4 data, 43 hedge funds were bullish on SBA Communications Corporation (NASDAQ:SBAC), up from 36 funds in the prior quarter. Charles Akre’s Akre Capital Management is the leading shareholder of the company, with 1.5 million shares worth $601.8 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), and Meta Platforms, Inc. (NASDAQ:FB), SBA Communications Corporation (NASDAQ:SBAC) is a notable contender in Motley Fool’s Q4 portfolio.
Here is what Carillon Tower Advisers has to say about SBA Communications Corporation (NASDAQ:SBAC) in their Q4 2020 investor letter:
“SBA Communications operates as a real estate investment trust (REIT) with a focus on wireless communications infrastructure. The firm reported favorable quarterly results with revenues ahead of expectations, and subsequently raised its guidance for the next year as well. Unfortunately, the company’s steady growth has been slightly overshadowed by other REITs that have shown faster growth prospects as the rollout and distribution of vaccines leads to a recovery in the economy.”
9. Jones Lang LaSalle Incorporated (NYSE:JLL)
Motley Fool’s Stake Value: $34,528,000
Percentage of Motley Fool’s 13F Portfolio: 2.20%
Number of Hedge Fund Holders: 37
Jones Lang LaSalle Incorporated (NYSE:JLL) was incorporated in 1997 and is headquartered in Chicago, Illinois. The company offers real estate and investment management services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Securities filings for Q4 2021 reveal that Motley Fool held 128,193 shares of Jones Lang LaSalle Incorporated (NYSE:JLL), worth $34.5 million, representing 2.20% of the total 13F holdings. The hedge fund trimmed its stake in the company by 2% in the fourth quarter of 2021, and has held an interest in Jones Lang LaSalle Incorporated (NYSE:JLL) since Q4 2016.
Jones Lang LaSalle Incorporated (NYSE:JLL) posted on February 28 Q4 2021 financial results that exceeded market estimates. The company announced earnings per share of $8.66, surpassing analysts’ predictions by $1.85. Revenue for the period increased 31.17% year-over-year to $3.60 billion, outperforming consensus estimates by $159.25 million.
On April 5, Goldman Sachs analyst Chandni Luthra initiated coverage of Jones Lang LaSalle Incorporated (NYSE:JLL) with a Sell rating and a $217 price target. The analyst likes the company’s “favorable” market positioning and low leverage, but sees its earnings growth lagging the peer average in 2022. The analyst is also concerned about Jones Lang LaSalle Incorporated (NYSE:JLL)’s exposure to the Russia/Ukraine war and the pandemic-ridden Asian markets.
According to Insider Monkey’s Q4 data, 37 hedge funds were long Jones Lang LaSalle Incorporated (NYSE:JLL), with combined stakes of $2.4 billion, compared to 30 funds in the earlier quarter, holding stakes in the company valued at $2.10 billion. David Blood and Al Gore’s Generation Investment Management is the leading shareholder of Jones Lang LaSalle Incorporated (NYSE:JLL), with a position worth $1.27 billion.
Here is what Ariel Fund & Ariel Appreciation Fund has to say about Jones Lang LaSalle Incorporated (NYSE:JLL) in its Q3 2021 investor letter:
“In addition, real estate expert Jones Lang LaSalle (JLL) was another strong performer over the trailing one-year period. Despite pandemic related headwinds for commercial real estate transaction activity, the company continued to prudently manage expenditures to preserve cash. JLL’s diverse business model and annuity-like nontransaction revenue mix, such as corporate outsourcing, helped offset weakness in the cyclical leasing and capital market businesses until vaccination rates rose. Then, this summer, JLL reported a broad recovery across the firm’s transaction-based businesses. Strong capital market and leasing activity drove management to meaningfully raise the company’s EBITDA margin outlook. Meanwhile, JLL continues to return excess capital through share repurchases. At current levels, we remain optimistic about JLL’s value proposition for key stakeholders.”
8. Atlassian Corporation Plc (NASDAQ:TEAM)
Motley Fool’s Stake Value: $35,841,000
Percentage of Motley Fool’s 13F Portfolio: 2.29%
Number of Hedge Fund Holders: 69
Atlassian Corporation Plc (NASDAQ:TEAM) is an Australian software company that develops products for programmers and project managers, including Jira, Confluence, Bitbucket, Bamboo, Fisheye, Crucible, Trello, and Atlassian Marketplace, among others. In the fourth quarter of 2021, Motley Fool reported owning 94,000 Atlassian Corporation Plc (NASDAQ:TEAM) shares, worth $35.8 million, representing 2.29% of the 13F portfolio.
Cowen analyst J. Derrick Wood on April 8 maintained a Market Perform rating on Atlassian Corporation Plc (NASDAQ:TEAM) with a $330 price target. The analyst sees Atlassian Corporation Plc (NASDAQ:TEAM)’s analyst day as “relatively in line with expectations” and noted that the company’s 50% Cloud growth guidance for FY23 and FY24 was “solid” but “mostly expected”. The new $10 billion revenue projection was “encouraging”, but no timeline was mentioned and it comes at a “material cost” to margins in FY23, the analyst told investors.
According to Insider Monkey’s fourth quarter database, 69 hedge funds were bullish on Atlassian Corporation Plc (NASDAQ:TEAM), up from 60 funds in the preceding quarter. The total stakes held in Q4 2021 amounted to $5.78 billion. Jim Simons’ Renaissance Technologies is the biggest position holder in the company, with 2.90 million shares worth $1.10 billion.
Here is what ClearBridge Investments International Growth ADR Strategy has to say about Atlassian Corporation Plc (NASDAQ:TEAM) in its Q1 2022 investor letter:
“The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out. We also trimmed back workflow software maker Atlassian (NASDAQ:TEAM) after a strong runup in its shares in 2021. Most of our reductions in emerging growth have involved IT or related companies where innovation is a key to their business model. That said, we remain positive on the IT sector and have largely maintained holdings in our highest-conviction ideas.”
7. Mastercard Incorporated (NYSE:MA)
Motley Fool’s Stake Value: $40,047,000
Percentage of Motley Fool’s 13F Portfolio: 2.56%
Number of Hedge Fund Holders: 144
Mastercard Incorporated (NYSE:MA) is an American multinational financial technology firm that offers card-based payment systems in the United States and internationally. Motley Fool, as of Q4 2021, owns 111,451 shares of Mastercard Incorporated (NYSE:MA), worth over $40 million, representing 2.56% of the total 13F securities. The hedge fund boosted its stake in the company by 2% in the December quarter.
On February 8, Mastercard Incorporated (NYSE:MA) declared a quarterly dividend of $0.49 per share. The dividend will be distributed on May 9, to shareholders of record on April 8.
Citi analyst Ashwin Shirvaikar on April 26 reiterated a Buy recommendation on Mastercard Incorporated (NYSE:MA) but lowered the firm’s price target on the stock to $435 from $445. The analyst updated his model to account for the incremental sector data points, the impact of the Russia/Ukraine war, and revised currency moves.
According to Insider Monkey’s database of elite funds, 144 hedge funds reported owning stakes in Mastercard Incorporated (NYSE:MA) at the end of December 2021, worth $17.2 billion, compared to 146 funds in the prior quarter, holding stakes in the company valued at $17.6 billion. Stephen Mandel’s Lone Pine Capital is a significant shareholder of the company, with 4.8 million shares worth $1.73 billion.
Here is what Ensemble Capital has to say about Mastercard Incorporated (NYSE:MA) in its Q1 2022 investor letter:
“Mastercard (7.6% weight in the Fund): This company literally earns a percent based fee on dollars spent. When inflation increases the prices of goods across the economy, Mastercard’s revenue increases along with inflation. Thus, the company in some respects is perfectly hedged against inflation with their revenue accelerating automatically when inflation surges.”
6. Axon Enterprise, Inc. (NASDAQ:AXON)
Motley Fool’s Stake Value: $45,119,000
Percentage of Motley Fool’s 13F Portfolio: 2.88%
Number of Hedge Fund Holders: 35
Axon Enterprise, Inc. (NASDAQ:AXON) was incorporated in 1993 and is headquartered in Scottsdale, Arizona. The company offers hardware and cloud-based software products and solutions to law enforcement agencies, allowing them to capture and analyze digital evidence.
13F securities filings for Q4 2021 reveal that Motley Fool owned 287,380 shares of Axon Enterprise, Inc. (NASDAQ:AXON), worth $45.1 million, accounting for 2.88% of the total portfolio. The stock has featured on Motley Fool’s portfolio since the fourth quarter of 2018.
Northland analyst Michael Latimore reiterated an Outperform rating on Axon Enterprise, Inc. (NASDAQ:AXON) but lowered the firm’s price target on the shares to $180 from $220. The analyst maintained his rating on the stock as Axon Enterprise, Inc. (NASDAQ:AXON) exceeded expectations “again” in Q4 to finish off “a strong year”. However, he cited industry multiple compression for the slashed price target. He also raised his FY22 revenue and EBITDA estimates for the company.
Among the hedge funds tracked by Insider Monkey, 35 hedge funds placed long calls on Axon Enterprise, Inc. (NASDAQ:AXON) at the end of December 2021, compared to 32 funds in the preceding quarter. The total stakes held in the fourth quarter of 2021 amounted to approximately $484 million. Neal C. Bradsher’s Broadwood Capital is the biggest position holder in the company, with 760,062 shares worth $119.3 million.
Like Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA), and Meta Platforms, Inc. (NASDAQ:FB), Axon Enterprise, Inc. (NASDAQ:AXON) is on the radar of elite investors.
Here is what Conestoga Capital Advisors has to say about Axon Enterprise, Inc. (NASDAQ:AXON) in their Q4 2020 investor letter:
“AAXN reported third quarter results that were materially ahead of expectations as the company benefited from continued adoption of body cameras and software tools within police agencies, a surge in Federal bookings, which is a new focus for the company, and continued momentum within the international market. AAXN also introduced 2021 guidance that was ahead of sell-side estimates.”
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Disclosure: None. 10 Best Stocks to Buy According to Motley Fool is originally published on Insider Monkey.
