10 Best US Stocks to Buy For Foreign Investors

5. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 174

Average Upside Potential as of March 30: 38.93%

Alphabet Inc. (NASDAQ:GOOG), with an average upside potential of nearly 39%, ranks 5th on our list of the best American stocks to buy. On March 18, Google LLC announced its intention to acquire Wiz for $32 billion in a cash transaction. Wiz is a New York-based cloud security platform that will join Google Cloud upon merging operations. Google intends to enhance its AI capabilities by creating a multi-cloud platform with improved cybersecurity.

On February 4, Alphabet Inc. (NASDAQ:GOOG) reported its Q4 financial results. The consolidated revenues climbed to $96.5 billion, reflecting a 12% year-over-year increase due to solid business momentum. The operating income and operating margin grew by 31% and 32%, respectively, while earnings per share rose 31% to $2.15. The main drivers behind Alphabet’s business momentum were products and models powered by artificial intelligence. The company paid out $2.4 billion in dividends for the fourth quarter. Total cash, cash equivalents, and marketable securities came in at $95.6 billion at the end of December 2024.

Investment advisory Truist maintained a Buy rating on Alphabet Inc. (NASDAQ:GOOG) with a price target of $220 on March 19, in light of Alphabet’s all-cash $32 billion acquisition of cybersecurity provider Wiz. Truist believes this acquisition could potentially strengthen Google Cloud’s position in the market.

According to Insider Monkey’s fourth quarter database, 174 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), up from 160 funds in the prior quarter.