In this article, we will take a look at the top 5 best active stocks to buy now. For a detailed analysis of these companies, go directly to the 10 Best Active Stocks to Buy Now.
5. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ: MSFT) is a Washington-based technology firm founded by billionaire Bill Gates in 1975. It is placed fifth on our list of 10 best active stocks to buy now. The products offered by the business segment of the firm include Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype, among others. Microsoft is one of the largest technology companies in the world and has the company stock returned more than 32% to investors over the course of the past year.
Microsoft Corporation (NASDAQ: MSFT) founder recently announced his divorce from wife Melinda Gates, sparking speculation around stocks owned by both through the Bill and Melinda Gates Foundation. Microsoft stock is one of the most active on the market.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 23.3 million shares worth more than $5.2 billion.
Our calculations show that Microsoft Corporation (NASDAQ: MSFT) ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
4. Coinbase Global, Inc. (NASDAQ: COIN)
Number of Hedge Fund Holders: N/A
Coinbase Global, Inc. (NASDAQ: COIN) is a Delaware-based cryptocurrency exchange platform. It is placed fourth on our list of 10 best active stocks to buy now and was founded in 2012 by billionaire Brian Armstrong. The firm has more than 1,200 employees that all operate remotely. The company lets users invest, store, spend, earn, and use crypto assets. Coinbase stock is one of the most active on the market with a high trading volume. However, it is also one of the most volatile, falling more than 30% since it debuted on the market last month.
On May 13, Coinbase Global, Inc. (NASDAQ: COIN) COO Emilie Choi, in a rejoinder to Elon Musk questioning the energy usage of crypto mining and sending crypto stocks plummeting, said that more than 75% of miners used renewable energy to do their work. Crypto stocks have rebounded after the Musk questions and Coinbase has surged more than 2% since the fall last week.
3. Facebook, Inc. (NASDAQ: FB)
Number of Hedge Fund Holders: 242
Facebook, Inc. (NASDAQ: FB) is a California-based technology company founded by billionaire Mark Zuckerberg in 2004. It is placed third on our list of 10 best active stocks to buy now. Facebook is one of the biggest technology firms in the world in terms of overall users and market capitalization. It owns social platforms like Facebook, Instagram, and WhatsApp, and has extensive investments in other businesses like artificial intelligence and virtual reality. Facebook stock has returned more than 46% to investors in the past twelve months.
On May 10, investment advisory Citi downgraded Facebook, Inc. (NASDAQ: FB) stock to Neutral from Buy on the back of nervous expectations for ad-based, large cap internet stocks that enjoyed a stellar start to the year but are likely to face tough competition in the second quarter for ad revenue.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 4.7 million shares worth more than $1.3 billion.
Based on our calculations, Facebook, Inc. (NASDAQ: FB) clinched the 3rd spot in our list of the 30 Most Popular Stocks Among Hedge Funds.
In its Q1 2021 investor letter, Distillate Capital, an investment management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ: FB) was one of them. Here is what the fund said:
“Facebook has come in and out of the portfolio before and did so this quarter on the back of substantial improvement in projected free cash flows such that its valuation now meets the criteria for inclusion.”
2. NVIDIA Corporation (NASDAQ: NVDA)
Number of Hedge Fund Holders: 88
NVIDIA Corporation (NASDAQ: NVDA) is a California-based visual computing firm that markets computer chips, graphics processing units, as well mobile computing solutions. It was founded in 1993 and is ranked second on our list of 10 best active stocks to buy now. Some of the products sold by the firm include streaming service GeForce NOW, cloud-based computing solution GRID, as well as NVIDIA GPUs for gaming and other personal computers. As one of the most active stocks on the market, it has returned 62% to investors in the past year.
On May 5, investment advisory Baird initiated coverage on NVIDIA Corporation (NASDAQ: NVDA) stock with an Outperform rating and a $800 price target. The share price of the firm jumped more than 2.5% after the ratings update.
At the end of the fourth quarter of 2020, 88 hedge funds in the database of Insider Monkey held stakes worth $8.6 billion in the firm, up from 82 the preceding quarter worth $7.6 billion.
1. Tesla, Inc. (NASDAQ: TSLA)
Number of hedge fund holders: 68
Tesla, Inc. (NASDAQ: TSLA) is a California-based electric vehicle and clean energy firm owned by billionaire Elon Musk and founded in 2003. It is placed first on our list of 10 best active stocks to buy now. Some of the products marketed by the company include electric cars, battery energy storage for residential, business, and commercial purposes, as well as solar panels and solar roof tiles, among others. Tesla stock is one of the most active on the market and has offered investors more than 262% return on investment in the past year.
On May 13, investment advisory CFRA Research maintained a Hold rating on Tesla, Inc. (NASDAQ: TSLA) stock with a price target of $600 on the back of plummeting cryptocurrency prices. Tesla has invested more than $1 billion in Bitcoin, the leading cryptocurrency.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in the firm with 28.9 million shares worth more than $20 billion.
In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ: TSLA) was one of them. Here is what the fund said:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
