5 Best American Stocks To Buy Now

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 238 

Washington-based Microsoft Corporation (NASDAQ:MSFT) is one of the world’s leading multinational tech giants.  The firm operates as a diversified technology company, marketing its Windows software products which account for almost 80% of the market share as of September of 2021.

On October 20, Wedbush analyst Daniel Ives maintained an Outperform rating on Microsoft Corporation (NASDAQ:MSFT), alongside a price target of $375 on its shares.

By the end of the second quarter of 2021, 238 hedge funds out of the 873 tracked by Insider Monkey held stakes in Microsoft Corporation (NASDAQ:MSFT), worth roughly $62.46 billion, compared to 251 hedge funds in the previous quarter, with stakes worth approximately $58.9 billion.

Out of the hedge funds being tracked by Insider Monkey, Robert Koehn’s Ivy Lane Capital is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 86,000 shares worth more than $23.29 billion.

As of the fiscal first quarter of 2022, Microsoft Corporation had an actual EPS of $2.27, crossing estimates by $0.19. The revenue for the quarter came in at $45.32 billion, surpassing the forecast predictions by $1.33 billion.

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.”