In this article, we discuss 5 of the best blue chip stocks to buy today. If you want to see more of the best blue chip stocks to buy today, the risk/reward and methodology of this list, go directly to 12 Best Blue Chip Stocks To Buy Today.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Although Apple Inc. (NASDAQ:AAPL) shares have fallen 22% year to date, the company’s stock has outperformed companies like Alphabet Inc. (NASDAQ:GOOG) and Amazon.com, Inc. (NASDAQ:AMZN) whose shares are down substantially more in 2022. In fact, Apple Inc. (NASDAQ:AAPL)’s market cap is more than the two companies combined as of 11/6. Out of the 895 hedge funds in our database, 128 were long Apple Inc. (NASDAQ:AAPL) at the end of Q2 2022.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) shares trade at a forward P/E of 16.36, which could be attractive if the company keeps its market share and grows earnings per share as analysts expect. Although Alphabet Inc. (NASDAQ:GOOG) faces competition from TikTok and its YouTube growth has slowed, Alphabet Inc. (NASDAQ:GOOG) is one of the companies best positioned to unlock AI’s potential in the next decade.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. (NASDAQ:META) has fallen 73% year to date as the market has not liked the company’s huge bet on the metaverse. Meta Platforms, Inc. (NASDAQ:META) also faces an ad recession given the macro headwinds. Nevertheless, Meta Platforms, Inc. (NASDAQ:META) has high quality earnings potential and the company trades at a forward P/E ratio of 11.1.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Given inflation, Amazon.com, Inc. (NASDAQ:AMZN)’s e-commerce business isn’t growing as fast as it once did. Amazon.com, Inc. (NASDAQ:AMZN)’s CFO Brian Olsavsky said during a Q3 earnings report, “We are seeing signs all around that people’s budgets are tight, inflation is still high, energy costs are an additional layer. We are preparing for what could be a slower growth period.” While the company faces near term challenges, Amazon.com, Inc. (NASDAQ:AMZN) still has very valuable businesses that have long term growth potential.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) shares are down 34% year to date given the macro headwinds such as the strong dollar which has made the company’s international earnings less valuable in dollar terms. Potentially weaker computer sales could also slow Microsoft Corporation (NASDAQ:MSFT)’s Windows revenue growth. Nevertheless, there’s still a lot to like about Microsoft Corporation (NASDAQ:MSFT). Baron Funds describes Microsoft Corporation (NASDAQ:MSFT)’s near term challenges and also its long term potential in a Q3 2022 letter,
“Shares of Microsoft Corporation (NASDAQ:MSFT) pulled back with the overall software industry on the back of macroeconomic issues, including inflation concerns and rising interest rates. The company reported another strong quarter, highlighted by total revenues growing 16% on a constant currency basis and Microsoft Cloud revenues, now 48% of total sales, growing 33%, with Azure (Microsoft’s infrastructure cloud) growing 46%. These results were driven by strong demand for large commercial cloud contracts, as more businesses are standardizing on Microsoft’s platform and the company is signing larger and longer deals. Initial fiscal year 2023 guidance calls for healthy double-digit revenue and operating income growth. Both foreign exchange and personal computer headwinds were contemplated in the guidance and have continued to worsen, but we have conviction in the company’s strong competitive positioning, durable growth drivers, and margin expansion opportunity over the mid- to long term.”
With 258 hedge funds in our database holding shares at the end of Q2 2022, Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 12 Best Blue Chip Stocks To Buy Today.
You can also take a look at 20 Most Admired Companies in the World in 2022 and 15 Biggest Dow Companies By Market Cap.
