5 Best Consumer Discretionary Stocks to Buy According to Hedge Funds

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1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 243

Amazon.com, Inc. (NASDAQ:AMZN) tops the list of the best consumer discretionary stocks to buy according to hedge funds. Amazon.com, Inc. (NASDAQ:AMZN) is in the limelight after the company posted strong Q3 guidance as its Q2 results also beat estimates. Needham analysts Laura Martin and Dan Medina upped their price targets for Amazon.com, Inc. (NASDAQ:AMZN) stock to $160 from $150. The analysts praised Amazon.com, Inc. (NASDAQ:AMZN)’s cost-cutting measures and high margins.  They also like Amazon.com, Inc. (NASDAQ:AMZN)’s AI initiatives.

A total of 243 hedge funds tracked by Insider Monkey reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN) as of the end of the first quarter. The biggest stakeholder of Amazon.com, Inc. (NASDAQ:AMZN) during this period was Natixis Global Asset Management’s Harris Associates with a $2.4 billion stake.

The Ithaka Group made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2023 investor letter:

“Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has evolved from its early roots as an online bookstore to become one of the world’s largest eCommerce retailers. At the end of 2022 Amazon stood poised to capture ~40% of all US e-commerce sales, representing five times more share than the next closest competitor. In addition to eCommerce, Amazon Web Services (“AWS”) has become the market leader in outsourced cloud infrastructure. Further, Amazon Advertising is garnering significant share in digital advertising, particularly product placement ads, thanks to consumers beginning their product searches on Amazon’s site. Despite providing tepid forward guidance on its 1Q23 earnings call, Amazon’s stock appreciated on the back of increased confidence the company would be able to contain expenses and push operating margins above prior peaks in the near-to medium term.”

You can also take a peek at 20 Best Burger Chains in the US and 10 Oversold Blue Chip Stocks To Buy.

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