5 Best DOW Stocks To Buy According To Hedge Funds

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 262

Microsoft Corporation (NASDAQ:MSFT) is gaining momentum and in turn, returning value to investors. As of May 17, the stock’s trailing-twelve-month returns are up 9.77%. On April 26, 2022, Microsoft Corporation (NASDAQ:MSFT) reported having another consecutive strong quarter when it released its earnings for the fiscal third quarter of 2022. The company recorded year-over-year revenue growth of 18.35% and reported quarterly revenues of $49.36 billion, beating expert estimates by $311.18 million. Moreover, the company registered an EPS of $2.22 and outperformed market consensus by $0.02.

This May, Tigress Financial analyst Ivan Feinseth reiterated a Buy rating and a $411 price target on shares of Microsoft Corporation (NASDAQ:MSFT), and also named this point in time as a “major buying opportunity.” Feinseth further added that growth in cloud computing will be key to driving business growth for Microsoft Corporation (NASDAQ:MSFT) and said the company will continue to lead the gaming industry as it prepares to expand its operations into the metaverse and with its recently announced acquisition of Activision Blizzard (NASDAQ:ATVI).

Microsoft Corporation (NASDAQ:MSFT) is one of the most heavily-bought stocks by elite hedge funds. According to Insider Monkey’s database, 262 hedge funds held positions in the company at the end of the fourth quarter of 2021. The stake of these hedge funds totaled a whopping $75.66 billion, up from $65.87 billion in the third quarter with 250 positions. The hedge fund sentiment for Microsoft Corporation (NASDAQ:MSFT) is positive, and it is the best DOW stock to buy according to hedge funds.

As of March 31, 2022, Ken Fisher’s Fisher Asset Management is the leading stakeholder in Microsoft Corporation (NASDAQ:MSFT) with stakes worth a hefty $8.59 billion which represents 5.06% of its 13F portfolio.

Motiwala Capital, an investment management firm, published its fourth-quarter 2021 investor letter in which it mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the firm said:

“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”

You can also take a look at 10 Best Dow Stocks To Buy Now and 10 Best Index Funds to Invest In 2022.

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