5 Best Dow Stocks To Buy According To Hedge Funds

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 120

Apple Inc. (NASDAQ:AAPL) is the next stock on our list of the best Dow stocks to buy according to hedge funds. Apple Inc. (NASDAQ:AAPL) is an American multinational tech company, which is also the most valuable brand worldwide as of 2021. It is one of the Big Five Tech companies in the US, along with Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), Facebook, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT). Apple Inc. (NASDAQ:AAPL) offers consumer electronics, computer software, and online services. 

The tech giant is widely favored by smart money. 120 hedge funds tracked by Insider Monkey were bullish on Apple Inc. (NASDAQ:AAPL) at the end of September, down from 138 in the previous quarter. 

The company reported earnings for Q3 on October 28. The quarterly EPS for Apple Inc. (NASDAQ:AAPL) totaled $1.27, in line with analysts’ estimates. The revenue for the tech giant was $83.36 billion, missing estimates by $1.62 billion. 

On October 15, Amit Daryanani, an Evercore ISI analyst, kept an Outperform rating on Apple Inc. (NASDAQ:AAPL), setting a price target of $180. He stated that Apple Inc. (NASDAQ:AAPL) had true potential to expand in the digital advertising market in the near future. 

ClearBridge Investments mentioned Apple Inc. (NASDAQ:AAPL) in its Q1 2021 investor letter. Here is what they said: 

“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”