5 Best Dow Stocks To Buy According To Hedge Funds

1. Microsoft Corporation (NASDAQ:MSFT) 

Number of Hedge Fund Holders: 250

Microsoft Corporation (NASDAQ:MSFT) is an American multinational tech corporation, popular for its computer software, consumer electronics, personal computers, and related services. The company is widely recognized for Microsoft Windows, the Microsoft Office suite, Internet Explorer, and Microsoft Edge browsers.

Out of the 867 hedge funds monitored by Insider Monkey’s extensive database, 250 funds were long Microsoft Corporation (NASDAQ:MSFT) in the third quarter, with stakes totaling $65.8 billion, up from 238 funds in the previous quarter, with stakes amounting $62.4 billion. 

Microsoft Corporation (NASDAQ:MSFT) announced its Q3 results on October 26, posting an EPS of $2.27, exceeding estimates by $0.19. Revenue for the quarter totaled $45.32 billion, outperforming estimates by $1.33 billion.

Jefferies analyst Brent Thill on January 6 raised the price target on Microsoft Corporation (NASDAQ:MSFT) to $400 from $375 and kept a Buy rating on the shares.

Baron Opportunity Fund mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q2 2021 investor letter. Here is what the fund said: 

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constant currency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”

You can also take a look at 12 Best Long-Term Dividend Stocks To Buy Now and 10 Best Stocks to Buy According to Peter Lewis’ LFL Advisers.

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