5 Best Dow Stocks To Buy Right Now

In this article, we will take a look at the 5 best Dow stocks to buy right now. If you want to see some more of the best Dow stocks to buy, go directly to 12 Best Dow Stocks To Buy Right Now.

5. UnitedHealth Group Inc (NYSE:UNH)

Number of Hedge Fund Holders: 110

UnitedHealth Group Inc. (NYSE:UNH) is a diversified healthcare company in the U.S., with four operating segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. It has delivered a total return of around 111.02% over the past five years. Recent Change Healthcare and LHC Group acquisitions make UnitedHealth Group Inc. (NYSE:UNH) more diverse and tech-savvy.

In 2022, the company’s revenues were $324.16 billion, up 12.7% YoY. Analysts estimate a similar growth rate in 2023, with projected sales of around $359.7 billion by the end of the year. UnitedHealth Group Inc. (NYSE:UNH) stock has a low but growing dividend yield, which has increased by 17.4% over the past 5 years. This stable healthcare stock provides a defensive option for investors looking for upside exposure in the market.

According to Insider Monkey data, UnitedHealth Group Inc. (NYSE:UNH) had 110 hedge funds as of the end of the fourth quarter of 2022. Rajiv Jain’s GQG Partners is the company’s notable stakeholder in Q4 2022, with 3.97 million shares worth $2.10 billion.

Deutsche Bank analyst George Hill increased his price target on UnitedHealth Group Inc. (NYSE:UNH) to $617 from $615 and maintained a ‘Buy’ rating after Q4 results. Hill acknowledged uncertainties in policy and economic pressure, but praised UnitedHealth’s guidance and potential for upside.

In its Q4 2022 investor letter, Ruane, Cunniff & Goldfarb cited UnitedHealth Group Incorporated ((NYSE:UNH)). Here is what the firm has to say:

“UnitedHealth Group Incorporated (NYSE:UNH) was among Sequoia’s best performing stocks this year, thanks to typically strong financial results and increased appreciation for the business’ relative insensitivity to the broader economy. For the full year 2022, United’s revenues and EPS are expected to be up approximately 13% and 17%, respectively. Versus 2019, the company’s revenues and EPS are expected to have compounded at annual rates of approximately 10% and 14%, respectively.

UnitedHealth Group may not be a particularly beloved company, but it is one of the more entrenched businesses we’ve come across. Managed care, in its various forms-commercial risk, commercial fee, Medicare Advantage, and managed Medicaid- is an utterly essential component of our healthcare system. And in managed care, no one is bigger, more diversified or better run than United. In addition to its managed care business, United owns and operates the country’s third largest pharmacy benefit manger and is also the single largest owner by a wide margin of non-hospital care assets, including physician practices, urgent care centers, and ambulatory surgical centers…” (Click here to read the full text)

4. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 117

Salesforce, Inc. (NYSE:CRM) is a global provider of customer relationship management (CRM) technology. Despite recent challenges such as pressure from activist investors, management turnover, and a slowdown in corporate spending, Salesforce beat revenue and earnings estimates in Q4 FY2023, reporting $6.3 billion in free cash flow. Salesforce, Inc. (NYSE:CRM) is focused on operational efficiencies, expanding margins, and returning value to shareholders through a $20 billion stock repurchase program. The company has integrated artificial intelligence into its platform and launched Einstein GPT, the first generative AI CRM technology. Salesforce, Inc. (NYSE:CRM) shares have offered investors more than 48% in returns year-to-date.

Citi raised Salesforce Inc (NYSE:CRM)’s price target to $210 from $182 on March 3, retaining a Neutral rating on the shares. The firm was impressed by the company’s Q4 performance, lifting estimates and turning incrementally positive on the shares. Salesforce is also one of the best Dow stocks to buy right now.

At the end of Q4 2022, 117 hedge funds were long Salesforce Inc. (NYSE:CRM) and disclosed positions worth $8.38 billion in the company. Of those, Harris Associates was the leading investor in the company and disclosed a position worth $1.08 billion.

In its investor letter for Q3 2022, Aristotle Atlantic Partners, LLC commented on Salesforce, Inc. (NYSE:CRM). Here is what the fund said:

“We sold Salesforce, Inc. (NYSE:CRM) to reduce our weighting in the Information Technology sector. Salesforce held their investor day, and the company reiterated their organic Fiscal Year 2026 revenue target of $50 billion. This target remains more back-end loaded based on current slowing macroeconomic conditions and requires new annual contract growth well ahead of what the company has been averaging for the past few years. We are skeptical that the company will be able to achieve this revenue target organically and see Merger & Acquisitions (M&A) being key to achieving the growth. While we believe Salesforce has shown good success in growing its non-CRM clouds, we do see more competitive pressures emerging for the Marketing and Customer Service Clouds, specifically on the pricing side during a global economic slowdown.”

3. Apple Inc (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135

Apple Inc (NASDAQ:AAPL) makes and sells devices like smartphones, computers, tablets, wearables, and accessories globally. Apple’s shares rose 291.69% in the past five years due to the strong brand and loyal customers willing to pay a premium.

Apple Inc (NASDAQ:AAPL) has a ‘Moderate Buy’ consensus rating derived from 24 buy ratings, 6 hold ratings, and 1 sell rating. The average price target for Apple is $170.18, with the highest analyst price target at $210.00 and the lowest forecast at $107.00.

There were 135 hedge funds in our database that held stakes in Apple Inc (NASDAQ:AAPL)’s at the end of the fourth quarter, compared to 140 funds in the third quarter. The company stands third on our list of 12 best Dow stocks to buy right now. Berkshire Hathaway is the company’s most significant stakeholder, with 895.14 million shares worth $116.31 billion.

In its Q4 2022 investor letter, Distillate Capital stated the following about Apple Inc. (NASDAQ:AAPL):

“The largest new purchase was Apple Inc. (NASDAQ:AAPL), which after underperforming saw its valuation improve significantly. Over the course of the last year, Apple’s consensus estimated forward free cash flows rose modestly, while its enterprise value fell by around 30%. Apple ranks below the 25th most attractive name in the portfolio and so its weight is capped at 4% vs. 6% for names in the top quartile.”

2. Visa Inc (NYSE:V)

Number of Hedge Fund Holders: 177

Visa Inc (NYSE:V) is a payments technology company. Visa processed over half of U.S. credit card network purchases in 2021 and has raised its dividend payout by 114% over the past five years.

Visa Inc (NYSE:V) had a positive update on its performance in February, with strong U.S. payment volumes and improved cross-border volumes, according to Jefferies analyst Trevor Williams. The analyst predicts at least a 3% increase in international transaction fees and data processing for the quarter. Jefferies maintained a ‘Buy’ rating on Visa Inc (NYSE:V) with a $260 price target on March 3.

As of the fourth quarter of 2022, 177 hedge funds in Insider Monkey’s database held stakes in Visa Inc (NYSE:V). Chris Hohn’s TCI Fund Management is the most notable shareholder in the company, with 19.94 million shares valued at $4.14 billion.

In its Q4 2022 investor letter Vulcan Value Partners commented on Visa Inc. (NYSE:V). Here‘s what the company has to say:

“Mastercard and Visa Inc. (NYSE:V) both delivered strong top and bottom-line results during the quarter. MasterCard grew its revenues and operating profits approximately 23% and 27% respectively. Visa grew its revenues and operating profits approximately 19% and 19% respectively. Both companies also produced strong free cash flow.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

Microsoft Corporation (NASDAQ:MSFT) is a leading cloud computing stock, with a stable balance sheet and strong financial performance.

The number of hedge funds tracked by Insider Monkey with interests in Microsoft Corporation (NASDAQ:MSFT) decreased from 269 hedge funds in the third quarter to 259 hedge funds in the fourth quarter. Microsoft Corporation (NASDAQ:MSFT) tops the list of 12 best Dow stocks. Bill & Melinda Gates Foundation Trust is the largest investor in Microsoft Corp (NASDAQ:MSFT) and has a position with 39.27 million shares valued at $9.42 billion.

In its Q4 2022 investor letter, Diamond Hill Capital stated the following about Microsoft Corporation (NASDAQ:MSFT):

“Other bottom contributors to return included railroad operator Union Pacific, software and I.T. services provider Microsoft Corporation (NASDAQ:MSFT), and banking and financial services company Truist Financial. Union Pacific and Microsoft, though among our bottom contributors, still contributed positively to performance in Q4 as their share prices rose 7% and 3%, respectively. Truist’s stock ended flat in Q4.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on 16 Best Utility Stocks To Buy Now and 10 Best Used Car Stocks To Buy According to Hedge Funds.