In this article, we will discuss the 5 best engineering stocks to buy now. To read the detailed analysis and recent updates about the engineering industry, go directly to the 10 Best Engineering Stocks to Buy Now.
5. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 99
Adobe Inc. (NASDAQ:ADBE), previously known as Adobe Systems Incorporated, is a software powerhouse with a wide range of products including printing, graphics, and publishing software. The company is on our list of best engineering stocks to buy now because other than the software engineering team, its reliability, cloud perform, mobile, and product engineering subdivisions are largely responsible for the success of most of its products.
According to Insider Monkey’s database, Adobe Inc. (NASDAQ:ADBE)’s hedge fund sentiment improved slightly in the fourth quarter of 2022 as 99 funds were bullish on the company’s stock, compared to 93 in the previous quarter.
On March 28, Erste Group analyst Hans Engel upgraded Adobe Inc. (NASDAQ:ADBE)’s stock to Buy from Hold, highlighting the performance of the company and the upcoming revenue and profit growth estimates given by the management.
Polen Capital mentioned Adobe Inc. (NASDAQ:ADBE) in its first-quarter 2023 investor letter. Here is what it said:
“One area we are watching regarding Alphabet and Adobe Inc. (NASDAQ:ADBE) is AI systems and their capabilities, including generative AI. Interestingly, both Adobe and Alphabet could see benefits or threats from the emergence of generative AI and large language models (LLMs). Both companies already use generative AI to the benefit of their users in anticipating how content creators edit their work (Adobe) and in how search results are anticipated and generated (Google). At the same time, breakthrough technologies like AI can open the door to additional competition and/or impact a company’s profitability levels. We now see AI systems others are developing, including LLMs and generative AI offerings, that could be more competitive in the future. While we think it remains early days for ChatGPT and the capabilities of these types of LLMs and generative AI programs like DALL-E, the technology seems to be progressing at a fast rate and will at least require a strong response from incumbents.
As of now, we believe Alphabet and Adobe are leaders in their own right in these areas and have a clear path to improving their existing offerings with AI advancements, which would allow them to be net beneficiaries of AI. There are also significant barriers to building leading AI offerings in these areas. As a result, our position sizes in Adobe and Alphabet remain sizeable. For Adobe, the status of its pending $20 billion-plus Figma acquisition is also uncertain. There is a good chance, in our view, that it will be blocked by regulators, which would mean the future opportunity to expand its offerings to the developer community (beyond designers) may not occur.”
