5 Best Fast Money Stocks To Buy According To Hedge Funds

In this article, we will discuss the 5 best Fast Money stocks to buy now according to hedge funds. If you want to explore similar stocks, you can go to 11 Best Fast Money Stocks To Buy According To Hedge Funds.

5. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 73

This April, Morgan Stanley analyst Terence Flynn raised his price target on AbbVie Inc. (NYSE:ABBV) to $181 from $178 and maintained an Overweight rating on the shares.

Steve Grasso named AbbVie Inc. (NYSE:ABBV) as one of his final trades this April and said that he likes “the chart” of the company. Steve Grasso is a notable Fast Money trader and is the CEO of Grasso Global Inc. As of April 12, AbbVie Inc. (NYSE:ABBV) has gained 13.60% over the past 6 months and is offering a forward dividend yield of 3.66%.

At the close of the fourth quarter of 2022, 73 hedge funds were eager on AbbVie Inc. (NYSE:ABBV) and disclosed collective stakes worth $1.52 billion in the company. Of those, AQR Capital Management was the largest stockholder and held a position worth $228 million. AbbVie Inc. (NYSE:ABBV) is placed fifth on our list of the best Fast Money stocks to buy now according to hedge funds.

Here is what Alger Capital had to say about AbbVie Inc. (NYSE:ABBV) in its fourth-quarter 2022 investor letter:

“AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company that develops and markets drugs in areas such as immunology. virology and oncology. Recently, the company expanded through the acquisition of Allergan, which added robust growth assets to help offset the loss of U.S. patent protection for Humira, a leading treatment used for rheumatology, dermatology. gastroenterology, and ophthalmology. While AbbVie reported weak third quarter revenues across the board, the U.S. Food and Drug Administration (FDA) approved Vraylar (an antipsychotic treatment) in December. Despite concerns around Humira’s loss of patent protection, we believe AbbVie has significantly diversified its revenue and that its launch of Rinvog for psoriatic arthritis and atopic dermatitis could be promising.”

4. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 75

75 hedge funds disclosed having stakes in Pfizer Inc. (NYSE:PFE) at the close of Q4 2022. The total value of these stakes amounted to $2.5 billion. As of December 31, AQR Capital Management is the top shareholder in the company and has a stake worth $502 million.

Timothy Seymour named Pfizer Inc. (NYSE:PFE) as one of his final trades this April and said that “this is an environment for healthcare and this is an environment for companies that I think are trading at a very predictable range”. The stock is one of the best Fast Money stocks to buy now and is trading at a PE multiple of 7x, as of April 12.

On April 10, Morgan Stanley analyst Terence Flynn updated his price target on Pfizer Inc. (NYSE:PFE) to $44 from $45 and maintained an Equal Weight rating on the shares.

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91

Steve Grasso likes Tesla, Inc. (NASDAQ:TSLA) and named the stock among his final trades this April. He said that investors “don’t have to run out and buy it now” but the stock has had a “tremendous rebound off the recent lows” and that “there’s still more bullishness behind Tesla, Inc. (NASDAQ:TSLA)”. The stock has gained 67% on a year-to-date basis, as of April 12.

On April 11, Baird reiterated an Outperform rating and its $252 price target on Tesla, Inc. (NASDAQ:TSLA). The stock ranks third among the best Fast Money stocks to buy now.

Tesla, Inc. (NASDAQ:TSLA) was spotted on 91 hedge funds’ portfolios at the close of Q4 2022. These funds held collective positions worth $5.93 billion in the company. As of December 31, Citadel Investment Group is the most prominent investor in the company and has a position worth $926 million.

VGI Partners made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its 2022 annual investor letter:

“Pleasingly, the portfolio also benefited this year from a number of single-stock shorts, including a position in Tesla, Inc. (NASDAQ:TSLA), the well-known electric vehicle manufacturer that was experiencing a slowing in business momentum throughout the year as a result of pressures on consumer discretionary purchases, supply chain disruptions and increasing competition. We have expected for some time that the electric vehicle category would become more competitive, and more recently have begun to witness aggressive price cuts by manufacturers in an attempt to clear inventory, which is a negative trend for an industry that is only likely to see more competition over the coming years. The portfolio also benefited from a short position in a US-listed discount grocery store business, where investors were being pitched a large-scale store rollout story by senior management, albeit using forecasts that were extrapolating the temporarily favourable conditions into the long term and at a time when insider selling was rapidly accelerating. Both these short positions have now been profitably closed.

In meetings with investors over the last six months, we have said that the signposts that we are closer to an equity market bottom would include the reveal of a large fraud as well as a sell-off in Tesla, the retail investor poster-boy. We have seen the collapse of FTX, a large crypto company, and evidence that it is an outright fraud, along with a severe unwind in the Tesla share price (where we fortunately had a short position during CY22; since closed).”

2. UnitedHealth Group Inc. (NYSE:UNH)

Number of Hedge Fund Holders: 110

Timothy Seymour said “there’s no cheating with” UnitedHealth Group Inc. (NYSE:UNH) and that the company is “growing in the highest growth segments in pharma”. The stock was one of his final trades this April. UnitedHealth Group Inc. (NYSE:UNH) is one of the best Fast Money stocks to buy now.

On April 11, Morgan Stanley named UnitedHealth Group Inc. (NYSE:UNH) as its top pick and maintained an Overweight rating and its $587 price target on the stock. As of April 12, UnitedHealth Group Inc. (NYSE:UNH) is offering a forward dividend yield of 1.28%.

UnitedHealth Group Inc. (NYSE:UNH) was a part of 110 investors’ portfolios that held collective positions worth $11.4 billion, at the close of Q4 2022. Of those, GQG Partners was the leading investor and held a stake worth $2.1 billion.

FMI made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2023 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) is the largest, best-managed, and most-diversified managed care organization in the U.S. and is among the largest providers of health services and technology through its fast-growing Optum businesses. In managed care (health insurance), UNH is the number one national provider in the rapidly expanding Medicare Advantage market, in addition to the number one and number two positions in most other sub segments. Today, scale is more important than ever in delivering top benefits at competitive prices. Scaled buying power (and network building) ensures the most visibility into medical costs at a given site-of-care and scaled investment gives UNH the most enhanced capabilities (tools and technology, typically from Optum) that nudge participants towards lower cost sites-of-care. We view the forward valuation (17 times 2024E EPS) and long-term growth algorithm as attractive.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

259 hedge funds disclosed having stakes in Microsoft Corporation (NASDAQ:MSFT) at the end of Q4 2022. The total value of these stakes amounted to $58 billion. As of December 31, Bill & Melinda Gates Foundation Trust is the largest shareholder in the company and has a stake worth $9.4 billion.

Karen Finerman likes Microsoft Corporation (NASDAQ:MSFT) and said that she is “going to stay long”. Karen Finerman is the co-founder  and CEO of Metropolitan Capital Advisors. She is one of the most prominent panelists and traders on Fast Money. As of April 12, Microsoft Corporation (NASDAQ:MSFT) has gained 21.03% over the past 6 months.

This April, Morgan Stanley reiterated an Overweight rating and its $307 price target on Microsoft Corporation (NASDAQ:MSFT). The stock is ranked high among the best Fast Money stocks to buy now according to hedge funds.

Diamond Hill Capital made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter:

“Other bottom contributors to return included railroad operator Union Pacific, software and IT 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.”

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