5 Best Growth Stocks to Buy According to Hedge Funds

In this article, we discuss 5 best growth stocks to buy according to hedge funds. If you want to see more of the best growth stocks, go directly to 15 Best Growth Stocks to Buy According to Hedge Funds.

5. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

Mastercard Incorporated (NYSE:MA) offers payment processing and other payment-related products and services domestically and internationally. Donald Fandetti, an analyst at Wells Fargo, maintained an ‘Overweight’ rating on the shares of Mastercard Incorporated (NYSE:MA) and increased his price objective to $405 from $365 on December 15.

As per Insider Monkey’s database, 146 hedge funds were bullish on Mastercard Incorporated (NYSE:MA) at the end of the third quarter.

In its Q2 2022 investor letter, Baron Funds highlighted a few stocks and Mastercard Incorporated (NYSE:MA) was one of them. Here is what the fund said:

“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”

4. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 165

Visa Inc. (NYSE:V.A) is a global payments technology firm. Consumers, retailers, financial institutions, and governments worldwide use the company’s payments service. Darrin Peller, an analyst at Wolfe Research, boosted his price objective on Visa Inc. (NYSE:V.A) to $255 from $240 on January 5 and reiterated an ‘Outperform’ rating on the stock.

Visa Inc. (NYSE:V.A) shares have gained about 77.67% in value over the last five years. As of Q3 2022, 165 hedge funds have positions in Visa Inc. (NYSE:V.A).

3. Alphabet Inc. (NASDAQ:GOOGL.A)

Number of Hedge Fund Holders: 196

Alphabet Class A has a consensus recommendation of ‘Strong Buy’ from 31 Wall Street analysts based on 31 buy ratings, 0 hold ratings, and 0 sell ratings.

According to our database, Alphabet Inc. (NASDAQ:GOOGL.A)’s long hedge funds positions increased during the third quarter of 2022. There were 196 hedge funds that hold a position in Alphabet Inc. (NASDAQ:GOOGL.A) compared to 191 funds in the second quarter.

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) offers its customers a wide range of products and services. At the end of the third quarter of 2022, 269 hedge funds in the database of Insider Monkey held stakes worth $34.60 billion in Amazon.com, Inc. (NASDAQ:AMZN), up from 252 in the preceding quarter worth $30.08 billion.

On January 4, New Street analyst Dan Salmon initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN), labelling the business his Top Pick in the US Internet sector and rating the stock as a ‘Buy’ with a $130 price target. He anticipated that a continuous move in the revenue mix toward higher margin industries, led by Amazon Web Services and advertising, would support further operating leverage and margin potential.

Lakehouse Capital, an investment management company, mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its November 2022 investor letter. Here is what the fund said:

“Meanwhile, the largest detractor was Amazon.com, Inc. (NASDAQ:AMZN), which remained under pressure due to concerns around near-term profitability. We continue to believe that Amazon’s cost pressures will prove to be short-term in nature and that the company remains on track to deliver significant profit improvements over the next twelve months. For more commentary on their most recent earnings report please see last month’s letter here.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Microsoft Corporation (NASDAQ:MSFT) creates and supports software, services, hardware, and other products. Michael Larson’s Bill & Melinda Gates Foundation Trust is the biggest stakeholder of Microsoft Corporation (NASDAQ:MSFT) as of September this year, increasing its stake in the company by an impressive 4057% in Q3, holding 39.26 million shares worth almost $9.14 billion.

Gil Luria, an analyst at DA Davidson, initiated coverage of Microsoft Corporation (NASDAQ:MSFT) on January 4 rating the stock as ‘Buy’ with a $270 price target. According to the analyst, the firm should remain robust in the face of a future global economic crisis, which justifies the stock’s premium value.

Here’s what TimesSquare Capital Management said about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2022 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) develops, licenses, and supports software solutions worldwide. Fiscal fourth quarter results were generally in line with consensus estimates, though profits missed slightly. While its Azure cloud business continues to perform well, the personal computer market has declined with inflation having an impact. Its shares experienced a -9% selloff.”

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 11 Best Small Cap AI Stocks to Invest In and 12 Best Affordable Stocks to Buy Under $5.