In this article, we discuss 5 best large cap stocks to buy now. If you want to read about some more large cap stocks, go directly to 11 Best Large Cap Stocks to Buy Now.
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. It is one of the best large cap stocks to invest in. On October 13, Johnson & Johnson’s unit, Biosense Webster, said that it has launched the Heliostar Balloon Ablation Catheter in Europe. Heliostar Balloon is indicated for use in catheter-based cardiac electrophysiological mapping of the atria.
On October 5, Citi analyst Joanne Wuensch maintained a Buy rating on Johnson & Johnson (NYSE:JNJ) stock and lowered the price target to $198 from $201, noting that despite macroeconomic headwinds, hospital staffing remains stable.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:
“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 87
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor company worldwide. It is one of the top large cap stocks to invest in. On October 11, Advanced Micro Devices announced that it is partnering with the Energy Science Network, a science discovery platform, to launch ESnet6, the latest and newest generation of the US Department of Energy’s high-performance network.
On October 10, Northland analyst Gus Richard maintained an Outperform rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) stock and lowered the price target to $80 from $105, noting that there was a cut to 2023 estimates for AMD’s client revenue due to the rapidly deteriorating PC market and declining enterprises.
At the end of the second quarter of 2022, 87 hedge funds in the database of Insider Monkey held stakes worth $4.8 billion in Advanced Micro Devices, Inc. (NASDAQ:AMD), compared to 83 in the previous quarter worth $6.9 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of them. Here is what the fund said:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global fabless semiconductor company focusing on high-performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers.
AMD has been gaining meaningful share in personal computing and server end markets over the past several years driven by the performance of its processors and technology and strong execution against its technology roadmap, and we believe share gains will continue over the coming years from a combination of AMD’s continued advancements and Intel’s stumbles in developing its leading-edge technology (…read more)
3. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 92
Adobe Inc. (NASDAQ:ADBE) operates as a diversified software company worldwide. It is one of the premier large cap stocks to invest in. On September 15, Adobe said that it has agreed to buy Figma, an online design collaboration company, for approximately $20 million in cash and stock. Adobe will pay in half cash and half stock. 6 million additional restricted stock units will be granted to the CEO of Figma.
On September 16, BMO Capital analyst Keith Bachman maintained a Market Perform rating on Adobe Inc. (NASDAQ:ADBE) stock and lowered the price target to $345 from $435.
At the end of the second quarter of 2022, 92 hedge funds in the database of Insider Monkey held stakes worth $7.5 billion in Adobe Inc. (NASDAQ:ADBE), compared to 93 in the previous quarter worth $8.9 billion.
In its Q2 2022 investor letter, Aristotle Capital Management, LLC, an asset management firm, highlighted a few stocks and Adobe Inc. (NASDAQ:ADBE) was one of them. Here is what the fund said:
“We sold our position in Adobe Inc. (NASDAQ:ADBE) to reduce our weighting in the Information Technology sector. We continue to see risk in higher valuation technology names, such as Adobe, due to both slowing business trends and multiple compression. Adobe has exposure to both the SMB market segment as well as e-commerce, both areas which have shown pockets of weakness during the current earnings season.”
2. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 97
PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It is one of the major large cap stocks to invest in. On October 11, PayPal announced the launch of its new Point of Sale system, Zettle, for small businesses in the US. It was launched in the European market last year and put the company in direct competition with Block’s Square Seller System. This sales system does not need a second device to pair with.
On October 12, Atlantic Equities analyst Kunaal Malde maintained an Overweight rating on PayPal Holdings, Inc. (NASDAQ:PYPL) stock and lowered the price target to $110 from $120, noting that the US and global economies will enter recession in 2023 and payments stocks are starting to discount in this scenario.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in PayPal Holdings, Inc. (NASDAQ:PYPL), with 17 million shares worth more than $1.2 billion.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:
“This quarter, we bought shares in PayPal (NASDAQ:PYPL), the payments platform. PayPal has been one of the more high-profile victims of the market’s brutal ruthlessness over the past few months, and the stock fell by over two thirds between its peak in July to the beginning of March this year. As we progressed PayPal through the Mayar Checklist Process, we identified a business with a leadership position in a structurally growing market.
The company benefits from certain network effects, and faces several competitive threats at the same time. As the business profited from the move to online retail during the pandemic, as well as from the stimulus cheques handed out in the US, the stock price soared to absurd levels. As so often happens, however, the market had overcorrected by February and this quarter was offering prospective shareholders prices that assumed essentially zero growth in the business. When life gives you irrational sellers, make lemonade!”
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. It is one of the prominent large cap stocks to invest in. On October 11, Apple said that it has introduced Ask Apple, a new series of question & answers and one-on-one consultations that will provide developers with more opportunities to connect directly with Apple experts for insight, feedback, and support.
On September 29, Rosenblatt analyst Barton Crockett upgraded Apple Inc. (NASDAQ:AAPL) stock to Buy from Neutral with a price target of $189, up from $160.
At the end of the second quarter of 2022, 128 hedge funds in the database of Insider Monkey held stakes worth $143 billion in Apple Inc. (NASDAQ:AAPL), compared to 131 in the previous quarter worth $182 billion.
In its Q2 2022 investor letter, Alger Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”
You can also take a peek at 10 Best FTSE Dividend Stocks To Buy Now and 10 Best Italian Stocks To Buy Now.
