In this article, we will take a look at the 5 best Nancy Pelosi stocks to buy now. To see more such companies, go directly to 13 Best Nancy Pelosi Stocks To Buy Now.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple ranks 5th in our list of the best Nancy Pelosi stocks to buy now. On June 15, 2023, former House Speaker Nancy Pelosi’s husband Paul Pelosi exercised 50 call options purchased back in May 2022 at a strike price of $80.
As of the end of the second quarter of 2023, 135 hedge funds tracked by Insider Monkey had stakes in Apple. The biggest stakeholder of the company as of the end of June was Warren Buffett’s Berkshire Hathaway which owns a $178 billion stake in the company.
Polen Focus Growth Strategy made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q3 2023 investor letter:
“Apple Inc. (NASDAQ:AAPL) has been a meaningful detractor to relative performance in recent quarters as the company has seen moderate earnings growth but substantial P/E multiple expansion. In our view, Apple is a great business but one with more risk factors related to China than we would prefer: relatively low EPS growth, which is being heavily aided by share buybacks (slower EPS growth than every single company in our Portfolio); and a high P/E ratio for this level of growth. This combination rarely leads to excellent long-term share price performance in our experience.
Last quarter, Apple’s new iPhone introduction failed to generate much excitement, with iPhone units declining year over year. There was also news that the Chinese government was blocking its employees from using iPhones. Apple is exposed to the rising geopolitical tensions between the U.S. and China. The latter is responsible for much of the company’s incremental iPhone growth, and nearly all of Apple’s supply chain is China-based. The relatively small action by the Chinese government was a reminder to investors that Apple is not immune from geopolitics or other risks.”
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 152
Back in September 2022, Nancy Pelosi and her husband exercised 200 call options purchased 12/17/21 (20,000 shares) at a strike price of $100. Alphabet Inc. (NASDAQ:GOOG) is one of the best stocks in Nancy Pelosi’s portfolio. The stock has gained about 48% year to date through November 12.
Hedge funds also love Alphabet Inc. (NASDAQ:GOOG). A total of 204 hedge funds reported owning stakes in Alphabet Inc. (NASDAQ:GOOG) as of the end of the second quarter of 2023. The biggest stakeholder of Alphabet Inc. (NASDAQ:GOOG) was Natixis Global Asset Management’s Harris Associates which owns a $3.2 billion stake in the company.
Weitz Investment Management Large Cap Equity Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“As for other quarterly contributors, Alphabet Inc. (NASDAQ:GOOG) and Meta Platforms, Inc., (META) added to their exceptional year-to-date returns. Meta Platforms and Alphabet were the true year-to-date standouts. After steep declines in 2022, both stocks rebounded sharply due to a combination of solid fundamentals, disciplined operational execution, and improved sentiment. Despite outsized gains and attention, we think both Alphabet and Meta remain undervalued.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 175
NVIDIA Corporation (NASDAQ:NVDA) was one of the best stock trades initiated by Nancy Pelosi and her husband Paul Pelosi. Back in June 2022, Paul Pelosi exercised 200 call options (20,000 shares) expiring 6/17/22 at a strike price of $100. Over the past one year NVIDIA Corporation (NASDAQ:NVDA) shares have gained about 196%, thanks to the AI-led boom that made the company a hitherto undisputed leader in the AI chips segment.
Here is what Baron Global Advantage Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“At the portfolio level, the positive fundamental trends we noticed in the second quarter continued into the third quarter as well – many of our companies are reporting stability or slight improvement in business trends. Weighted average 2023 revenue growth expectations for the portfolio were up 3.8% during the third quarter or up 0.8% if we exclude NVIDIA. We wrote at length about NVIDIA earlier this year, but it is worth mentioning that the company has continued to exceed its own projections and the Street’s most optimistic expectations. After raising its revenue and EPS guidance for 2023 by 40% and 69%, respectively, following its last quarter, NVIDIA increased it further by 26% and 35%, respectively, after reporting the most recent one. Consensus expectations now call for revenues to grow 94% this year, while earnings per share are expected to increase by 192%. You may have seen these kinds of growth rates before, but we doubt you saw them from a company generating $50 billion in revenues. The skeptics who continue to question and doubt the accelerating demand for Generative artificial intelligence forgot to tell NVIDIA about it. But we digress…back to the portfolio…profit expectations have risen even faster than revenues and were up 11% during the third quarter (or up 7.8% ex-NVIDIA) with margin expectations up 149bps (107bps ex-NVIDIA). So, broadly speaking, our companies are seeing improvement in overall business trends, which flow through to their bottom lines, driving higher margins. We are also starting to see the benefits of leaner cost structures and more disciplined capital allocation compared to two or three years ago when capital was both cheaper and more readily available.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 278
Amazon.com, Inc. (NASDAQ:AMZN) ranks 2nd in our list of the best Nancy Pelosi stocks to buy now. Back in May 2021, Paul Pelosi bought 20 call options on Amazon.com, Inc. (NASDAQ:AMZN) with a strike price of $3,000 and an expiration date of 6/17/22.
In a note in October, Jefferies analyst Brent Thill said that Amazon.com, Inc. (NASDAQ:AMZN)’s Cloud division margins in the third quarter were “impressive,” showing the company’s overall cost discipline is “paying off.”
“We were impressed by the 30% AWS Operating Margin in [the third-quarter], which represents the highest level since [first quarter of 2022] as AWS benefited from lower headcount and other cost controls,” Jefferies analyst Brent Thill said in a note.
Here is what Polen Global Growth has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2023 investor letter:
“Amazon continues to showcase it’s place as one of the most competitively advantaged companies in the world. The company has made significant progress in managing costs and better leveraging existing capacity, driving a strong recovery in its profitability. We think there’s additional room for improvement.
AWS growth seems to be stabilizing even while management continues to work with clients to optimize their infrastructure spend. Roughly 90% of global IT spending remains on premise. We believe this will eventually flip, with most IT spending ultimately moving to the cloud over time. We think AWS will be a significant beneficiary of this transition.
Further, our investment case on company profitability driven by AWS and advertising continues to unfold, delivering nearly $8 billion in free cash flow over the trailing twelve months and a net margin of 5%. We expect both to move higher with the mix shift of more profitable businesses growing fastest continuing to take effect.
At Amazon’s current price, we believe the company is well positioned to deliver a mid-teens or higher total shareholder return for our clients over the next five plus years without a Herculean effort from the business. It simply needs to continue executing on current businesses and growing into the capacity it built during and immediately after the pandemic.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 300
Microsoft Corporation (NASDAQ:MSFT) is another top stock in Nancy Pelosi and her husband’s portfolio. According to filings posted earlier this year, Paul Pelosi exercised 50 call options purchased 5/24/22 (5,000 shares) at a strike price of $180.
Microsoft Corporation (NASDAQ:MSFT) shares have gained about 54% year to date through November 12. As of the end of the second quarter of 2023, Microsoft Corporation (NASDAQ:MSFT) was the most popular stock among the 910 hedge funds tracked by Insider Monkey.
Here is what Baron Technology Fund has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2023 investor letter:
“Microsoft Corporation is the world’s largest software company. Microsoft was traditionally known for its Windows and Office products, but over the last five years, it has built an over $60 billion cloud business, including its Azure cloud infrastructure service and its Office 365 and Dynamics 365 cloud-delivered applications. The stock detracted from performance because Microsoft is the Fund’s largest holding and shares retreated 7.0% after strong first half performance. For the June quarter, Microsoft reported better-than-expected Azure results for the third straight period, highlighted by Azure revenue growing 27% in constant currency. Its computing division also beat expectations, with Windows revenue benefiting from an early back-to-school inventory build. Microsoft’s September quarter revenue guidance came in below Street expectations; however, with Azure effectively in line and demonstrating stabilization, but computing seeing the negative sequential impact of the pull-forward in back-to-school purchases. Looking at the big picture, Microsoft continues to execute at a high level, navigating a challenging macro backdrop while aggressively investing in long-term growth, and we remain confident that Microsoft is well positioned to leverage AI over the medium to long term as it infuses Open AI and other generative AI technologies across its entire product portfolio.”
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