5 Best Retail Stocks To Buy Now

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

Number of Hedge Fund Holders: 252 

Total Value of Hedge Fund Holdings:  $30,078 Million

Topping the list of top retail stocks to buy according to hedge funds is Amazon.com Inc. (NASDAQ: AMZN). During the second quarter of 2022, the company’s sales revenue rose 7% to $121.2 billion from $113.1 billion in the corresponding quarter of 2021. This was higher than the $119.3 billion prediction made by Wall Street. For the quarter, the company expected revenue of between $116 billion and $121 billion.

Following the release of the most recent Q2 earnings report, Amazon shares surged, demonstrating that the AWS market is still expanding quickly. Additionally, the advertising sector experienced double-digit increase. In the previous month, Amazon announced the purchases of One Medical and iRobot. Even at 25.8x cash flows, the valuation is still favourable, especially given the anticipated growth over the coming few years. Additionally, Amazon has begun stock repurchases, spending $6 billion in the first half of 2022 and this trend of buybacks may continue to increase.

By the end of the second quarter of 2022, 252 hedge funds out of the 895 tracked by Insider Monkey held stakes in Amazon.com Inc. (NASDAQ: AMZN), worth roughly $30,078 million. This is compared to the previous quarter’s 271 hedge fund holders with a total stake value of roughly $48,028 million.

Oakmark Funds, an investment management firm, mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter of 2022 investor letter. Here’s what they said:

“Amazon (NASDAQ:AMZN) is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”

For more of the latest stock picks worth considering for your portfolio, check out These 10 Stocks are Gaining After Announcing Share Buybacks and 10 Stocks to Buy According to Francis Chou’s Chou Associates Management.

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