5 Best Roth IRA Stocks To Buy According To Hedge Funds

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 238

Microsoft Corporation (NASDAQ:MSFT) is one of the most valuable firms in the world and has been at that position for decades now. The company, while offering a solid product, keeps reinventing itself to go with the times. Presently, besides the software business, it has ventured into the cloud and artificial intelligence industries that are expected to play a key part in the future earnings growth of the firm. It also beat market estimates on earnings per share and revenue in the first fiscal quarter results posted on October 26. 

Morgan Stanley analyst Keith Weiss recently raised the price target on Microsoft Corporation (NASDAQ:MSFT) stock to $364 from $331 and kept an Overweight rating on the shares, noting that the firm was well positioned across the portfolio and was driving revenue growth. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT)  with 24.8 million shares worth more than $6.7 billion.

In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:

“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”

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