In this article, we discuss the 5 best Roth IRA stocks to buy in 2022. If you want to read about some more Roth IRA stocks, go directly to 10 Best Roth IRA Stocks To Buy in 2022.
5. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Holders: 44
Moody’s Corporation (NYSE:MCO) is a New York-based risk assessment provider. At the end of the fourth quarter of 2021, 58 hedge funds in the database of Insider Monkey held stakes worth $16.8 billion in Moody’s Corporation (NYSE:MCO), the same as in the previous quarter worth $15.6 billion.
Moody’s Corporation (NYSE:MCO) offers investors lots of solidity in the dividend space, having consistently grown the payout for nearly two decades. In addition to long-term capital gains, these dividend payouts each quarter also add value to the overall investment profile of the stock. The stock is also somewhat immune to economic ups and downs as risk assessment remains a top priority of businesses regardless of overall economic outlook.
In its Q4 2020 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Moody’s Corporation (NYSE:MCO) was one of them. Here is what the fund said:
“Moody’s Corporation (NYSE:MCO) provides credit ratings, financial intelligence, and analytical tools to assist businesses in making decisions. Moody’s Corporation (NYSE:MCO) reported excellent financial results due to continued growth in rated debt issuance. However, the stock detracted on investor expectations that issuance trends will moderate into 2021.The announced retirement of long-time CEO Ray McDaniel may have also weighed on sentiment. We continue to own the stock due to our views of the company’s long runway for growth and strong competitive advantages.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Apple Inc. (NASDAQ:AAPL) makes and sells consumer electronics. The company is already a leading smartphone and laptop manufacturer and has plans to expand in the electric vehicle and virtual reality domains in the coming years. It is also one of the few tech giants with an excellent financial record. Piper Sandler analyst Harsh Kumar has an Overweight rating on the stock with a price target of $200.
Elite hedge funds are bullish on Apple Inc. (NASDAQ:AAPL) stock as well. Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in Apple Inc. (NASDAQ:AAPL) with 63.9 million shares worth more than $11.3 billion.
In its Q1 2021 investor letter, Distillate 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 an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple Inc. (NASDAQ:AAPL) was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
3. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 142
Visa Inc. (NYSE:V) is a payments technology firm. It is one of the top finance stocks on Wall Street. At the end of the fourth quarter of 2021, 142 hedge funds in the database of Insider Monkey held stakes worth $29 billion in Visa Inc. (NYSE:V), compared to 143 in the preceding quarter worth $26 billion.
Visa Inc. (NYSE:V) is integrating crypto payments on the platform as it becomes more blockchain-friendly, positioning itself early for the crypto revolution. Barclays analyst Ramsey El-Assal has an Overweight rating on the stock with a price target of $265.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa Inc. (NYSE:V).”
2. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 153
Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications. The company runs a premier ride-hailing service and is expanding into autonomous driving, food delivery, and other high growth domains. JPMorgan analyst Doug Anmuth has an Overweight rating on the stock with a price target of $65.
Uber Technologies, Inc. (NYSE:UBER) is one of the favorite tech stocks on Wall Street. Among the hedge funds being tracked by Insider Monkey, Boston-based Altimeter Capital Management is a leading shareholder in Uber Technologies, Inc. (NYSE:UBER) with 1.5 million shares worth more than $482 million.
RiverPark Advisors, LLC, in its Q4 2020 investor letter, mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund has to say in its letter:
“Uber Technologies, Inc. (NYSE:UBER) was also a strong contributor, as shares rallied following the approval of California’s Proposition 22 by voters, allowing the company’s California-based drivers to remain independent contractors (rather than become more expensive employees). We believe this news is not just about the 10%-15% of Uber’s revenue tied to California, but the influence this will have on other states reassessing driver pay. UBER also reported strong third quarter results with Delivery Gross Bookings growing 135% year-over-year which nearly fully offset a reduction in Mobility Gross Bookings, which were down 50% year over year. Total Gross Bookings for the quarter were down only 10% year over year as compared with down 35% last quarter.
Despite the COVID disruption, Uber Technologies, Inc. (NYSE:UBER) remains the undisputed global leader in ride sharing (44% of the Company’s third quarter revenue), with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (46% of revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage and worker staffing for shift work. At its current $96 billion market capitalization, Uber Technologies, Inc. (NYSE:UBER) trades at only 6x next year’s revenue from its two core businesses. Additionally, the company has substantial, seemingly unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”
1. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 63
Verizon Communications Inc. (NYSE:VZ) is a New York-based communications and technology company. At the end of the fourth quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $10.8 billion in Verizon Communications Inc. (NYSE:VZ), compared to 57 in the previous quarter worth $10.3 billion.
Verizon Communications Inc. (NYSE:VZ) is also a solid pick for long-term investment since the company has a stellar dividend history stretching back over two decades. In addition to growth catalysts in the 5G domain, the capital returns on the stock could also increase over time as the firm improves cash flows through the streaming and other digital businesses. JPMorgan analyst Philip Cusick has an Overweight rating on the stock with a price target of $56.
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:
“We sold Verizon Communications Inc. (NYSE:VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
You can also take a peek at 10 Penny Stocks Redditors are Buying in August and 10 Best Nickel Stocks to Buy Now.
