5 Best Slow Growth Stocks to Buy According to Hedge Funds

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258     

Microsoft Corporation (NASDAQ:MSFT) develops, licenses, supports software, services, devices, and solutions worldwide. It is one of the major growth stocks to invest in. On October 20, Microsoft was said to be in advanced discussions for a new funding round for OpenAI. No agreement has been reached and the funding amount could be changed. On October 17, Microsoft confirmed the cutdown of 1,000 employees from its different companies like Xbox and Azure.

On October 20, UBS analyst Karl Keirstead maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) stock and lowered the price target to $300 from $330, noting that the company reduced its constant-currency revenue growth estimate to 12.2% from 12.6%.

At the end of the second quarter of 2022, 258 hedge funds in the database of Insider Monkey held stakes worth $56 billion in Microsoft Corporation (NASDAQ:MSFT), compared to 259 in the previous quarter worth $65.6 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:

“Shares of Microsoft Corporation (NASDAQ:MSFT), a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues. (read more…)

You can also take a peek at 10 Best Bargain Stocks To Buy Right Now and 10 Best Infrastructure Stocks To Buy Now.

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