This article presents an overview of the 5 Best Slow Growth Stocks To Buy According To Hedge Funds. For a detailed overview of such stocks, read our article, 12 Best Slow Growth Stocks To Buy According To Hedge Funds.
5. Eli Lilly And Co (NYSE:LLY)
Number of Hedge Fund Investors: 102
Eli Lilly And Co (NYSE:LLY) has been making waves this year due to its steady business and weight loss drug. Recently, American billionaire investor Ken Langone said Eli Lilly And Co (NYSE:LLY) will be the first trillion-dollar drug company in history. Langone, while talking to CNBC, said he is so bullish on Eli Lilly And Co (NYSE:LLY) due to its pipeline. The investor also praised Eli Lilly And Co’s (NYSE:LLY) CEO and said when everything was falling “off the cliff” the executive was “firm in his commitment to spending the money on R&D and protecting the dividend.”
Eli Lilly And Co (NYSE:LLY) is also among the stocks Jim Cramer is recommending to investors.
Carillon Clarivest Capital Appreciation Fund made the following comment about Eli Lilly and Company (NYSE:LLY) in its Q3 2023 investor letter:
“Eli Lilly and Company (NYSE:LLY), the drug manufacturer, announced the completion of previously disclosed acquisitions of Versanis Bio and Sigilon Therapeutics, as it continues to expand its pipeline for diabetes and weight-loss medications. Shares gained after its sales and earnings per share exceeded estimates and a competitor’s study on the beneficial results of these treatments reported positive data.”
4. JPMorgan Chase & Co (NYSE:JPM)
Number of Hedge Fund Investors: 109
JPMorgan Chase & Co (NYSE:JPM) ranks 4th in our list of the best slow growth stocks to buy according to hedge funds. In November, Jefferies shared a stock screen that identifies high quality US stocks with over $5 billion market cap, 12-month forward total yield (dividend + buyback yield) above the S&P 500 median, next two-year ROE and LTM ROIC over 10% and net debt to market cap (latest) less than 30%. JPMorgan Chase & Co (NYSE:JPM) was among the top stocks in this screen.
A total of 109 hedge funds in Insider Monkey’s database of 910 hedge funds had stakes in JPMorgan Chase & Co (NYSE:JPM).
Mairs & Power Growth Fund made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2023 investor letter:
“We believe AI will have the largest impact in the near term on large enterprises that can harness AI to increase the productivity of their workforces and improve the experience of their customers. For instance, JPMorgan Chase & Co. (NYSE:JPM) employs more than 900 data scientists, 200 AI researchers, and 600 machine learning engineers, and is building out its own AI data center. The company expects to deliver more than $1.5 billion in business value from AI efforts in 2023.”
3. Berkshire Hathaway Inc Class B (NYSE:BRK.B)
Number of Hedge Fund Investors: 116
Berkshire Hathaway Inc Class B’s (NYSE:BRK.B) massive diversification and a variety of businesses under its belt have made it something similar to an ETF which provides investors with a lot of diversity and protection against risks.
During the third quarter, Berkshire Hathaway Inc Class B’s (NYSE:BRK.B) operating earnings increased by about 41% year over year, thanks to strong performance of its insurance business.
Berkshire Hathaway Inc Class B (NYSE:BRK.B) also bought back $1.1 billion of its common stock during the quarter.
2. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 134
Citi recently said that Apple Inc (NASDAQ:AAPL) could outperform yet again in 2024. Citi is bullish on Apple Inc’s (NASDAQ:AAPL) services revenue growth, iPhone demand and a possible AI Phone and Vision Pro.
Citi maintained a Buy rating on the stock and set a $230 price target.
Hayden Capital made the following comment about Apple Inc. (NASDAQ:AAPL) in its third 2023 investor letter:
“Even Berkshire Hathaway’s most famous investment of the last decade – Apple Inc. (NASDAQ:AAPL) – was based on a similar set up. When Berkshire invested in 2016, Apple’s subscription revenues were just starting to cross ~10% of total revenues. Today, that figure is ~25%.
While operating income has grown +90% from 2016 to 2023, the valuation multiple itself has expanded by ~300%, from ~6x EV/EBIT to ~24x EV/EBIT today.
Investors have evolved their perception of Apple’s products – from that of a “fad” hardware company at risk of competition, to that of a “consumer staple”, a necessary part of a household’s budget…” (Click here to read the full text)
1. Visa Inc (NYSE:V)
Number of Hedge Fund Investors: 167
Visa Inc (NYSE:V) tops the list of the best slow growth stocks to buy according to hedge funds.
Recently, Stifel issued a report in which it talked about the largest-cap cyclical value stocks that are buy-rated by its analysts. Visa Inc (NYSE:V) is among these stocks.
Ensemble Capital Management made the following comment about Visa Inc. (NYSE:V) in its Q3 2023 investor letter:
“Mastercard is a company that pretty much everyone has heard of. In fact, when we meet with Ensemble’s clients, we occasionally tell them that we’re nearly certain that they are carrying a Mastercard in their wallet or purse as we speak, and if not, they are carrying a Visa Inc. (NYSE:V). Most people carry both.
People carry Mastercard and Visa because they are accepted nearly everywhere in developed markets. And they are accepted in most emerging economies, at least at locations where higher income people spend money. As a shopper you can show up at a bodega in Peru, a high end hotel in Tokyo, a truck stop in Alabama, or an ice cream cart in Milan, show them a piece of plastic and they’ll let you walk away with goods and services without any worry that they aren’t going to get paid…” (Click here to read the full text)
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