5 Best S&P 500 Stocks to Buy According to Hedge Funds

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258     

Microsoft Corporation (NASDAQ:MSFT) develops, licenses, and supports software, services, devices, and solutions worldwide. It is one of the major large cap stocks to invest in. On October 12, Microsoft entered into a partnership with Cisco Systems, a leading software-led networking, cloud, and cybersecurity solutions provider, to integrate Microsoft’s messaging app to its meeting devices which will allow users an alternative to its own Webex video conferencing app.

On October 12, Wells Fargo analyst Michael Turrin maintained an Overweight rating on Microsoft Corporation (NASDAQ:MSFT) stock and lowered the price target to $315 from $350, noting that the firm was viewed favorably in the current environment given its well-entrenched position across multiple end markets.

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 $66 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 FTSE Dividend Stocks To Buy Now and 10 Best Italian Stocks To Buy Now.

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