In this article, we discuss 5 best S&P 500 stocks to buy according to hedge funds. If you want to read about some more S&P 500 stocks, go directly to 10 Best S&P 500 Stocks to Buy According to Hedge Funds.
5. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 153
Alphabet Inc. (NASDAQ:GOOG) provides various technology products and platforms such as Google Services, Google Cloud, and YouTube. It is one of the best large cap stocks to invest in. On October 10, Alphabet’s Google Cloud announced that it had partnered with Prudential, an insurance provider, to make protection, health, and savings solutions more accessible across Asia and Africa.
On October 10, Morgan Stanley analyst Brian Nowak maintained an Overweight rating on Alphabet Inc. (NASDAQ:GOOG) stock and lowered the price target to $135 from $145, noting that the company is expecting to miss consensus revenue and EBITA estimates for Q3.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel investment Group is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 3.1 million shares worth more than $6.9 billion.
In its Q2 2022 investor letter, Baron Funds an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google, the world’s largest search and online advertising company. Shares of Alphabet declined 21.6% in the quarter due to concerns about slower global growth impacting the company’s core advertising business. We retain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in Cloud, AI, and Autonomous Driving (through its Waymo subsidiary).”
4. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE:V) operates as a payments technology company worldwide. It is one of the top large cap stocks to invest in. On October 6, TD Securities, a subsidiary of TD Bank, said that it has taken part in Visa’s cross border Business-to-Business payments network in an effort to make the global payments process easier and faster for its corporate clients.
On October 12, Baird analyst David Koning maintained an Outperform rating on Visa Inc. (NYSE:V) stock and lowered the price target to $240 from $265, noting that the company’s secular growth, high quality earnings, and likelihood of growth was much better than that of peers in coming years.
At the end of the second quarter of 2022, 166 hedge funds in the database of Insider Monkey held stakes worth $24 billion in Visa Inc. (NYSE:V), compared to 159 in the preceding quarter worth $28 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Visa, Inc. (NYSE:V). These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share content with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. It is one of the premier large cap stocks to invest in. On October 11, Credit Suisse analyst Stephen Ju maintained an Outperform rating on Meta Platforms, Inc. (NASDAQ:META) stock and lowered the price target to $174 from $214, noting that the company expects a decrease in estimates for the second half of 2022 and 2023.
At the end of the second quarter of 2022, 184 hedge funds in the database of Insider Monkey held stakes worth $18.2 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 200 the preceding quarter worth $19.3 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:
“Shares of Meta Platforms, Inc. (NASDAQ:META), the owner of Facebook, the world’s largest social network, fell 28.4% during the second quarter due to quarterly results that missed consensus estimates, driven by the impact of Apple’s new privacy changes in its iOS operating system. These changes have made it harder for Facebook to measure the effectiveness of its advertising across its mobile apps.
In the longer term, we expect Facebook to continue utilizing its leadership in mobile to provide global advertisers targeted marketing capabilities at scale, with substantial monetization optionality ahead in newer areas such as Reels (Meta’s competing solution to TikTok) and e-commerce.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products and subscriptions in North America and internationally. It is one of the elite large cap stocks to invest in. On October 6, Amazon said that it is hiring 150,000 employees throughout the US in full time, part time, and seasonal roles across its operation network and will pay an average of $19 per hour.
On October 3, Bank of America analyst Justin Post maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and lowered the price target to $157 from $170, noting that the company had a solid quarter despite higher macroeconomic uncertainty.
At the end of the second quarter of 2022, 252 hedge funds in the database of Insider Monkey held stakes worth $30 billion in Amazon.com, Inc. (NASDAQ:AMZN), compared to 271 the preceding quarter worth $48 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from an overcapacity of resources coming out of COVID. We expect Amazon to grow into its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth (…read more)
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.
