5 Best Stocks For Inflation According to Redditors

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

Microsoft Corporation (NASDAQ:MSFT) is a Redmond, Washington-based diversified technology company providing consumer electronics, personal computers, software, and other related products and services.

Gregg Moskowitz at Mizuho has given Microsoft Corporation (NASDAQ:MSFT) stock a target price of $340 with a Buy rating in a note issued on July 19. The analyst highlighted that software stocks are under pressure due to currency headwinds, inflation, rising interest rates, and supply chain-related challenges. However, Microsoft Corporation (NASDAQ:MSFT) is fundamentally strong with stable demand for Azure cloud and Office 365. Microsoft Corporation (NASDAQ:MSFT) also provides an attractive risk and reward profile to investors with the ability to reward in the medium term.

Microsoft Corporation (NASDAQ:MSFT) was mentioned in the Q1 2022 investor letter of Baron Funds. Here’s what the firm said:

“Shares of mega-cap software company Microsoft Corporation (NASDAQ:MSFT) pulled back with the broader software sector. The company posted another solid quarter, highlighted by total revenues increasing 20% and Microsoft Cloud revenues, now 45% of total revenues, growing 32%. These results were driven, in large part, by strong demand for large Azure contracts. We believe Microsoft can compound revenue in the low double digits for the next three years, underpinned by its expansion in its total addressable market and market share gains.”

Of the 912 hedge funds tracked by Insider Monkey at the end of Q1 2022, Microsoft Corporation (NASDAQ:MSFT) was held by 259 hedge funds.

You can also take a peek at the Top 10 Stock Picks of Citadel’s Wellington Fund and 10 Dividend Stocks to Buy According to John Allison’s Unio Capital.

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