In this piece, we will look at the 5 best stocks for long-term growth. If you want to go through our introduction to the current drivers of stock market performance, then check out 15 Best Stocks For Long Term Growth.
5. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 102
P/E Ratio: 134.83
Established in 1876, Eli Lilly and Company (NYSE:LLY) is a prominent American pharmaceutical firm headquartered in Indianapolis, Indiana. Named after its founder, Colonel Eli Lilly, a pharmaceutical chemist and Civil War veteran, the company operates globally, with a presence in 18 other countries.
Eli Lilly and Company (NYSE:LLY) currently distributes a quarterly dividend of $1.30 per share and has maintained a consistent pattern of dividend growth over the past decade. Additionally, the company has been providing uninterrupted dividends to its shareholders for 138 years. As of February 17, the stock offers a dividend yield of 0.66%.
As of December 2023 end, 102 out of the 933 hedge funds profiled by Insider Monkey had bought and owned the firm’s shares. Ken Fisher’s Fisher Asset Management owned the biggest Eli Lilly and Company (NYSE:LLY) stake among these that was worth $2.6 billion.
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 120
P/E Ratio: 332.26
Headquartered in Santa Clara, California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company specializing in the development of computer processors and associated technologies, catering to both business and consumer markets.
According to data from Mercury Research cited by investment firm Citi, Advanced Micro Devices, Inc. (NASDAQ:AMD) has increased its CPU microprocessor market share to 18.4% in the fourth quarter, marking a gain of 73 basis points. Citi maintains a Buy rating on AMD as of February 7.
In the fourth quarter of last year, Insider Monkey’s analysis of 933 hedge fund portfolios revealed that 120 funds had purchased shares of Advanced Micro Devices, Inc. (NASDAQ:AMD). Ken Fisher’s Fisher Asset Management holds the largest stake in the company within our database, with a $41 billion investment.
White Falcon Capital Management stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2023 investor letter:
“It is important to note that the returns depicted above actually originated in the market turmoil of 2022 and were only realized in 2023. We assess that about 75% of the returns in 2023 were derived from just 35% of the portfolio. Notably, the technology companies we acquired in 2022 – Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon, Docebo, NU, Rover – performed exceptionally well. In hindsight, the decision to allocate to technology stocks appears straightforward; but it actually demanded courage and conviction to buy and add to these stocks during the fear and uncertainty of the 2022 bear market.
The top 5 positions in the portfolio were: Precious Metals royalty basket, Nu Holdings, AMD Amazon.com and Converge Technology Services. AMD has worked out great for us but we must admit that it has gotten expensive. AI was not part of our original investment thesis and AMD is a great reminder of how one can get ‘lucky’ investing in quality businesses run by competent management teams (ditto for Amazon).”
3. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 129
P/E Ratio: 89.39
Headquartered in San Francisco, California, Uber Technologies, Inc. (NYSE:UBER) operates technology platforms connecting consumers with independent ride service providers, offering various transportation modes such as public transit, bikes, and scooters. Additionally, Uber provides on-demand food delivery, freight services, business fleet solutions, and same-day delivery options, catering to over 142 million monthly active platform consumers across 70 countries.
In Q4 2023, Uber Technologies, Inc. (NYSE:UBER) reported a notable 22% year-over-year increase in gross bookings, amounting to $37.6 billion, with trips growing by 24% year-over-year to 2.6 billion, averaging approximately 28 million trips per day. On February 7, the company announced a Q4 GAAP EPS of $0.66 and revenue of $9.9 billion, surpassing Wall Street estimates by $0.49 and $140 million, respectively.
Insider Monkey’s analysis of 933 hedge fund portfolios for the December quarter of 2023 revealed that 129 funds held a stake in Uber Technologies, Inc. (NYSE:UBER).
2. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 131
P/E Ratio: 109.97
Salesforce, Inc. (NYSE:CRM) is a leading American cloud-based software provider specializing in customer relationship management. Offering a comprehensive suite of software solutions across sales, customer service, marketing automation, e-commerce, analytics, and application development, Salesforce caters to a wide range of business requirements.
On January 30, BofA identified Salesforce, Inc. (NYSE:CRM) as one of its top picks for 2024. Analyst Brad Sills underscored Salesforce’s strategic positioning to expand its market share in the $200 billion market. Sills highlighted Salesforce’s competitive advantage, with a market share of only 15% and a strong moat supported by its extensive base of over 150,000 customers in the core sales/front office category.
During the fourth quarter of 2023, Insider Monkey’s research revealed that out of 933 hedge funds covered, 131 were shareholders of Salesforce, Inc. (NYSE:CRM). The largest hedge fund shareholder of Salesforce, Inc. (NYSE:CRM) is Ken Fisher’s Fisher Asset Management, with a $3.9 billion investment.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 173
P/E Ratio: 95.88
NVIDIA Corporation (NASDAQ:NVDA), a renowned American multinational technology firm based in Delaware, excels in integrated circuit development. Its expertise spans various devices, from electronic game consoles to personal computers (PCs). With a remarkable surge of over 230% in 2023, NVIDIA Corp (NASDAQ:NVDA) continues to achieve unprecedented highs, driven by its dominant position in the advanced AI chip market.
Insider Monkey’s analysis of 933 hedge fund portfolios revealed 173 investors holding shares of NVIDIA Corporation (NASDAQ:NVDA) as of the end of Q4 2023. Among them, Rajiv Jain’s GQG Partners held the largest stake, valued at $6.8 billion.
Disclosure: None. You can also take a look at 11 Best Gold Stocks For Inflation and Top 12 Oil and Gas Stocks To Invest In According To Hedge Funds. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
