In this piece, we’ll take a look at the 5 Best Stocks In Each Sector. For more such companies, go to 11 Best Stocks In Each Sector.
5. CF Industries Holdings, Inc. (NYSE:CF)
Sector: Materials
Number of Hedge Fund Holders: 65
The material sector includes companies that are involved in the exploration, development, and processing of raw materials. These companies use mining and metal refining to manufacture products such as chemicals, forestry products, glass, paper, etc.
Founded in 1946, CF Industries Holdings, Inc. (NYSE:CF) is one of the world’s largest producers of nitrogen fertilizers, with a capacity to produce more than 12 million tons of nitrogen products annually. The company’s products are used by farmers and other agricultural customers around the world to improve crop yield and quality. CF Industries Holdings, Inc. (NYSE:CF) also produces other agricultural products, such as phosphates and potash, which are used as plant nutrients and soil amendments.
On October 4, 2022, Citi analyst P.J. Juvekar increased his price target on CF Industries Holdings, Inc. (NYSE:CF) to $120 while keeping a Buy rating on the company’s stock. The analyst’s profit projections for 2023 are still below those of the market, and he believes that the consensus expectations need to decrease much further.
65 hedge funds were long on the company’s stock at the end of the third quarter, according to Insider Monkey’s database. Soroban Capital Partners had the biggest long position in the company at the end of Q3 2022.
4. Prologis, Inc. (NYSE:PLD)
Sector: Real Estate
Number of Hedge Fund Holders: 59
The real estate sector comprises companies engaged in the property and housing market. It includes companies that are involved in real estate development and operations. Equity Real Estate Investment Trusts (REITs) and businesses providing real estate-related services are also part of this sector.
Prologis, Inc. (NYSE:PLD) is a global real estate company that specializes in the acquisition, development, and management of the industrial real estate. The company is the largest provider of industrial real estate in the world, with a portfolio of more than 830 million square feet of properties in 20 countries.
On December 14, 2022, Nicholas Joseph, an analyst at Citi, increased his price target on Prologis, Inc. (NYSE:PLD) to $140 from $120 while keeping a Buy rating on the stock. According to the analyst, the supply restrictions in the coastal infill markets will underpin demand and occupancy levels, resulting in premium market rent increases and positive mark-to-market returns for the portfolio.
As per Insider Monkey’s database, 59 hedge funds had stakes in Prologis, Inc. (NYSE:PLD) at the end of the third quarter. AEW Capital Management remained the leading stakeholder in the company at the end of Q3 2022.
3. Domino’s Pizza, Inc. (NYSE:DPZ)
Sector: Consumer Staples
Number of Hedge Fund Holders: 52
Industries that are less susceptible to economic cycles are included in the consumer staples Sector. Consumer staples companies include firms engaging in the manufacturing and distribution of food, beverages, household and hygiene products, etc.
Domino’s Pizza, Inc. (NYSE:DPZ) is one of the world’s largest and most well-known pizza delivery companies, with more than 17,000 stores in more than 90 countries. Domino’s Pizza, Inc. (NYSE:DPZ) offers a wide range of pizzas, as well as other menu items such as sandwiches, pastas, and wings.
On December 5, 2022, Peter Saleh, an analyst at BTIG, upgraded his rating on Domino’s Pizza, Inc. (NYSE:DPZ) to Buy from Neutral with a price target of $460. The analyst believes that the company’s declining margins will recover in 2023 due to higher menu pricing and organically improved availability of drivers.
As per Insider Monkey’s database, 52 hedge funds remained bullish on Domino’s Pizza, Inc. (NYSE:DPZ) at the end of Q3 2022. Steadfast Capital Management came out to be the biggest holder of the company’s shares at the end of the quarter.
2. Meta Platforms, Inc. (NASDAQ:META)
Sector: Communication Services
Number of Hedge Fund Holders: 177
The communication services sector comprises companies that enable worldwide communication through various mediums such as phones, the internet, airwaves, cables, etc.
Founded in 2004, Meta Platforms, Inc. (NASDAQ:META) operates as a social media platform that allows users to connect with friends and family around the world. The company has grown to become one of the largest and most influential communication services companies in the world.
On December 16, 2022, Doug Anmuth, an analyst at JPMorgan, raised his price target on Meta Platforms, Inc. (NASDAQ:META) to $150 from $115 and upgraded the rating on the stock to Overweight. According to the analyst, the company’s stock has been impacted by some challenges, including macro pressures. However, the analyst believes that these pressures will alleviate as Meta Platforms, Inc. (NASDAQ:META) cost discipline seems to be improving going into 2023.
As per Insider Monkey’s database, 177 hedge funds remained bullish on Meta Platforms, Inc. (NASDAQ:META) at the end of Q3 2022. Fisher Asset Management came out to be the biggest holder of the company’s shares at the end of the quarter.
1. Microsoft Corporation (NASDAQ:MSFT)
Sector: Information Technology
Number of Hedge Fund Holders: 269
The information technology sector consists of companies that develop software for the internet, databases, and home entertainment, as well as businesses that handle data and offer outsourced services in the field of information technology. It also includes manufacturers and distributors of hardware such as computers and peripherals, communication equipment like mobile phones, and other IT-related products like semiconductor equipment.
Founded in 1975, Microsoft Corporation (NASDAQ:MSFT) is a technology company based in Redmond, Washington. The company is best known for its operating systems, such as Windows, and its productivity software, such as Microsoft Office. However, the company has a wide range of products and services, including cloud computing, artificial intelligence, and gaming.
On October 26, 2022, Brad Reback, an analyst at Stifel, reduced his price target on Microsoft Corporation (NASDAQ:MSFT) to $290 while keeping a Buy rating on the stock. According to the analyst, the company’s management is confident that the business can grow its sales by double digits in constant currency in FY23.
According to Insider Monkey’s database, 269 hedge funds owned stakes in the company at the end of the September quarter. Bill & Melinda Gates Foundation Trust held the biggest stake in Microsoft Corporation (NASDAQ:MSFT) at the end of Q3 2022.
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