5 Best Stocks To Buy For A Weak US Dollar

In this piece, we will take a look at the five best stocks to buy for a weak U.S. dollar. If you want to learn what a strong U.S. dollar’s about, head on over to 10 Best Stocks To Buy For A Weak US Dollar.

5. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 60

The Coca-Cola Company (NYSE:KO) is the largest beverages and soft drink company in the world. It has dozens of brands in its portfolio and the firm is also one of the oldest companies in the world as it was set up in 1886 and is headquartered in Atlanta, Georgia, the United States.

The Coca-Cola Company (NYSE:KO)’s third fiscal quarter results that were posted in October 2022 outlined that excluding North America, roughly $6.8 billion of the firm’s $11 billion in net revenues were earned abroad. Additionally, the actual proportion of non-U.S. dollar revenues will be higher since North America includes other countries such as Canada as well. The Coca-Cola Company (NYSE:KO) also beat analyst revenue and EPS estimates during its third quarter and managed to grow its EPS by 8%,  a remarkable achievement for an established brand.

The Coca-Cola Company (NYSE:KO) pays a 44 cent dividend for a 2.9% yield and its shares are up by 2.46% year to date. By the end of this year’s second quarter, 60 out of the 895 hedge funds polled by Insider Monkey had bought the company’s shares.

The Coca-Cola Company (NYSE:KO)’s largest investor is Warren Buffett’s Berkshire Hathaway which owns 400 million shares that are worth $25 billion.

“The Coca-Cola Company (NYSE:KO), the global beverage business, was a leading contributor for the period. Coca-Cola continues to benefit from the refranchising of its bottling operations and realignment of incentives, catalysts we previously identified. These initiatives are demonstrating their strength in an inflationary and supply-chain-challenged environment. Additionally, the company has focused on evolving its customer engagement practices by leveraging digital and social medias for targeted campaigns, such as the design and launch of Coke Byte in the metaverse. Lastly, Coca-Cola has furthered its transformation into a total beverage company, as it debuted its new Jack Daniel’s Tennessee Whiskey and Coca-Cola ready-to-drink premixed cocktail. Although uncertainties surrounding cost pressures, lockdowns and geopolitical conflicts remain, we believe Coca-Cola is uniquely positioned to successfully continue its transition toward a total beverage business.”

4. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 71

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the largest chip companies in the world. It sells several semiconductor products such as CPUs, GPUs, modems, and others for smartphones, cars, and Internet of Things (IoT) gadgets.

QUALCOMM Incorporated (NASDAQ:QCOM) brings in almost all of its revenues from outside the U.S. For instance, it brought in $33.5 billion in revenue in 2021, out of which only $1.4 billion was earned in its home country, the U.S. China formed the largest proportion, with QUALCOMM Incorporated (NASDAQ:QCOM) earning $22.5 billion from the country. Additionally, the company is also one of the cheapest stocks in its peer group of big tech, through a 7.2x enterprise value to forward operating income ratio. The sector median is 11x.

QUALCOMM Incorporated (NASDAQ:QCOM) pays a 75 cent dividend for a 2.52% yield. Insider Monkey took a look at 895 hedge fund portfolios for their June quarter of 2022 holdings to discover that 71 had held a stake in the company.

QUALCOMM Incorporated (NASDAQ:QCOM)’s largest investor is Panayotis Takis Sparaggis’s Alkeon Capital Management which owns 4.2 million shares that are worth $541 million.

3. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 79

Merck & Co., Inc. (NYSE:MRK) is a pharmaceutical company that sells drugs for cancer, neurological disorders, and cardiovascular diseases among others. The company is headquartered in Kenilworth, New Jersey, the United States.

Merck & Co., Inc. (NYSE:MRK)’s revenue for the first six months of this year equaled $30.5 billion, and out of this, the U.S. accounted for less than half of the pie, with a 44% share. The company has been on a strong run this year, as not only did it grow its revenue in the first half, but its third fiscal quarter results marked the 14th time that it has beaten analyst estimates. Revenues in the latest quarter were equal to $15 billion as they grew 14% annually, and its Keytruda cancer drug accounted for more than one third of the sales by bringing in $5.3 billion.

Merck & Co., Inc. (NYSE:MRK) has also been a resilient healthcare stock this year, as its shares are up by a remarkable 31% year to date. The firm pays a 69 cent dividend for a 2.74% yield, and 79 out of the 895 hedge funds polled by Insider Monkey for their Q2 2022 investments had bought the company’s shares.

Out of these, Ken Fisher’s Fisher Asset Management is Merck & Co., Inc. (NYSE:MRK)’s largest shareholder. It owns 12 million shares that are worth $1.1 billion.

Carillon Tower Advisers mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Merck & Co., Inc. (NYSE:MRK) reported a strong first quarter and raised its financial guidance for 2022. The company also continues to benefit from the recent rotation into pharmaceuticals, which historically has been a more defensive industry.”

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Apple Inc. (NASDAQ:AAPL) is the world’s largest consumer technology company. It is known for its iconic iPhone smartphone and other products such as MacBooks, iPads, and the Apple Watch. The firm is headquartered in Cupertino, California, the United States.

Apple Inc. (NASDAQ:AAPL)’s fiscal year 2022 reminded everyone again why the firm is the king of technology, if not the entire business world. By the end of its latest fiscal year in September 2022, the company had raked in an eye popping $394 billion in revenue, managing to grow the sales by 8% annually even when consumers spent a good half of the year dealing with painful inflation. Out of this, 57% of revenue came from outside North America as it accounted for a whopping $224 billion in sales.

Apple Inc. (NASDAQ:AAPL) also proved that it is immune to the perils of the advertising industry, as its Services revenue also posted a 5% revenue growth in a year that saw budgets drop once again. 128 out of the 895 hedge funds part of Insider Monkey database had bought the company shares during this year’s second quarter.

Warren Buffett’s Berkshire Hathaway is Apple Inc. (NASDAQ:AAPL)’s largest shareholder. It owns 894 million shares that are worth $122 billion.

Wedgewood Partners mentioned the company in its Q3 2022 investor letter. Here is what the fund said:

“Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 191

Alphabet Inc. (NASDAQ:GOOGL) is the parent company of Google and several other smaller firms. Google runs the world’s most popular search engine and other services such as video streaming and email platforms.

A strong U.S. dollar shaved 5% off of Alphabet Inc. (NASDAQ:GOOGL)’s revenue by the end of this year’s third quarter, with the firm reporting $69 billion in net sales that ended up missing analyst estimates. Several of Google’s products are market leaders, with the search engine having 90% of the total share and Android commanding 42% of the smartphone market. Additionally, its Cloud segment is slated to grow at a 44% compounded annual growth rate over the next couple of years.

Alphabet Inc. (NASDAQ:GOOGL)’s cumulative revenues for this year’s first three quarters stood at $207 billion, and out of this, non-U.S. revenues represented 53% of the overall pie. Insider Monkey’s Q2 2022 survey of 895 hedge funds revealed that 191 had invested in the company.

Out of these, Chris Hohn’s TCI Fund Management is Alphabet Inc. (NASDAQ:GOOGL)’s largest investor. It owns a $5.4 billion stake courtesy of 2.4 million shares.

Bronte Capital mentioned the company in its Q3 2022 investor letter. Here is what the fund said:

Consensus longs—those stocks widely held and admired by fund managers—have recently underperformed the market. Consensus shorts have been bad shorts. We have over 500 shorts, of which a few are consensus, and we have noticed this effect. But we also own what we think is (alas) the most consensus long in this market: Alphabet Inc. (NASDAQ:GOOG). We find it hard to find any strong reason not to own it. Internet advertising is going from strength to strength and Google’s place in the market is mostly improving. Some of the other bets such as cloud services are beginning to pay off, and finally the CEO is expressing discipline on costs. (Per the consensus, the biggest problem with Google has been a lack of discipline on costs. Every time we look there are another 20 thousand employees.) Being a consensus long, it is down hard. We did say consensus longs are not going well…” (Click here to read the full text)

Disclosure: None. You can also take a look at 12 Best Food Stocks To Buy Now and 10 Best Cybersecurity Stocks To Buy Under $20.

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