In this article, we will look at 5 best stocks to buy in 2022 according to billionaire Julian Robertson’s Tiger Management. If you want to learn about Julian Robertson’s investment philosophy and his hedge fund’s history, you can go to 10 Best Stocks to Buy in 2022 According to Billionaire Julian Robertson’s Tiger Management.
5. QUALCOMM, Incorporated (NASDAQ:QCOM)
Tiger Management’s Stake Value: $24,986,000
Percentage of Tiger Management’s 13F Portfolio: 4.12%
Number of Hedge Fund Holders: 73
As of March 31, Tiger Management’s stakes in QUALCOMM, Incorporated (NASDAQ:QCOM) sit at $24.98 million. The investment covers 4.12% of the fund’s Q1 2022 investment portfolio and ranks the stock sixth among the fund’s top 13F holdings.
On April 27, QUALCOMM, Incorporated (NASDAQ:QCOM) posted a market-beating quarter and announced earnings for the fiscal second quarter of 2022. The company reported earnings per share of $3.21 and exceeded Wall Street consensus by $0.29. QUALCOMM, Incorporated (NASDAQ:QCOM) reported revenue growth of 40.79% year over year and generated revenues of $11.16 billion, beating estimates by $558.33 million.
Analysts are becoming bullish on the information technology sector and more particularly on QUALCOMM, Incorporated (NASDAQ:QCOM). On May 5, Tigress Financial analyst Ivan Feinseth raised his price target on QUALCOMM, Incorporated (NASDAQ:QCOM) to $238 from $195 and maintained a Buy rating on the shares. Moreover, on May 18, Jefferies equity strategist Sean Darby upgraded his view on the Information Technology sector to Bullish and named QUALCOMM, Incorporated (NASDAQ:QCOM) among the 10 S&P 500 IT Index stocks with the best forward return of capital and free cash flow yield.
By the end of the first quarter of 2022, 73 hedge funds were long QUALCOMM, Incorporated (NASDAQ:QCOM). These funds held collective stakes of $3.55 billion in the company.
ClearBridge Investments named QUALCOMM, Incorporated (NASDAQ:QCOM) in its fourth-quarter 2021 investor letter. Here is why QUALCOMM Incorporated (NASDAQ:QCOM) is a “long-term buy” according to experts at ClearBridge:
“Market strength continued in the fourth quarter, with only the communication services sector down in the Russell 1000 Value Index. Portfolio returns benefited from the strong performance of semiconductor maker Qualcomm, which has executed exceptionally well in pursuing the transition to 5G, growing both content and share due to its leadership position in cellular technology. The chipmaker recently outlined a number of peripheral growth opportunities outside of mobile markets, including automotive (where it hopes to leverage its strong presence in the automotive infotainment space into advanced driver assistance systems), Internet of Things (including opportunities in the PC market, VR/AR market, and factory automation) and radio frequency (where mmWave adoption globally, including China, would drive substantial upside).”
4. Meta Platforms, Inc. (NASDAQ:FB)
Tiger Management’s Stake Value: $33,398,000
Percentage of Tiger Management’s 13F Portfolio: 5.5%
Number of Hedge Fund Holders: 200
Meta Platforms, Inc. (NASDAQ:FB) is among the top 5 holdings of Tiger Management as of Q1 2022. The fund’s stakes in the silicon-valley giant were estimated at $33.39 million which accounts for 5.5% of Julian Robertson’s 13F portfolio.
This April Meta Platforms, Inc. (NASDAQ:FB) released its earnings for the fiscal first quarter of 2022. The company reported earnings per share of $2.72 and beat EPS expectations by $0.21. Moreover, the company’s quarterly revenues came in at $27.91 billion, up 6.64% year over year, missing Wall Street consensus by $313.98 million.
On May 18, Guggenheim analyst Michael Morris trimmed his price target on Meta Platforms (NASDAQ:FB) to $250 from $275 but reiterated a Buy rating on the shares. Morris cited lower estimates and normalized EBITDA margins to be short of consensus, to reflect his price cut on the stock.
Meta Platforms, Inc. (NASDAQ:FB) is a popular stock pick among elite institutional investors. Insider Monkey found 200 hedge funds long Meta Platforms, Inc. (NASDAQ:FB) at the close of Q1 2022. The total stakes of these funds amounted to $19.33 billion.
Vulcan Value Partners mentioned Meta Platforms, Inc. (NASDAQ:FB) in its first-quarter 2022 investor letter. Here is what the firm said:
“Meta Platforms Inc., the parent company of Facebook, reported excellent operating results in 2021. Its revenue increased 37%, operating earnings increased 40%, and the company generated $40 billion of free cash flow. Despite these excellent results, Meta experienced extreme volatility in its stock price during the first quarter. We believe that two factors are responsible for this volatility. First, the company quantified the headwind to revenue from Apple’s recent privacy changes in the amount of approximately $10 billion for 2022. Meta is rebuilding its advertising technology, and we believe the long-term headwinds from Apple’s privacy changes will be limited because Meta will create a suitable solution. Second, Meta continues to invest heavily into its Reality Labs segment, also known as the metaverse. While we believe the metaverse presents great opportunity for Meta, we are not assigning any value to it in our valuation work. While 2022 may be challenging for Meta, the company’s competitive advantages are still intact, and the company trades at a significant discount to our estimate of its intrinsic value. Despite our concerns about a possible recession, we expect Meta to return to double-digit bottom line growth next year.”
3. Micron Technology, Inc. (NASDAQ:MU)
Tiger Management’s Stake Value: $34,762,000
Percentage of Tiger Management’s 13F Portfolio: 5.73%
Number of Hedge Fund Holders: 78
Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductors company that designs, manufactures, and sells memory and storage products worldwide. As of March 31, Tiger Management owns over 0.44 million shares of Micron Technology, Inc. (NASDAQ:MU) which brings the fund’s stakes in the company to $34.76 million. The stock is ranked fourth among the top 10 holdings of Tiger Management and covers 5.73% of its investment portfolio.
Wall Street analysts are bullish on the semiconductor sector and Micron Technology, Inc. (NASDAQ:MU). This May, Citi analyst Christopher Danely reiterated a Buy rating on Micron Technology with a $120 price target.
By the end of the first quarter of 2022, 78 hedge funds held stakes in Micron Technology, Inc. (NASDAQ:MU) worth $3.42 billion.
Hazelton Capital Partners, an investment management firm, mentioned some companies in its third-quarter 2021 investor letter, and Micron Technology, Inc. (NASDAQ:MU) was one of them. Here is Hazelton Capital’s take on the stock:
“It’s hard to explain how shares of Micron Technology, manufacture of DRAM and NAND semiconductor chips, can fall during a global chip shortage. In most industries, focusing on demand can give you a clear insight into what lays ahead for a company. Today, the memory and storage chip industry is no different. However, in the past, companies focused on market share led to the reckless build out of chip fabrication plants (FABs), oversupply, falling average selling prices (ASPs) of memory and storage chips, lower margins, and declining cash flows. As the industry consolidated – there are now just 3 major producers of DRAM and 5 on the NAND side – rational behavior among the key players began to take hold as competitors began focusing more on R&D. Currently, chip pricing remains cyclical although less so than in the past and that cyclicality has a long-term upward bias. The ongoing transition to newer and more robust platforms (3D 176-layer NAND & 1-Alpha node DRAM) has provided the memory and storage chip industry with improved supply capacity under its current manufacturing footprint, ultimately pressuring ASPs. Over the past three years, as most of the large platform conversions have already taken place, being able to add more bits per wafer has reached a saturation point. With no major FAB build outs planned in the near-term by competitors Samsung or SK Hynix, constrained supply and flattening cost curves should lead to durable and upward sloping ASPs once the recent volatility from the chip shortage subsides.
Currently Micron Technology trades at just 8x 2022 estimate earnings. MU is expecting growth in both DRAM and NAND not just from the supply of more chips to data centers, artificial intelligence, the auto sector, and mobile devices, but also from greater demand for gigabyte capacity per unit within those segments. With a healthy balance sheet, improving return on invested capital, and expanding cash flows, not only should Micron benefit from improving future earnings but its multiple should also reflect the transition to a flattening cost curve.”
2. Microsoft Corporation (NASDAQ:MSFT)
Tiger Management’s Stake Value: $62,710,000
Percentage of Tiger Management’s 13F Portfolio: 10.34%
Number of Hedge Fund Holders: 259
Tiger Management is bullish on Microsoft Corporation (NASDAQ:MSFT). In Q1 2022, Julian Robertson’s fund raised its stakes in Microsoft Corporation (NASDAQ:MSFT) by 6%, bringing its total stakes in the company to an astounding $62.71 million. The investment represents 10.34% of Tiger Management’s 13F portfolio and ranks Microsoft Corporation (NASDAQ:MSFT) among the top 3 stocks to buy according to billionaire Julian Robertson.
This May, Jefferies analyst Brent Thill trimmed his price target on Microsoft Corporation (NASDAQ:MSFT) to $325 from $400 but reiterated a Buy rating on the shares. The analyst has lowered his forecasts for the 28 software companies he covers and cited a tightening economic landscape and a possible recession to be the reason.
Microsoft Corporation (NASDAQ:MSFT) is a highly popular pick among elite hedge funds. At the close of Q1 2022, 259 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) with stakes worth $65.63 billion.
Here is what Motiwala Capital had to say about Microsoft Corporation (NASDAQ:MSFT) in its fourth-quarter 2021 investor letter:
“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”
1. Blackstone Inc. (NYSE:BX)
Tiger Management’s Stake Value: $75,085,000
Percentage of Tiger Management’s 13F Portfolio: 12.38%
Number of Hedge Fund Holders: 61
Blackstone Inc. (NYSE:BX) operates as an alternative asset management firm specializing in real estate, private equity, public debt and equity, and multi-asset class strategies. Blackstone Inc. (NYSE:BX) is the best stock to buy in 2022 according to billionaire Julian Robertson. As of March 31, Tiger Management owns more than 0.59 million shares of the company which amounts to a stake value of $75.08 million. The investment covers 12.38% of Tiger Management’s Q1 2022 investment portfolio.
By the end of the first quarter of 2022, 61 hedge funds were long Blackstone Inc. (NYSE:BX). The total stakes of these hedge funds were valued at $2.84 billion.
Third Avenue Management, an investment management firm, published its “Real Estate Value Fund” first-quarter 2022 investor letter in which it mentioned Blackstone Inc. (NYSE:BX). Here is what the firm said:
“Along these lines, funds affiliated with the Blackstone Group launched a takeover offer for one of the Fund’s holdings for the second time in the previous three quarters. In this case, the bid related to Preferred Apartment Communities, Inc. (NYSE:APTS)- a US-based Real Estate Investment Trust (“REIT”) that predominantly owns a portfolio of modern and well-located multi-family properties in the Sunbelt region as well as grocery-anchored retail properties across the same geographic footprint. While the Fund’s investment was only established in 2021, Blackstone’s (NYSE:BX) offer price represented a substantial premium to the Fund’s cost basis. The process undertaken by the Board to eliminate the disconnect between the company’s public and private market values also seemed robust.”
You can also take a look at 10 Latest Stock Picks of Legendary Investor Julian Robertson’s Tiger Management and Billionaire Julian Robertson’s Top 10 Stocks.
