In this article, we discuss the 5 best stocks to invest in right now according to hedge funds. If you want to see our comprehensive analysis of these stocks, go directly to the 15 Best Stocks To Invest In Right Now According to Hedge Funds.
5. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 156
Mastercard Incorporated (NYSE:MA) is a multinational financial services company that provides transaction processing and other payment-related products and services across the globe. Ranked fifth on the list of the 15 best stocks to invest in right now, Mastercard Incorporated (NYSE:MA) has a market capitalization of $357.31 billion.
At the end of the second quarter of 2021, 156 hedge funds in the database of Insider Monkey held stakes worth $17.10 billion in Mastercard Incorporated (NYSE:MA), up from 154 the preceding quarter worth $17.09 billion. Alexander Becker of Codex Capital is the leading shareholder in the company.
On August 17, JPMorgan analyst Tien-tsin Huang raised the firm’s price target on Mastercard Incorporated (NYSE:MA) to $430 from $427 and kept an Overweight rating on the shares.
In the Q2 2021 investor letter of Qualivian Investment Partners, the fund mentioned Mastercard Incorporated (NYSE:MA). Here is what the fund said:
“Mastercard: Q2 revenue and EPS beat consensus estimates by 3.7% and 12% respectively. Operating margins also beat consensus by +240 bps. Gross domestic volume growth of +38.3% (+32.8% in constant currency) was buttressed by continued e-commerce strength and better in-store performance, while purchase volumes grew 41.8% (35.5% in constant currency). Cross border performance was strong, but durability remains uncertain given uncertainty arising from the Delta variant and its impact on travel and tourism. We believe Mastercard has a robust runway for growth given further travel recovery, new/existing partnerships, traction in digital payments, and ongoing economic recovery.”
4. Visa, Inc. (NYSE:V)
Number of Hedge Fund Holders: 162
Visa, Inc. (NYSE:V) is a multinational financial services company that enables and manages electronic funds transfers across the globe. The company, which ranks fourth in our list of the 15 best stocks to invest in right now, is also getting positive attention from market analysts. On September 3, Morgan Stanley analyst James Faucette maintained an Overweight rating on Visa, Inc. (NYSE:V) alongside a $282 price target on the shares of the company.
Of the 873 elite funds tracked by Insider Monkey, 162 were long in Visa, Inc. (NYSE:V) at the end of June. This is compared to 164 in the first quarter of 2021. Ken Fisher of Fisher Asset Management is among the leading stakeholders of the company.
The Wall Street outlook for Visa, Inc. (NYSE:V) has greatly improved over the past six months, with the consensus 12-month price target rising 23% above the current price.
In its Q1 2021 investor letter, ClearBridge Investments mentioned Visa Inc. (NYSE:V). Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
3. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 238
Coming in at third on our list of the 15 best stocks to invest in right now is the technology giant Microsoft Corporation (NASDAQ:MSFT).
On October 6, Morgan Stanley analyst Keith Weiss kept an Overweight rating and a $331 price target on the shares of Microsoft Corporation (NASDAQ:MSFT), noting that the company is marking its leadership in the Robotics and Public Cloud segments.
Of the 873 hedge funds tracked by Insider Monkey, 238 hedge funds have positions in Microsoft Corporation (NASDAQ:MSFT), valued at over $62.4 billion. The number of hedge funds that held stakes in the company stood at 251 in the previous quarter, worth over $58.9 billion.
Out of the hedge funds being tracked by Insider Monkey, London-based Codex Capital is among the leading shareholders of Microsoft Corporation (NASDAQ:MSFT), with 52,650 shares worth more than $14.2 billion.
Baron Opportunity Fund, in its Q2 2021 Investor Letter, expects solid growth and profitability of Microsoft Corporation (NASDAQ:MSFT) in the years to come. Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
2. Facebook, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 266
Based in Menlo Park, California, Facebook, Inc. (NASDAQ:FB) is a multinational social networking services company. The tech titan has a market capitalization of $958.58 billion and ranks second on our list of the 15 best stocks to invest in right now.
According to our database, 266 hedge funds held stakes worth $42 billion in Facebook, Inc. (NASDAQ:FB), up from 257 hedge funds in the previous quarter with stakes worth more than $40.9 billion. Boykin Curry’s Eagle Capital Management is among the most notable stakeholders in Facebook, Inc. (NASDAQ:FB)
On October 7, JPMorgan analyst Doug Anmuth maintained an Overweight rating on Facebook, Inc. (NASDAQ:FB) alongside a $450 price target on the company’s shares.
First Eagle Investment Management, an investment management firm, in its Q2 2021 investor letter, mentioned Facebook, Inc. (NASDAQ:FB). Here is what the fund said:
“Leading contributors in the First Eagle Global Fund this quarter included Facebook, Inc. Class A. Facebook has continued to post impressive results for both revenue and active users of its traditional platforms. In the meantime, the social media giant continues to make progress on new initiatives—like Facebook Horizon (virtual reality) and Facebook Shops (e-commerce)—and maintains attractive monetization optionality around services like Messenger and WhatsApp.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational company that specializes in e-commerce, cloud computing, digital streaming and artificial intelligence. A giant in the world of e-commerce, the company tops our list of the 15 best stocks to invest in right now.
On October 5, JPMorgan analyst Doug Anmuth reiterated an Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) alongside a $4,100 price target on its shares.
There were 271 hedge funds in our database that held stakes in Amazon.com, Inc. (NASDAQ:AMZN) worth $60.49 billion in the second quarter of 2021, compared to 243 funds in the first quarter with total stakes amounting to approximately $50.4 billion. Of the hedge funds being tracked by Insider Monkey, Ken Fisher’s Fisher Asset Management is among the leading shareholders in Amazon.com, Inc. (NASDAQ:AMZN), with over 1.87 million shares worth $6.45 billion.
In its Q2 2021 investor letter, L1 Capital, an investment management firm, mentioned Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund said:
“Amazon flipped from being the largest detractor from portfolio performance in the March 2021 quarter, to one of the leading contributors in the June 2021 quarter. We took advantage of negative near-term sentiment in the March 2021 quarter to add to our Amazon investment. We continue to view Amazon as one of the best positioned businesses globally, with its share price still not reflecting fair value.”
You can also take a peek at 8 Best Stocks to Buy According to Billionaire Nicholas J. Pritzker and 10 Best Stocks to Buy According to Billionaire Daniel Sundheim.
