5 Best Strong Buy Stocks To Invest In

In this article, we will discuss the 5 best strong buy stocks to invest in. If you want to explore similar stocks, you can go to 16 Best Strong Buy Stocks To Invest In.

5. Mastercard Incorporated (NYSE:MA)

Average Upside Potential as of March 20: 21.03%

Number of Hedge Fund Holders: 139

Wall Street sees upside to Mastercard Incorporated (NYSE:MA). On January 30, Mizuho analyst Dan Dolev raised his price target on Mastercard Incorporated (NYSE:MA) to $405 from $380 and maintained a Buy rating on the shares. The stock has received 21 Buy recommendations and 2 Hold recommendations from analysts over the past 3 months. The stock’s average price target of $423.18 implies an upside of 21.03% from its share price on March 20. Mastercard Incorporated (NYSE:MA) is placed fifth among the best Strong Buy stocks to invest in.

139 hedge funds held stakes in Mastercard Incorporated (NYSE:MA) at the close of Q4 2022. The total value of these stakes amounted to $15.6 billion, up from $13.8 billion in the previous quarter with 146 positions. As of December 31, Akre Capital Management is the leading investor in the company and holds a position worth $2 billion.

Here is what Baron Funds had to say about Mastercard Incorporated (NYSE:MA) in its Q4 2022 investor letter:

“Shares of global payment network Mastercard Incorporated (NYSE:MA) increased after reporting strong quarterly results, with 15% revenue growth and 13% EPS growth despite significant headwinds from currency movements and the suspension of operations in Russia. Payment volume grew 21% in local currency (excluding Russia) as consumer spending remained resilient and the international travel recovery continued as border restrictions were lifted. We continue to own the stock due to Mastercard’s long runway for growth and significant competitive advantages.”

4. Alphabet Inc. (NASDAQ:GOOG)

Average Upside Potential as of March 20: 20.81%

Number of Hedge Fund Holders: 152

Alphabet Inc. (NASDAQ:GOOG) was held by 152 hedge funds at the end of Q4 2022. These funds held collective positions worth $17.65 billion in the company. As of December 31, TCI Fund Management is the largest shareholder in the company and has a stake worth 4.8 billion.

On March 17, Exane BNP Paribas analyst Stefan Slowinski upgraded Alphabet Inc. (NASDAQ:GOOG) to Outperform from Neutral and reiterated his $123 price target on the stock. Over the past 3 months, the stock has received 9 Buy ratings from Wall Street analysts and has a consensus Strong Buy rating. The stock has an average price target of $123.78, which implies an upside of 20.81% from current levels. Alphabet Inc. (NASDAQ:GOOG) is one of the best Strong Buy stocks to buy now.

Here is what Weitz Investment Management had to say about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:

“Unfortunately, the performance story of the year is told by the Fund’s detractors. Now, weakening ad spending across all channels has added insult to injury, and concerns have spread to the other dominant digital ad player, Alphabet Inc. (NASDAQ:GOOG) — parent of Google and YouTube.

Meta, Alphabet, Amazon and CarMax were all top detractors for the quarter and calendar year periods (FIS and Liberty Broadband, respectively, complete the quarterly and calendar-year detractor lists.) To varying degrees, each is managing through cyclical challenges during a period of substantial investor pessimism. Drawdowns of this magnitude are painful, and it may be prudent for management to moderate the pace of some investments, but we remain encouraged by their long-term focus. In the short run, cutting spending indiscriminately to “defend earnings” may lessen the pain of a drawdown, but it seldom grows a company’s business value — the ultimate prize.”

3. Visa Inc. (NYSE:V)

Average Upside Potential as of March 20: 19.53%

Number of Hedge Fund Holders: 177

Over the past 3 months, Visa Inc. (NYSE:V) has received 19 Buy ratings and 1 Hold rating from Wall Street analysts. The stock holds a consensus Strong Buy rating and has an average price target of $259.85. The stock’s average price target represents an upside of 19.53% from current levels.

On March 3, Jefferies analyst Trevor Williams maintained a Buy rating and his $260 price target on Visa Inc. (NYSE:V).

Visa Inc. (NYSE:V) was a part of 177 investors’ portfolios at the end of Q4 2022 that disclosed positions worth $26.4 billion in the company. This is compared to 165 positions in the preceding quarter with stakes worth $22.4 billion. The hedge fund sentiment for the stock is positive and it ranks third among the best Strong Buy stocks to buy now.

As of December 31, TCI Fund Management is the largest shareholder in Visa Inc. (NYSE:V) and has a stake worth $4.14 billion.

Here is what Baron Funds had to say about Visa Inc. (NYSE:V) in its Q4 2022 investor letter:

“Shares of global payment network Visa Inc. (NYSE:V) increased after reporting strong quarterly results, with 19% growth in revenue and EPS despite currency headwinds and the suspension of operations in Russia. Payment volume grew 16% in local currency (excluding Russia and China) with notable strength in cross-border volumes driven by rebounding international travel. Management also provided encouraging guidance for the next fiscal year. We continue to own the stock due to Visa’s long runway for growth and significant competitive advantages.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Average Upside Potential as of March 20: 38.31%

Number of Hedge Fund Holders: 240

On March 16, JPMorgan analyst Doug Anmuth reiterated Amazon.com, Inc. (NASDAQ:AMZN) as his best idea and maintained his $135 price target and Overweight rating on the stock. Amazon.com, Inc. (NASDAQ:AMZN) is one of the best Strong Buy stocks to invest in according to analysts and hedge funds.

Over the past 3 months, Amazon.com, Inc. (NASDAQ:AMZN) has received 37 Buy ratings and 1 Hold rating from Wall Street analysts. The stock has an average price target of $136.86, which implies an upside of 38.31% from current levels.

At the close of Q4 2022, 240 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) and disclosed positions worth $27.5 billion. Of those, Harris Associates is the top investor in the company and holds a position worth $1.62 billion.

Here is what Artisan Partners had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer. The company has gone through a period of massive investment as it doubled its fulfillment network and hired over 800,000 people to meet growing demand over the past few years. Capital expenditure (capex) in the 2017 to 2019 period was $10 billion – $17 billion per year before ramping up to $40 billion in 2020, $61 billion in 2021 and is expected to end 2022 at another $61 billion. We believe the company is in the later innings of this capex cycle and will be transitioning toward a period of harvesting those investments through higher margins and free cash flow generation. At a valuation that appears to be discounting a deteriorating environment for consumer spending, we decided to start a GardenSM position.”

1. Microsoft Corporation (NASDAQ:MSFT)

Average Upside Potential as of March 20: 4.21%

Number of Hedge Fund Holders: 259

259 hedge funds held stakes in Microsoft Corporation (NASDAQ:MSFT) at the end of Q4 2022. The total value of these stakes amounted to $58.6 billion. As of December 31, Bill & Melinda Gates Foundation Trust is the most prominent shareholder in the company and has a stake worth $9.41 billion.

Microsoft Corporation (NASDAQ:MSFT) has received 26 Buy ratings and 4 Hold ratings from Wall Street analysts over the past 3 months. The stock holds a consensus Strong Buy rating and has an average price target of $291.74, which represents an upside of 4.21% from its share price on March 20. Microsoft Corporation (NASDAQ:MSFT) is the best Strong Buy stock to buy now according to analysts and hedge funds.

This March, Mizuho analyst Gregg Moskowitz raised his price target on Microsoft Corporation (NASDAQ:MSFT) to $315 from $300 and maintained a Buy rating on the shares.

Here is what Ariel Investments had to say about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter:

“Enterprise software provider Microsoft Corporation (NASDAQ:MSFT) also traded lower, as higher interest rates and economic concerns have created headwinds for growth-oriented technology companies. We believe this price action runs counter to Microsoft’s solid fundamentals, competitive positioning and long-term business outlook. We continue to anchor on the company driving value creation by capitalizing on a broad and deep set of opportunities, most notably within hybrid cloud infrastructure. The platform continues to demonstrate share gains and strong multi-year purchase intent as enterprises transition to cloud based platforms. At current trading levels, we believe Microsoft’s risk/reward is skewed to the upside.”

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