In this article, we discuss 5 best US stocks for foreigners. If you want to see more best US stocks for foreigners, the risk/reward, and methodology of this list, go directly to 15 Best US Stocks for Foreigners.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple Inc. (NASDAQ:AAPL) ranks #5 on our list of 15 Best US Stocks for Foreigners given 135 hedge funds in our database owned shares of the company at the end of Q4. Although it still depends on the iPhone for over half of its sales, Apple Inc. (NASDAQ:AAPL)’s ecosystem is fairly strong to help promote customer retention. Apple Inc. (NASDAQ:AAPL) is also reportedly delaying some bonuses and expanding a hiring freeze according to Bloomberg.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 152
Alphabet Inc. (NASDAQ:GOOG) is a tech giant that is facing more competition from AI powered Bing, which although it makes mistakes, is still changing the search industry. In terms of adapting to the change, Alphabet Inc. (NASDAQ:GOOG) is launching new AI products that could increase sales. Many analysts also believe the company is one of the leaders in AI technology. Given the competition, however, Alphabet Inc. (NASDAQ:GOOG) is the riskiest stock on our list as it could have downside if it fails to innovate well enough. As of March 14, Alphabet Inc. (NASDAQ:GOOG) has a forward P/E ratio of 15.48.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 194
Meta Platforms, Inc. (NASDAQ:META) is a potential metaverse play given the company’s substantial investments in the sector over the last few years. While it has spent tens of billions of dollars on the metaverse, Meta Platforms, Inc. (NASDAQ:META) is also cutting costs as the company recently announced workforce reductions of around 10,000 people. Furthermore, the company is closing around 5,000 additional roles it hasn’t hired yet. 194 hedge funds in our database owned shares of Meta Platforms, Inc. (NASDAQ:META) at the end of Q4, ranking the stock #3 on our list of 15 Best US Stocks for Foreigners.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 240
Amazon.com, Inc. (NASDAQ:AMZN) is a long term play on the growth of e-commerce and the cloud given the company’s leading positions in both of the two growing sectors. In e-commerce, Amazon.com, Inc. (NASDAQ:AMZN) is investing substantial capital to make its operations more efficient and faster. In the cloud, Amazon.com, Inc. (NASDAQ:AMZN) continues to grow as companies continue to utilize the cloud more for flexibility and potential cost savings.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 15 Best US Stocks for Foreigners given 259 hedge funds in our database owned shares of the software giant at the end of Q4. In addition to having a growing cloud business, Microsoft Corporation (NASDAQ:MSFT) also has a leading enterprise software business and a pretty strong gaming business as well. Given its strong gaming roots, Microsoft Corporation (NASDAQ:MSFT) has metaverse growth potential. As of March 14, the stock has a forward P/E ratio of 24.27 and a dividend yield of 1.04%.
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