5 Best Vanguard Stocks to Buy Now

4. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91

Percentage of Vanguard’s Stake: 2.33%

Tesla, Inc. (NASDAQ:TSLA), an American company specializing in electric vehicles, energy generation, and storage, is one of the top holdings of Vanguard S&P 500 ETF. The fund reported owning 18.30 million Tesla, Inc. (NASDAQ:TSLA) shares at the end of March, worth $19.7 billion, representing 2.33% of the total holdings. 

On April 20, Tesla, Inc. (NASDAQ:TSLA) reported earnings for the first fiscal quarter of 2022. The company posted an EPS of $3.22, beating market estimates by $0.95. The revenue grew 80.54% from the prior-year quarter to $18.76 billion, outperforming analysts’ predictions by $917.76 million. 

Berenberg analyst Adrian Yanoshik initiated coverage of Tesla, Inc. (NASDAQ:TSLA) on May 10 with a Hold rating and a $900 price target. The analyst started seven automakers with a “positive bias”. Despite market concerns about demand, supply chain tightness, and cost inflation, pricing power and “deep” order books can generate free cash flow and finance the transformation of “legacy businesses into the electrified arena”, the analyst told investors. 

Among the hedge funds tracked by Insider Monkey, 91 funds were bullish on Tesla, Inc. (NASDAQ:TSLA) at the end of December 2021, compared to 60 funds in the earlier quarter. Cathie Wood’s ARK Investment Management is a significant shareholder of the company, owning about 2 million shares worth $2 billion. 

Here is what Fiduciary Management Small Cap Equity has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:

“Remarkably, the Nasdaq-100 and Russell 2000 indices are up 6.25% and 3.90% through 3/31/22, respectively, since the war started. Tesla, Inc. (NASDAQ:TSLA) went up 57% from its low on February 24 ($700) to the close on March 29th ($1099), which equates to an advance of $413 billion. To put that in perspective, the 24-trading day gain in Tesla was greater than the entire market value of Walmart, Inc.! Tesla trades for 120 times estimated 2022 GAAP2 earnings, compared to Walmart’s (NYSE:WMT) 21.8 multiple (1/2023 fiscal year).”