In this article, we discuss 5 good stocks to buy. If you want to see more good stocks to buy, the risk/reward, and methodology of this list, go directly to 15 Good Stocks to Invest in Right Now.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 140
Apple Inc. (NASDAQ:AAPL) ranks among the potential good stocks to buy given its leading position in the premium smartphone market which allows the company to sell high margin smartphones in addition to charging a percentage on revenues that the apps from its app store generates. Apple Inc. (NASDAQ:AAPL) has also returned a lot of capital back to its shareholders over the years with tens of billions in buybacks in recent years. 140 hedge funds in our database owned shares of Apple Inc. (NASDAQ:AAPL) at the end of Q3 2022.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 156
Although Alphabet Inc. (NASDAQ:GOOG)’s search engine remains its primary source of profit, the company’s YouTube business is now a big business. For the future, Alphabet Inc. (NASDAQ:GOOG)’s Waymo and other AI projects could help increase earnings if the company successfully unlocks artificial intelligence’s potential. Shares of Alphabet Inc. (NASDAQ:GOOG) trade for a forward P/E ratio of 19.15 which is attractive given the company’s competitive advantages.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 177
Meta Platforms, Inc. (NASDAQ:META) trades for a forward P/E ratio of 15.41 which is an attractive valuation for the social media company if it meets its expected earnings potential in the long term. Meta Platforms, Inc. (NASDAQ:META) is also held by 177 hedge funds in our database at the end of the third quarter.
ClearBridge Investments commented on Meta Platforms, Inc. (NASDAQ:META) in a Q3 2022 investor letter,
“Meta Platforms, Inc. (NASDAQ:META), one of two overweights among the mega cap stocks, underperformed in the third quarter (-15.9%) and is the Strategy’s largest detractor year to date. Meta has also trailed mega cap advertising peer Alphabet, which we don’t own, as revenue growth has slowed due to tough comparables to a strong e-commerce environment in early 2021, negative impacts from Apple’s privacy changes and rising expenses.
While we have trimmed our position close to 20%, we remain invested as we do not think the stocks’ valuation at about 13x consensus 2023 earnings appropriately reflects its long-term earnings and free cash flow generation potential. Despite current revenue headwinds, we believe Meta is well-positioned to navigate industrywide changes to advertising targeting and its transition to the Reels short-form video format will monetize in the coming years, helping to re-accelerate revenue growth.
We also welcome Meta’s implementation of cost-cutting measures, which should help uncover the company’s high underlying profitability. Lastly, we see Meta’s investments in augmented reality as a call option for long-duration investors.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 269
Amazon.com, Inc. (NASDAQ:AMZN) ranks among the potential good stocks to buy given its leading cloud business. For Q3 2022, Amazon.com, Inc. (NASDAQ:AMZN)’s cloud business sales rose 27.5% year over year to $20.5 billion and operating income for the division was $5.4 billion. Although the numbers were lower than analyst estimates, the growth in the cloud is still very strong for a business its size and there is likely more growth in the future. 269 hedge funds we track owned shares of Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q3 2022.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 269
Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 15 Good Stocks to Invest in Right Now given 269 hedge funds in our database held shares in the software company. In addition to continuing to grow in the cloud, Microsoft Corporation (NASDAQ:MSFT) is trying to close its acquisition in Activision Blizzard which could give the company more diversification. According to Microsoft Corporation (NASDAQ:MSFT), the purchase is expected to be accretive to adjusted earnings per share upon close.
You can also take a look at 15 Biggest Banks In The World and Ken Griffin Stock Portfolio: Top 10 Stock Picks.
