5 High Free Cash Flow Stocks to Buy in 2022

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 131  

Free Cash Flow TTM: $106 Billion 

Apple Inc. (NASDAQ:AAPL) is a diversified technology company. On July 28, the company posted earnings for the third fiscal quarter, reporting earnings per share of $1.20, beating market estimates by $0.05. The revenue over the period was $82.9 billion, up close to 2% compared to the revenue over the same period last year. The product revenue was $63.36 billion, compared to $63.95 billion in the third quarter of 2021. The iPhone revenue was $40.67 billion, up from $39.57 billion in the third quarter of 2021.

On July 29, Evercore ISI analyst Amit Daryanani maintained an Outperform rating on Apple Inc. (NASDAQ:AAPL) stock and raised the price target to $185 from $180, noting that the firm was uniquely positioned to sustain sales and EPS growth beyond the 2023 fiscal year.

At the end of the first quarter of 2022, 131 hedge funds in the database of Insider Monkey held stakes worth $182 billion in Apple Inc. (NASDAQ:AAPL), compared to 134 in the preceding quarter worth $186 billion.

In its Q2 2022 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:

“Apple Inc. (NASDAQ:AAPL) grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple Inc. (NASDAQ:AAPL) is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

You can also take a peek at 10 Penny Stocks Redditors are Buying in August and 10 Best Nickel Stocks to Buy Now.

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