In this article, we discuss the 5 narrow moat stocks hedge funds are buying. If you want to read about some more narrow moat stocks, go directly to 10 Narrow Moat Stocks Hedge Funds Are Buying.
5. Match Group, Inc. (NASDAQ:MTCH)
Number of Hedge Fund Holders: 48
Match Group, Inc. (NASDAQ:MTCH) owns and operates dating platforms. Some of the platforms it runs include Tinder, Match, Meetic, OkCupid, Hinge, Pairs, PlentyOfFish, and OurTime, among others. At the end of the third quarter of 2023, 48 hedge funds in the database of Insider Monkey held stakes worth $411 million in Match Group, Inc. (NASDAQ:MTCH), down from 52 in the preceding quarter worth $682 million.
4. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 52
Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel firm. On December 20, investment advisory Argus maintained a Buy rating on Expedia Group, Inc. (NASDAQ: EXPE) stock and raised the price target to $171 from $158.
At the end of the third quarter of 2023, 52 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Expedia Group, Inc. (NASDAQ:EXPE), compared to 57 in the previous quarter worth $2.1 billion.
In its Q2 2023 investor letter, Patient Capital Management, an asset management firm, highlighted a few stocks and Expedia Group, Inc. (NASDAQ:EXPE) was one of them. Here is what the fund said:
“We like other names mostly ignored by the market for similar reasons. Names like Expedia Group, Inc. (NASDAQ:EXPE), General Motors (GM) and Delta Air Lines. These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”
3. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 57
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. On November 30, investment advisory JPMorgan maintained an Overweight rating on ASML Holding N.V. (NASDAQ:ASML) stock and raised the price target to EUR 800 from EUR 690.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in ASML Holding N.V. (NASDAQ: ASML) with 4.8 million shares worth more than $2.8 billion.
2. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 78
Intuitive Surgical, Inc. (NASDAQ:ISRG) develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care. On December 12, investment advisory Truist maintained a Buy rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) stock and raised the price target to $375 from $320.
At the end of the third quarter of 2023, 78 hedge funds in the database of Insider Monkey held stakes worth $5 billion in Intuitive Surgical, Inc. (NASDAQ:ISRG), compared to 68 in the preceding quarter worth $3.4 billion.
In its Q3 2023 investor letter, ClariVest Asset Management, an asset management firm, highlighted a few stocks and Intuitive Surgical, Inc. (NASDAQ:ISRG) was one of them. Here is what the fund said:
“Intuitive Surgical, Inc. (NASDAQ:ISRG) provides robotic-assisted surgical solutions and invasive care through a comprehensive ecosystem of products and services. Management expects the backlog of deferred surgical procedures to take several quarters to recover, with bariatric surgery growth potentially slowing down with the increasing use of weight loss drugs.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 81
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company. On December 18, investment advisory RBC Capital maintained an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) stock and lowered the price target to $300 from $301.
At the end of the third quarter of 2023, 81 hedge funds in the database of Insider Monkey held stakes worth $5.8 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 79 in the previous quarter worth $6.5 billion.
Here is what Baron Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
“Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text)
You can also take a peek at 14 Best Hot Stocks To Buy Now and 12 Best Foreign Stocks With Dividends.
