5 Safe Stocks To Buy According To Hedge Funds

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01. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders as of Q2, 2022: 191

Alphabet Inc. (NASDAQ:GOOG) is one of the most innovative companies in the world and is constantly releasing new products and services. The stock is currently trading at a PE multiple of 18x and offers investors an optimal buying opportunity.

Alphabet Inc. (NASDAQ:GOOG) reported softer than expected Q3 results, with Q3 EPS of $1.06 on sales of $69.09 billion versus the expected $1.25 and $70.61 billion. YouTube ad revenue fell to $7.07 billion from $7.21 billion, while Google Cloud sales rose to $6.87 billion from $6.75 billion in the same quarter of the previous year. While Alphabet Inc. (NASDAQ:GOOG) faces near-term headwinds such as the strong U.S. dollar and a potential recession in 2023, the company, nevertheless, has substantial earnings growth potential given its leading position in search and mobile operating systems.

Bronte Capital discussed Alphabet Inc. (NASDAQ:GOOG) in its Q3 2022 investor letter. Here is what the fund said:

Consensus longs—those stocks widely held and admired by fund managers—have recently underperformed the market. Consensus shorts have been bad shorts. We have over 500 shorts, of which a few are consensus, and we have noticed this effect. But we also own what we think is (alas) the most consensus long in this market: Alphabet Inc. (NASDAQ:GOOG). We find it hard to find any strong reason not to own it. Internet advertising is going from strength to strength and Google’s place in the market is mostly improving. Some of the other bets such as cloud services are beginning to pay off, and finally the CEO is expressing discipline on costs. (Per the consensus, the biggest problem with Google has been a lack of discipline on costs. Every time we look there are another 20 thousand employees.) Being a consensus long, it is down hard. We did say consensus longs are not going well…” (Click here to read the full text)

Disclosure: None. You can also take a look at 13 Best Cybersecurity Stocks To Buy and 10 Best Stocks to Buy According to Billionaire Dan Loeb.

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