5 Safe Stocks To Invest In

In this article, we will be taking a look at 5 safe stocks to invest in. To read our detailed analysis of current recession concerns in the US and more, you can go directly to see the 13 Safe Stocks To Invest In.

5. UnitedHealth Group Inc. (NYSE:UNH)

Number of Hedge Fund Holders: 116

UnitedHealth Group Inc. (NYSE:UNH) is a diversified healthcare company offering health benefit plans, healthcare coverage, and other services. It is based in Minnetonka, Minnesota.

Bernstein analyst Lance Wilkes upgraded UnitedHealth Group Inc. (NYSE:UNH) shares from Market Perform to Outperform on July 18 while raising the firm’s price target on the stock from $595 to $603.

UnitedHealth Group Inc. (NYSE:UNH) was seen in the portfolios of 116 hedge funds in the first quarter, with a total stake value of $11.7 billion.

L1 Capital made the following comments about UnitedHealth Group Inc. (NYSE:UNH) in its second-quarter 2023 investor letter:

“Close observers of the Fund will note the increased exposure to healthcare, currently 13% of the portfolio. Healthcare is generally less macro-sensitive than some other sectors. In a reversal of market sentiment compared to 2022, the healthcare sector has been under modest pressure due to what we consider to be some short-term transitory issues, while technology, particularly anything to do with AI, has become the market’s dish du jour. We have been selectively increasing our investment in a few very high-quality healthcare businesses at prices we consider to be fair. UnitedHealth Group Incorporated (NYSE:UNH) is now a top 10 holding, and our investment thesis is outlined in this report.

We have previously written on our exposure to taxes through our investment in Intuit and its market leading TurboTax franchise (Intuit also owns the QuickBooks small business accounting franchise, Credit Karma and Mailchimp). UnitedHealth Group (UnitedHealth) is leading the charge to postpone the inevitable, while lowering overall healthcare system costs.

U.S. health spending has outpaced GDP growth for decades, with spending on healthcare increasing from around 12% of GDP in the 1980s to nearly 20% today, driven by advancements in healthcare capabilities and an ageing population with increased life expectancy…” (Click here to read the full text)

4. Apple Inc.  (NASDAQ:AAPL)

Number of Hedge Fund Holders: 131

Erik Woodring at Morgan Stanley holds an Overweight rating and a $220 price target on Apple Inc. (NASDAQ:AAPL) as of July 25.

Apple Inc. (NASDAQ:AAPL) is an information technology company manufacturing and marketing smartphones, laptops, tablets, and more. It is based in Cupertino, California.

There were 131 hedge funds long Apple Inc. (NASDAQ:AAPL) in the first quarter, with a total stake value of $165.2 billion.

Wedgewood Partners said the following about Apple Inc. (NASDAQ:AAPL) in its second-quarter 2023 investor letter:

“Apple Inc. (NASDAQ:AAPL) contributed to positive performance during the quarter despite declining revenues and operating earnings mostly driven by difficult comparisons in its Mac segment. iPhone sales grew as supply chain bottlenecks seem to be in the rearview mirror, with component prices falling. The Company also highlighted the torrid growth of its App Store ecosystem, which saw over $1.1 trillion in billings on the platform during 2022, more than double the billings in 2019. Apple has tremendous leverage across the mobile economy due to the App Store’s mission-critical relevance to both developers and users. We continue to hold Apple as a top weighting in the portfolio because this asset-light ecosystem drives sustainably high returns on invested capital.

In January 2007 Steve Jobs introduced the iPhone at Macworld in San Francisco. At the time of that momentous day, Jobs had not planned for third-party developers to build native software applications (apps) for the iPhone’s internal operating software (iOS). However, later that year, bowing to considerable pressure from the developer community, Jobs relented. When the second-generation iPhone (3G) was released in the summer of 2008, Apple announced the opening of the iPhone App Store at the same time. According to the Company in July 2009, after just the first 12 months since the launch of the App Store, 1.5 billion apps were downloaded from 65,000 apps from more than 100,000 developers from 77 countries.

That early symbiotic relationship between the iPhone (hardware) and the App Store (software) completely redefined the utility of the iPhone (think Intel and Microsoft). Too bad American Express coined the phrase, “Don’t Leave Home Without It.” That perfectly describes the utility of the modern iPhone. Heck, for years now, most of us won’t walk from the kitchen to the garage without it…” (Click here to read the full text)

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 155

Alphabet Inc. (NASDAQ:GOOG) was spotted in the 13F holdings of 155 hedge funds in the first quarter. Their total stake value was $18.6 billion.

Alphabet Inc. (NASDAQ:GOOG) is an interactive media and services company and is one of the big tech companies in the market. It is based in Mountain View, California.

An Outperform rating was maintained on Alphabet Inc. (NASDAQ:GOOG) shares on July 13 by John Blackledge at TD Cowen, alongside a price target of $140.

Wedgewood Partners said this about Alphabet Inc. (NASDAQ:GOOG) in its second-quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) was also a top contributor to performance as revenues returned to year-over-year growth after a brief period of post-pandemic advertising spending digestion. The Company’s Cloud division also turned a small profit on a roughly $30 billion revenue run-rate. The Company’s internal engineering prowess should continue to drive longer hardware useful life and better profitability for this unit over time. Alphabet and its Google subsidiary have been pioneers in AI development, creating some of the most important software and hardware specifications and standards that developers rely on today. Alphabet should be able to continue to capitalize on its long-term AI investments by rolling out product improvements for users and advertisers featuring more automation that can deliver better returns.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 243

Amazon.com, Inc. (NASDAQ:AMZN) is another big tech company on our list, offering an online retail platform alongside physical stores, among more. It is based in Seattle, Washington.

A total of 243 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) in the first quarter, with a total stake value of $25.8 billion.

JMP Securities analyst Nicholas Jones reiterated a Market Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) shares, alongside a $140 price target, on July 18.

Here’s what The Ithaka Group said about Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2023 investor letter:

“Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has evolved from its early roots as an online bookstore to become one of the world’s largest eCommerce retailers. At the end of 2022 Amazon stood poised to capture ~40% of all US e-commerce sales, representing five times more share than the next closest competitor. In addition to eCommerce, Amazon Web Services (“AWS”) has become the market leader in outsourced cloud infrastructure. Further, Amazon Advertising is garnering significant share in digital advertising, particularly product placement ads, thanks to consumers beginning their product searches on Amazon’s site. Despite providing tepid forward guidance on its 1Q23 earnings call, Amazon’s stock appreciated on the back of increased confidence the company would be able to contain expenses and push operating margins above prior peaks in the near-to medium term.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

A Buy rating and a $360 price target were maintained on Microsoft Corporation (NASDAQ:MSFT) shares on July 27 by Blair Abernethy at Rosenblatt.

Microsoft Corporation (NASDAQ:MSFT) is another information technology company on our list. It develops, licenses, and supports software, services, devices, and solutions. It is based in Redmond, Washington.

Microsoft Corporation (NASDAQ:MSFT) had 289 hedge funds long its stock in the first quarter. Their total stake value was $57.9 billion.

This is what The Ithaka Group said about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) builds best-in-class platforms and provides services that help drive small business productivity, large business competitiveness, and public-sector efficiency. Microsoft’s products include operating systems, cross-device productivity applications, server applications, software development tools, video games, and business-solution applications. The company also designs, manufactures, and sells devices, including PCs, tablets, and gaming/entertainment consoles that all integrate with Azure, its cloud computing service. In the quarter Microsoft’s stock appreciated on the back of excitement surrounding the company’s positioning in the generative AI market and its ability to monetize the coming wave of corporate investment in supercomputing and AI.”

See also Starter Stock Portfolio: 15 Safe Stocks To Buy and 20 Countries With Lowest Inflation Rates In The World.