Billionaire Stephen Mandel’s 5 Must-Buy Tech Stocks

1. Microsoft Corporation (NASDAQ:MSFT)

Value of Lone Pine Capital‘s 13F Position: $1.54 billion

Number of Hedge Fund Shareholders: 262

Closing out the list of Stephen Mandel’s must-buy tech stocks is Microsoft Corporation (NASDAQ:MSFT), which ranks as the billionaire’s top stock pick after he raised his stake in the company by 7% during Q1 to just under 5 million shares. Microsoft easily topped the list of 15 Dow Stocks Listed and Ranked By 2022 Hedge Fund Bullishness Index, being owned by 262 funds on March 31.

Not even Microsoft Corporation (NASDAQ:MSFT) has been immune from the tech selloff, as its shares have slumped by 20% this year. Microsoft has elevated itself above the other FAANG stocks in several metrics over the last few years, including its outstanding 37.6% profit margins, which not even Meta (is it MAANG stocks now?) comes close to.

Microsoft is also growing its top and bottom lines at impressive rates, with the former projected to grow by 18.5% this year, while the latter is projected for 15% growth this year and next. Given that projected EPS growth, MSFT shares currently trade at about a 24x forward P/E, the cheapest they’ve been since 2018 and well below their 5-year average of 28x.

The Carillon Clarivest Capital Appreciation Fund is bullish on Microsoft Corporation (NASDAQ:MSFT)’s cloud services, having this to say about the company in its Q1 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”

For more on the latest investment ideas and how the biggest hedge fund managers in the world are trading them, check out 10 EV Stocks to Buy as Tesla’s (TSLA) Market Share Declines and 10 Cheap Coal Stocks to Buy Today.

Disclosure: None.

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