BofA Is Recommending These 5 Stocks

1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 191

Alphabet Inc. (NASDAQ:GOOGL) remains the stock longest on BofA’s list at 59 months. The company announced on September 1 that it will accept third-party payment services for mobile apps in countries including Japan and India, despite the foreign governments being concerned about Google’s market share in smartphone payments. The third-party payment services have not been activated entirely in the United States yet. 

On August 3, Tigress Financial analyst Ivan Feinseth raised the price target on Alphabet Inc. (NASDAQ:GOOGL) to $186 from $183 and maintained a Strong Buy rating on the shares, noting that Q2 results highlight the resiliency of its primary Cloud and Search segments. He also said that the continued investment in Artificial Intelligence will create “increasingly focused and helpful experiences for users and businesses.” 

According to Insider Monkey’s Q2 data, Alphabet Inc. (NASDAQ:GOOGL) was part of 191 hedge fund portfolios, compared to 205 funds in the last quarter. Chris Hohn’s TCI Fund Management is a significant position holder in the company, with approximately 2.5 million shares worth $5.4 billion. 

Here is what Arch Capital specifically said about Alphabet Inc. (NASDAQ:GOOG) in its Q2 2022 investor letter:

“In May we decided to buy Alphabet Inc. (NASDAQ:GOOG) (parent company of Google, YouTube, and Android). Our thesis was simple. Alphabet has billions of locked-in users around the globe with businesses like Search, Maps, and YouTube that should grow in-line or faster than worldwide GDP. With all the cash these businesses generate, management is able to reinvest in Google Cloud, Other Bets projects like Waymo, and return cash to shareholders via share repurchases. At an enterprise value-to-free cash flow (EV/FCF) of around 20 at the time of our purchase, we believe this sets up shareholders for low risk 15%+ returns over the next five years.”

You can also take a look at Best Cybersecurity Stocks to Buy Now and Best High-Yield Dividend Stocks for Retirees in 2022. 

Follow Insider Monkey on Twitter