In this article, we will take a detailed look at the Top 10 Stocks to Buy According to Eagle Capital Management.
Eagle Capital Management, a New York-based hedge fund, was founded in 1988 by Beth and Ravenel Curry. Their son, Ravenel Boykin Curry IV, joined the firm around the early 2000s after managing a portfolio at Kingdon Capital and is currently a key partner. A Yale University graduate with an Economics degree and an MBA from Harvard Business School, he plays a pivotal role in the firm’s strategy. Historically, Eagle has outperformed major benchmarks, including the broader market and the Russell Value Index. Over five years, Eagle delivered a 5.7% return versus the market’s 2.4%, and since its inception, it has generated a cumulative return of 2,031%, significantly surpassing both indices.
Eagle Capital Management adheres to a disciplined investment philosophy centered on identifying undervalued companies with unrecognized long-term growth potential. The firm employs a fundamental, bottom-up research approach, focusing on the key drivers of long-term value creation. By maintaining an extended investment horizon, Eagle Capital is able to take a distinctive perspective on industry and company trends. The firm’s investment strategy prioritizes businesses with two essential characteristics: strong underlying assets capable of generating cash flow and sustaining value even in challenging market conditions, and transformative changes within the company that remain unrecognized by the broader market yet are likely to drive future growth. This approach aims to provide downside protection during market downturns while positioning the portfolio for enhanced returns as these changes materialize. These core principles have been integral to Eagle Capital’s strategy since its founding, forming the foundation of its competitive advantage and contributing to its consistent market outperformance since 1988.
Moreover, Eagle Capital Management follows a value-oriented investment strategy with a long-term perspective, assessing price in relation to intrinsic value rather than relying solely on traditional valuation metrics like price-to-earnings or price-to-book ratios. The firm’s investment team focuses on long-term prospects, particularly beyond five years, analyzing business growth, industry dynamics, and margin potential while identifying opportunities that the broader market may overlook. A key component of Eagle’s strategy is maintaining a “Margin of Safety,” achieved through valuation discounts, business resilience, growth potential, and strong, experienced leadership.
The firm concentrates its portfolio on high-conviction investments, typically holding 25-35 stocks. As of Q4 2024, it holds over $27.4 billion in 13F securities, and its top ten positions account for 57.62% of its portfolio. This approach allows Eagle to focus on asymmetric risk opportunities, ensuring that its top positions offer significant upside potential while maintaining strong downside protection. Adopting a private equity-style approach to public equity investing, Eagle builds positions in high-quality businesses with sustainable returns and durability. A rigorous due diligence process precedes any investment decision, and the firm leverages direct access to senior management at portfolio companies to gain deeper insights into long-term strategies, enabling decisive action when the right opportunities emerge. Since its inception, Eagle has consistently applied the same investment philosophy, aiming to generate superior returns through rigorous valuation analysis and a long-term perspective. The firm’s long-term investment horizon allows it to take a differentiated approach to market trends, focusing on businesses undervalued relative to their intrinsic earnings power.
Boykin Curry of Eagle Capital
Our Methodology
The stocks discussed below were picked from Eagle Capital Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1,008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Top 10 Stocks to Buy According to Eagle Capital Management
10. AerCap Holdings N.V. (NYSE:AER)
Number of Hedge Fund Holders as of Q4: 69
Eagle Capital Management’s Equity Stake: $1.14 Billion
AerCap Holdings N.V. (NYSE:AER), a global leader in aviation leasing, delivered strong financial results for the fourth quarter and full year ending December 31, 2024, achieving record earnings and solid operational performance. On February 25, the company reported a net income of $671 million for Q4 and $2.1 billion for the full year, while adjusted net income stood at $624 million for the quarter and $2.3 billion for the year. It also announced a $1 billion share repurchase program, reflecting confidence in its financial strength. CEO Aengus Kelly highlighted the robust demand for leased aircraft, engines, and helicopters, which drove record operating cash flow and earnings per share. The company also capitalized on asset sales, generating $869 million in Q4 with a record gain on sale of $260 million.
Key financial metrics further demonstrated AerCap Holdings N.V. (NYSE:AER)’s strong performance, including a return on equity of 16% and an adjusted return on equity of 15% for Q4. Operating cash flow reached $1.3 billion for the quarter and $5.4 billion for the year, while the unlevered gain on sale margin stood at 43%, translating to 2.6 times book value on an equity basis. The company continued to expand its fleet, investing over $2 billion in CFM LEAP engines in Q4, bringing total new engine orders to more than $5 billion in 2024. Throughout the year, the company returned $1.6 billion to shareholders through share repurchases and dividend payments, boosting its book value per share by approximately 13% to $94.57 as of year-end.
AerCap Holdings N.V. (NYSE:AER)’s Board of Directors approved an increase in its quarterly cash dividend to $0.27 per share, up from $0.25 in 2024. The dividend will be paid on April 3, 2025, to shareholders of record as of the close of business on March 12, 2025, reinforcing the company’s commitment to returning value to its investors. AER stands out as a strong investment due to its record-breaking financial performance, robust cash flow, and consistent shareholder returns. With its share repurchase program, a growing dividend, and increasing demand for leased aircraft, the company is well-positioned for sustained profitability and long-term growth.
9. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders as of Q4: 80
Eagle Capital Management’s Equity Stake: $1.16 Billion
Comcast Corporation (NASDAQ:CMCSA) delivered strong financial results for the fourth quarter, surpassing Wall Street expectations despite challenges in its broadband and streaming segments. The company reported revenue of $31.92 billion, exceeding analysts’ projections of $31.64 billion, while earnings per share reached $0.96, outperforming the expected $0.86. Net income surged 47% year-over-year to $4.78 billion, reflecting robust earnings growth. While these positive financials bolstered Comcast’s overall performance, investor sentiment remained mixed due to continued subscriber losses in key business areas.
Broadband remains a significant revenue driver for Comcast Corporation (NASDAQ:CMCSA) despite the ongoing industry slowdown in customer growth. The company lost 139,000 residential broadband subscribers in the quarter, exceeding the 100,000 losses forecasted by Comcast Cable CEO Dave Watson in December. The company’s executives acknowledged that these figures were disappointing, citing intensified competition from wireless providers as a primary challenge. To offset broadband losses, Comcast plans to shift its strategic focus toward expanding its Xfinity Mobile business, which has surpassed 7.8 million mobile lines. By bundling mobile services with broadband, the company aims to strengthen customer retention and drive growth in its Connectivity and Platforms segment.
Peacock, Comcast Corporation (NASDAQ:CMCSA)’s streaming service, reported 36 million paid subscribers in the fourth quarter, marking an increase from the previous year but remaining flat compared to the prior quarter. Wall Street had anticipated a higher total of 37.56 million, contributing to concerns about stagnant subscriber growth. However, Peacock’s revenue rose to $1.3 billion, an improvement from $1 billion in the same period last year, which indicates that Peacock is progressing toward profitability, driven by increased ad revenue and subscriber retention. Despite this momentum, overall advertising revenue across Comcast’s media segment remained flat, as higher ad sales for Peacock were offset by declines in traditional TV network advertising. Consequently, the stock dropped 11% following the earnings report, reflecting lingering concerns about broadband losses and slower-than-expected streaming subscriber growth.
ClearBridge Growth Strategy stated the following regarding Comcast Corporation (NASDAQ:CMCSA) in its Q4 2024 investor letter:
“We continue to consolidate our positions within media to those with more attractive growth prospects over the next several years. We sold media conglomerate Comcast Corporation (NASDAQ:CMCSA) as it faces greater competition and weakening pricing in its core broadband business. The growth outlook for Comcast is more challenged as competition from new entrants and dampened pricing power has impacted its connectivity business. Industry-wide saturation in broadband, coupled with a secular decline in cable TV subscribers, has diminished growth potential in its core cable business. Comcast’s ability to offset these subscriber losses through price increases is also becoming increasingly constrained.”
8. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders as of Q4: 150
Eagle Capital Management’s Equity Stake: $1.16 Billion
An American multinational for-profit company specializing in health insurance services, UnitedHealth Group Incorporated (NYSE:UNH) reported total quarterly revenue of $100.81 billion, missing projections of $101.76 billion in Q4 2024. Revenue from premiums also fell short of estimates at $76.48 billion. These lower-than-expected results were attributed to weakness in its health insurance segment and higher-than-anticipated medical costs, causing its shares to drop nearly 5% in premarket trading. The company’s medical cost ratio rose to 85.5%, exceeding analyst expectations of 84.96% and reflecting ongoing pressures from increased demand for healthcare services under Medicare plans. Despite these challenges, UnitedHealth’s Optum healthcare services unit grew 9% to $65.1 billion, and the company posted an adjusted earnings per share of $6.81, surpassing expectations. UnitedHealth Group Incorporated (NYSE:UNH) reaffirmed its 2025 profit forecast, providing strong full-year revenue guidance of $450 billion to $455 billion for 2025, reflecting 12.4% to 13.7% growth. The company maintains a positive long-term outlook despite recent setbacks, including a cyberattack on its tech division and broader industry struggles with rising healthcare costs.
Consequently, UnitedHealth Group Incorporated (NYSE:UNH)’s stock has declined 25.7% from its all-time high of $630.73 in November 2024, underperforming the broader healthcare sector. Over the past three months, UNH has dropped nearly 23% and remains below its 50-day and 200-day moving averages, signaling a prolonged downtrend. Analysts remain bullish on the stock, with a consensus “Strong Buy” rating and an average price target of $639.21, representing a 36.4% upside from its current price.
UnitedHealth Group Incorporated (NYSE:UNH)’s strong full-year revenue guidance alongside its growing Optum healthcare services unit underscores its resilience and long-term growth potential despite short-term challenges. With analysts maintaining a “Strong Buy” rating and a strong price target, the stock presents a compelling investment opportunity at its current discounted levels.
Baron Health Care Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
“Shares of UnitedHealth Group Incorporated (NYSE:UNH), the largest health care company by revenue, were volatile in the quarter. Quarterly medical cost trends ran higher than expected, the high end of quarterly guidance was cut, and the preliminary 2025 outlook missed consensus. The Republican November election sweep drove shares up, as Republicans have historically been more supportive of managed care, which bodes especially well for Medicare Advantage, the industry’s main growth engine. In December, UnitedHealth’s CEO was shot and killed, and the subsequent outpouring of public anger over the managed care industry’s history of claims denials sparked concern about the industry’s ability to control health care spend. The specter of pharmacy benefit manager (PBM) legislation was an additional pressure along with multiple press pieces questioning managed care practices and profit drivers. Longer term, we believe managed care will remain embedded in the U.S. health care system and UnitedHealth, as the largest, best managed, and most disciplined and forward-thinking company in the industry, will continue to grow.”
7. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Eagle Capital Management’s Equity Stake: $1.40 Billion
Institutional investors have demonstrated growing confidence in Microsoft Corporation (NASDAQ:MSFT), as the number of funds holding its shares increased from 279 in Q3 to 317 in Q4 2024, with total holdings valued at nearly $91.24 billion, according to Insider Monkey’s database. This surge in investment aligns with Microsoft’s impressive financial performance, as the company reported $69.63 billion in Q4 revenue, exceeding expectations and marking 12.27% year-over-year growth. Additionally, its earnings per share (EPS) of $3.23 surpassed analyst projections of $3.12, further reinforcing its strong market position and consistent profitability.
Beyond its financial success, Microsoft Corporation (NASDAQ:MSFT) remains a leader in technological innovation. In February 2025, the company achieved a significant breakthrough in quantum computing with the development of a topological qubit, a milestone that could transform artificial intelligence, medicine, and cryptography. This advancement cements Microsoft’s position at the forefront of global quantum research, enhancing its long-term growth potential and technological leadership.
Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella has expressed skepticism about the hype surrounding artificial intelligence, particularly the pursuit of artificial general intelligence (AGI), emphasizing that true success should be measured by tangible economic impact rather than abstract milestones. In a recent podcast appearance, he argued that AI’s value will be evident when it drives real-world productivity and accelerates global economic growth, a shift he believes has yet to materialize. Despite his pragmatic stance, Microsoft continues to invest heavily in AI, pouring $12 billion into OpenAI and committing to Donald Trump’s $500-billion Stargate project. Meanwhile, the industry faces challenges, including technical limitations, security concerns, and increasing competition from cost-effective alternatives like Chinese AI startup DeepSeek, which recently triggered a major market disruption. Nadella’s remarks could serve as a reality check to temper inflated expectations, even as Microsoft remains deeply entrenched in the AI race.
Despite the uncertainty regarding AI expressed by Nadella, Microsoft Corporation (NASDAQ:MSFT) remains a top investment choice due to its strong financial performance, institutional confidence, and commitment to cutting-edge technology. With a 12.27% year-over-year revenue increase and earnings exceeding analyst expectations, the company continues to demonstrate consistent profitability, while its breakthroughs in quantum computing and AI investments position it for long-term growth in transformative industries.
6. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders as of Q4: 89
Eagle Capital Management’s Equity Stake: $1.42 Billion
Workday, Inc. (NASDAQ:WDAY) is an American on‑demand (cloud-based) financial management, human capital management, and student information system software vendor. On February 25, 2025, the company announced its fourth quarter fiscal 2025 earnings; it exceeded financial analyst expectations, reporting earnings per share (EPS) of $1.92 versus the projected $1.78. Moreover, it generated $2.21 billion in revenue, surpassing estimates of $2.18 billion with a 15% year-over-year increase. This growth was driven by a 16% rise in subscription services, fueling strong expansion in its financial offerings. Additionally, Workday, Inc. (NASDAQ:WDAY) achieved a 240-basis point improvement in its adjusted operating margin, reaching 26.4%, which contributed to a 22% increase in EPS. Workday’s impressive performance highlights its effective investment strategy, growing subscriber base, and continued product adoption, reinforcing its strong market position.
For Q5, Workday, Inc. (NASDAQ:WDAY) anticipates $8.5 billion in sales with a 14% growth rate and an adjusted operating gross margin of 28%, surpassing estimates by 210 basis points. The stock has surged over 12% post-market, signaling strong investor confidence and potential for further growth. While volatility has been a factor in recent years, Workday remains focused on sustained profitability, projecting a 14% increase in subscription revenue for fiscal 2026 alongside a 28% operating margin, reinforcing its commitment to balanced expansion and financial strength.
As of Q4 2024, Eagle Capital Management significantly increased its holdings in Workday, Inc. (NASDAQ:WDAY) to over 5.51 million shares, marking a 39% rise from 3.97 million shares in Q3. The fund’s stake in the company is now valued at approximately $1.42 billion. Insider Monkey’s database indicated that 89 hedge funds held stakes in the company at the end of Q4 2024, with a value of nearly $5.56 billion, as opposed to 84 funds in Q3.
Workday, Inc. (NASDAQ:WDAY)’s ability to consistently surpass financial expectations, driven by strong subscription growth and expanding profit margins, underscores its resilience and market leadership in cloud-based enterprise solutions. Additionally, increasing institutional investment reflects strong investor confidence in Workday’s long-term growth potential and financial stability.
Parnassus Growth Equity Fund stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q2 2024 investor letter:
“Within Information Technology, we added Workday, Inc. (NASDAQ:WDAY) and funded it with the sale of Palo Alto Networks. Workday is a category leader serving a large, growing enterprise software market. Despite near-term macro uncertainty across software, we believe Workday is well positioned long term, and key initiatives such as its partnership with other service providers can drive incremental growth over the next few years.”
5. Aon plc (NYSE:AON)
Number of Hedge Fund Holders as of Q4: 59
Eagle Capital Management’s Equity Stake: $1.43 Billion
Aon plc (NYSE:AON), a British-American professional services firm specializing in risk mitigation, delivered strong financial performance in 2024, reflecting consistent execution of its strategic initiatives. The company achieved a 6% organic revenue growth for both the fourth quarter and the full year, with steady expansion across all solution lines. Aon’s profitability saw a significant boost in the fourth quarter, with net income attributable to shareholders rising 44% year over year. Diluted earnings per share climbed to $3.28, up from $2.47 in the prior-year period, while adjusted net income per share increased 14% to $4.42. These results underscore the company’s ability to enhance shareholder value through strong operational efficiency and disciplined cost management, further solidifying its market leadership.
In the fourth quarter, Aon plc (NYSE:AON) transitioned from a single reporting segment to two distinct units: Risk Capital and Human Capital, aligning its structure with client needs to enhance its Aon United strategy. Risk Capital, which includes Commercial Risk and Reinsurance Solutions, generated $2.5 billion in revenue, a 13% increase, while Human Capital, encompassing Health and Wealth Solutions, saw a 41% surge to $1.6 billion. Overall, total revenue rose 23% year-over-year to $4.1 billion, driven by 6% organic growth and contributions from the NFP acquisition, partially offset by a 1% negative foreign currency impact. Operating expenses climbed 18% to $3.1 billion due to ongoing costs from NFP, increased intangible asset amortization, and investments in long-term expansion, though restructuring savings of $40 million helped mitigate some expenses.
In the fourth quarter of 2024, Eagle Capital Management held over 3.98 million shares in Aon plc (NYSE:AON), which were valued at $1.43 billion and represented 5.21% of the fund’s portfolio.
Diamond Hill Large Cap Strategy stated the following regarding Aon plc (NYSE:AON) in its Q3 2024 investor letter:
“We continue finding compelling new ideas, even as the bull market proceeds. In Q3, we initiated three new positions in Aon plc (NYSE:AON), Accenture and Builders FirstSource. Aon, one of the world’s leading insurance brokers and consultants, has an excellent track record of growing free cash flow per share. Looking forward, as it fully integrates its acquisition of NFP, which had been a leading middle market broker and consultant, we believe Aon has an attractive opportunity to accelerate its growth rate. With shares trading at an attractive discount to our estimate of intrinsic value, we capitalized on the opportunity to initiate a position in this high-quality company.”
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 234
Eagle Capital Management’s Equity Stake: $1.54 Billion
Alphabet Inc. (NASDAQ:GOOGL) posted strong fourth-quarter earnings, reporting $2.15 per share on revenue of $96.47 billion, slightly exceeding analyst expectations of $2.13 per share. This marked a significant improvement from the previous year’s Q4 earnings of $1.64 per share on $86.3 billion in revenue. CFO Anat Ashkenazi noted that a substantial portion of Alphabet’s investments has gone into technical infrastructure, primarily servers and data centers. CEO Sundar Pichai reaffirmed the company’s commitment to innovation, announcing plans for approximately $75 billion in capital expenditures for 2025, with a continued focus on generative AI.
In the race for artificial intelligence dominance, Alphabet Inc. (NASDAQ:GOOGL) stands out, viewing AI as a “once-in-a-generation opportunity” to strengthen its position in key markets, particularly cloud computing. Google Cloud saw its revenue surge 30% in Q4 2024 to $11.9 billion, highlighting its growth potential. Despite recent stock fluctuations, dropping below $170 per share, investor optimism remains high, with a median price target of $220, suggesting a projected 30% increase by year-end. Alphabet’s deep institutional expertise in AI could further propel its cloud business, positioning it as a formidable competitor in the evolving tech landscape.
Beyond financial performance, Alphabet Inc. (NASDAQ:GOOGL) faces increasing competition in AI and search, areas where it has traditionally been dominant. While Google Search remains the industry leader, AI-powered chatbots, such as OpenAI’s ChatGPT and Meta AI, have challenged its position. DeepSeek’s AI model also directly competes with Google’s Gemini, which saw an upgrade in December with the release of Gemini 2.0 Flash, offering faster response times. Addressing competition, Pichai acknowledged DeepSeek’s capabilities but emphasized that Google’s AI models remain among the most efficient in the industry, standing strong against rivals like DeepSeek’s V3 and R1. As Alphabet Inc. (NASDAQ:GOOGL) continues investing heavily in AI, its ability to maintain leadership in search and cloud computing will be crucial for sustaining long-term growth.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Eagle Capital Management’s Equity Stake: $1.81 Billion
Meta Platforms, Inc. (NASDAQ:META) delivered exceptional Q4 2024 financial results, with revenue soaring 21% year-over-year to $48.4 billion, surpassing Wall Street’s estimate of $47 billion. Earnings per share (EPS) surged 50% to $8.02, exceeding the projected $6.76, which instantly drove Meta’s stock up nearly 9%. The company’s digital advertising division remains its core revenue driver, benefiting from advanced artificial intelligence (AI) tools that enhance ad targeting and content recommendations. These AI-driven enhancements have strengthened Meta Platforms, Inc. (NASDAQ:META)’s market position, allowing it to outperform competitors and capture greater advertising expenditure.
Meta Platforms, Inc. (NASDAQ:META)’s dominance in digital advertising is fueled by its AI-powered solutions, which contributed to a 22% revenue increase in 2024—twice the industry’s growth rate. AI-driven improvements in ad targeting and campaign efficiency led to a 32% rise in advertiser return on investment (ROI) and a 17% reduction in customer acquisition costs. With advertiser adoption of Meta’s AI solutions quadrupling in just six months and ad prices increasing by 14% in Q4, the company is poised for sustained growth. As it continues to develop innovations such as AI-generated video content and with the digital advertising market projected to reach $513 billion by 2027, Meta is well-positioned to capitalize on these trends.
By the end of Q4 2024, Eagle Capital Management held over 3.1 million shares valued at approximately $1.82 billion, making Meta the third-largest investment in Boykin Curry’s portfolio. Institutional confidence in Meta Platforms, Inc. (NASDAQ:META) has hence grown significantly, reflecting strong investor optimism about its long-term potential. Hedge fund interest has also surged, with 262 funds tracked by Insider Monkey holding stakes worth almost $59.38 billion in Q4 2024, up from 235 funds in the previous quarter. This increasing institutional backing reinforces the company’s growth trajectory, supported by its AI advancements, expanding market share, and dominant presence in the social media and digital advertising industries. With its robust financial performance and continuous innovation, Meta remains a compelling stock for investors seeking exposure to high-growth technology and AI-driven markets.
2. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders as of Q4: 86
Eagle Capital Management’s Equity Stake: $1.95 Billion
ConocoPhillips (NYSE:COP) reported Q4 2024 earnings of $2.3 billion, or $1.90 per share, surpassing analyst estimates but falling significantly short of $3.0 billion, or $2.52 per share, reported in the same period the previous year. Full-year earnings also declined from $11.0 billion in 2023 to $9.2 billion in 2024. However, production levels exceeded guidance, driven by strong performance from Lower 48 operations, which saw a 5% year-over-year increase. The recent Marathon Oil acquisition by ConocoPhillips is yielding benefits, with the company forecasting a capital expenditure of under $13 billion for 2025, down from the combined $13.5 billion in 2024. Despite the positive forecast, analysts downgraded COP from a Strong Buy to an Outperform rating, while also reducing the stock’s price target from $157 to $124.
Despite the downgrade, analysts still consider ConocoPhillips (NYSE:COP) one of the most efficiently managed exploration and production companies, with an attractive valuation based on discounted cash flow and multiple analysis. The change in rating reflects the lack of a near-term growth catalyst rather than concerns over the company’s long-term fundamentals. While the company’s global asset portfolio remains strong, the absence of immediate drivers for significant stock appreciation has led to a more cautious stance.
A pure-play oil and natural gas producer, ConocoPhillips (NYSE:COP) has had a significant surge in production for Q4 2024, reaching 2.18 million barrels of oil equivalent per day, largely driven by its $22.5 billion acquisition of Marathon Oil. This consolidation reflects a broader industry trend toward efficiency, but despite expansion, the company’s stock has declined 10% over the past two years, highlighting a disconnect between growth and shareholder returns. With Brent crude prices projected to drop to $74 per barrel and supply expected to outpace demand, market volatility remains a key concern. Despite uncertain conditions, ConocoPhillips maintains efficiency with a production cost of $19.18 per barrel, ensuring profitability and strong dividends.
Diamond Hill Large Cap Strategy stated the following regarding ConocoPhillips (NYSE:COP) in its Q2 2024 investor letter:
“Other bottom contributors in Q2 included CarMax, Target Corporation and ConocoPhillips (NYSE:COP). Shares of oil and gas exploration and production company ConocoPhillips declined against a backdrop of lower oil prices in Q2, as well as concerns about the expensive though strategically sound acquisition of Marathon Oil.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Eagle Capital Management’s Equity Stake: $2.80 Billion
Amazon.com, Inc. (NASDAQ:AMZN) unveiled its long-anticipated “Alexa+” service on February 26, integrating generative AI to enhance its digital assistant’s capabilities. Priced at $19.99 per month but free for Prime members, Alexa+ aims to streamline daily tasks through natural conversation, offering personalized assistance for organization, project planning, and problem-solving. The U.S. rollout is set to begin in the coming weeks, with expectations that this innovation could strengthen the company’s position in the AI-driven smart assistant market. Following the announcement, Amazon’s stock saw a positive reaction, although its overall performance in February 2025 remained weak, with shares declining by 9%.
Despite recent stock struggles, Amazon.com, Inc. (NASDAQ:AMZN) has demonstrated solid financial performance in its Q4 2024 earnings report. The company reported earnings per share (EPS) of $1.86, surpassing analyst expectations of $1.46, and generated $187.79 billion in revenue, reflecting a 10% year-over-year increase. Investors reacted negatively to Amazon’s Q1 2025 sales forecast of $151 billion to $155.5 billion, which fell short of Wall Street’s $158.5 billion projection. Concerns also emerged over the company’s increased investment in AWS and AI, which rose to $100 billion from $83 billion in 2024, alongside a $2.1 billion foreign exchange headwind.
With President Donald Trump advancing different economic priorities, investors are assessing potential policy impacts on major corporations like Amazon.com, Inc. (NASDAQ:AMZN). Industry expert Justin Abrams emphasizes that the company remains well-positioned despite macroeconomic shifts, as it operates in a sector relatively shielded from consumer sentiment fluctuations. Key economic trends, including inflation, unemployment, tariffs, and AI integration, could strengthen Amazon’s market position. The company’s ability to leverage its substantial float and Amazon Prime’s extensive subscriber base further supports cost efficiencies. Additionally, tariffs on foreign competitors may help mitigate price disparities, reinforcing Amazon’s competitive edge.
As of Q4 2024, Eagle Capital Management held approximately 12.77 million shares of Amazon.com, Inc. (NASDAQ:AMZN), valued at over $2.8 billion. Hedge fund interest in Amazon also increased, with 339 out of 1,008 funds tracked by Insider Monkey holding positions worth nearly $69.04 billion by the end of the quarter, up from 286 funds in Q3.
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the top 10 stocks to buy according to Eagle Capital Management. While we acknowledge the potential for AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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