In this article, we will take a detailed look at the Top 12 Stocks to Buy According to Bourgeon Capital.
Bourgeon Capital Management LLC is an investment advisory firm headquartered in Darien, Connecticut. Founded in 1999 by seasoned financial professional John Aniblo Zaro, the firm specializes in actively managed, separate accounts with investment portfolios consisting primarily of stocks and bonds. In 2002, Bourgeon Capital expanded its leadership team when Michael Keohane joined SAC Capital to co-manage the firm’s long/short hedge fund. With a portfolio value of nearly $535.55 million by the end of December 2024, Bourgeon Capital is known for providing personalized investment strategies designed to manage risk while achieving long-term growth.
John Zaro, the firm’s founder and managing partner, has an extensive background in investment management spanning several decades. In addition to his Bachelor of Arts degree in Political Science and Economics from Stanford University, he is a Chartered Financial Analyst (CFA) and an active member of the New York Society of Security Analysts.
John Zaro’s career in finance has been marked by influential roles at major financial institutions; it began at Morgan Stanley Smith Barney LLC where he held the role of vice president from 1984 to 1991. Later, he served as a portfolio manager and vice president at J.P. Morgan Investment Management from 1991 to 1997 during which he managed substantial assets for clients. Just before establishing Bourgeon Capital, Zaro held the positions of Chief Investment Officer and Managing Director at Warburg Pincus Asset Management from 1997 to 1999. During his time there, he played a key role in shaping investment strategies for high-net-worth clients. With expertise in portfolio and alpha target management, Zaro was instrumental in refining investment processes for private clients and high-net-worth individuals.
With over two decades of experience, Zaro founded Bourgeon Capital with the vision of offering a more client-centric approach to wealth management. His goal has always been to foster strong, long-term relationships with clients through honest and strategic financial guidance. Bourgeon Capital continues to uphold this commitment, ensuring that each client’s investment strategy is tailored to their unique financial needs and aspirations.
In recognition of his accomplishments in wealth management, Morgan Stanley announced in 2022 that Zaro, then serving as a First Vice President and Financial Advisor at the firm’s Wealth Management office, was named to Forbes Magazine’s prestigious list of Top Next-Gen Wealth Advisors. This ranking evaluates candidates based on various qualitative and quantitative factors, including industry experience, leadership experience, assets under management, revenue trends, and compliance records. The selection process also incorporates insights gained from extensive interviews.
Bourgeon Capital’s investment philosophy is centered on achieving consistent, long-term returns while minimizing volatility. The firm prioritizes risk management by employing strategies that aim to reduce extreme market fluctuations. A key approach under Zaro’s leadership has been investing excess cash in the bond market to capitalize on higher interest rates. This strategy reflects the firm’s commitment to balancing risk and reward while ensuring that clients’ investments align with their financial goals.
John Zaro of Bourgeon Capital
Our Methodology:
The stocks discussed below were picked from Bourgeon Capital’s Q4 2024 13F filings. They are compiled in the ascending order of Bourgeon Capital’s stake in them as of December 31, 2024. In order to assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from over 1000 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 12 Stocks to Buy According to Bourgeon Capital
12. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders as of Q4: 166
Bourgeon Capital’s Equity Stake: $13.56 Million
Apple Inc. (NASDAQ:AAPL) is 12th on the list of the top 12 stocks to buy according to Bourgeon Capital. Headquartered in Cupertino, California, Apple is a leading global technology company known for its innovative consumer electronics, software, and services. Founded in 1976 as Apple Computers, the company rebranded to Apple Inc. in 2007 to reflect its expansion beyond computers. As one of the most valuable technology firms, it has remained a market leader in mobile devices, personal computing, and digital services.
Apple Inc. (NASDAQ:AAPL) reported revenue of $124.3 billion for the quarter ending December 2024, reflecting a 3.95% year-over-year increase from $119.58 billion. This figure marginally exceeded analysts’ expectations of $124.03 billion by 0.22%. The company’s quarterly earnings per share (EPS) reached $2.40, marking an increase of $0.22 compared to the previous year’s quarter. On January 30, 2025, Apple’s Board of Directors declared a quarterly cash dividend of $0.25 per share, payable on February 13, 2025, to shareholders of record as of February 10, 2025.
The company has partnered with Alibaba Group to introduce AI-powered features for iPhone users in China, highlighting Alibaba’s growing expertise in large language models. Confirming the collaboration at the World Governments Summit, Alibaba Chairman Joe Tsai stated that Apple Inc. (NASDAQ:AAPL) selected Alibaba as its AI partner after evaluating multiple Chinese companies. The two firms have submitted their co-developed AI features for regulatory approval in China, aiming to enhance iPhone capabilities in the region. This partnership comes as Apple seeks to strengthen its position in the Chinese market, where it faces increased competition from local smartphone manufacturers. Analysts believe Alibaba’s AI expertise and extensive consumer data will help Apple offer more personalized experiences, potentially boosting iPhone sales.
Tsai Capital mentioned Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter. It stated:
“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.
The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.
Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.
Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”
11. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders as of Q4: 101
Bourgeon Capital’s Equity Stake: $13.81 Million
Danaher Corporation (NYSE:DHR), founded in 1984 by Steven and Mitchell Rales, is a global conglomerate headquartered in Washington, D.C., specializing in medical, industrial, and commercial products and services. The company is a leader in science and technology, driving innovation through three primary divisions: biotechnology, diagnostics, and life sciences. Through groundbreaking advancements, Danaher addresses critical health challenges, enhancing the quality of life for billions while building a more sustainable future. Originally established as DMG, Inc. in 1969, the company underwent several transformations before becoming Danaher Corporation (NYSE:DHR), inspired by a Montana creek where the founders envisioned their business. A pioneer in North America’s adoption of Kaizen principles, the company focuses on continuous improvement and efficiency.
Bourgeon Capital owned 60,178 shares of the company as of Q4 2024, with a total value of $13.81 million, representing 2.57% of John Zaro’s portfolio. Moreover, the fund increased its stake in Danaher Corporation (NYSE:DHR) by 8% during the fourth quarter of 2024, which suggests a positive hedge fund sentiment about the stock.
On January 28, 2025, Danaher Corporation (NYSE:DHR) announced its Q4 net revenue of $6.54 billion which showed a year-over-year growth of 2%. The company’s EPS was announced as $2.14, missing consensus estimates by $0.02.
Parnassus Growth Equity Fund stated the following regarding Danaher Corporation (NYSE:DHR) in its Q3 2024 investor letter:
“In Health Care, we continue to favor catalyst-rich names across subsectors, including medical devices, biopharma, life science tools and payors companies. We chose to consolidate our exposure in the Life Sciences Tools and Services industry by selling Danaher Corporation (NYSE:DHR) while maintaining our position in Thermo Fisher Scientific.
Our position in Danaher has been profitable, and we have opted to consolidate our life science tools bet in Thermo Fisher Scientific. Danaher has rerated since we initiated our position, and we believe the anticipated 2025 bioprocessing recovery is largely priced in.”
10. Marvell Technology, Inc. (NYSE:MRVL)
Number of Hedge Fund Holders as of Q4: 105
Bourgeon Capital’s Equity Stake: $14.04 Million
Marvell Technology, Inc. (NYSE:MRVL), headquartered in Santa Clara, California, is a leading semiconductor company specializing in AI-driven computing, connectivity, and storage solutions. Founded in 1995 by Dr. Sehat Sutardja, Weili Dai, and Pantas Sutardja, the company initially focused on CMOS-based read channel technology for disk drives, securing Seagate Technology as its first customer. Marvell has since grown into a key player in data center infrastructure, with operations spanning data centers, automotive, enterprise, and carrier networks. By integrating AI capabilities, the company is reshaping cloud architectures to enhance speed and performance, making AI more accessible across industries. With over 6,500 employees and 10,000 patents in 2024, the company remains at the forefront of semiconductor innovation.
Marvell Technology, Inc. (NYSE:MRVL) has expanded its capabilities through strategic acquisitions, including Cavium, Inc. in 2018, which brought key leadership additions to its board. In 2019, the company acquired Aquantia, further strengthening its networking solutions. The 2021 acquisition of Inphi Corporation led to Marvell’s reorganization and relocation of its corporate domicile to Wilmington, Delaware. In 2023, Marvell Technology, Inc. (NYSE:MRVL) expanded its presence in India with a development hub in Pune. These acquisitions have positioned Marvell as a leader in AI-powered infrastructure, reinforcing its role in advancing data center and semiconductor technology.
Marvell Technology, Inc. (NYSE:MRVL) posted strong financial results for the quarter ending November 2024, reporting $1.52 billion in revenue, which exceeded market expectations of $1.46 billion and reflected a 6.87% year-over-year increase. In addition, the company reported earnings per share (EPS) of $0.43, outperforming analyst projections of $0.41 by 5.53%, highlighting its steady growth and strong market position.
Bourgeon Capital owned 127,098 shares of the company as of Q4 2024, with a total value of nearly $14.04 million, making it the stock with the 10th largest stake in Zaro’s portfolio.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q4 2024 investor letter:
“Marvell Technology, Inc. (NASDAQ:MRVL) is a leading provider of semiconductor chips for data centers. This past quarter, management highlighted very strong orders coming from customers in the artificial intelligence (AI) space as well as design wins for future AI-related chips. Management shared a long-term view for a revenue target that was above expectation.”
9. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders as of Q4: 79
Bourgeon Capital’s Equity Stake: $14.48 Million
Accenture plc (NYSE:ACN), headquartered in Dublin, Ireland, is a global professional services company specializing in IT consulting, digital transformation, and management solutions. Originally founded in 1989, the company has grown into a Fortune Global 500 leader, offering expertise in areas such as cloud computing, cybersecurity, artificial intelligence, finance, supply chain management, and sustainability. Serving industries ranging from aerospace and banking to healthcare and energy, Accenture leverages AI-driven solutions to enhance customer and employee experiences, drive brand loyalty, and optimize business operations.
The company traces its roots back to the early 1950s as the business and technology consulting arm of Arthur Andersen. One of its early milestones was a feasibility study for General Electric, leading to the first commercial installation of a UNIVAC I computer in the U.S. at GE’s Appliance Park in Kentucky. Over the decades, Accenture plc (NYSE:ACN) has continued to evolve, integrating advanced technologies and expanding its industry reach to help businesses navigate digital transformation and remain competitive in a rapidly changing market.
On February 12, 2025, Accenture plc (NYSE:ACN) announced its collaboration with SAP to provide personalized learning and training services aimed at upskilling and reskilling employees across various organizational levels. As one of the first global partners authorized to deliver SAP Learning programs, Accenture will integrate SAP’s partner-led training initiatives with its own expertise to foster a culture of continuous learning. This partnership offers businesses access to structured, instructor-led training and customized learning journeys, enhancing employees’ technical and industry-specific skills. The initiative is designed to optimize SAP solution adoption, improve decision-making, and increase workforce satisfaction, ultimately strengthening employee retention and organizational growth. Additionally, participants will have the opportunity to earn an SAP-focused Nanodegree from Udacity through Accenture LearnVantage. Both companies are also working on leveraging AI-driven learning pathways to further personalize training, ensuring professionals are equipped with the latest SAP knowledge to drive business transformation.
Diamond Hill Large Cap Strategy stated the following regarding Accenture plc (NYSE:ACN) 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, Accenture plc (NYSE:ACN) and Builders FirstSource. Accenture is a leading global IT services and consultancy business. We think the services it provides — which are differentiated and in specialty areas relative to many of its peers — are critical and will be in high demand in the technology ecosystem for years to come. This should contribute to stable prices and margins. We believe the market is undervaluing Accenture relative to the opportunity ahead of it and, consequently, were able to initiate a position in the quarter at a discounted share price.”
8. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders as of Q4: 72
Bourgeon Capital’s Equity Stake: $14.54 Million
Teva Pharmaceutical Industries Limited (NYSE:TEVA), headquartered in Israel, is one of the world’s leading pharmaceutical companies, specializing in generic drugs, branded medicines, and active pharmaceutical ingredients (APIs). Established in 1901, Teva has built a vast portfolio of over 3,600 medications and produces approximately 76 billion tablets and capsules annually. With operations in 58 markets and manufacturing facilities in over 33 countries, the company ranks among the top pharmaceutical firms globally. Its workforce of around 37,000 employees is dedicated to delivering high-quality and innovative medicines, serving approximately 200 million people daily.
While Teva Pharmaceutical Industries Limited (NYSE:TEVA) is best known for its generic drug portfolio, it also develops specialty and biologic treatments. Its key branded products include Austedo, used for chorea associated with Huntington’s disease and tardive dyskinesia, and Ajovy, a preventive migraine treatment. Other notable branded drugs include Copaxone, Bendeka, and Treanda, primarily marketed in the United States. The company is publicly traded on both the Tel Aviv Stock Exchange and the New York Stock Exchange and is a member of the Pharmaceutical Research and Manufacturers of America (PhRMA). With a strong global presence spanning Israel, North America, Europe, Australia, and South America, Teva Pharmaceutical Industries Limited (NYSE:TEVA) ranks eighth among our top 12 stocks to buy according to Bourgeon Capital and continues to play a crucial role in advancing healthcare worldwide.
In the fourth quarter of 2024, the company reported total revenue of $4.32 billion, representing a 5% decline from the $4.5 billion recorded in the same quarter of the previous year. Despite this quarterly decrease, the company achieved a 4.4% year-over-year growth in full-year revenue, reaching $16.5 billion. Teva Pharmaceutical Industries Limited (NYSE:TEVA) posted a GAAP operating loss of $29 million for the quarter, a significant shift from the $755 million operating income in Q4 2023. On a non-GAAP basis, operating income stood at $1.17 billion, reflecting a 24% decrease from the prior year’s $1.55 billion.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) recorded a net loss of $217 million for the quarter, compared to a net profit of $461 million in Q4 2023. Non-GAAP net income declined 28% year-over-year to $816 million. The company’s free cash flow dropped to $790 million from $1.49 billion in the previous year’s fourth quarter, as it continued investing in its pipeline for future growth. Meanwhile, Teva made progress in reducing its debt, lowering its net debt to $14.5 billion from $15.7 billion in the third quarter of 2024.
7. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders as of Q4: 88
Bourgeon Capital’s Equity Stake: $14.57 Million
Eaton Corporation plc (NYSE:ETN) is a global power management company that provides innovative electrical, aerospace, hydraulic, and vehicle solutions to address complex energy challenges. For over a century, the company has focused on enhancing safety, efficiency, and sustainability across industries. Its technologies support essential infrastructure, including hospitals, data centers, factories, transportation, and electrical grids. By developing reliable and energy-efficient solutions, the company helps businesses operate more sustainably while improving everyday life.
Headquartered in Beachwood, Ohio, the company operates in over 175 countries with a workforce exceeding 92,000 employees. Eaton Corporation plc (NYSE:ETN) offers a diverse portfolio of products and services that enhance the efficient management of electrical, hydraulic, and mechanical power. Since its founding in 1911 as the Torbensen Gear and Axle Company, the company has undergone significant transformations, including mergers and acquisitions, to become a leader in power management. Today, it continues to drive innovation, sustainability, and efficiency in the industries it serves.
Bourgeon Capital owned 43,909 shares of the company as of Q4 2024, with a total value of $14.57 million, making it the stock with the 7th largest stake in Zaro’s highly diversified portfolio.
Ave Maria World Equity Fund stated the following regarding Eaton Corporation plc (NYSE:ETN) in its first quarter 2024 investor letter:
“Eaton Corporation plc (NYSE:ETN) is an intelligent power management company. The company is a long-term beneficiary in the trend towards electrification, energy transition and digitalization. Eaton is also benefiting from unprecedented global stimuli such as the Inflation Reduction Act, Infrastructure Investment and Jobs Act, the Chips and Science Act and the EU recovery plan known as the NextGenerationEU.”
6. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders as of Q4: 91
Bourgeon Capital’s Equity Stake: $14.71 Million
Merck & Co., Inc. (NYSE:MRK) is a global pharmaceutical company dedicated to advancing healthcare through innovative medicines, vaccines, biologic therapies, and animal health products. With a strong focus on oncology, vaccines, infectious diseases, cardiometabolic disorders, immunology, and neuroscience, Merck has been at the forefront of medical advancements for over 130 years. The company prioritizes research and development to address current and future health challenges while fostering a diverse and inclusive workforce. Through its commitment to sustainability and responsible operations, Merck & Co., Inc. (NYSE:MRK) aims to create a healthier and safer world for people and communities worldwide.
Headquartered in Rahway, New Jersey, Merck is one of the largest pharmaceutical companies globally, operating as Merck Sharp & Dohme (MSD) outside the U.S. and Canada. Originally founded as the American arm of Germany’s Merck Group in 1891, the company has grown into a leader in the industry, ranking among the top five pharmaceutical firms by revenue. The company’s portfolio includes several blockbuster drugs and vaccines, such as Keytruda for cancer immunotherapy, Januvia for type 2 diabetes, and Gardasil for HPV prevention. Other significant products include treatments for infectious diseases, immunological disorders, and various vaccines, reinforcing the company’s role in improving global health.
Merck & Co., Inc. (NYSE:MRK) delivered a strong financial performance in the fourth quarter of 2024, reporting $15.62 billion in revenue—an increase of 6.8% compared to the same period the previous year. This growth highlights the company’s ability to expand its market presence and sustain solid business momentum. Additionally, Merck exceeded analyst expectations with earnings per share (EPS) of $1.72, surpassing projections of $1.67.
Merck & Co., Inc. (NYSE:MRK)’s consistent revenue growth and ability to outperform earnings estimates reinforce its position as a strong investment option. With a robust pipeline of innovative drugs and vaccines, the company continues to capitalize on high-demand healthcare solutions, making it a compelling stock for long-term growth and stability.
GreensKeeper Asset Management stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:
“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”
5. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 338
Bourgeon Capital’s Equity Stake: $15.08 Million
Amazon.com, Inc. (NASDAQ:AMZN) is a global technology powerhouse specializing in e-commerce, cloud computing, digital streaming, online advertising, and artificial intelligence. The company has diversified its operations through key subsidiaries such as Amazon Web Services (AWS), Zoox, Ring, Twitch, IMDb, Kuiper Systems, Whole Foods Market, and Amazon Lab126, strengthening its footprint across multiple industries.
Amazon.com, Inc. (NASDAQ:AMZN) demonstrated strong financial performance in Q3 2024, reporting $158.88 billion in revenue—an 11% increase year-over-year—slightly surpassing analyst expectations by 0.3%. Additionally, its earnings per share (EPS) reached $1.86, exceeding forecasts by 25.3%, underscoring its consistent profitability. With its dominant market position, continued expansion into high-growth sectors, and resilient financial results, Amazon.com, Inc. (NASDAQ:AMZN) remains a compelling stock for investors seeking both stability and long-term growth in the technology sector.
Italian authorities are investigating whether Amazon.com, Inc. (NASDAQ:AMZN) evaded 1.2 billion euros in value-added tax (VAT) that should have been collected from certain third-party sellers between 2019 and 2021. A law introduced in Italy in 2019 made e-commerce platforms responsible for VAT owed by non-EU sellers shipping goods to Italian customers, a regulation that preceded an EU-wide VAT reform in 2021. According to Italy’s financial crimes police, penalties could push Amazon’s total liability to as much as three billion euros. The investigation, launched in early 2024 and concluded in December, reviewed transactions that allegedly resulted in unpaid VAT. While Amazon declined to comment on the ongoing probe, the company emphasized its commitment to tax compliance and noted it had paid 1.4 billion euros in direct and indirect taxes to Italy in 2023. A preliminary investigation does not automatically lead to formal charges, but the case emerges amid broader discussions on trade relations, with former U.S. President Donald Trump proposing reciprocal tariffs against EU VAT policies.
Recurve Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) – 5.1% of assets as of 12/31/2024
Amazon has been an agent of disruption for a long time in retail, cloud computing, and beyond. Its consumer business is incomparable for small parcel, general merchandise. Prime delivery windows keep shrinking, which keeps pulling more market share Amazon’s way. It has an amazing transportation, fulfillment, and logistics network capable of service levels that were unthinkable at current prices just a couple decades ago. Additionally, AWS is a leader in cloud verticalization, powered by proprietary semiconductors, hardware, software, facilities, and more. Amazon’s customer-centricity is the driving force behind its continuous innovation and disruption. As the juggernaut disruptor, it is likely the world’s best company at solving really hard problems for customers at massive scale.
Amazon does not trade at a mid-single multiple of medium-term FCF/share or EPS. Our cost basis was less than 10x our estimate of 2028 FCF. However, few companies reinvest at the rate Amazon does and, theoretically, it could double the free cash flow I model simply by moderating its reinvestments for a year or two – but that may not be a great outcome for long-term investors. This is why it is important to evaluate companies based on owner’s earnings, not reported earnings. For instance, a private owner of Amazon might shut down Project Kuiper and Alexa and massively increase EPS and FCF/share.”
4. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders as of Q4: 67
Bourgeon Capital’s Equity Stake: $17.36 Million
Honeywell International Inc. (NASDAQ:HON), headquartered in Charlotte, North Carolina, is a multinational conglomerate specializing in aerospace, building automation, industrial automation, and energy and sustainability solutions. Established through the merger of Honeywell Inc. and AlliedSignal in 1999, the corporation retained the Honeywell name due to its strong brand recognition.
With its diversified business operations, strong market position, and continued focus on innovation, Honeywell International Inc. (NASDAQ:HON) remains a compelling investment choice. Its involvement in high-growth industries such as aerospace and automation, along with its commitment to sustainability solutions, positions it as a top stock for long-term investors seeking stability and growth potential. The company generates revenue from four major divisions: aerospace technologies, industrial automation, building automation, and energy and sustainable solutions.
Honeywell International Inc. (NASDAQ:HON) achieved a 7% year-over-year increase in fourth-quarter sales, reaching $10.09 billion. Despite ongoing macroeconomic challenges, earnings per share rose 3% to $1.96. Operating income saw a 10% increase, with the operating margin improving by 50 basis points to 17.3%. However, segment profit declined 8% to $2.1 billion, and the segment margin contracted by 350 basis points to 20.9%, or by 70 basis points to 23.7% when excluding the impact of the Bombardier agreement. Operating cash flow dropped 23% to $2.3 billion, while free cash flow declined 27% to $1.9 billion. Net income grew 3.4% year over year, reaching $1.29 billion.
With steady revenue growth, improving profitability, and strong earnings performance despite economic headwinds, Honeywell International Inc. (NASDAQ:HON) remains a solid investment. Its ability to maintain resilience and expand operating margins highlights its long-term potential, making it a top stock to consider for investors seeking stability and growth.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 234
Bourgeon Capital’s Equity Stake: $21.28 Million
An American multinational technology conglomerate holding company, Alphabet Inc. (NASDAQ:GOOGL) ranks third among our top 12 stocks to buy according to Bourgeon Capital. Based in Mountain View, California, the company is the parent holding company of Google and several former Google subsidiaries.
In August 2015, Google announced the formation of a new parent company, Alphabet Inc. (NASDAQ:GOOGL), as part of a major corporate restructuring. Alphabet served as a holding company overseeing Google and its various subsidiaries, such as X Development, Calico, Nest, Verily, Fiber, CapitalG, and GV. This shift was aimed at streamlining Google’s core operations while allowing other ventures to operate more independently. The restructuring was intended to enhance management efficiency, increase transparency, and provide clearer oversight of Google’s expanding business portfolio.
At the 2025 World Government Summit in Dubai, Google & Alphabet CEO Sundar Pichai engaged in a virtual fireside chat with UAE Minister of State for AI, Digital Economy, and Remote Work Applications, H.E. Omar Al Olama. The discussion focused on Google’s AI-first approach, long-term investment in foundational technologies, and the cultural principles that fuel its innovation. Pichai highlighted AI-driven products like Maps, Search, and Android, which serve over 2 billion users, and Google’s progress with its Gemini models’ growth. Pichai also spoke about the safety record and expansion plans for Waymo, Google’s self-driving car initiative, emphasizing collaboration with regulators.
Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Bourgeon Capital’s Equity Stake: $23.12 Million
Microsoft Corporation (NASDAQ:MSFT), based in Redmond, Washington, is a global technology leader known for its advancements in personal computing, cloud services, artificial intelligence, and gaming. Founded in 1975 by Bill Gates and Paul Allen, the company gained prominence with MS-DOS in the 1980s and later revolutionized the personal computing industry with its Windows operating system. Going public in 1986, Microsoft experienced rapid financial growth and expanded its reach beyond software, venturing into gaming with the Xbox console in 2001 and enhancing communication with its acquisition of Skype in 2011. In recent years, Microsoft Corporation (NASDAQ:MSFT) has focused heavily on artificial intelligence and cloud computing, strengthening its partnership with OpenAI in 2023 and launching AI-powered tools such as Microsoft 365 Copilot, Windows Copilot, and Microsoft Copilot to enhance user experiences. By October 2024, the introduction of Copilot Labs and Copilot Vision reaffirmed its commitment to AI-driven innovation, ensuring Microsoft remains at the forefront of the evolving technology landscape.
Microsoft Corporation (NASDAQ:MSFT) has announced a $700 million investment in Poland to expand its existing data center, enhance AI capabilities, and strengthen cybersecurity. The announcement was made in Warsaw by Microsoft Vice Chair and President Brad Smith alongside Polish Prime Minister Donald Tusk. This investment builds on Microsoft’s initial $1 billion commitment in 2020, which led to the establishment of Poland’s first regional data center, operational since 2023. The second phase of investment, running until mid-2026, will further develop AI technology and cybersecurity initiatives, including deeper collaboration with Poland’s defense forces. Given Poland’s strategic role in regional security, especially following Russia’s invasion of Ukraine, Microsoft aims to ensure the country remains at the forefront of technological advancements.
In the fourth quarter of 2024, Microsoft Corporation (NASDAQ:MSFT) reported revenue of $69.63 billion, reflecting a 12% increase compared to the previous year. The company’s operating income rose to $31.65 billion, marking a 17% year-over-year growth. Additionally, Microsoft exceeded expectations with earnings per share (EPS) of $3.23, surpassing analyst estimates of $3.12 by $0.11. With consistent financial growth, strong profitability, and continued expansion in AI and cloud computing, Microsoft remains among the top stocks to buy for those seeking long-term stability and innovation-driven growth.
Alger Spectra Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. The company operates through three segments: Productivity and Business Processes (Office365, LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices, Gaming, and Search). During the quarter, Microsoft delivered better-than-expected fiscal first-quarter revenues, beating analyst estimates across all three segments. In the Intelligent Cloud business, Azure revenue grew 34% year over-year, slightly above consensus, with AI Services contributing 12% to Azure’s growth, up from 11% in the previous quarter, as demand for AI continues to outpace capacity. However, shares declined after management signaled a potential deceleration in Azure growth for the next quarter and highlighted a negative earnings impact from OpenAI-related losses. Additionally, concerns over significantly increased AI-related capital expenditures (CapEx) raised questions about short-term profitability despite the long-term growth potential. While these near-term challenges led to shares detracting from performance for the quarter, we remain confident in Microsoft’s ability to maintain its leadership in AI.”
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders as of Q4: 123
Bourgeon Capital’s Equity Stake: $30.09 Million
JPMorgan Chase & Co. (NYSE:JPM) is a leading American multinational financial services firm headquartered in New York City and incorporated in Delaware. As the largest bank in the United States, it has a history spanning 225 years and operates in over 100 markets worldwide. The firm provides a wide range of financial services, including investment banking, commercial banking, financial transaction processing, and asset management, serving millions of individuals, businesses, and institutions globally.
In the fourth quarter of 2024, JPMorgan Chase & Co. (NYSE:JPM) reported impressive financial results, with revenue reaching $42.77 billion—an increase of 10% from the previous year. Net income surged by 50% year-over-year to $14.01 billion. The company operates through four primary business segments, with Consumer & Community Banking generating $4.5 billion in net income despite a 6% decline from the prior year. Meanwhile, Commercial & Investment Banking experienced significant growth, with net income rising 59% to $6.6 billion. Given its strong financial performance and leadership in the banking industry, JPMorgan Chase & Co. (NYSE:JPM) remains an attractive stock for investors seeking stability and long-term growth.
Carillon Eagle Growth & Income Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its first quarter 2024 investor letter:
“JPMorgan Chase & Co. (NYSE:JPM) contributed positively to performance following solid financial results and positive guidance for the remainder of 2024. Moreover, growing chatter around rising capital markets activity likely contributed to the stock’s strong performance relative to other banks. Recall that JPMorgan has a robust capital markets franchise.”
JPMorgan Chase & Co. (NYSE:JPM) was the largest holding in John Zaro’s stock portfolio. Bourgeon Capital owned over 125,520 shares of the company as of Q4 2024 worth over $30.09 million, which constitutes 5.61% of the hedge fund’s 13F holding.
Overall, JPMorgan Chase & Co. (NYSE:JPM) ranks first on our list of the top 12 stocks to buy according to Bourgeon Capital. While we acknowledge the potential for JPM 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 JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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