In this article, we discuss the top 30 S&P 500 stocks by index weight. If you want to skip our detailed discussion on the stock market and the S&P 500 index, head over to Top 5 S&P 500 Stocks by Index Weight.
The S&P 500 Index, as well as the tech-heavy NASDAQ, edged higher after Federal Reserve Chairman Jerome Powell commented that interest rate hikes are not over yet, but the Fed would be more considerate in its monetary policies this time. As per CME’s FedWatch tool, Wall Street forecasts a 77% probability of a 25 basis point interest rate hike by the end of July. In light of Powell’s latest comments, the S&P 500 gained 16.2 points, with its consumer discretionary sector performing the best. Sam Stovall, chief investment strategist of CFRA Research in New York, told Reuters on June 22:
“The market believes the Fed will raise rates one more time, not two more times as implied by the post FOMC meeting summary. In addition, yesterday and today’s, Powell reiterated that they will be data dependent and Wall Street expects inflation to cool faster, and unemployment will start to creep higher which is what the Fed has intended with its rate increases.”
Don’t Miss: 20 Worst Performing S&P 500 Stocks in 2023
The S&P 500 index is highly concentrated this year, with the highest weightage of the five largest holdings since 1990. The index weighs stocks based on their market value, so more valuable companies automatically rise to the top. This is also a safer approach as huge corporations are usually more reliable, especially during economic turmoils and market upheavals. This year, the S&P 500 is riding market highs primarily due to the tech stocks that are experiencing an AI-led rally.
AJ Bell, a British online provider of investment platforms and stockbroker services, observed that AI champions like Nvidia, Microsoft, Alphabet, Apple, Amazon, and Meta have collectively gained $3.1 trillion in market cap during 2023. However, if their massive contribution to the S&P 500 is excluded, the benchmark index has lost $286 billion in 2023 as of June 3. Investors are pouring their money into top-notch low risk tech giants, and they are now treated like traditional safe haven assets. Financial Times cited Thomas Mathews, markets economist at Capital Economics, who noted that historical bull markets by the end of 1990s and between 2019 and 2021 had similar indicators. A couple of huge companies were leading the market rallies. However, keeping in mind the previous stock market bubbles that eventually burst, Matthews commented:
“If we’re right that growth will falter later this year . . . we suspect some pain is on the way for the S&P 500, and global equities generally.”
Investors are looking for safe haven stocks in the midst of economic chaos, and they are leaning towards the top S&P 500 constituents like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN). Investors can also check out 10 Undervalued S&P 500 Stocks Billionaires Are Buying and S&P 500 Dividend Aristocrats List: Sorted By Hedge Fund Popularity.
Our Methodology
For this list, we chose the top 30 S&P 500 constituents in terms of index weight. The list is ranked in ascending order of the index weight. We have also mentioned the hedge fund sentiment around these stocks as of Q1 2023.
Image by Sergei Tokmakov Terms.Law from Pixabay
Top S&P 500 Stocks by Index Weight
30. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 136
Index Weight: 0.579798%
Salesforce, Inc. (NYSE:CRM) ranks 30th on our list of the top S&P 500 stocks by index weight. The California-based company is focused on customer relationship management software, marketing automation, data analytics, and application development. On June 12, Salesforce, Inc. (NYSE:CRM) launched AI Cloud which can generate customized emails, chat replies, case summaries, and write code. AI Cloud will incorporate other Salesforce technologies as well, including Einstein, Data Cloud, Tableau, Flow, and MuleSoft. AI Cloud starter pack can be availed on a yearly subscription for $360,000 by businesses.
According to Insider Monkey’s first quarter database, 136 hedge funds were bullish on Salesforce, Inc. (NYSE:CRM), compared to 117 funds in the prior quarter. Harris Associates is the largest position holder in the company, with a stake worth $1.5 billion.
Like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Salesforce, Inc. (NYSE:CRM) is one of the premier S&P 500 stocks to invest in.
Harding Loevner Global Equity Strategy made the following comment about Salesforce, Inc. (NYSE:CRM) in its Q1 2023 investor letter:
“It also signaled lower capital expenditures and increased share repurchases. Other tech companies, including Salesforce, Inc. (NYSE:CRM), similarly benefited from plans to lower costs and increase profitability. Meanwhile, NVIDIA, the graphic-chips designer, surged amid investor enthusiasm over the potential commercial applications of artificial-intelligence technologies, such as ChatGPT, which requires the use of many chips.”
29. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 64
Index Weight: 0.585109%
McDonald’s Corporation (NYSE:MCD) ranks 29th on the S&P 500 list in terms of index weight. McDonald’s Corporation (NYSE:MCD) is on its way to become a dividend king, with 47 annual dividend increases under its belt. The latest quarterly dividend of $1.52 per share was distributed to shareholders on June 20. In Q1 2023, global comparable sales were up 12.6% for McDonald’s Corporation (NYSE:MCD), compared to a consensus growth estimate of 8.2%. All segments achieved double-digit growth during the first quarter of 2023.
According to Insider Monkey’s first quarter database, 64 hedge funds were bullish on McDonald’s Corporation (NYSE:MCD), compared to 57 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the largest stakeholder of the company, with 1.64 million shares worth $459.2 million.
28. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 91
Index Weight: 0.589363%
Walmart Inc. (NYSE:WMT), the American retail giant, ranks 28th on our list of the top 30 S&P 500 stocks measured by index weight. On May 18, Walmart Inc. (NYSE:WMT) reported a Q1 non-GAAP EPS of $1.47 and a revenue of $152.3 billion, topping Wall Street consensus by $0.15 and $4.39 billion, respectively. Walmart’s global advertising business grew more than 30% during the March quarter. On June 16, Walmart announced that it is opening its biggest fulfillment center in Indianapolis, which will leverage robotics and automation to facilitate higher efficiency and provide express delivery services.
According to Insider Monkey’s first quarter database, 91 hedge funds were bullish on Walmart Inc. (NYSE:WMT), up from 66 funds in the earlier quarter. D E Shaw is the largest stakeholder of the company, with 4.8 million shares worth nearly $710 million.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:
“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco have been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”
27. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 73
Index Weight: 0.606184%
Pfizer Inc. (NYSE:PFE), an American multinational pharmaceutical and biotechnology company, ranks 27th on the S&P 500 list by index weight. On June 22, Pfizer Inc. (NYSE:PFE) declared a $0.41 per share quarterly dividend, in line with previous. The dividend is payable on September 5, to shareholders of record on July 28. The company has reiterated a quarterly dividend of $0.41 per share for three consecutive quarters.
According to Insider Monkey’s first quarter database, 73 hedge funds were bullish on Pfizer Inc. (NYSE:PFE), compared to 75 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the biggest stakeholder of the company, with 9.3 million shares worth $380.2 million.
Diamond Hill Capital made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter:
“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”
26. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 99
Index Weight: 0.608314%
Next on our list of the top S&P 500 stocks is Adobe Inc. (NASDAQ:ADBE), with an index weight of 0.60%. Adobe Inc. (NASDAQ:ADBE), an American multinational computer software firm, announced its Q2 2023 financial results on June 15. The company reported a non-GAAP EPS of $3.91 and a revenue of $4.82 billion, outperforming Wall Street estimates by $0.12 and $50 million, respectively.
According to Insider Monkey’s Q1 database, Adobe Inc. (NASDAQ:ADBE) was part of 99 hedge fund portfolios, with collective stakes worth $7.3 billion. Ken Griffin’s Citadel Investment Group is the largest position holder in the company, with a stake valued at $731.5 million.
Polen Focus Growth Strategy made the following comment about Adobe Inc. (NASDAQ:ADBE) in its Q1 2023 investor letter:
“One area we are watching regarding Alphabet and Adobe Inc. (NASDAQ:ADBE) is AI systems and their capabilities, including generative AI. Interestingly, both Adobe and Alphabet could see benefits or threats from the emergence of generative AI and large language models (LLMs). Both companies already use generative AI to the benefit of their users in anticipating how content creators edit their work (Adobe) and in how search results are anticipated and generated (Google). At the same time, breakthrough technologies like AI can open the door to additional competition and/or impact a company’s profitability levels. We now see AI systems others are developing, including LLMs and generative AI offerings, that could be more competitive in the future. While we think it remains early days for ChatGPT and the capabilities of these types of LLMs and generative AI programs like DALL-E, the technology seems to be progressing at a fast rate and will at least require a strong response from incumbents.
As of now, we believe Alphabet and Adobe are leaders in their own right in these areas and have a clear path to improving their existing offerings with AI advancements, which would allow them to be net beneficiaries of AI. There are also significant barriers to building leading AI offerings in these areas. As a result, our position sizes in Adobe and Alphabet remain sizable. For Adobe, the status of its pending $20 billion-plus Figma acquisition is also uncertain. There is a good chance, in our view, that it will be blocked by regulators, which would mean the future opportunity to expand its offerings to the developer community (beyond designers) may not occur.”
25. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 63
Index Weight: 0.628673%
Costco Wholesale Corporation (NASDAQ:COST) is the 25th stock in the S&P 500 index, ranked by index weight. On May 25, Costco Wholesale Corporation (NASDAQ:COST) reported an FQ3 non-GAAP EPS of $3.43, beating market consensus by $0.12. The revenue of $53.65 billion, however, fell short of Wall Street estimates by $930 million. Net sales for the quarter grew 1.9% to $52.60 billion, up from $51.61 billion in the prior-year quarter.
According to Insider Monkey’s first quarter database, 63 hedge funds were long Costco Wholesale Corporation (NASDAQ:COST), compared to 66 funds in the preceding quarter. Ray Dalio’s Bridgewater Associates is a prominent stakeholder of the company, with 861,306 shares worth about $428 million.
Madison Funds made the following comment about Costco Wholesale Corporation (NASDAQ:COST) in its fourth-quarter 2022 investor letter:
“Costco Wholesale Corporation (NASDAQ:COST) stock fell after November sales results showed a slowing consumer. The slower November sales were followed by a slight first quarter miss with lower-than-expected margins. Costco commented that they are not seeing trade-down but private label penetration has increased modestly. Traffic continues to be positive, and Costco remains well-positioned in a more challenging macro environment due to its strong value proposition.”
24. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 61
Index Weight: 0.650008%
The Coca-Cola Company (NYSE:KO) ranks 24th on the S&P 500 index based on index weight. 2023 marks the 61st consecutive annual dividend increase by The Coca-Cola Company (NYSE:KO). On April 26, the company declared a quarterly dividend of $0.46 per share, in line with previous. The dividend is distributable on July 3, to shareholders of record on June 16.
According to Insider Monkey’s first quarter database, 61 hedge funds were bullish on The Coca-Cola Company (NYSE:KO), compared to 58 funds in the preceding quarter. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with 400 million shares worth $24.8 billion.
Rowan Street Capital mentioned The Coca-Cola Company (NYSE:KO) in its Q4 2022 investor letter. Here is what the firm has to say:
“Let’s take The Coca-Cola Company (NYSE:KO) for example. Its dividend yield is 2.8%, earnings are estimated to grow at only 3.6% rate per year over next 4 years, and its earnings multiple is currently at 24x (based on next year’s forecasted earnings). KO has an anemic growth, so we can argue that paying 24x earnings is not very attractive. Let’s assume that the multiple will stay constant over the next 3-5 years, thus our expected annual returns will be 2.8%+3.6% = 6.4% (that is below the current reported inflation rate and only slightly above the risk-free rate of 4%).”
23. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 75
Index Weight: 0.664454%
AbbVie Inc. (NYSE:ABBV) is an American pharmaceutical company that ranks 23rd on the S&P 500 index based weight. On April 27, AbbVie Inc. (NYSE:ABBV) reported a Q1 non-GAAP EPS of $2.46, falling short of Wall Street estimates by $0.03. The revenue of $12.23 billion came in line with market consensus.
According to Insider Monkey’s first quarter database, 75 hedge funds were bullish on AbbVie Inc. (NYSE:ABBV), compared to 73 funds in the preceding quarter. Ken Griffin’s Citadel Investment Group is the biggest position holder in the company.
Harding Loevner Global Equity Strategy made the following comment about AbbVie Inc. (NYSE:ABBV) in its Q1 2023 investor letter:
“One of our two new additions to the portfolio is AbbVie Inc. (NYSE:ABBV), a US drugmaker best known for Humira, a medicine used to treat a variety of autoimmune diseases. AbbVie is building upon its maturing blockbuster Humira business by expanding its stable of autoimmune-disorder treatments with launches such as Skyrizi and Rinvoq, which have been well received and should support continued growth. Separately, we believe the slowdown in venture capital funding may foster more collaboration between biotechnology companies with promising, early-stage pipelines and large pharmaceutical companies. This may allow AbbVie to supplement its own pipeline at cheaper valuations than biotechs had commanded in recent years.”
22. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 70
Index Weight: 0.695779%
PepsiCo, Inc. (NASDAQ:PEP) is one of the top S&P 500 stocks, with an index weight of 0.69%. On May 2, PepsiCo, Inc. (NASDAQ:PEP) declared a $1.265 per share quarterly dividend, a 10% increase from its prior dividend of $1.150. The dividend is payable on June 30, to shareholders of record on June 2. 2023 marks the company’s 51st consecutive annual dividend increase, making it a reliable dividend king.
According to Insider Monkey’s first quarter database, 70 hedge funds were bullish on PepsiCo, Inc. (NASDAQ:PEP), with combined stakes worth $4 billion. Terry Smith’s Fundsmith LLP is the biggest stakeholder of the company, with 6.65 million shares worth $1.2 billion.
Madison Sustainable Equity Fund made the following comment about PepsiCo, Inc. (NASDAQ:PEP) in its Q1 2023 investor letter:
“PepsiCo, Inc. (NASDAQ:PEP) announced that it will commit $3.3 million in funds toward water replenishment projects across North America. These projects aim to reduce absolute water use and replenish back into the local watershed more than 100% of the water used at company-owned and third-party sites in high water-risk areas.”
21. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 64
Index Weight: 0.730999%
The American oil and gas giant, Chevron Corporation (NYSE:CVX), ranks 21st on the S&P 500 index based on index weight. On April 28, Chevron Corporation (NYSE:CVX) reported a Q1 non-GAAP EPS of $3.55 and a revenue of $50.79 billion, outperforming Wall Street consensus by $0.14 and $1.3 billion, respectively.
According to Insider Monkey’s first quarter database, 64 hedge funds were bullish on Chevron Corporation (NYSE:CVX), compared to 57 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with a position worth $21.60 billion.
Carillon Tower Advisers made the following comment about Chevron Corporation (NYSE:CVX) in its Q4 2022 investor letter:
“Energy performed well during the fourth quarter, with the sector up about 23%. Investors returned to the sector after the Organization of the Petroleum Exporting Countries (OPEC) signaled it would reduce production. Chevron Corporation (NYSE:CVX) reported strong quarterly results while buying back stock, paying a healthy dividend, and maintaining a strong balance sheet.”
20. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 75
Index Weight: 0.763442%
Merck & Co., Inc. (NYSE:MRK) is an American healthcare company that provides pharmaceutical products for oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes. Merck & Co., Inc. (NYSE:MRK) also specializes in animal health products. The stock ranks 20th on the S&P 500 index based on weight. On May 23, Merck & Co., Inc. (NYSE:MRK) declared a $0.73 per share quarterly dividend, in line with previous. The dividend is payable on July 10, to shareholders of record on June 15.
According to Insider Monkey’s first quarter database, 75 hedge funds were long Merck & Co., Inc. (NYSE:MRK), compared to 77 funds in the earlier quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 2.8 million shares worth $298.4 million.
Aristotle Value Equity Strategy made the following comment about Merck & Co., Inc. (NYSE:MRK) in its Q4 2022 investor letter:
“Founded in 1891 and headquartered in New Jersey, Merck & Co., Inc. (NYSE:MRK) is one the world’s largest pharmaceutical firms. The company’s drugs are used to treat conditions in a variety of areas, including oncology (~38% of revenue), vaccines (~19%), diabetes (~11%), animal health (~11%) and other (~21%). Merck produced over $48 billion in sales in 2021, just under half of which were generated in the United States. Within oncology, the firm’s immuno-oncology platform is becoming a major contributor to overall sales, driven by the blockbuster drug Keytruda. The company’s vaccine business is also significant and includes Gardasil for the prevention of HPV (the disease that can lead to cervical cancer in women), as well as vaccines for hepatitis B, pediatric diseases and shingles. In recent years, Merck has been shifting its focus toward unmet medical needs in specialty-care areas. As part of this shift in focus, in June 2021, Merck received $9 billion from the spinoff of its women’s health, established brands, and biosimilars businesses into the now independent, publicly traded company Organon…” (Click here to read the full text)
19. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 65
Index Weight: 0.833117%
The Home Depot, Inc. (NYSE:HD) ranks 19th on the S&P 500 index, with a weight of 0.83%. On May 16, the home improvement retailer reported a Q1 GAAP EPS of $3.82, beating market consensus by $0.03. The revenue of $37.3 billion, however, fell short of Wall Street estimates by $1.05 billion. The Home Depot, Inc. (NYSE:HD) also paid a $2.09 per share quarterly dividend to shareholders on June 15.
According to Insider Monkey’s first quarter database, 65 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD), compared to 62 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is a prominent stakeholder of the company, with 1 million shares worth $317 million.
Madison Sustainable Equity Fund made the following comment about The Home Depot, Inc. (NYSE:HD) in its Q1 2023 investor letter:
“The Home Depot, Inc. (NYSE:HD) provided an update on reducing the environmental impact of its stores. Since 2010, the company has reduced U.S. store electricity use by 50% by implementing LED lighting across all of its stores, buying electricity from large-scale commercial solar farms, and installing rooftop solar farms. The company is now applying its experience to other parts of its operations, including reducing electricity use in its supply chain and water use in store irrigation. Home Depot was also recognized by the U.S. Environmental Protection Agency for being one of the nation’s largest green power users.”
18. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 138
Index Weight: 0.855603%
Mastercard Incorporated (NYSE:MA), the American multinational fintech corporation, ranks 18th on the S&P index based on weight. On April 27, Mastercard Incorporated (NYSE:MA) reported a Q1 non-GAAP EPS of $2.80 and a revenue of $5.7 billion, outperforming Wall Street estimates by $0.09 and $60 million, respectively.
According to Insider Monkey’s first quarter database, 138 hedge funds were bullish on Mastercard Incorporated (NYSE:MA), compared to 139 funds in the prior quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company.
Polen Global Growth Strategy made the following comment about Mastercard Incorporated (NYSE:MA) in its Q1 2023 investor letter:
“We trimmed Mastercard Incorporated (NYSE:MA) and Visa to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double-digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of e-commerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.
We have trimmed Visa and Mastercard because their combined weight grew to over 12% of the Global Growth Portfolio because of their recent performance and to fund our increase in Amazon’s position size. We added to both positions when their prices were depressed due to cross-border transactions deteriorating materially from the pandemic. Cross-border volumes came roaring back when travel corridors reopened, and although we are several quarters removed from the cross-border nadir, Visa still grew volumes >30% in 1Q23. Total cross-border volumes are now 132% of 2019 levels. At 4.5% each, both companies remain high conviction positions for Global Growth.”
17. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 75
Index Weight: 0.952893%
The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods worldwide, operating through Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care segments. On April 21, The Procter & Gamble Company (NYSE:PG) reported a FQ3 Non-GAAP EPS of $1.37 and a revenue of $20.07 billion, outperforming Wall Street estimates by $0.05 and $750 million, respectively. The stock ranks 17th on the S&P 500 based on index weight of 0.95%.
According to Insider Monkey’s first quarter database, 75 hedge funds were bullish on The Procter & Gamble Company (NYSE:PG), compared to 74 funds in the preceding quarter. Ray Dalio’s Bridgewater Associates is the largest stakeholder of the company, with 4.94 million shares valued at $735.2 million.
Rowan Street Capital made the following comment about The Procter & Gamble Company (NYSE:PG) in its Q4 2022 investor letter:
“Let’s look at The Procter & Gamble Company (NYSE:PG). Dividend yield is 2.4%. Earnings are forecasted to grow at 5.9%, and its current earnings multiple is at 25x. Now, let’s say over the next 3-5 years the market loses interest in the “safe”, mature companies that grow at anemic rates and gets an appetite for growth again. It’s very unlikely that Mr. Market will be paying 25x for 5.9% earnings growth. Let’s assume that multiple declines to the market average of 18x — that would be ~6.9% drag per year on the total expected return over next 3-5 years. If we get 2.4% (dividend) + 5.9% (earnings growth) – 6.9% (decrease in earnings multiple) = 1.4% (annual return we can expect on average from this stock).”
16. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 72
Index Weight: 0.971716%
Eli Lilly and Company (NYSE:LLY) develops and commercializes human pharmaceuticals worldwide. The stock ranks 16% on the S&P 500 based on index weight. On April 27, Eli Lilly and Company (NYSE:LLY) reported a Q1 non-GAAP EPS of $1.62, missing analysts’ estimates by $0.11. The revenue of $6.96 billion exceeded Wall Street consensus by $90 million.
According to Insider Monkey’s first quarter database, 72 hedge funds were bullish on Eli Lilly and Company (NYSE:LLY), compared to 76 funds in the earlier quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with approximately 3 million shares worth over $1 billion.
Baron Health Care Fund made the following comment about Eli Lilly and Company (NYSE:LLY) in its Q1 2023 investor letter:
“In pharmaceuticals, our largest investment continues to be in Eli Lilly and Company (NYSE:LLY). Lilly’s new diabetes drug Mounjaro is likely to be approved for obesity in 2023. Lilly has two new obesity drugs advancing into Phase 3 trials. Lilly also has a drug in late-stage development for Alzheimer’s disease. Lilly is not facing any significant near-term patent expirations, and we think the company should be able to grow revenue and earnings at attractive rates through the end of the decade and beyond.”
15. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 72
Index Weight: 0.983675%
Broadcom Inc. (NASDAQ:AVGO), an American semiconductor corporation, is one of the top S&P 500 stocks by index weight. On June 1, Broadcom Inc. (NASDAQ:AVGO) declared a $4.60 per share quarterly dividend, in line with previous. The dividend is distributable on June 30, to shareholders of record on June 22. The company also reported a Q2 non-GAAP EPS of $10.32 and a revenue of $8.73 billion, outperforming Wall Street estimates by $0.18 and $20 million, respectively.
According to Insider Monkey’s first quarter database, Broadcom Inc. (NASDAQ:AVGO) was part of 72 hedge fund portfolios, and William Von Mueffling’s Cantillon Capital Management is a prominent stakeholder of the company, with 985,157 shares worth $632 million.
Aristotle Core Equity Strategy made the following comment about Broadcom Inc. (NASDAQ:AVGO) in its Q4 2022 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the quarter following the company’s solid fourth quarter 2022 results. This was driven by better-than-expected results in both its semiconductor solutions, networking and storage segments. The company also provided first quarter guidance that was ahead of consensus as well as 2023 commentary that expects earnings momentum to continue due to a strong product cycle.”
14. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 173
Index Weight: 1.000301%
With an index weight of 1%, American financial giant Visa Inc. (NYSE:V) ranks 14th on the S&P 500 list. On April 25, Visa Inc. (NYSE:V) reported a Q1 non-GAAP EPS of $2.09 and a revenue of $8 billion, outperforming Wall Street estimates by $0.10 and $210 million, respectively.
According to Insider Monkey’s first quarter database, 173 hedge funds were bullish on Visa Inc. (NYSE:V), compared to 177 funds in the earlier quarter. Chris Hohn’s TCI Fund Management is the biggest stakeholder of the company, with 19.3 million shares worth $4.3 billion.
Baron FinTech Fund made the following comment about Visa Inc. (NYSE:V) in its Q4 2022 investor letter:
“Shares of global payment network Visa Inc. (NYSE:V) increased after reporting strong quarterly results, with 19% growth in revenue and EPS despite currency headwinds and the suspension of operations in Russia. Payment volume grew 16% in local currency (excluding Russia and China) with notable strength in cross-border volumes driven by rebounding international travel. Management also provided encouraging guidance for the next fiscal year. We continue to own the stock due to Visa’s long runway for growth and significant competitive advantages.”
13. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 73
Index Weight: 1.133553%
Exxon Mobil Corporation (NYSE:XOM) ranks 13th on the S&P 500 index. On April 28, Exxon Mobil Corporation (NYSE:XOM) reported a Q1 non-GAAP EPS of $2.83, beating market estimates by $0.23. The revenue of $86.56 billion missed Wall Street consensus by $3.51 billion. The company also raised and extended its share repurchase program up to $35 billion in 2023-2024.
According to Insider Monkey’s first quarter database, 73 hedge funds were long Exxon Mobil Corporation (NYSE:XOM), compared to 79 funds in the prior quarter. Rajiv Jain’s GQG Partners is the biggest stakeholder of the company, with 19.5 million shares worth $2.14 billion.
Here is what First Eagle Investments said about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2022 investor letter:
“Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”
12. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 112
Index Weight: 1.136872%
JPMorgan Chase & Co. (NYSE:JPM) is a financial services company that operates through four segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. JPMorgan Chase & Co. (NYSE:JPM) ranks 12th on the S&P 500 index based on weight. On May 15, the company declared a $1 per share quarterly dividend, in line with previous. The dividend is payable on July 31, to shareholders of record on July 6.
According to Insider Monkey’s first quarter database, 112 hedge funds were bullish on JPMorgan Chase & Co. (NYSE:JPM), compared to 100 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the largest position holder in the company.
Mairs & Power Growth Fund made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its first quarter 2023 investor letter:
“Financials were roiled in the quarter thanks to the Silicon Valley Bank and Signature Bank failures. Even though the Fund has a similar weight to Financials as the index, our bank stocks—US Bank (USB), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo (WFC), and Charles Schwab (SCHW)—fell more than the Financials sector and hurt relative performance. We have performed a thorough analysis of our banking stocks and believe that they will exit this banking event intact, and a few may even benefit from the sector turmoil. For example, JP Morgan, one of the banks deemed “too-big-to-fail,” has benefited from an inflow of deposits from smaller institutions. As such, the Fund took advantage of the volatility in the quarter and added to its position.
With the selloff in the quarter, we have added to US Bank selectively, but more so to JPMorgan as it appears better positioned to gather deposits in the current environment.”
11. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 86
Index Weight: 1.164214%
Johnson & Johnson (NYSE:JNJ), the American multinational healthcare corporation, is one of the top S&P 500 stocks by index weight. On April 18, Johnson & Johnson (NYSE:JNJ) reported a Q1 non-GAAP EPS of $2.68 and a revenue of $24.7 billion, outperforming Wall Street estimates by $0.18 and $1.09 billion, respectively.
According to Insider Monkey’s first quarter database, 86 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ), compared to 84 funds in the prior quarter. D E Shaw is a significant position holder in the company, with 3.9 million shares worth $608.7 million.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:
“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ makes and spends a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)
10. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 116
Index Weight: 1.192834%
UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates through four segments – UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. UnitedHealth Group Incorporated (NYSE:UNH) ranks 10th on the S&P 500 index. On June 7, the company declared a quarterly dividend of $1.88 per share, a 13.9% increase from its prior dividend of $1.65. The dividend is payable on June 27, to shareholders of record June 19.
According to Insider Monkey’s first quarter database, 116 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH), compared to 110 funds in the earlier quarter. Andreas Halvorsen’s Viking Global is a prominent stakeholder of the company, with 2 million shares worth $992.4 million.
Mairs & Power Growth Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its first quarter 2023 investor letter:
“The largest detractors from relative performance in the quarter were US Bank, Charles Schwab, UnitedHealth Group Incorporated (NYSE:UNH), and Hormel (HRL). UnitedHealth Group was hurt in the quarter as initial rate proposals for Medicare Advantage managed care were more negative than hoped. Fortunately, the final reimbursement rates announced after the quarter are not nearly as ominous.”
9. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 108
Index Weight: 1.648476%
Berkshire Hathaway Inc. (NYSE:BRK-B) operates insurance, freight rail transportation, and utility businesses worldwide. It ranks 9th on the S&P 500 index. In Q1 2023, Berkshire Hathaway Inc. (NYSE:BRK-B)’s operating earnings increased 13% year-over-year as insurance underwriting and investment income skyrocketed. The company also repurchased approximately $4.4 billion of its common stock during the first quarter, up from $2.6 billion in Q4 2022.
According to Insider Monkey’s first quarter database, 108 hedge funds were bullish on Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 110 funds in the preceding quarter.
Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q3 2022 investor letter:
“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.
8. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 220
Index Weight: 1.7168%
With an index weight of 1.71%, Meta Platforms, Inc. (NASDAQ:META) ranks 8th on the S&P 500. On April 26, the tech giant reported a Q1 GAAP EPS of $2.20 and a revenue of $28.65 billion, outperforming Wall Street estimates by $0.23 and $990 million, respectively.
According to Insider Monkey’s first quarter database, 220 hedge funds were bullish on Meta Platforms, Inc. (NASDAQ:META), compared to 194 funds in the prior quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 8 million shares worth $1.70 billion.
Here is what Baron Durable Advantage Fund has to say about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:
“Shares of Meta Platforms, Inc., the world’s largest social network, were up 76.0% this quarter due to decisive cost discipline actions, improving adoption of new advertising products, the company’s work in generative artificial intelligence (AI), and the broader rally in technology stocks. Meta is the mega-cap technology company most focused on profitability through cost cutting, including layoffs of more than 20% of its staff and reductions in its data center and office footprint. On the top line, Meta continues growing its user base with daily average users up 5% year-over-year in the last quarter. Engagement remains healthy with impressions up 23% year-over-year, and newer advertising formats (like Instagram Reels) are reportedly picking up steam with 40% of advertisers now using Reels. Longer term, we believe Meta will utilize its leadership in mobile advertising, massive user base, innovative culture, and technological scale to sustain durable growth for years to come, with further monetization opportunities ahead in newer areas such as WhatsApp.”
7. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 155
Index Weight: 1.727553%
Alphabet Inc. (NASDAQ:GOOG), with an index weight of 1.72%, ranks 7th on the S&P 500 list. These are class C shares, and shareholders have no voting rights. On April 25, Alphabet Inc. (NASDAQ:GOOG) reported a Q1 GAAP EPS of $1.17 and a revenue of $69.79 billion, topping Wall Street consensus by $0.10 and $950 million, respectively.
According to Insider Monkey’s first quarter database, 155 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 152 funds in the preceding quarter. Harris Associates is the biggest stakeholder of the company, with 36.90 million shares worth $3.8 billion.
Mairs & Power Growth Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2023 investor letter:
“As we have mentioned in previous months, we have slowly reduced our underweight position in the Technology sector over the past several years, as we have added a number of names that fit our investment strategy. Many of these investments had impressive returns in the quarter and our relative performance in the tech sector was a bright spot. Four out of our top 5 performing names in the quarter were either Technology or Technology-related names, including: NVIDIA (NVDA), Alphabet Inc. (NASDAQ:GOOG), Littelfuse (LFUS), and Microsoft (MSFT). The stocks all benefited from a positive shift in investor sentiment in the quarter toward growth stocks, reversing last year’s trend. NVIDIA, Alphabet, and Microsoft also all benefited from their exposure to artificial intelligence and the headlines garnered from the widespread launch of ChatGPT a large language model developed by Microsoft partner, OpenAI. In the current tight labor market, there is a lot of enthusiasm around the efficiency this technology could bring to many industries. Alphabet and Microsoft are working furiously to build it into their products and NVIDIA has benefited as it currently has the best hardware to train and run large AI algorithms.”
6. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 204
Index Weight: 1.996184%
Alphabet Inc. (NASDAQ:GOOGL) ranks 6th on the S&P 500 index, with an index weight of nearly 2%. GOOGL shares are class A shares and allow one vote per share. According to Insider Monkey’s first quarter database, 204 hedge funds were long Alphabet Inc. (NASDAQ:GOOGL), compared to 209 funds in the last quarter.
In addition to Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), elite hedge funds are piling into Alphabet Inc. (NASDAQ:GOOGL).
Here is what Crescat Capital has to say about Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2023 investor letter:
“It is very clear to us that Artificial Intelligence is in the speculative froth stage. Just like the Internet bubble in 2000, from an investment standpoint, we think the biggest threat from AI is to investors in the abundance of hyped-up overvalued technology businesses that are all perceived to be big future winners, even perhaps among the biggest past AI market share winners and perceived juggernauts. At current valuations, the tech stock leaders of the unprecedented prior 14-year cycle, who all claim AI as a key driver of their future business model, collectively have much more to lose than to gain in the ultimate reordering. Too many of these past tech winners are perceived to be big future winners once again in the emerging AI battle, which is simply not how it works. The really big future winners in AI are likely to be the much earlier-stage businesses that are highly successful in applying AI technology in totally new and disruptive ways. The truth is that the investing world at large has absolutely no clue who these companies are going to be yet. As historical evidence to support this thesis, two of the biggest disrupters from the Internet era were Google (NASDAQ:GOOGL) and Facebook (META). Both these companies did not even emerge until AFTER the tech bust.”
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Disclosure: None. Top 30 S&P 500 Stocks by Index Weight is originally published on Insider Monkey.
