In this article, we discuss top 5 stocks to buy in 10 different sectors. If you want to see more of the top stocks to buy in different sectors, the risk/reward and methodology of this list, go directly to Top 10 Stocks to Buy in 10 Different Sectors.
5. Johnson & Johnson (NYSE:JNJ)
FINVIZ.com Sector: Healthcare
Number of Hedge Fund Holders: 85
Johnson & Johnson (NYSE:JNJ) is a leader in pharmaceuticals, medtech, and consumer health that ranks as a top pick in the healthcare sector. In Q3 2022, the company’s worldwide revenue rose 8.2% year over year when excluding acquisitions and divestitures on an operational basis to $23.8 billion with its consumer health sales increasing 4.7% year over year operationally to $3.8 billion. Johnson & Johnson (NYSE:JNJ)’s worldwide pharmaceutical sales rose 9% year over year operationally to $13.2 billion and its MedTech sales rose 8.1% year over year operationally to $6.8 billion. 85 hedge funds in our database owned shares of Johnson & Johnson (NYSE:JNJ) at the end of Q3.
4. JPMorgan Chase & Co. (NYSE:JPM)
FINVIZ.com Sector: Financial
Number of Hedge Fund Holders: 110
JPMorgan Chase & Co. (NYSE:JPM) is a leading bank that’s a top pick in the financial sector. JPMorgan Chase & Co. (NYSE:JPM) is also among the most widely held financial stocks among the hedge funds we track at the end of Q3 2022 with 110 hedge funds holding shares of the bank.
Vltava Fund commented on JPMorgan Chase & Co. (NYSE:JPM) in a Q3 2022 investor letter,
We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.
3. Alphabet Inc. (NASDAQ:GOOG)
FINVIZ.com Sector: Communication Services
Number of Hedge Fund Holders: 156
Alphabet Inc. (NASDAQ:GOOG) is a top stock in the communications services sector. The company is also considered a tech stock by many investors along with the number two and one stocks on our list in Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT) so the three are not really that diversified. Given Alphabet Inc. (NASDAQ:GOOG)’s profitability and its growth potential in AI, the stock still ranks as one of the best in either sector. At the end of Q3, 156 hedge funds in our database owned shares of Alphabet Inc. (NASDAQ:GOOG).
2. Amazon.com, Inc. (NASDAQ:AMZN)
FINVIZ.com Sector: Consumer Cyclical
Number of Hedge Fund Holders: 269
Like the number one and three stocks on our list in Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN) is a tech stock so the three are not that diversified. Nevertheless, Amazon.com, Inc. (NASDAQ:AMZN) also ranks as a leading consumer cyclical stock given its e-commerce business.
Alphyn Capital commented on Amazon.com, Inc. (NASDAQ:AMZN) in a Q3 2022 investor letter,
“It is fascinating to me how Amazon.com, Inc. (NASDAQ:AMZN) continually uses its scale, operating resources, and “day one” attitude3 to expand the number of industries in which it is involved. Healthcare is now an area of increased focus. In July, Amazon purchased 1Life Healthcare Inc., which operates a primary-care practice under the name One Medical for $3.9 billion. Amazon also bid for home-health-services provider Signify but lost out to CVS in September with a winning bid of $8 billion.
It is hard to predict what direction this will take, but Amazon often finds ways to add “synergies” from seemingly disparate services. For example, consider that Amazon has invested heavily in video, which drives the adoption of its Prime subscription. As a result, prime members provide a recurring revenue stream (approximately $25 billion) and spend more heavily on Amazon’s retail. This strengthens Amazon’s retail network effects to benefit its high margin third-party marketplace and advertising businesses.”
1. Microsoft Corporation (NASDAQ:MSFT)
FINVIZ.com Sector: Technology
Number of Hedge Fund Holders: 269
With 269 hedge fund holders in our database owning shares, Microsoft Corporation (NASDAQ:MSFT) is the most widely held stock in our database at the end of the third quarter. Given its competitive advantages and moat, Microsoft Corporation (NASDAQ:MSFT) is also a top pick in the technology sector. In Q1 FY23, the company’s sales rose 11% year over year to $50.1 billion and its net income decreased 14% year over year to $17.6 billion. In constant currency, net income fell only 8% year over year. CEO Satya Nadella said, “In a world facing increasing headwinds, digital technology is the ultimate tailwind. In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way.”
Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT) can all be considered tech stocks even if they are considered as stocks in different sectors according to FINVIZ.com so they are not as diversified.
You can also take a look at Warren Buffett’s Top 10 Dividend Stock Picks and 15 Largest Hotel Chains in the US in 2022.
