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In this article: 12 Best stocks for investment selected by hedge funds. Check out our article for an overview of these stocks. Five Best stocks for investment selected by hedge funds.
The euphoria in the U.S. stock market came as the latest data showed that inflation remains high and that the soft-landing scenario that many had begun to take for granted may not be easy to achieve. It collapsed. Since the inflation storm began, smart investors have recommended adding to recession-proof, blue-chip stocks that can weather economic volatility. While bad inflation statistics in a single month don’t mean doom and gloom for the stock market, many analysts believe that we are exposed to long-term inflation and risk, and that low-quality stocks should be avoided completely. I believe there is. Russell Investments said in its 2024 Outlook report that although a recession has been avoided in 2023, the consumer savings that shielded Americans from recession last year are expected to dry up this year, He said the risks were high.
“Businesses and households have built strong defenses against post-pandemic Fed tightening, amassing large cash reserves and locking in low interest rates on 30-year mortgages and long-term corporate bonds. But these protections The policy is starting to crumble. Household budgets will soon be exhausted.”While excess savings will be reduced, significant increases in interest rates, which are constraining new borrowing, will cause refinancing problems. “The Fed is aggressively tightening the U.S. economy. A recession in 2024 may be avoided, but the risks are rising.”
In this environment, it’s important for smart investors to know which blue-chip stocks they’re investing in.
Photo by Ruben Sukatendel on Unsplash
methodology
In this article, we first list all holdings in the EA Bridgeway Blue Chip ETF (NYSEARCA:BBLU) and then use Insider Monkey’s database of over 900 hedge funds and their holdings to list these holdings. We measured hedge fund sentiment towards a stock. From these stocks, we selected the 12 stocks with the highest number of hedge fund investors. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail).
12. Eli Lilly and Company (NYSE:LLY)
Number of hedge fund investors: 102
Eli Lilly & Company (NYSE:LLY) is one of the best blue-chip stocks to invest in, according to smart investors. According to Insider Monkey’s database of 910 hedge funds, 102 hedge funds held shares in Eli Lilly & Company (NYSE:LLY) at the end of Q3 2023. Shares of Eli Lilly & Company (NYSE:LLY) soared recently after the company reported strong fourth-quarter results, driven by strong sales of new diabetes and weight-loss drugs. . Sales for the fourth quarter rose 28.1% year over year to $9.35 billion, exceeding expectations by $380 million.
In its Q4 2023 investor letter, Baron Healthcare Fund said of Eli Lilly & Company (NYSE:LLY):
“Sub-industry stock selection was also positive, with strong gains for therapeutic-focused pharmaceutical giants.” Eli Lilly and Company (NYSE:LLY). Lilly’s stock price has been driven by strong sales of its blockbuster diabetes drug Munjaro and continued enthusiasm for the company’s obesity and diabetes franchise, particularly as Novo Nordisk has increased the relative risk of overweight patients with cardiovascular disease. It continued to outperform after announcing the results of the SELECT trial, which showed a 20% reduction in History of diabetes.
Eli Lilly and Company is a global pharmaceutical company that discovers, develops, manufactures and markets medicines in diabetes, oncology, neuroscience, immunology and other fields. Share price performance was strong due to third-quarter sales of blockbuster diabetes drug Mounjaro and continued enthusiasm for the company’s obesity and diabetes franchise. We continue to think Lilly is well-positioned to grow revenue and profits at an attractive pace through the end of his decade and beyond.
We own Eli Lilly & Company and believe that the company remains a leader in the GLP-1 drug class with Mounjaro, Zepbound and the company’s deep pipeline of next-generation GLP-1 drugs. ”
11. UnitedHealth Group Inc. (NYSE:UNH)
Number of hedge fund investors: 104
UnitedHealth Group Inc (NYSE:UNH) is a leading health insurance company with a market capitalization of more than $481 billion and a history of consistently increasing dividends for more than a decade. As of the end of Q3 2023, 104 hedge funds in Insider Monkey’s 910 hedge fund database reported owning shares of UnitedHealth Group (NYSE:UNH).
The largest stake in UnitedHealth Group Inc (NYSE:UNH) is owned by Rajiv Jain’s GQG Partners, which owns $1.6 billion in UnitedHealth Group Inc (NYSE:UNH) stock.
10. JPMorgan Chase & Co. (NYSE:JPM)
Number of hedge fund investors: 109
JPMorgan Chase & Co. (NYSE:JPM) stock has increased about 21% over the past year. According to Insider Monkey’s database of 910 hedge funds, 109 hedge funds held shares in JPMorgan Chase & Co. (NYSE:JPM) at the end of Q3 2023. The most important holding in JPMorgan Chase & Co. (NYSE:JPM) is Ken Fisher’s Fisher Asset Management, which owns $1.3 billion in JPMorgan Chase & Co. (NYSE:JPM) stock. owned by.
JPMorgan Chase & Co. (NYSE:JPM) has consistently increased its dividend for over a decade. JPMorgan Chase (NYSE:JPM) recently announced a multibillion-dollar expansion plan that will open 500 branches, renovate approximately 1,700 stores and hire 3,500 staff over the next three years.
Madison Sustainable Equity Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its fourth quarter 2023 investor letter:
“We have updated our sustainability scorecard. JPMorgan Chase & Co. (NYSE:JPM). JPMorgan maintains average ratings on governance, social, and environmental factors. JPMorgan is using its business to fight climate change. JPMorgan aims to raise $2.5 trillion from 2021 to 2030 to advance long-term solutions to address climate change and sustainable development. The Board of Directors oversees corporate responsibility and ESG issues, but ESG and sustainability are addressed company-wide. JPM listens to shareholder opinions. Since the 31% vote in favor of executive compensation in 2022, the Board will not award special awards to Jamie Dimon and Daniel Pinto, and will not award special awards to other named executive officers in connection with such awards. direct performance conditions will be imposed. The compensation committee limited the percentage of Dimon and Pinto’s compensation that was cash. ”
9. Berkshire Hathaway Company Class B (NYSE:BRK.B)
Number of hedge fund investors: 116
Warren Buffett’s Berkshire conglomerate is one of the safest high-quality blue chip stocks you can buy in this market environment. Because of the company’s diversification, many refer to this stock as the equivalent of an ETF.
8. Apple Inc. (NASDAQ:AAPL)
Number of hedge fund investors: 134
Apple Inc (NASDAQ:AAPL) is arguably one of the best blue chip stocks to buy and hold, according to hedge funds. Apple Inc’s (NASDAQ:AAPL) products are attracting a lot of attention due to its innovation and brand name appeal. Apple Inc (NASDAQ:AAPL) is currently making waves with its Apple Vision Pro, which the company calls a spatial computer. Analysts are surprised by the high demand and attention the headset has received around the world.
Following Vision Pro, Apple Inc (NASDAQ:AAPL) is aiming to launch a new type of iPhone. The Information recently reported that Apple Inc (NASDAQ:AAPL) is working on a foldable iPhone in various sizes.
Bireme Capital said the following about Apple Inc. (NASDAQ:AAPL) in its Q4 2023 investor letter:
“We also shorted Apple. (NASDAQ:AAPL) Q3. At an average price of about $190 per share, Apple was trading at 30 times peak earnings and a market cap of $2.8 trillion. Apple is certainly a great company, but its valuation is far too high for a highly cyclical company. The company is projected to see sales increase by just 4% from 2022 to 2026. We believe the total return for Apple stock will be lower than the market, particularly our long positions, over the next few years. ”
7. Mastercard Corporation (NYSE:MA)
Number of hedge fund investors: 140
Mastercard, Inc. (NYSE:MA) ranks No. 7 on Smart Investors’ list of blue chip stocks to buy. Mastercard, Inc. (NYSE: MA) has a dividend yield of about 0.57% as of February 8th, but the company has consistently increased its dividend over his 10-plus years.
A total of 140 hedge funds out of 910 funds tracked by Insider Monkey hold shares in Mastercard, Inc. (NYSE:MA). The largest stake in Mastercard, Inc. (NYSE:MA) is owned by Charles Acre’s Acre Capital Management, which owns $2.3 billion in Mastercard, Inc. (NYSE:MA) stock.
Ensemble Capital Management said the following about Mastercard Incorporated (NYSE:MA) in its Q4 2023 Investor Letter:
“mastercard company (NYSE:MA) (Fund Weight 7.21%): The payments company is a data company. As we discussed last quarter in our article on Mastercard, merchants can create significant value by analyzing payment data to better understand their customers. Mastercard has been building AI-based products for years to enhance payment security and provide merchants with rich data analytics. In December, it unveiled Muse, a new online shopping companion that certain merchants using Mastercard services can install on their websites.
Muse seeks to recreate the in-store experience of collaborating with store associates by allowing customers to browse products using natural language. Online shopping already works well if you know exactly what you’re looking for, but Muse is committed to helping customers find what they want to buy even if they don’t know what they’re looking for. I am.
Mastercard (7.21% fund weight): In late October, Mastercard reported earnings that investors interpreted as an indication that payments growth would slow in the near term. The stock price fell 5.6% on the day. By the end of the following week, the stock had recouped its losses and hit a new high by the end of the year. However, his 7.9% gain in the quarter was slightly below the S&P 500. ”
6. Visa Inc. (NYSE:V)
Number of hedge fund investors: 167
Visa Inc (NYSE:V) is one of the favorite stocks of smart money managers tracked by Insider Monkey. Last month, Visa Inc (NYSE:V) announced its first quarter results. Adjusted EPS for the quarter was $2.41, beating estimates by $0.07. Sales for the same period rose 8.9% year over year to $8.6 billion, exceeding expectations by $50 million.
167 hedge funds out of 910 hedge funds in Insider Monkey’s database hold shares in Visa Inc. (NYSE:V).
Lakehouse Capital said the following about Visa Inc. (NYSE:V) in its October 2023 letter to investors:
“Visa Co., Ltd. (NYSE:V) reported strong results with net revenue of $8.6 billion, up 11% year-over-year, and non-GAAP earnings per share of $2.33, up 21%. As has been the case for many years, the company’s scalability allows for revenue growth to outpace costs, and the company is well-positioned to weather this period of inflation. The network continues to grow, with credentials and merchant locations increasing by 7% and 17%, respectively. Cross-border travel spending also maintained strong growth, up 26% year-on-year, with Visa Direct reporting 7.5 billion transactions, up 19% year-on-year, with increased penetration in categories such as cross-border remittances. reported. Overall, we are pleased with how our business is progressing and remain positive about the outlook for Visa. ”
Click to keep reading to discover the 5 best blue chip stocks for hedge fund investing.
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Disclosure. none. 12 Best stocks for investment selected by hedge funds Originally published on Insider Monkey.
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