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In this article, we will discuss the 10 best stocks to buy right now. If you want to explore similar stocks, you can also take a look at 5 Best Stocks To Buy Right Now.
Wharton's Jeremy Siegel: "I Think There's Going To Be A Pivot Soon"
On October 25, in an interview on CNBC, Jeremy Siegel, Professor of Finance at the Wharton School of the University of Pennsylvania in Philadelphia, offered his take on the current market situation and what he sees happening ahead as we move into 2023. Jeremy Siegel expects the Fed to turn dovish, after raising rates by 75 basis points again, at the FOMC meeting in November. Though the Fed is expected to raise rates, according to Mr. Siegel, the institution will hint at a pivot and "acknowledge that there has been a tremendous amount of progress made on inflation". Here are some comments from Jeremy Siegel:
"I think the market is more than hoping for what exactly it is- a statement by the Fed that they see progress, and at some point can afford to pause and see if that progress really makes it. That's what the market is looking for. What scares the market the most is that the Fed is gonna stay this tight through 2023, which I absolutely think would be really disastrous."
According to Mr. Siegel, "tremendous progress has already been made against inflation and we're way on the downside". Mr. Siegel said that he "wouldn't be surprised to see a 2% Federal funds rate by the end of 2023". While there is still a risk of the Fed continuing its aggressive rate hike schedule and significantly slowing down the economy, Wharton's Jeremy Siegel thinks that "there's a chance that the Fed can save stagflation, and a serious recession, if they acknowledge now that progress has been made" as "inflation is coming down".
While the current stock market situation is uncertain and volatile, equity investors can take advantage of the recent share price weakness and rack up shares of some of the best-in-class companies, while they trade at bargain levels. Some of the best stocks to buy right now include Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META).
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For this article we picked the 10 most popular stocks among the 895 elite hedge funds tracked by Insider Monkey as of the end of the June quarter.
Best Stocks To Buy Right Now
10. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 109
Berkshire Hathaway Inc. (NYSE:BRK-B) is a holding company that owns a variety of businesses, including insurance, utility, and railroad companies. The company is well-run, with a long history of outperforming the market. Berkshire Hathaway Inc. (NYSE:BRK-B) has free cash flows of $20.77 billion and is ranked among the best stocks to buy now.
On September 21, Edward Jones analyst James Shanahan upgraded Berkshire Hathaway Inc. (NYSE:BRK-B) to Buy from Hold. The stock has an average price target of $362, which represents a 25% upside from current levels.
At the end of Q2 2022, 109 hedge funds were long Berkshire Hathaway Inc. (NYSE:BRK-B) and held stakes worth $17.3 billion in the company. This is compared to 104 positions in the previous quarter with stakes worth $19 billion.
As of June 30, Bill & Melinda Gates Foundation Trust is the most prominent investor in Berkshire Hathaway Inc. (NYSE:BRK-B) and has stakes worth $9.47 billion in the company.
Here is what Black Bear Value Partners had to say about Berkshire Hathaway Inc. (NYSE:BRK-B) in its third-quarter 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.
Some of the best stocks to buy for long-term gains include Berkshire Hathaway Inc. (NYSE:BRK-B), Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META).
9. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) is a global leader in customer relationship management software. The company's products allow businesses of all sizes to manage their customer relationships in a more efficient and effective way. Salesforce, Inc. (NYSE:CRM) has a strong market position and is committed to growing its market share. The company's stock warrants a premium due to its high-quality business model and strong long-term growth potential. Salesforce, Inc. (NYSE:CRM) has a strong cash position and has cash flows of roughly $5.68 billion.
This September, Jefferies analyst Brent Thill reiterated a Buy rating and his $250 price target on Salesforce, Inc. (NYSE:CRM). On October 17, Northland analyst Nehal Chokshi took coverage of Salesforce, Inc. (NYSE:CRM) with a Market Perform rating and a $150 price target.
At the close of Q2 2022, 116 hedge funds held stakes in Salesforce, Inc. (NYSE:CRM). The total value of these stakes amounted to $7.9 billion. As of June 30, Fisher Asset Management is the largest shareholder in Salesforce, Inc. (NYSE:CRM) and has stakes worth $2.58 billion in the company.
Here is what Cooper Investors had to say about Salesforce, Inc. (NYSE:CRM) in its third-quarter 2022 investor letter:
“It seems unfashionable to discuss technology stocks given the current market mood, but we are observing positive signs from US software companies in terms of their journey along the ‘HubrisHumility’ cycle. We have trimmed and concentrated our software exposure significantly over the last 18 months down to two cloud-native SAAS players, Workday and Salesforce. We met with both businesses during our trip and came away encouraged from language indicating increased focus on profitability and cost control.
We see significant optionality in these businesses to grow at the same time as expanding margins and free cash flow. The discussions increased our conviction that returns on capital are now becoming a priority for CEOs and CFOs in this sector who are talking for the first time about cost discipline, reduced capex, more measured hiring practices, a reduction in the level of stock-based compensation and scaled back M&A ambitions. Salesforce in a recent earnings update announced its first ever buyback for US$10bn…” (Click here to see the full text)
8. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) is one of the most innovative companies in the world and has a history of releasing groundbreaking products that have revolutionized the tech industry. The stock is ranked high among the best stocks to buy now. Shares of Apple Inc. (NASDAQ:AAPL) have pulled back recently and the stock is offering investors the chance to cash in on the weakness. As of October 25, the stock is trading at a PE multiple of 24x and is offering a forward dividend yield of 0.62%. The company has a strong cash position and is efficient at making profits for shareholders. Apple Inc. (NASDAQ:AAPL) has free cash flows of $107.5 billion and an ROE of 162.82%.
This October, Deutsche Bank analyst Sidney Ho maintained a Buy rating and his $175 price target on Apple Inc. (NASDAQ:AAPL). On October 19, Morgan Stanley analyst Erik Woodring reiterated his $177 price target and an Overweight rating on Apple Inc. (NASDAQ:AAPL).
At the end of Q2 2022, 128 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL) and held stakes worth $143 billion in the company. Of those, Berkshire Hathaway was the top shareholder in the company and held stakes worth $122 billion.
Here is what Wedgewood Partners had to say about Apple Inc. (NASDAQ:AAPL) in its third-quarter 2022 investor letter:
“Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”
7. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 129
Uber Technologies, Inc. (NYSE:UBER) is a market leader in the ridesharing industry with a strong competitive advantage. The company has a large and growing customer base, a strong platform, and a growing suite of services. Uber Technologies, Inc. (NYSE:UBER) is one of the best stocks to buy right now. The company is well-funded and has abundant cash flows. According to the company's balance sheet, Uber Technologies, Inc. (NYSE:UBER) has free cash flows of $672 million.
On October 24, Cowen analyst John Blackledge revised his price target on Uber Technologies, Inc. (NYSE:UBER) to $70 from $76 and maintained an Outperform rating on the shares. This October, Truist analyst Youssef Squali adjusted his price target on Uber Technologies, Inc. (NYSE:UBER) to $60 from $67 and reiterated a Buy rating on the shares.
At the close of Q2 2022, 129 hedge funds disclosed ownership of stakes in Uber Technologies, Inc. (NYSE:UBER). These funds held collective stakes of $5.26 billion in the company. As of June 30, Fisher Asset Management is the top investor in Uber Technologies, Inc. (NYSE:UBER) and has stakes worth $500.8 million in the company.
Here is what Oakmark Funds had to say about Uber Technologies, Inc. (NYSE:UBER) in its third-quarter 2022 investor letter:
“We believe the market is underestimating the competitive position and earnings potential that Uber Technologies, Inc. (NYSE:UBER) has in its core Rides and Eats businesses. Uber holds the #1 position in 90% of its rideshare markets globally and is typically more than twice the size of its next competitor. Having the largest and most dense driver network is a key advantage as it enables Uber to offer shorter pickup times and lower prices than competitors while also earning higher margins. We believe the synergies between Rides and Eats will further improve Uber’s service quality and cost position. In recent years, competition from well-funded but unprofitable challengers has pressured Uber’s economics. However, as these challengers are forced to compete more rationally, we expect Uber to generate significant margin improvement alongside continued high growth. We began buying shares at just over 1x revenue and a double-digit free cash flow yield based on management’s guidance for 2024. We view this as an attractive valuation for a business with Uber’s future growth outlook.”
6. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 137
Mastercard Incorporated (NYSE:MA) is a leader in the growing global payments industry and has one of the most recognized brands. The company is pouring hefty investments into next-generation technologies, such as blockchain and artificial intelligence, and is well-positioned for continued growth. The stock is ranked high among the best stock to buy right now. Mastercard Incorporated (NYSE:MA) is profitable, efficient at making profits, and also pays dividends to investors. As of October 25, the stock is offering a forward dividend yield of 0.65%. The company has a trailing twelve-month operating margin of 56.70% and an ROE of 151%.
On October 12, Atlantic Equities analyst Kunaal Malde revised his price target on MasterCard Incorporated (NYSE:MA) to $345 from $400 and maintained an Overweight rating on the shares.
At the end of Q2 2022, 137 hedge funds were eager on Mastercard Incorporated (NYSE:MA) and held stakes worth $14.99 billion in the company. This is compared to 136 positions in the preceding quarter with stakes worth $15.44 billion.
As of June 30, Akre Capital Management is the most prominent investor in Mastercard Incorporated (NYSE:MA) and has stakes worth $1.84 billion in the company.
Here is what Baron Funds had to say about Mastercard Incorporated (NYSE:MA) in its second-quarter 2022 investor letter:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
Equities are being hit hard and are presenting an attractive entry point for investors to cash in on the weakness. Some of the best stocks to own include Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META).
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Disclosure: None. 10 Best Stocks To Buy Right Now is originally published on Insider Monkey.
