Hedge Fund Favorites: 7 Stocks to Buy When You’re Feeling Jittery


  • Microsoft (MSFT): Microsoft gets all the love for its AI investments and other relevancies.
  • Alphabet (GOOG, GOOGL): Alphabet practically owns the internet with its search engine and cloud network.
  • JPMorgan Chase (JPM): JPMorgan Chase is a financial giant with strong analyst support.
  • You can trust these stocks to buy what the institutions are buying.
Stocks to Buy - Hedge Fund Favorites: 7 Stocks to Buy When You’re Feeling Jittery

Source: Vova Shevchuk / Shutterstock.com

With the market entering a historically challenging season (due to the adage buy in May and go away), jittery investors may want to turn to stocks to buy tacitly endorsed by the hedge funds and other institutional players. Basically, if the big dogs like these ideas, you might want to consider adding some yourself.

Fundamentally, hedge funds enjoy access to resources that most retail investors can’t touch. Further, they typically employ some of the smartest minds in the business. Theoretically, then, you can piggyback off their robust research by mimicking their portfolio. In addition, hedge funds themselves may influence the market simply based on the scope of their purchases.

With these factors in mind, below are the stocks to buy that are enjoying major support.

Microsoft (MSFT)

Wide angle view of a Microsoft sign at the headquarters for personal computer and cloud computing company, with office building in the background.. MSFT stock
Source: VDB Photos / Shutterstock.com

Based in Redmond, Washington, Microsoft (NASDAQ:MSFT) is really a no-brainer when it comes to tech-related stocks to buy. Primarily, the company focuses on the infrastructure software realm. However, it’s also involved in hardware as well, thanks to various products such as its Xbox gaming console. For me, Microsoft plays a huge role in the gig economy with its Office 365 business application platform.

According to the website HedgeFollow, MSFT represents the biggest institutional investment based on the total number of holders (914). Presently, the value owned among hedge funds and other big investors stands at $1.1 trillion. With its burgeoning investments in artificial intelligence and other innovative solutions, this exposure will likely rise.

Financially, it’s difficult to find any faults with Microsoft. In the trailing 12 months (TTM), the company posted net income of $86.18 billion, translating to earnings per share of $11.55. Revenue reached $236.58 billion.

For the current fiscal year, sales may jump to $249.82 billion while EPS could reach $12.03. It’s easily one of the stocks to buy if you’re feeling nervous about the market.

Alphabet (GOOG, GOOGL)

Alphabet (GOOGL) - Quantum Computing Stocks to Buy

Headquartered in Mountain View, California, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) falls primarily under the Internet content and information sector. However, it’s really becoming the go-to platform for myriad digital needs. For example, the company’s Google Cloud segment offers infrastructure, cybersecurity, databases, analytics and AI. It also owns the massive video-sharing network YouTube.

Unsurprisingly, Alphabet ranks highly in terms of total number of major stakeholders, standing at 788. The value owned of GOOGL stock among the major players comes out to $322.51 billion. With the company effectively owning the internet through its Google search engine and the wider ecosystem, large investors will likely continue pouring funds into the enterprise.

Over the TTM period, Alphabet posted net income of $82.41 billion, translating to EPS of $6.52. On the top line, the company generated sales of $318.15 billion. For the current fiscal year, the company posted EPS of $7.78 on sales of $356.96 billion. These stats are well up from last year’s results of earnings of $5.80 per share on revenue of $307.39 billion. Again, it’s easily one of the stocks to buy.

JPMorgan Chase (JPM)

Chase Bank logo and storefront
Source: Daryl L / Shutterstock.com

Located on Madison Avenue in the heart of New York City, JPMorgan Chase (NYSE:JPM) is a financial powerhouse. It operates through four segments: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. Fundamentally, the idea of betting on a financial services firm has been tricky. Yes, higher rates means higher profitability on loans. But who wants to borrow money during these times?

Although it’s a conundrum, what may change minds are the hedge funds that support JPM stock. Right now, it’s one of the top enterprises in terms of stakeholders, numbering at 621. Further, the total volume owned of JPM comes out to $193.45 billion. Overall, analysts rate shares a consensus strong buy with a $213.96 average price target.

It’s been delivering the goods. During the TMT period, JPMorgan posted net income of $48.51 billion, translating to EPS of $16.57. Revenue landed at $161.69 billion. For the current fiscal year, analysts are targeting EPS of $16.80 on sales of $169.48 billion. That’s decent expansion given the circumstances. Therefore, JPM qualifies as one of the top stocks to buy.

UnitedHealth Group (UNH)

The UnitedHealth (UNH) headquarters in Minnetonka, Minnesota.
Source: Ken Wolter / Shutterstock.com

Based in Minnetonka, Minnesota, UnitedHealth Group (NYSE:UNH) operates as a diversified healthcare firm. It conducts business under four segments: UnitedHealthcare, Optum Health, Optum Insight and Optum Rx. Fundamentally, UNH represents one of the most relevant stocks to buy thanks to its wide footprint. From health benefit plans to pharmacy care services, UnitedHealth covers multiple cogs of the industry’s value chain.

Thanks to this dependability and predictability, hedge funds have piled into UNH stock. It’s one of the most heavily supported enterprises with 566 major stakeholders. The total value of UNH held clocks in at $180.66 billion. Moreover, analysts rate shares a consensus strong buy with a $559.16 average price target.

In 2023, UnitedHealth posted EPS of $23.86 on sales of $371.62 billion. Both figures represented double-digit-percentage gains from the prior year. For this year, covering experts are seeking EPS of $27.89 on revenue of $402.18 billion. While the magnitude of projected business expansion has somewhat faded, we’re still talking about solid anticipated performances. Therefore, UNH represents one of the stocks to buy.

AbbVie (ABBV)

Closeup of AbbVie (ABBV) building corporate office, an American biopharmaceutical company with its headquarters in Lake Bluff, Illinois, USA
Source: Valeriya Zankovych / Shutterstock.com

A healthcare giant, AbbVie (NYSE:ABBV) discovers, manufactures and sells pharmaceuticals worldwide. The company is best known for Humira, which is an injection for autoimmune and certain intestinal diseases. It also brings to the table Skyrizi to treat moderate to severe plaque psoriasis. In my opinion, AbbVie is compelling for its buyout of Allergan.

With the acquisition, the Botox anti-wrinkle treatment falls under the AbbVie umbrella. With so much focus on social media nowadays, outside appearances have become everything. Therefore, ABBV may have long legs, cynically speaking. It’s also no surprise that the pharmaceutical firm ranks among the most heavily held securities by hedge funds.

During the TTM period, AbbVie posted net income of $5.99 billion, translating to EPS of $3.37. Revenue reached $54.4 billion. For 2024, experts anticipate that EPS will hit $11.25 on sales of $55.22 billion. For fiscal 2025, EPS could improve to $12.05, while the top line could expand to $58.34 billion.

With a dividend yield of 3.87%, ABBV makes a strong case for stocks to buy.

Exxon Mobil (XOM)

Exxon Retail Gas Location
Source: Jonathan Weiss / Shutterstock.com

Based in Spring, Texas, Exxon Mobil (NYSE:XOM) is one of the biggest hydrocarbon players in the world. It falls under the oil and gas integrated category, meaning that it touches multiple components of the energy value chain. Primarily, Exxon focuses on the exploration and production of crude oil and natural gas in the U.S. and other international regions. It also features a downstream (marketing and refining) unit.

Geopolitically, the flashpoints raging in key parts of the globe may threaten hydrocarbon supply chains. Given that the world still runs on oil, the profitability of hydrocarbon players could cynically rise. With that said, it’s not shocking to see that XOM ranks among the most heavily held securities by hedge funds. In fact, 540 stakeholders account for a value-owned count of $144.01 billion.

During the TTM period, Exxon posted net income of $32.8 billion, translating to EPS of $8.16. Revenue reached $335.35 billion. For fiscal 2024, analysts believe EPS could improve to $9.10 on sales of $348.62 billion. The high-side targets call for EPS of $10.68 with a top line of $435.21 billion. Thanks to the pertinence, XOM is one of the stocks to buy.

Coca-Cola (KO)

KO stock PEP stock: a can of Coca-cola and a can of Pepsi on either side of a glass of brown soda and sitting on top of a pile of ice
Source: monticello / Shutterstock

Headquartered in Atlanta, Georgia, Coca-Cola (NYSE:KO) obviously falls under the non-alcoholic beverages category. It’s an icon of American capitalism. The vast majority of global residents should recognize the red-and-white label. In addition to its core soft drinks, Coca-Cola offers vitamin water and products geared toward rehydration.

While it’s not the most exciting idea out there, KO has attracted plenty of interest among hedge funds. To be exact, there are 438 major stakeholders in the enterprise. Further, their collective value held amounts to $103.35 billion. Analysts rate shares a consensus strong buy with a $67.64 average price target.

Over the TTM period, Coca-Cola posted net income of $10.78 billion, translating to EPS of $2.49. Revenue landed at $46.07 billion. For fiscal 2024, experts seeking EPS of $2.82, a sizable improvement from last year’s print of $2.50. On the top line, sales could jump to $45.7 billion, a 7.5% lift from 2023’s tally of $42.5 billion.

Combined with the forward yield of 3.08%, KO is a great idea for stocks to buy which the hedge funds are acquiring.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

Article printed from InvestorPlace Media, https://investorplace.com/2024/06/hedge-fund-favorites-7-stocks-to-buy-when-youre-feeling-jittery/.

©2024 InvestorPlace Media, LLC