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10 Best Slow Growth Stocks to Buy According to Hedge Funds

In this article, we discuss the 10 best slow growth stocks to buy according to hedge funds. If you want to read about some more slow growth stocks, go directly to 5 Best Slow Growth Stocks to Buy According to Hedge Funds.

The United States Department of Commerce recently released advanced estimates for the Gross Domestic Product (GDP) growth in the country during the third quarter, revealing that the real GDP increased at an annual rate of 2.6% between June and September. The number compares favorably to the 0.6% drop in the GDP during the second quarter of 2022 and the 1.6% decline registered between January and March. 

Prominent growth stocks like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) have been buoyed by the new figures despite a recently announced interest rate hike by the Federal Reserve. The latest GDP figures reflect a rise in exports, consumer spending, nonresidential fixed investment, federal government spending, and state and local government spending. 

Eric Winograd, the director of developed market economic research at AllianceBernstein, recently told news publication Financial Times that the GDP data should give the Fed confidence that what they are doing is going to have an effect. The numbers also give credence to claims from top experts that the US economy is strong enough to avoid a recession, soothing investor concerns around a market crash and boosting growth stocks that have been battered in an uncertain macro environment. 

Our Methodology

We selected growth stocks that have strong chances to see their share price grow in the coming months and years. We call them “slow” growth stocks because their growth could be slow and face headwinds in the short term due to the current macroeconomic situation and recession fears. However, these stocks have long-term growth catalysts and positive ratings from market experts. These stocks are popular among the 895 hedge funds tracked by Insider Monkey.

Best Slow Growth Stocks to Buy According to Hedge Funds

10. Etsy, Inc. (NASDAQ:ETSY)

Number of Hedge Fund Holders: 29  

Etsy, Inc. (NASDAQ:ETSY) operates two-sided online marketplaces that connect buyers and sellers. It is one of the best growth stocks to invest in. On September 24, Etsy advised their sellers to update their return policies by the end of October, noting there are certain types of listings where returns are not appropriate. On September 26, Etsy said it was giving coupons of 20% off to their customers to increase their sales and encourage customers to shop more.

On October 10, BTIG analyst Marvin Fong maintained a Buy rating on Etsy, Inc. (NASDAQ:ETSY) stock and lowered the price target to $119 from $122, noting that the company’s Q3 gross merchandise volume guidance had upside and 6% sequential growth. 

At the end of the second quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $595.9 million in Etsy, Inc. (NASDAQ:ETSY), compared to 43 in the preceding quarter worth $668.5 million. 

Just like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Etsy, Inc. (NASDAQ:ETSY) is one of the best growth stocks to buy now according to hedge funds. 

In its Q2 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Etsy, Inc. (NASDAQ:ETSY) was one of them. Here is what the fund said:

“We became interested in Etsy (NASDAQ:ETSY) when Josh Silverman took over as CEO in 2017. The company had long been recognized as a great marketplace, but prior management was not focused on maximizing shareholder value. In short order, Silverman transformed Etsy from a borderline non-profit into a higher-margin, faster-growing enterprise. The pandemic helped accelerate already strong fundamental business results as millions of new customers were introduced to the platform while stuck at home. But like so many other Covid-19 “winners,” Etsy has since fallen deeply out of favor with investors, which prompted us to take a closer look. Following a 75% decline in its stock price, the company now trades for 3.5x next year’s revenue or just a low double-digit multiple of operating profit using our estimate of normalized margins. We believe this is an attractive price to pay for a unique digital marketplace with a long runway for future growth. Note that our exposure to Etsy is currently established via options.”

9. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 65  

Intel Corporation (NASDAQ:INTC) engages in the design, manufacture, and sale of computer products and technologies worldwide. It is one of the top growth stocks to invest in. On October 14, Intel Corporation stated that it is planning to start the sales of its first six 13th Generation Core Raptor Lake processors in India for desktops with unlocked multipliers in the third week of October. It will include 23 models comprising Raptor Lake and Alder Lake silicon. 

On October 18, Deutsche Bank analyst Ross Seymore maintained a Hold rating on Intel Corporation (NASDAQ:INTC) stock and lowered the price target to $32 from $35, noting that the advisory expects a decline in 2023 estimates for the firm. 

At the end of the second quarter of 2022, 65 hedge funds in the database of Insider Monkey held stakes worth $2.5 billion in Intel Corporation (NASDAQ:INTC), compared to 76 in the preceding quarter worth $3.2 billion. 

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Intel Corporation (NASDAQ:INTC) was one of them. Here is what the fund said:

“Then, there is the case of Intel Corporation (NASDAQ:INTC). A blue-chip tech champion with a market capitalization of over $500 billion in early 2000, the stock was trading at a P/E multiple of 42. It was a fast-growing company whose stock price and multiple declined more or less in line with its peers. However, unlike Google, Intel’s net income has grown from $7.3 billion in 1999 to $19.9 billion in 2021, a compounded annual growth rate of just 4.7%. Its growth from the dot com era has not proven to be durable, and Intel has yet to trade at the price it attained in 1999.”

8. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 66 

Broadcom Inc. (NASDAQ:AVGO) designs, develops and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products worldwide. It is one of the premier growth stocks to invest in. On October 11, Broadcom added that it has partnered up with Artista, a computer network company, to announce the availability of the industry’s first open end-to-end networking solution optimized for Remote Direct Access over Coverage Ethernet.  

On October 18, Deutsche Bank analyst Ross Seymore maintained a Hold rating on Broadcom Inc. (NASDAQ:AVGO) stock and lowered the price target to $575 from $635, noting that there was negative risk to 2023 projections for the second straight quarter. 

Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in Broadcom Inc. (NASDAQ:AVGO) with 1.4 million shares worth more than $716 million. 

In its Q2 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Broadcom Inc. (NASDAQ:AVGO) was one of them. Here is what the fund said:

“Tech stocks, including Broadcom Inc. (NASDAQ:AVGO), were one of the hardest-hit sectors due to fears over a weakening macroeconomic environment. Broadcom, however, outperformed semiconductor peers as its end-market exposures provided relatively more defensive characteristics.”

7. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 69      

Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments worldwide. It is one of the elite growth stocks to invest in. On October 17, Oracle announced its collaboration with TechSee, a member of the Oracle Partner Network, to bring the next generation of visual and AI-powered service automation to Oracle Field Service to provide augmented reality guidance to agents and technicians’ mobile devices over an instant video stream.

On October 21, KeyBanc analyst Michael Turits upgraded Oracle Corporation (NYSE:ORCL) stock to Overweight from Sector Weight with a $80 price target, noting that the company laid out a plan to mid-40s margins and multiyear high single-digit revenue growth recently. 

At the end of the second quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Oracle Corporation (NYSE:ORCL), compared to 61 in the previous quarter worth $4.3 billion.

In its Q2 2022 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Oracle Corporation (NYSE:ORCL) was one of them. Here is what the fund said:

“Oracle Corporation (NYSE:ORCL) is one of the world’s largest independent enterprise software companies and has been reinventing itself for the cloud-computing environment, a transition pursued primarily through investments in organic research and design and smallish, well-priced acquisitions. That said, Oracle in June closed its largest-ever deal with the acquisition of Cerner, a designer of software to store and analyze medical records and other healthcare data.

Oracle took on additional debt to finance this all-cash acquisition and as a result, plans to moderate its stock-buyback program to focus on debt reduction. Despite the weak quarter for the stock, Oracle’s operations remain strong; it reported better-than-expected results for its most recent quarter and issued upbeat guidance for the coming fiscal year.”

6. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 72  

Block, Inc. (NYSE:SQ) creates tools that enable sellers to accept card payments and provides reporting and analytics, and next-day settlement. It is one of the major growth stocks to invest in. On September 28, Block’s Square offered a Tap to Pay option on iPhones to millions of sellers in the US through its Point-of-Sale iOS app which allows the sellers to accept contactless payments directly from their iPhones by opening the Square POS app. 

On October 19, Jefferies analyst Trevor Williams maintained a Buy rating on Block, Inc. (NYSE:SQ) stock and lowered the price target to $70 from $105, highlighting the continued underperformance since the Q2 report that has driven the valuation near the March 2020 trough. 

Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in Block, Inc. (NYSE:SQ) with 9.1 million shares worth more than $799.5 million. 

Along with Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Block, Inc. (NYSE:SQ) is one of the best growth stocks to buy now according to hedge funds. 

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Block, Inc. (NYSE:SQ) was one of them. Here is what the fund said:

“Block, Inc. (NYSE:SQ) provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While the integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”

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Disclosure. None. 10 Best Slow Growth Stocks to Buy According to Hedge Funds is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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