In this article, we discuss the 12 best American stocks to buy in 2022.
The beginning of 2022 brought along something investors hadn’t witnessed since the early days of 2020: wariness and apprehension. All major stock benchmarks saw their biggest quarterly losses in two years in just the first quarter of 2022, including a 4.6% decline for the S&P 500 as well as a 9% drop for the Nasdaq Composite. After what can only be called a turbulent January and February, March brought some much-needed relief to the U.S. stock market. The S&P 500 rose 3.6% during that month, providing some semblance of recovery from a torturous correction during the first two months of the year during which stocks had dropped by as much as 13% from their all-time highs.
That isn’t to say, that the market has recovered completely. In fact, many experts are concerned that the rising rates to control inflation might go too far and trigger a recession in the United States. Not to mention, the war in Ukraine has not only triggered a costly humanitarian crisis but also caused economic damage that will contribute to a significant slowdown in global growth in 2022 and add to inflation. According to the information provided by the International Monetary Fund (IMF), global growth is projected to slow from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023.
Although there are numerous flags that herald a recession, several market experts argue that the United States may avoid such a situation altogether. This belief apparently stems from the fact that consumers and corporations currently have healthy balance sheets. According to the Fundstrat’s Head of Research, the S&P 500 could surge to 5,100 by the end of the year as long as the US economy avoids a recession, representing a potential upside of 13% from the current levels.
As the year unfolds, investors are currently wondering which stocks to place their bets on. With the analyst community carrying a mixed bag of opinions, it’s important to keep a close eye on the market and make your own judgments. To that end, investors should probably focus on stocks with strong business fundamentals, resilience in the face of inflation, room for growth, and solid financial positions. Some of these stocks include The Walt Disney Company (NYSE:DIS), Alphabet Inc. (NASDAQ:GOOG), and Micron Technology, Inc. (NASDAQ:MU), among others.
Our Methodology
For this list, we focused on US companies with solid business fundamentals and growth incentives. We also took into account company financials, most recent quarterly results, and the analyst and sentiment around these stocks.
The hedge fund sentiment around each stock was derived from Insider Monkey’s database which tracks 924 hedge funds as of the fourth quarter of 2021.
Best American Stocks To Buy in 2022
12. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 61
Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical company based in Indianapolis, Indiana. Founded in 1876, the company is best known for its clinical depression drugs Prozac and Cymbalta, with products sold in approximately 125 countries.
The company recently delivered upbeat profit and sales for the first quarter of 2022. According to its earnings report, the healthcare giant earned $2.62 per share on an adjusted basis, surpassing analysts’ estimates of $2.13 per share. Additionally, Eli Lilly and Company (NYSE:LLY) posted revenues of $7.8 billion, up 14.76% on a year-over-year basis, crossing expectations of $6.68 billion.
Earlier on April 29, Wells Fargo analyst Mohit Bansal raised the price target on Eli Lilly and Company (NYSE:LLY) to $305 from $280 and maintained an Equal Weight rating on the shares of the company. According to the analyst, Eli Lilly and Company (NYSE:LLY) has one of the best biopharma businesses out there, estimating top- and bottom-line growth at 11% and 21%, respectively.
According to Insider Monkey’s database, 61 hedge funds reported holding stakes in Eli Lilly and Company (NYSE:LLY) at the end of December 2021, with stakes worth $5.30 billion. This is compared to 62 funds in the previous quarter that held stakes worth $4.28 billion. Arrowstreet Capital is the biggest stakeholder in the company, with more than 2 million shares valued at approximately $591 million.
Similar to The Walt Disney Company (NYSE:DIS), Alphabet Inc. (NASDAQ:GOOG), and Micron Technology, Inc. (NASDAQ:MU), Eli Lilly and Company (NYSE:LLY) is one of the best American stocks to buy in 2022.
Here is what Saturna Capital Amana Funds has to say about Eli Lilly and Company in its Q4 2021 investor letter:
“Industrials and pharmaceutical companies were among the Amana Income Fund’s strongest performers in the fourth quarter. Industrials and pharmaceutical companies were among the Amana Income Fund’s strongest performers in the fourth quarter. Drug maker Eli Lilly is represented in the 10 Largest Contributors.”
11. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 63
Intuitive Surgical, Inc. (NASDAQ:ISRG) is an American corporation that is involved in the development, manufacturing, and marketing of robotic products that are designed to improve clinical outcomes of patients through minimally invasive surgery, most notably through the da Vinci Surgical System.
The company recently announced better-than-expected financial results for the first quarter of 2022. As per its earnings report, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported an EPS of $1.13, beating market estimates by $0.05. The revenue for the quarter came in at $1.49 billion, an increase of 15.14% on a year-over-year basis, surpassing estimates by $62.12 million.
On April 22, Piper Sandler analyst Adam Maeder raised the price target on Intuitive Surgical, Inc. (NASDAQ:ISGR) to $316 from $310 and kept an Overweight rating on the shares. According to Maeder, the company’s Q1 revenue, procedure growth, and adjust earnings all came in ahead of Wall Street expectations and were solid, especially given the challenging landscape in the quarter.
At the end of the fourth quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Intuitive Surgical, Inc. (NASDAQ:ISRG), compared to 61 funds in the preceding quarter, with holdings worth $3.53 billion. Ken Fisher of Fisher Asset Management is the biggest shareholder of the company, with over 4.3 million shares worth roughly $1.54 billion.
ClearBridge Investments, an investment management firm, mentioned Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q4 2021 investor letter. Here is what the firm had to say:
“Intuitive Surgical, a maker of robotic instruments for soft tissue surgery, was another new health care addition. The market for soft tissue procedures is enormous, including those performed with the aid of the company’s DaVinci machines, whose three-dimensional imaging capabilities require smaller incisions, resulting in less nerve damage and bleeding and shorter patient stays. DaVinci machines are a $1 million-plus investment by hospitals that can be run continuously through the day, allowing for a greater number of procedures with less physician fatigue. Surgeons are trained on the device from medical school and residency on up. Combining the related training and supply chains, these purchases are very sticky. We see the opportunity for Intuitive Surgical to benefit from more indications for the devices, procedure growth, and greater sales in hospitals and surgical centers.”
10. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
One of the largest healthcare companies in the world, Johnson & Johnson (NYSE:JNJ) is a New Jersey-based corporation that develops medical devices, pharmaceuticals, and consumer packaged goods. Its top products include Tylenol, Stelara, and Invega, among other medical devices.
As of April 19, Johnson & Johnson (NYSE:JNJ), reported a 6.6% increase in the quarterly dividend, from $1.06 per share to $1.13 per share. The company also released its earnings report for the fiscal first quarter of 2022 on April 19, with a reported EPS at $2.67, surpassing market estimates by $0.10. Additionally, the company reported a revenue of $23.43 billion.
On April 20, Credit Suisse analyst Matt Miksic raised the price target on Johnson & Johnson (NYSE:JNJ) to $205 from $200 and reiterated an Outperform rating on the shares of the company. According to the analyst, Johnson & Johnson’s (NYSE:JNJ) Q1 results led off Med Supplies and Devices earnings with better-than-expected growth across most of its MedTech businesses.
As of Q4 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $7.3 billion in Johnson & Johnson (NYSE:JNJ), compared to 88 in the previous quarter worth $6.8 billion. Of these, Arrowstreet Capital reported holding 4.84 million shares worth $1.23 billion in Johnson & Johnson (NYSE: JNJ).
9. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 83
Micron Technology, Inc. (NASDAQ:MU) is an American producer of computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives. Based in Boise, Idaho, Micron Technology, Inc. (NASDAQ:MU) is a major player in the semiconductor space.
Out of the 924 elite hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 83 were long Micron Technology, Inc. (NASDAQ:MU) with stakes worth $5.5 billion. This is an increase from 63 funds in the preceding quarter, with stakes amounting to $3.84 billion. Paul Marshall and Ian Wace’s Marshall Wace LLP is one of the leading stakeholders in Micro Technology, Inc. (NASDAQ:MU), with over 5.4 million stakes worth approximately $507.3 million.
On March 30, Mizuho analyst Vijay Rakesh raised the price target on Micron Technology, Inc. (NASDAQ:MU) to $113 from $110 and kept a Buy rating on the shares. Based on the analyst’s notes, the company posted quarter-over-quarter growth in storage and computing, and longer-term tailwinds from product mix and content increases.
8. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 86
T-Mobile US, Inc. (NYSE:TMUS) is one of the largest mobile communication firms in the United States, offering voice and data services to millions of consumers. A decent US stock, the Washington-based wireless network operator outperformed forecasts for subscriber growth during Q1 2022. The company is reaping the benefit of its 5G cellular network leadership and saw its phone-bill customers increase by 589,000.
Among the hedge funds tracked by Insider Monkey, 86 were bullish on T-Mobile US, Inc. (NYSE:TMUS) at the end of the fourth quarter of 2021, with aggregate positions worth $6.06 billion. Andreas Halvorsen’s Viking Global is the biggest stakeholder in the company, with 13.14 million shares valued at $1.52 billion.
T-Mobile US, Inc. (NASDAQ:TMUS) is a stock several analysts are confident with. On April 28, Benchmark analyst Matthew Harrigan raised the price target on T-Mobile US, Inc. (NASDAQ:TMUS) to $205 from $200 and kept a Buy rating on the shares. According to the analyst, the company continues to separate itself from its peers on 5G performance, and also believes that the company’s pricing power is “a pivot point for stock price upside.”
ClearBridge Investments mentioned T-Mobile US, Inc. (NYSE:TMUS) in its Q4 2021 investor letter. Here’s what the fund said:
“As mentioned, the communication services sector has come under some pressure, and irrational pricing competition has negatively impacted wireless industry growth and profitability of late, weighing on T-Mobile. Faced with these headwinds, and with pressure from other wireless carriers and cable companies that could cause the company to cede share in subscriber growth in 2022, we exited our position in the fourth quarter.”
7. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 110
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company that has become synonymous with the best semiconductors money can buy. The California-based company’s GeForce RTX 3090 is something you would find on every PC gamer’s wishlist, due to it being the fastest GPU on the market that serves both gaming and mining purposes.
The company posted an EPS of $1.32 by the end of the fourth quarter of 2022, which beat analysts’ estimates by $0.10. Revenue for the quarter was recorded at $7.64 billion, a staggering increase of 52.77% compared to the year-ago quarter, surpassing market estimates by $213.41 million.
On April 13, New Street analyst Pierre Ferragu upgraded NVIDIA Corporation (NASDAQ:NVDA) to Buy from Neutral with a price target of $280, citing what he sees as an attractive valuation, greater visibility on the “crypto-winter risk” and the company’s strong data center outlook.
NVIDIA Corporation (NASDAQ:NVDA) is a popular stock pick among elite hedge funds, and by the end of Q4 2021, 110 hedge funds held long positions in the company worth roughly $10.49 billion, compared to 83 hedge funds in the previous quarter with stakes worth $10 billion. Fisher Asset Management is the most prominent investor in NVIDIA Corporation (NASDAQ:NVDA) with stakes worth approximately $1.5 billion in the company.
RiverPark Funds, an investment management firm, NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter. Here is what the fund said:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
6. Salesforce.com, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 110
Salesforce.com, Inc. (NYSE:CRM) is an American cloud-based software that provides customer relationship management software and applications focused on sales, customer service, marketing automation, analytics, and application development. As work-from-home trends seem to be growing, the company seems favorably positioned compared to its peers in the tech industry to take advantage of digital workflows due to top products like Slack.
Earlier this March, Salesforce.com, Inc. (NYSE:CRM) reported that its earnings per share for the fiscal fourth quarter of 2021 were valued at $0.84, beating expert estimates by $0.09. Additionally, the company generated revenues of $7.33 billion, up 25.94% year over year, and outperformed market consensus by $84.15 million.
On April 25, Jefferies analyst Brent Thill declared a price target of $330 on Salesforce.com, Inc. (NYSE:CRM) alongside a Buy rating on the shares of the company. Although he acknowledges tougher near-term comparisons, the analyst calls Salesforce.com, Inc. (NYSE:CRM) a “great long term buy” due to what he calls multiple levers that support high-teens percentage growth, and the fact that the company is taking a pause on M&A to focus on integrating Slack.
According to Insider Monkey’s database, 110 hedge funds held long positions in Salesforce.com, Inc. (NYSE:CRM) by the end of the fourth quarter of 2021. Of these, the majority stakes were held by Akre Capital Management, making it the most prominent investor in Salesforce.com, Inc. (NYSE:CRM), with stakes worth approximately $711.56 million in the company.
Much like The Walt Disney Company (NYSE:DIS), Alphabet Inc. (NASDAQ:GOOG), and Micron Technology, Inc. (NASDAQ:MU), Salesforce.com, Inc. (NYSE:CRM) is a notable American stock with strong business fundamentals.
In its first quarter 2022 investor letter, Oakmark Funds, an investment management firm, mentioned Salesforce.com, Inc. (NYSE:CRM). Here is what the fund said:
“Over the past 20 years, Salesforce (NYSE:CRM) has become a dominant global player in sales, customer service, commerce and marketing software. CRM earns 80% gross margins, grows 20% organically and virtually all of its revenue is recurring. It’s a great business that we’ve admired from afar for a long time. More recently, the organization has made some changes at the top that prompted us to take a closer look at the stock. New CEO Bret Taylor and CFO Amy Weaver are bringing a culture of financial discipline. We believe this renewed focus on profitability, combined with Salesforce’s strong underlying business characteristics, will yield strong results. The current valuation of 5x next year’s revenues represents a significant discount compared to publicly traded comparables and private market values in the software space. We view this discount as an opportunity to invest in a great business at a good value.
5. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 111
Commonly referred to as Disney, The Walt Disney Company (NYSE:DIS) is an American multinational entertainment and media conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.
During the first quarter of 2022, The Walt Disney Company (NYSE:DIS) added roughly 11.8 million Disney+ subscribers, totaling 129.8 million. Across all subscriptions, Disney ended the period with 196.4 million subscribers as a whole. As a result, the company posted strong financials for the quarter as well. The EPS was reported to be at $1.06, beating estimates by $0.44. Additionally, the revenue came in at $21.82 billion, an increase of 34.28% on a year-over-year basis, surpassing market predictions by $943.31 million.
On April 19, Rosenblatt analyst Barton Crockett initiated coverage of The Walt Disney Company (NYSE:DIS) with a Buy rating and a $177 price target, noting that demand for Disney theme parks was stronger than ever due to an increase in international travel. Although he admits being skeptical about the DTC streaming sector, he sees The Walt Disney Company (NYSE:DIS) as “relatively well-positioned” given its scaled leadership and global footprint.
At the end of the fourth quarter of 2021, 111 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in The Walt Disney Company (NYSE:DIS), up from 101 the preceding quarter worth $9.4 billion. The company’s leading shareholder during the quarter was Coatue Management, which owned 5.79 million shares worth $897.9 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. The Walt Disney Company (NYSE:DIS) announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. The Walt Disney Company (NYSE:DIS) has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe The Walt Disney Company (NYSE:DIS) is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
One of the few stocks that can be called pandemic winners, Apple Inc. (NASDAQ:AAPL) is an American multinational technology company that specializes in consumer electronics, software, and online services. Despite some concerns regarding supply constraints, many analysts, including Morgan Stanley’s Katy Huberty, believe that Apple Inc. (NASDAQ:AAPL) should be able to achieve sustained gross margins upwards of 42%, due to its gradual supply improvements and structurally lower depreciation and amortization (D&A) improvements.
Apple Inc. (NASDAQ:AAPL) released its better-than-expected earnings report for the fiscal second quarter of 2022 on April 28. The company reported an EPS of $1.52, beating market estimates by $0.09. The tech giant also generated quarterly revenues that amounted to $97.28 billion, an increase of 8.59% on a year-over-year basis, surpassing the market consensus by $3.29 billion.
The investor sentiment for the stock has largely been positive, making Apple Inc. (NASDAQ:AAPL) one of the best American stocks out there. At the end of the fourth quarter of 2021, 134 hedge funds in the database of Insider Monkey held stakes worth $186 billion in Apple Inc. (NASDAQ:AAPL), up from 120 in the previous quarter worth $146 billion. Of these, Warren Buffett’s Berkshire Hathaway held the largest stake in the company, with a position worth $157.5 billion.
Evercore ISI analyst Amit Daryanani believes Apple Inc. (NASDAQ:AAPL) to be well-positioned to sustain mid-single digit sales and low double-digit EPS growth for “multiple years. With that in mind, he kept an Outperform rating and a $210 price target on the shares of the company.
ClearBridge Investments, an investment management firm, mentioned Apple Inc. (NASDAQ:AAPL) in its fourth-quarter 2021 investor letter. Here is what the firm said:
“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. The bulk of these contributions came from U.S. mega-cap growth stocks Apple and Microsoft which continued to uniquely act both offensively and defensively as they have through most of the pandemic.”
3. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 142
Visa Inc. (NYSE:V) is an American multinational financial services corporation that facilitates electronic funds transfers throughout the world. Despite the lingering impact of the global pandemic and the conflict between Russia and Ukraine, the California-based payment processing giant saw its purchase volumes increase by 17% on a year-over-year basis to $2.78 trillion during Q2 2022.
As per its earnings report, the company’s fiscal Q2 non-GAAP EPS of $1.79 easily topped the consensus of $1.65, while the net revenue for the quarter came in at $7.19 billion, outpacing the consensus estimate of $6.82 billion.
On April 27, Morgan Stanley analyst James Faucette raised the price target on Visa Inc. (NYSE:V) to $284 from $279 and maintained an Overweight rating on its shares. The analyst was encouraged by the continued signs of travel recovery as the company’s cross-border travel volumes accelerated significantly, causing him to increase his EPS estimates by 2% for FY22 and FY23 following the company’s quarterly report.
According to Insider Monkey’s Q4 data, 142 hedge funds held long positions in Visa Inc. (NYSE:V), with collective stakes exceeding $29 billion. Chris Hohn’s TCI Fund Management is the biggest shareholder of the company, with a position worth $5 billion.
Wedgewood Partners, an investment firm, mentioned Visa Inc. (NYSE:V) in its Q1 2022 investor letter. Here’s what the fund said:
“Visa continued to benefit from strong consumer spending as well as a recovery in crossborder payment volumes, more recently driven by the return of travelers. While the emergence of the “Omicron” variant of COVID early in the quarter posed a risk to this travel recovery, it proved short-lived, with most of Europe, North America, and Latin American reengaging in cross-border travel. Visa continues to extend its network to all comers. By processing over $10 trillion in volume per year, Visa has unparallel scale and, as a result, can sell this scale to its customers at very attractive economics. For example, “FinTech” businesses will often charge customers upwards of 3-5% to transact, while Visa takes mere basis points on most transactions, despite enabling service levels historically reserved for only the largest financial institutions. After adding to Visa late last year, we are most pleased that Visa is back to one of our top 5 holdings.”
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 158
Known as the parent company of Google and its subsidiaries, Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company headquartered in Mountain View, California. Although it came up with a mixed bag for the first quarter, Google’s search advertising business, the company’s main revenue driver, gained 24% to $39.6 billion, while its Cloud unit sales increased by 44% to $5.82 billion.
On April 26, Alphabet Inc. (NASDAQ:GOOG) reported its Q1 2022 financial results, posting earnings per share of $24.62. The revenue for the quarter grew close to 23% on a year-over-year basis to $68.01 billion, ahead of market consensus by 142.21 million.
KeyBanc analyst Andy Hargreaves reiterated an Overweight rating on Alphabet Inc. (NASDAQ:GOOG) shares following quarterly results, leaving his price target on the stock unchanged at $3,075. Across his coverage, the analyst contends that Google Search’s resilience screens as a positive that more than offsets the incremental bear narrative around YouTube.
Alphabet Inc. (NASDAQ:GOOG) is a top stock pick among elite hedge funds. At the end of the fourth quarter of 2021, 158 hedge funds were long Alphabet Inc. (NASDAQ:GOOG) with collective stakes worth $36.62 billion. This is compared to 156 positions in the third quarter of 2021 with stakes worth $34.95 billion. Chris Hohn’s TCI Fund Management owned more than 2.9 million shares of Alphabet Inc. (NASDAQ:GOOG) at the end of last December, making it the largest stakeholder in the company.
Here is what Farrer Wealth Advisors has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:
“Alphabet: We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)
Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 279
Multinational e-commerce and technology company Amazon.com, Inc. (NASDAQ:AMZN) leads our list of the best American stocks to buy in 2022. With a diverse interest in cloud computing, digital streaming, and artificial intelligence, Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle-based corporation with operations extending to over 100 countries.
Amazon.com, Inc. (NASDAQ:AMZN) reported $1116.44 billion in revenue and -$7.56 in GAAP EPS for its fiscal first quarter of 2022, falling short of analyst estimates. Earlier this April, Truist analyst Youssef Squali lowered his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $3,500 from $4,000 but maintained a Buy rating on the shares of the company. Though he believes Amazon is in for a “rough patch” in Q2, Squali adds that strong growth in AWS and Advertising, as well as the prospects for inflationary pressure, keep him positive on the stock.
Arguably the most famous brand in the world, the investor sentiment for the stock has largely been positive as well. Among the hedge funds tracked by Insider Monkey, 279 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of December 2021, up from 242 funds in the preceding quarter. Boykin Curry’s Eagle Capital Management is a significant shareholder of the company, with 677,828 shares worth $2.26 billion.
Here is what Giverny Capital Asset Management has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:
“Amazon clearly is one of the best companies on the planet, and probably most readers are receiving more packages from Amazon this year than last year. Amazon’s cloud computing business, AWS, is a world-beater and today generates most of the profit of the company. But there are a few things about Amazon that concern me.
Amazon generated $325 billion in revenue from its online store plus third-party seller services last year, yet generated only a 2% profit margin in retail. You don’t need to earn high margins to be a great
business. Costco is one of the best companies I’ve ever followed, and it earns only about a 3% margin. But Costco suppresses the margin so that it can offer customers exceptional values. Amazon offers exceptional convenience, but (in my experience) not always exceptional value. Costco also earns extremely steady, and high, returns on capital. Amazon’s returns on capital have trended down significantly recently…” (Click here to see the full text)
You can also take a look at 15 Best Technology Stocks To Buy Now and 12 Safe Stocks To Buy For Beginner Investors.
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Cheap Blue-Chip Dividend Stocks to Invest In
- 15 Best Mid-Cap Stocks for 2021
- 10 Best SPACs to Invest In According to Reddit
Disclosure. None. 12 Best American Stocks To Buy in 2022 is originally published on Insider Monkey.
