12 Best ESG Stocks to Buy Now According to Hedge Funds

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1. Amazon.com Inc. (NASDAQ:AMZN)

Market Cap: $2.5 Trillion

Number of Hedge Fund Holders: 335

Amazon.com Inc. (NASDAQ:AMZN) is one of the best ESG stocks to buy now according to hedge funds. On September 11, Jefferies analyst James Heaney reaffirmed a Buy rating on Amazon (NASDAQ:AMZN) with a $265 price target. The call followed a series of bullish updates, including Bank of America’s Justin Post, who maintained a Buy rating the same day with a $272 target, and Morgan Stanley’s Brian Nowak, who on September 8 restated his Buy rating with a $300 target.

Nowak’s target is closer to the consensus high of $306, and the higher valuation reflects particular confidence in Amazon’s push into the $600 billion U.S. fresh and perishable grocery market. The analyst sees this initiative as a potential catalyst for accelerating U.S. Gross Merchandise Volume growth, even with modest market share gains.

He believes that Amazon.com Inc.’s (NASDAQ:AMZN) logistics and fulfillment network provides it with a strong base to scale delivery services very efficiently. On the other hand, the higher-margin grocery baskets and stronger basket economics add to the profitability case. Taken together, these developments underpin the bullish stance and reinforce Amazon’s long-term growth potential.

In an effort to expand its global footprint, Amazon.com Inc. (NASDAQ:AMZN) announced the acquisition of a stake in Colombian delivery company Rappi Inc., as reported by Bloomberg on September 9. The report also states that the deal is structured in a way that allows Amazon to acquire up to 12% of Rappi based on specific milestones. This deal empowers Amazon to compete much more effectively in the Latin American quick commerce space.

Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data centers and cloud computing networks.

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Best Multibagger Stocks to Invest in Right Now and Best Stocks For Day Trading: 12 Stock Picks.

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