5 Best American Stocks To Buy Heading into 2024

In this article, we will be taking a look at the 5 best American stocks to buy heading into 2024. To read our detailed analysis of current US market news, you can go directly to see the 14 Best American Stocks To Buy Heading into 2024.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company. It is based in Santa Clara, California.

An Overweight rating and a $650 price target were maintained on NVIDIA Corporation (NASDAQ:NVDA) on October 20 by John Vinh at Keybanc.

NVIDIA Corporation (NASDAQ:NVDA) had 175 hedge funds long its stock in the second quarter, with a total stake value of $25.9 billion.

This is what Artisan Partners said about NVIDIA Corporation (NASDAQ:NVDA) in its third-quarter 2023 investor letter:

“Our focus on scalable business models has its roots in our economic framework. As potential output moderated in most emerging countries, it became clear to us affordability was not improving and that low penetration was necessary but not sufficient for value creation. We eliminated companies from the portfolio that were struggling to generate revenue significantly in excess of fixed costs, often replacing them with passport companies such as NVIDIA Corporation (NASDAQ:NVDA) and Airbnb that were economically tied to emerging markets. Over a period of time, we have been successful in redefining the emerging markets opportunity set around real per capita GDP increases, growth in the middle class, revenue velocity and demand fulfilment. Combined with changes in the market backdrop that have resulted in privileged competitive positions for companies with financial strength and access to capital, we find our opportunity set expanding anew to include companies that are both based in emerging markets and conducive to value creation.”

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 204

Justin Patterson at Keybanc maintains an Overweight rating and a $155 price target on Alphabet Inc. (NASDAQ:GOOGL) as of October 13.

Alphabet Inc. (NASDAQ:GOOGL) is a big tech company based in Mountain View, California. It offers Google Cloud, Chrome, Gmail, and multiple other products and services.

We saw 204 hedge funds long Alphabet Inc. (NASDAQ:GOOGL) in the second quarter, with a total stake value of $17.3 billion.

Oakmark Funds said the following about Alphabet Inc. (NASDAQ:GOOGL) in its third-quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG)(U.S.) was the top contributor for the fiscal year. Alphabet reported multiple strong sets of earnings releases over the past year, and its results generally exceeded consensus estimates across key metrics. Most recently, search revenue growth accelerated from 5% to 6.5% sequentially in the second quarter, a notable development given lingering economic uncertainty and broader advertising weakness. Cloud growth remained at 30%, stable versus the previous quarter, despite continued headwinds from customers optimizing cloud usage. Margin progression also continued, and cloud margins reached 5%. CFO Ruth Porat emphasized that the largest impact from the company’s cost[1]saving initiatives will not be felt until 2024. YouTube continues to prioritize its Shorts segment, which is experiencing strong viewership growth. Although this is a near-term revenue headwind, we believe Shorts’ monetization will accelerate over time. Addressing the year’s hottest topic, CEO Sundar Pichai said Alphabet is an “AI-first company” that is “extremely well-positioned as AI reaches an inflection point.” At Alphabet’s annual developer conference in May, it showcased an impressive array of new AI-powered consumer tools to be rolled out over the course of the year. Investors reacted positively to these presentations, which highlighted the company’s impressive innovations in AI technologies. Overall, we believe the company is positioned well to reap the benefits of the scale of its search business and years of its investment into AI capabilities. We also appreciate that the company is undergoing a transformation on how it views cost discipline and efficiency.”

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 225

There were 225 hedge funds long Meta Platforms, Inc. (NASDAQ:META) in the second quarter. Their total stake value was $30.9 billion.

Meta Platforms, Inc. (NASDAQ:META) is a communication services company based in Menlo Park, California. It operates social media applications, among more.

On October 9, Ken Gawrelski at Wells Fargo maintained an Overweight rating and a $372 price target on Meta Platforms, Inc. (NASDAQ:META).

Here’s what Rowan Street Capital said about Meta Platforms, Inc. (NASDAQ:META) in its third-quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META): $550 billion rebound in market cap in less than a year.

A deep dive into what is driving the optimism for the stock.

It’s been exactly 11 months since we published an article: “Does a $750 billion decline in Meta’s market cap make sense?” META is up +240% since then compared to the S&P 500 advance of +13.5% over the same time period. We will examine what drove this abnormal return. But first, we can’t help but wonder: How is it possible for a trillion dollar company to first drop -75% to $268 billion in market cap and then skyrocket +250% to over $800 billion in market cap all in just less than 2 years. We are not talking about some micro-cap company here. META is the 7th largest company in the world. It is very well-known to everybody and is covered by 45+ analysts.

Are the markets really efficient when you witness this kind of a phenomenon?

Our belief is that the markets have actually become a lot less efficient over the short term with the proliferation of the internet, smart-phones, social media and effortless access to information. This is counterintuitive to what the academics teach us, but that is the way it has worked in reality. We will spare you further discussion on the efficiency of the markets as the purpose of this note was to discuss our investment in META. We wanted to share this observation and be clear that we are not exactly complaining here. Part of our job as fund managers is to exploit these market inefficiencies and drive value to the Rowan portfolio over the long run. And over the long run, the markets do a pretty good job in valuing companies…” (Click here to read the full text)

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 278

Amazon.com, Inc. (NASDAQ:AMZN) is a broad-line retail company. It is based in Seattle, Washington.

A total of 278 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, with a total stake value of $34.9 billion.

An Outperform rating and a $170 price target were maintained on Amazon.com, Inc. (NASDAQ:AMZN) by Oppenheimer’s Jason Helfstein on October 19.

White Falcon Capital Management mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its third-quarter 2023 investor letter:

“There are comparable narratives involving NU Holdings, Amazon.com, Inc. (NASDAQ:AMZN), and Teck Resources, to name a few holdings from the White Falcon portfolio. Amazon constructed its logistics network and cloud computing infrastructure using yesterday’s currency, but it is poised to capitalize on this network with the inflated dollars of tomorrow. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Citigroup’s Tyler Radke maintains a Buy rating and a $430 price target on Microsoft Corporation (NASDAQ:MSFT) as of October 19.

Microsoft Corporation (NASDAQ:MSFT) was seen in the portfolios of 300 hedge funds in the second quarter, with a total stake value of $69.8 billion.

Microsoft Corporation (NASDAQ:MSFT) is another big tech company on our list. It is based in Redmond, Washington.

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