5 Best Blue Chip Stocks To Buy

3. Apple Inc. (NASDAQ:AAPL)

No. of Hedge Fund Holders: 128

Apple Inc. (NASDAQ:AAPL), headquartered in Cupertino, California, is a technology firm that specializes in consumer electronics, online services, and software.

Given its market capitalization of over $2.5 trillion, Apple Inc. (NASDAQ:AAPL) is one of the leading blue chips with substantial competitive advantages. With its brand strength, Apple Inc. (NASDAQ:AAPL) could sell similar products for higher prices. With its economies of scale, Apple Inc. (NASDAQ:AAPL) could also realize higher margins.

Analysts are also bullish on the firm’s long-term prospects, with investment advisories like KeyBanc, UBS, Wedbush, Evercore, and Barclays raising their price targets on the stock in recent months.

According to Insider Monkey’s data, 128 hedge funds were long Apple Inc. (NASDAQ:AAPL) at the end of the second quarter of 2022, with combined stakes worth $1.43 billion, compared to 131 funds the prior quarter worth $1.82 billion.

Here is what Alger Capital specifically said about Apple Inc. (NASDAQ:AAPL) in its Q2 2022 investor letter:

“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”